The European Union's decision to impose permanent anti-dumping duties on titanium dioxide (TiO2) imports from China has been met with disappointment by the European Paint, Coatings and Printing Ink Manufacturers' Association (CEPE). This move follows the provisional introduction of punitive tariffs in July, and the EU Commission has now confirmed their permanent enforcement. The Commission alleges that the Chinese government has been artificially lowering TiO2 prices through subsidies, which has led to an unfair competitive advantage.
Photo: CEPE.
Titanium dioxide is a vital raw material in the paint industry, used in a wide range of products including paints, varnishes, and printing inks. It accounts for up to 40% of raw material costs and as much as 20% of the final product cost. According to CEPE, the introduction of these permanent tariffs jeopardises the future of the European paint sector, which generates an annual turnover of €33 billion and provides jobs for around 150,000 people.
Christel Davidson, Executive Director of CEPE, expressed concern, stating, 'This decision will have a very negative impact on the paint industry, which is one of the largest users of TiO2.' She also criticised the European Union's support for a few large, global TiO2 producers, which she claims will harm smaller firms supplying the local EU market. 'The companies they claim to want to protect the most – smaller firms supplying the local EU market – will now be hit the hardest, and many of them may not survive,' Davidson added.
CEPE fears that the new duties will significantly increase production costs for EU manufacturers, leading to a rise in imports of cheaper paints produced outside the EU using Chinese TiO2. As manufacturers outside the EU can still source TiO2 from China at lower prices, they will be able to offer cheaper paints in the European market, putting EU manufacturers at a distinct competitive disadvantage. Davidson commented, 'Paint manufacturers in the EU will be at a competitive disadvantage compared to manufacturers in other parts of the world who can continue to source TiO2 from China at lower prices and sell their paints more cheaply on the European market.'
The imposition of permanent anti-dumping duties on TiO2 marks a significant shift in the EU's trade policy, one that CEPE argues will have a long-term impact on the viability of the paint industry in Europe. While the European Commission seeks to address pricing distortions in the market, the move has raised concerns about the unintended consequences for smaller EU businesses and the broader paint sector.
Source: www.moebelfertigung.com