GPCA slams India's move to apply PP anti-dumping duties

12 August 2010 10:59  [Source: ICIS news]

By Malini Hariharan and Nurluqman Suratman

Reliance polypropylene (PP)SINGAPORE (ICIS news)--The Gulf Petrochemicals and Chemicals Association (GPCA) is “strongly protesting” a move by India to apply anti-dumping duties on polypropylene (PP) exports from Oman and Saudi Arabia, according to a GPCA statement obtained by ICIS on Thursday.

It has also protested against India's 'unprecedented approach' of rejecting the Saudi price mechanism for propane used to manufacture PP. 

“This [ADD) decision is not justified because GCC (Gulf Cooperation Council) companies are neither dumping products in India or causing injury to the Indian petrochemical industry," said Abdulwahab Al-Sadoun, secretary general of GPCA in the statement.

Feedstock prices in Saudi Arabia, and the Gulf in general, are generally more competitive than in countries such as India, due to their proximity to feedstock sources as well as low production and distribution costs, he said.

The methodology applied by India in its report would clearly not stand up to scrutiny under World Trade Organization (WTO) rules, Al-Sadoun said.

“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,” he said.

Al-Sadoun said that he was surprised that the Indian government would take such a “dubious action”, adding that the move could have an impact on many aspects of business and trade between the Gulf and India.

He also called upon the Indian government to reconsider the decision before it “affected economic relations with the Gulf region”.

“In the meantime, GPCA will be consulting with Governments in the region to support next steps in this investigation,” Al-Sadoun added.

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By: Nurluqman Suratman

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