Canada finds ‘reasonable indication’ China, Pakistan PET dumping hurting local producers

SAO PAULO (ICIS)–The Canadian International Trade Tribunal (CITT) has determined there is “a reasonable indication” that the dumping and subsidizing of polyethylene terephthalate (PET) originating in or exported from China and Pakistan has caused injury to Canadian producers.

The resolution published this week follows on from the inquiry opened in March after producer Compagnie Alpek Polyester Canada, a subsidiary of Mexico’s Alpek, filed a complaint with the Canada Border Services Agency (CBSA).

“The CBSA will continue its investigations and, by 17 June, will issue preliminary determinations,” said the Tribunal this week.

If successful, the investigation could conclude advising to impose antidumping duties (ADDs) against PET imports from China and Pakistan, meaning PET imports from both jurisdictions would face higher-than-average import taxes to enter Canada.

The CITT is an independent quasi-judicial body that reports to Parliament through the Minister of Finance, and it hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement, and appeals of customs and excise tax rulings.

When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

The Canadian market of imports for PET resin was estimated at around $193 million in 2023, and at $185 million in 2024, according to government data.

In 2024, imports from China made up 46% of total imports into Canada, while shipments from Pakistan made up 28% of imports.

The two countries were second and third suppliers of PET to Canada, after the US.

PET resins can be broadly classified into bottle, fiber or film grade, named according to the downstream applications. Bottle grade resin is the most commonly traded form of PET resin and it is used in bottle and container packaging through blow molding and thermoforming.

Fiber grade resin goes into making polyester fiber, while film grade resin is used in electrical and flexible packaging applications.

PET can be compounded with glass fiber for the production of engineering plastics.

DAK Americas, Indorama, Nan Ya Plastics Corporation and Far Eastern New Century (FENC) are PET producers in the US.

Additional reporting by Melissa Wheeler