On Wednesday, November 27th, according to insiders, EU member countries have cleared the way for the imposition of definitive anti-dumping duties on titanium dioxide (TiO2) imported from China.
Definitive anti-dumping duties are tariffs imposed by the importing country’s authorities after a full investigation shows sufficient evidence of dumping of the investigated product, causing harm to domestic industries producing similar products, and establishing a causal link between the dumping and the injury, resulting in the imposition of anti-dumping duties.
Approximately 15 EU countries voted in favor of imposing the tariffs, 8 countries opposed, and 4 countries abstained. The tariffs on this product, primarily used in paint as white pigment, are expected to be implemented starting before January 11th next year and will be valid for five years.
The European Commission recommended tariffs of 0.25 euros per kilogram on Anhui Gold Star Group, 0.74 euros on LB Group, 0.64 euros on companies cooperating with the investigation, and 0.74 euros on all other companies.
In July, the EU imposed provisional tariffs ranging from 14.4% to 39.7%. These provisional tariffs will be replaced by the final tariffs, with the final tariffs slightly lower in percentage.
Following a complaint from an unidentified alliance of EU manufacturers, the European Commission, responsible for coordinating EU trade policy, initiated an investigation a year ago.
The alliance claimed that unfair cheap imports from China had rapidly increased their market share to 22%, leading to unsustainable profit margins for EU producers. They also argued that EU producers could meet 90% of EU demand, while imports from countries like the UK, Mexico, and the US could meet the remaining 10%.
EU producers include Cinkarna, Kronos, Tronox, and Venator.
Data from Eurostat shows that China’s imports of titanium dioxide exceeded 500 million euros in 2023.
The European Council of the Paints and Printing Ink Industry (CEPE) urged EU member states last week to reject the imposition of tariffs, stating that titanium dioxide accounts for about 20% of the final cost of finished products, posing a threat to the survival of the EU coatings industry worth 33 billion euros annually.
Titanium dioxide imports specifically used for producing white ink for printing were exempted from the tariffs.
(Translated and adapted from a report by Reuters)