The European Council of Ministers has announced that it will extend anti-dumping measures for polyethylene terephthalate (PET) for another five years. However, according the European Plastics Converters (EuPC) – the representative trade organization for plastics converters in Europe – this legislation will put further cost pressure on converters.

EuPC, in its reaction to the legislation (Council Regulations 192/2007 and 193/2007 of 22 February 2007, published 27 February 2007), says that the PET industry has seen long-term market distortions that could have been remedied by rethinking, or repealing these measures. The organization says that the difficulties faced by European PET converters have been caused by the artificially high price of raw materials in the European Union (EU). According to the EuPC, as much as 80% of the total costs for PET converters in the EU are related to the purchase of raw materials.

The European PET converting industry also faces problems concerning PET pre-form supply. According to the trade organization, the low transport costs for the shipping of these pre-forms gives advantages to non-EU producers, which have a lower cost base. EuPC says it has monitored a steady increase in imports of PET Pre-forms into the EU since 2000, which the organization sees as being due to looser border controls in the Ukraine and Croatia.

EuPC acknowledges that imports should compete on a level playing field with EU manufactured materials and products but the organization believes that the European Council of Ministers has missed an opportunity to “correct an unfair advantage” for EU PET suppliers. The policy will not be evaluated again for another in five years. Meanwhile, the EuPC is concerned that the PET converting industry – mainly small- and medium-sized businesses – will suffer as a consequence.

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