EU to hike import duties on petrochemicals- producers eye free-trade deals

25-Dec-13

With effect from January 1, 2014, the European Union will change the rules on its so-called General System of Preferences (GSP), which provides countries classed as developing with preferential access to the EU market, largely in the form of reduced import taxes. Amendments in the list will remove nations that are classified as high-income or upper-middle income, meaning many companies in the Middle East that are big suppliers of petrochemical products will have to pay 3.5% more in tax to sell goods in the EU. Steep hike Union in import duties on many petrochemical products will do little to protect Europe's battered petrochemical industry, but it could well be a boon to downstream producers of plastics and chemicals by injecting momentum into free-trade talks with individual producing nations, lobbyists and consultants say as per Platts. On the face of it, the deal looks to be one of protectionism for Europe's petrochemical industry, but lobbyists and consultants hope it will in turn motivate countries to sign free-trade agreements and hammer down the cost of making plastics across the continent. Platts data shows that the Middle East is overwhelmingly the largest exporter of polyethylene to Europe, accounting for 65-70% of PE imports received by Europe, with that share having grown.