In response to recent moves by China and India against petrochemical exporters based in Saudi Arabia and Oman, a Gulf based organization of petrochemical and chemical producers is gearing up. Gulf Petrochemicals and Chemicals Association’s (GPCA) has launched an initiative to challenge “protectionist measures” by way of anti-dumping procedures launched by China, India and the European Union (EU) against exports from countries in the region.
The organisation is concerned about the potential impact of these protectionist measures on the global petrochemical and chemical industry and the downstream consumers in China and India. GPCA will strengthen co-ordination with GCC governments to ensure that exports of petrochemicals and chemicals from the Gulf region are not restricted by anti-dumping regulations and other trade restrictions. As part of its initiative, GPCA will investigate and recommend specific actions that should be taken against trading partners that restrict GCC petrochemical and chemical exports. The anti-protectionist initiative will continue to be a key aspect of GPCA’s mandate for sharing information, analysing trends and giving a common voice to the GCC industry, he said. GPCA has instituted an advocacy committee that will adopt a system to alert members about anti-dumping cases and work closely with GCC governments and the GCC Secretariat to defend the regional industry against such unwarranted actions.
As per the organization, China and India had no reason to pursue anti-dumping investigations on imports of petrochemical products from GCC countries. They themselves are low-cost producers of a wide range of downstream products that are exported to Gulf countries. It would be disastrous for those industries in these two countries if GCC countries applied anti-dumping regulations to such products.