The EU announced the initiation of an anti-dumping proceeding concerning imports of epoxy resins from China, the Republic of Korea, Taiwan, and Thailand. This announcement was published in the Official Journal of the European Union (EU) as a result of a complaint lodged by the Coalition investigating the level of dumping practiced by exporters from the four targeted countries in the EU market and whether imports from these countries have caused injury to the European epoxy resin industry.
The complaint alleges that exporting producers from the four countries have injured European epoxy resin producers by selling their products in the EU market at unfairly low prices that significantly undercut the prices of European producers. If the anti-dumping investigation concludes that injurious dumping practices from the four targeted countries have taken place, the European Commission is entitled to impose additional duties on imports of epoxy resins from these countries to restore fair competition in the EU.
The dumping margins alleged during the investigation period and set in the complaint are as follows:
| Country | Alleged Dumping Margins |
|---|---|
| China | 140% – 170% |
| Republic of Korea | 10% – 40% |
| Taiwan | 20% – 40% |
| Thailand | 60% – 90% |
The European producers in the Coalition manufacture epoxy resins, an essential component for which there are no substitutes, for various customer applications including critical industries such as Shipping, Automotive, Defense, Electrical Energy, Semiconductors, and Wind Energy. The availability of European epoxy resin production is critical to ensure the EU’s supply chain resilience for the industries that promote progress toward the European Green Deal priorities.
The recent implementation of anti-dumping measures for titanium dioxide offers a similar example. The European Commission had imposed duties on imports of titanium dioxide from China to counteract the unfair trade practices that caused severe injury to European producers. This action resulted in the restoration of fair competition, the strengthening of domestic production, and the protection of jobs.
Just as with titanium dioxide, addressing dumping in epoxy resins is vital for protecting the European industry, ensuring economic security, and maintaining critical technological infrastructure. The actions of the European Commission highlight the EU’s commitment to defending the interests of European producers and ensuring a sustainable and fair trade environment.
Nevertheless, paint producers in the European Union are skeptical about the impending price increases that may result from the imposition of anti-dumping duties on imports of epoxy resins and titanium dioxide from third countries. Although these duties aim to protect European producers and restore fair competition, paint producers are concerned that the increased cost of raw materials will be passed on to the final prices of their products. This increase may reduce their competitiveness in the market and negatively affect their profitability, especially during a period of economic instability and inflationary pressures already impacting industrial activities and consumers’ purchasing power.
