Anti-dumping duties on titanium dioxide: SMEs most affected
CEPE has reacted with disappointment to the European Commission Regulation which is imposing antidumping duties on imports of titanium dioxide from China. The association’s managing director Christel Davidson fears such cases are likely to increase in the future and will lead to a competitive disadvantage for European paints and coatings manufacturers. Interview by Damir Gagro.
What is CEPE’s reaction to the regulation?
Christel Davidson: We are indeed disappointed, despite the European Commission granting an exemption for TiO2 for use in the production of white inks for printing and that the anti-dumping duties will not apply retroactively. In our view, the Regulation does not sufficiently consider the impacts of the imposition of these duties on the competitiveness of downstream users of TiO2 especially paint manufacturers. Smaller companies catering for the local EU market will be the most affected by this decision. As CEPE we fear that the increase in production costs for EU producers manufacturing in Europe will result in a surge in imports of cheaper paints produced outside the EU using Chinese TiO2 that is not subject to antidumping duties. This implies that paint manufacturers in the EU will find themselves at a competitive disadvantage compared to manufacturers in other parts of the world, who can continue sourcing TiO2 from China at lower prices and sell their paints on the EU market.
What will be the next steps by CEPE?
Davidson: Together with our national associations, we will monitor the imports of paints and printing inks from outside the EU. Also, with other anti-dumping proceedings such as for epoxy resins currently underway and more cases likely in the future, we are seeking to organise a webinar for our members, with a particular focus on smaller companies, to raise awareness on how companies can get involved early in the process.
What can be done at this stage?
Davidson: The anti-dumping measures are imposed for five years. Therefore, there is little that can be done. However, it is theoretically possible for an exporter, importer or Community producer to ask for an interim review once the measure has been in force for one year. On the other hand, a member state or the European Commission can ask for it at any time. The interim review can be either full – addressing issues such as dumping, injury, and Community interest – or partial, – focusing on specific aspects, such as dumping.
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