EU Initiates Safeguard Investigation into PET Resin and Three Categories of Upstream Chemicals

en.Wedoany.com Reported - On November 6, the European Commission officially initiated a safeguard investigation into imports of polyethylene terephthalate (PET) resin and related upstream chemicals, registered under case number SAFE012. The investigation covers virgin PET, recycled PET, PET-G, and products including terephthalic acid, monoethylene glycol, and purified isophthalic acid. It focuses on assessing whether increased imports have caused or threaten to cause serious injury to EU producers, and on that basis will determine whether to impose provisional or definitive trade safeguard measures.

The investigation involves multiple production stages of the PET resin industry chain. The PET scope covers virgin resin, recycled resin, and PET-G copolyester meeting the relevant product definitions, while upstream raw materials include terephthalic acid (TA), monoethylene glycol (MEG), and purified isophthalic acid (PIA). PET resin is used in industrial sectors including packaging, textiles, construction, and advanced materials.

The European Commission will investigate the growth of exports of the relevant chemicals from third countries to the EU and assess the relationship between changes in import volumes and injury to EU producers. The European Commission noted that European manufacturers of the relevant chemicals are facing import competition pressure from third countries, and that global overcapacity is further intensifying market supply pressure.

In accordance with procedures published by the World Trade Organization, interested parties must register their intention to participate with the European Commission within 15 days of the initiation of the investigation, and submit written comments, questionnaires, and supporting evidence within 21 days. Relevant companies may also request a hearing within the 21-day period. Investigation materials are to be received by the European Commission's Directorate-General for Trade and Economic Security.

The European Commission may adopt provisional safeguard measures when the conditions of the investigation are met. Definitive safeguard measures require support from a qualified majority of EU member states. According to the procedural arrangements published by the EU, if provisional measures are adopted, definitive measures must be issued within 200 days after the provisional measures take effect, and the investigation should in principle be completed within 9 months of initiation, extendable to a maximum of 11 months under special circumstances.

The EU's existing trade remedy measures already cover multiple products in the PET industry chain, including anti-dumping measures against PET imports from China, countervailing measures against PET imports from India, and anti-dumping measures against terephthalic acid imports from South Korea and Mexico and monoethylene glycol imports from Saudi Arabia and the United States. This safeguard investigation is a separate trade remedy proceeding, covering imports of the relevant chemicals from multiple trading partners outside the EU.