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EU Imposes Anti-Dumping Duties on Titanium Dioxide Imports from China

General
16
January 2025
•
450
Dr Steven Brennan
Discover why the EU has imposed anti-dumping duties on titanium dioxide imports from China, protecting its industry from unfair competition.
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Summarise this article

The EU has imposed anti-dumping duties on titanium dioxide imports from China following an investigation by the European Commission. The move aims to protect the Union’s industry from the adverse effects of underpriced Chinese exports, which have caused significant financial harm.

What are the EU’s anti-dumping duties on titanium dioxide?

The EU imposed tariffs on Chinese titanium dioxide imports after finding that these products were being sold at unfairly low prices, causing harm to EU producers.

How will the titanium dioxide anti-dumping duties impact the EU and China?

The duties are expected to strengthen the EU TiO2 industry while limiting access for Chinese exporters to the EU market.

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The European Union has imposed anti-dumping duties on titanium dioxide (TiO2) imports from China, effective January 2025. The decision follows an investigation by the European Commission, which found that the influx of underpriced Chinese TiO2 caused significant harm to EU producers. These measures aim to protect the Union’s industry, which has been struggling to compete with the unfairly low-priced imports.

Reason for the Anti-Dumping Measures

The European Commission's investigation, launched in response to a complaint from the EU's TiO2 industry, revealed that Chinese exporters were selling TiO2 at prices significantly below fair market value. This practice caused material injury to the Union’s producers, who suffered from declining profits and reduced investment capacity between 2020 and 2022.

Table 11 of the investigation findings highlighted critical indicators such as falling profitability (from 7.9% in 2020 to -11.7% during the investigation period) and a dramatic drop in cash flow, which reached -€42.3 million in the same timeframe. These factors underscored the urgency of imposing corrective measures to stabilise the EU market.

Details of the Duties

The duties target several Chinese exporters of titanium dioxide, with specific tariffs applied based on the level of underpricing and cooperation in the investigation. Companies listed in the annex of the official decision, such as Guangxi Bluestar Dahua Chemical Co. and Shandong Dawn Titanium Industry Co., now face tailored additional duties under TARIC codes.

Impact on EU and Chinese Industries

The European Commission noted that these duties would allow EU producers to recover lost profitability and maintain fair competition. However, Chinese exporters may experience reduced access to the EU market, prompting concerns over trade tensions between the two regions.

Reaction from Stakeholders

The China Nonferrous Metals Industry Association (CNMIA) argued against the decision, claiming that the Union’s industry was not experiencing material injury and attributing the challenges to broader economic conditions. Despite these objections, the Commission upheld its findings and confirmed the necessity of the duties.

Future Implications

This move is expected to bolster the EU TiO2 industry, encouraging investment and innovation. Meanwhile, Chinese exporters may seek alternative markets or challenge the EU’s decision through the World Trade Organization (WTO).

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