Saudi Arabia has set up a technical panel as part of its drive to defend itself in an anti-dumping row with the 27-member European Commission. The high-level technical panel will work and coordinate with an international consulting office to explain the position of the Saudi government and exporters, as per Arab News. This announcement follows the EU’s recent move to launch an investigation against Saudi exporters of the polyethylene terephthalate (PET). The PET market of the EU, where Saudi PET are allegedly being dumped, exceeds US$4.1 bln annually.
The complaint claims that the Saudi producers of petrochemicals receive unfair support from the Saudi government in PET exports that contravenes the provisions of the agreement made by the World Trade Organization. The European Commission had initiated anti-dumping and anti-subsidy investigations following a complaint by the Committee of PET Manufacturers in Europe with respect to imports of PET originating in or exported from Oman and Saudi Arabia. An allegation has been made against the Saudi Basic Industries Corp. (SABIC) that the company allegedly dumps products in EU markets. The EU claims its producers may be affected by subsidies and price undercutting. The European bloc has threatened to impose tariffs against PET.