GCC ethylene glycol (EG) imports into India may be severely harm as a result of an ongoing anti-dumping investigation focused on imports from Saudi Arabia, Kuwait, Oman, UAE and Singapore, in accordance to the Gulf Petrochemicals and Chemicals Association, the regional trade body representing the common interests of the chemical and allied industries in the Arabian Gulf.

The inconsistent investigative practices by Indian authorities on anti-dumping guidelines increase serious worries under World Trade Organization (WTO) guidelines and threaten to severely harm GCC economies, jeopardizing USD 543 million worth of mono ethylene glycol (MEG) imports, which is equal to 20% of whole chemical imports from the region into India, in accordance to GPCA analysis. India is the second biggest importer of GCC chemical compounds and accounts for over a third of complete GCC export quantity together with China.

On 6 April 2020, Indian authorities terminated the investigation for the sole imports from Saudi Arabia, and persisted the investigation into imports from Kuwait, Oman and the United Arab Emirates. This partial termination of the investigation is inconsistent with Indian anti-dumping rules.

GPCA is consequently urging the truthful treatment of GCC MEG producers and calling upon Indian authorities to terminate the partial investigation into MEG imports from the remaining GCC states, in order to restore a level playing discipline for all producers and enable for the continuation of exports of MEG from the GCC to India in the future.

MEG is an integral raw material for the manufacturing of numerous end user products ranging from clothing and other textiles, by packaging to kitchenware, engine coolants and antifreeze. Polyester and fleece fabrics, upholstery, carpets and pillows, as well as light and sturdy PET drink and food containers originate from ethylene glycol.

Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, commented, As the regional body for the Arabian Gulf chemical industry, GPCA calls for the instant termination of the partial anti-dumping investigation into regional MEG imports into India. This harmful and ill-advised measure is having a dangerous effect not simply on GCC economies however additionally on bilateral trade, threatening to disrupt Indias domestic market and harm long-standing friendly relations between the nations.

He added: This is the state-of-the-art in a series of trade-restrictive practices added by Indian authorities that GCC chemical exports have been confronted with over the years. GPCA is working intently with GCC authorities to suggest for the instant termination of the investigation in line with Indias global responsibilities and the honest remedy of all WTO member states. At a time of pandemic, the uninterrupted supply of chemical raw materials is fundamental to addressing the international health disaster and we call upon authorities to work collectively to make sure we hold the substances wanted in factories throughout the globe nowadays to make sure no scarcity of necessary raw materials.

Echoing this sentiment, the International Council of Chemical Associations (ICCA), of which GPCA is a member, currently wrote to the G20 leaders as well as trade ministries in a number of states, to commend their declaration on easing supply chain constraints. ICCA in addition called upon world leaders to coordinate with the industry for the elimination of trade obstacles and commit to stopping trade distorting practices, in particular for substances and products, which includes those made from chemical compounds and petrochemicals, deemed necessary in the battle towards the COVID-19 pandemic. As a member of the G20, India ought to act now to roll back any utilized or future measures that contradict its G20 commitments.