Gulf Association mulls legal action on failure of diplomatic efforts to remove dumping duties on PP

13-Jan-11
The Gulf Petrochemicals and Chemicals Association will take legal action if diplomatic efforts to remove what they say are India’s unlawful dumping duties on imports of polypropylene from Saudi Arabia and Oman are not lifted, as per Arabianbusiness.com. The next step could be approaching the World Trade Organisation’s (WTO) dispute committee. In 2010, India levied a fresh round of dumping duties on polypropylene imports from Saudi Arabia and Oman, on conclusion by India’s ministry of industry and commerce that the low costs of feedstock in the Gulf gave its petrochemical producers an unfair cost advantage. The association opines that in this case, India’s case had been built upon cost protection that is not actual – they used international pricing to build a costing model that isn’t correct. Currently, the combined export from this region to India is still small, hence this action has not caused significant impact. However, the association is concerned about such regulations because this is not in compliance with the WTO regulations.
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