Gulf petrochemicals producers protest against Indian anti-dumping moves

12 August 2010

Umbrella body could lobby for retaliatory measures

The Gulf Petrochemicals and Chemicals Association (GPCA), the regional umbrella organisation for producers has protested against recent moves by the India government to apply anti-dumping measures on exports of polypropylene from the Gulf region.

The Indian Commerce and Industry Ministry decided to apply anti-dumping measures against polypropylene exports from Oman, Saudi Arabia and Singapore, according to a 21 July disclosure report.

The decision follows an application by India’s Reliance Industries and Haldia Petrochemicals in February 2009. The two companies claimed the imports were sold below the real cost of production between April and December of last year.

According to the GPCA, the Indian anti-dumping authorities took the “unprecedented approach of rejecting the local price of feedstock”. Feedstock prices in Saudi Arabia are considerably lower than in India.

Abdulwahab al-Sadoun, Secretary General of the Dubai-based GPCA says the methodology applied by the Indian Ministry of Commerce and Industry would not stand up to scrutiny under World Trade Organisation (WTO) rules.

“WTO rules do not allow India to use anti-dumping measures to protect its industry from fair trade from competitive producers in the Gulf region that are not dumping their products and are not injuring the Indian industry,” Al-Sadoun said in a 11 August release.

The GPCA could lobby for similar retaliatory action by the GCC against India and China, which has also imposed anti-dumping charges.

In June last year, China also began a similar investigation into the alleged dumping of methanol stocks by producers from several countries, including Saudi Arabia.The GPCA criticised the investigation as simply being protectionism dressed up as anti-dumping procedures (MEED 30:12:09).

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