Brazil initiates two trade probes against South Africa, India and South Korea over PP dumping

04-Apr-13

Brazil claims that South Africa, India and South Korea allowed local producers and exporters of polypropylene resin to benefit through several government incentive programs, in the process harming Brazilian producers, as per bdlive.co.za. The first investigation relates to allegations of dumping against South Africa, South Korea and India and was initiated on March 19. The period under investigation — in which the alleged dumping took place — is from April 2011 until March last year. According to the Brazilian investigating authority, which is similar to South Africa’s International Trade Administration Commission, the alleged margin at which polypropylene resin was being dumped in Brazil by South Africa amounted to 10.72%, by India 7.85% and by South Korea 6.7%. The duty in Brazil on imported polypropylene resin currently is 14%. Brazil is asking for an additional duty of 10.7% on imports from the three countries. In the second investigation which began on March 26, India and South Africa are alleged to have subsidised the domestic manufacturing, production or export of polypropylene resin, subsequently exported to Brazil. Grant Herholdt, a director at Edward Nathan Sonnenbergs, said if it was found that the product was subsidised and that it was causing "material injury" to the Brazilian market, Brazil would be entitled to impose countervailing duties.