May/June 2020
Shipper
BULKDISTRIBUTOR
3
GPCA condemns
Indian MEG
import approach
Securing a tariff-free, frictionless free
trade agreement is essential, says the
Chemical Industries Association
Inconsistent investigative practices by
Indian authorities on anti-dumping
regulations are raising serious concerns
under World Trade Organization (WTO) rules,
according to the Gulf Petrochemicals and
Chemicals Association (GPCA).
GCC ethylene glycol (EG) imports into India may
be severely hurt as a result of an ongoing antidumping
investigation targeting imports from
Saudi Arabia, Kuwait, Oman, UAE and Singapore.
GPCA, the regional trade body representing the
common interests of the chemical and allied
industries in the Arabian Gulf, said the inconsistent
investigative practices by Indian authorities
threaten to hurt GCC economies severely,
jeopardising US$543 million worth of mono
ethylene glycol (MEG) imports, which is equivalent
to 20 percent of total chemical imports from the
region into India. India is the second largest
importer of GCC chemicals and accounts for over a
third of total GCC export volume together with
China.
On 6 April 2020, Indian authorities terminated
the investigation for the sole imports from Saudi
Arabia, and continued the investigation into
imports from Kuwait, Oman and the United Arab
Emirates. This partial termination of the
investigation is inconsistent with Indian antidumping
rules, GPCA maintains.
The association is therefore urging the fair
treatment of GCC MEG producers and calling on
Indian authorities to terminate the partial
investigation into MEG imports from the remaining
GCC states, in order to restore a level playing field
for all producers and allow for the continuation of
exports of MEG from the GCC to India in the
future.
MEG is an essential raw material for the
production of various end user products ranging
from clothing and other textiles, through
packaging to kitchenware, engine coolants
and antifreeze. Polyester and fleece fabrics,
upholstery, carpets and pillows, as well as
light and sturdy PET drink and food
containers originate from ethylene
glycol.
Dr Abdulwahab Al-Sadoun,
GPCA secretary general,
commented: “As the regional
body for the Arabian Gulf
chemical industry, GPCA
calls for the immediate
termination of the partial
anti-dumping
investigation into
regional MEG imports
into India. This
detrimental and
ill-advised measure
is having a harmful impact not just on GCC
economies but also on bilateral trade, threatening
to disrupt India’s domestic market and damage
long-standing friendly relations between the
nations.”
He added: “This is the latest in a series of traderestrictive
practices introduced by Indian authorities
that GCC chemical exports have been confronted
with over the years. GPCA is working closely with
GCC authorities to advocate for the immediate
termination of the investigation in line with India’s
international obligations and the fair treatment of
all WTO member states. At a time of pandemic,
the uninterrupted supply of chemical raw materials
is essential to addressing the global health crisis
and we call on authorities to work together to
ensure we maintain the materials needed in
factories across the globe today to ensure no
shortage of essential raw materials.”
Echoing this sentiment, the International Council
of Chemical Associations (ICCA), of which GPCA is
a member, recently wrote to the G20 leaders as
well as trade ministries in various states, to
commend their statement on easing supply chain
constraints. ICCA further called on world leaders to
co-ordinate with the industry for the removal of
trade barriers and commit to stopping trade
distorting practices, particularly for materials and
products, including those made from chemicals
and petrochemicals, deemed essential in the fight
against the COVID-19 pandemic.
As a member of the G20, India must act now to
roll back any applied or future measures that
contradict its G20 commitments, GPCA concluded.
www.gpca.org.ae
Dr Abdulwahab Al-
Sadoun, GPCA secretary
general: “This detrimental
and ill-advised measure is
having a harmful impact
not just on GCC economies
but also on bilateral trade”
Hwang becomes CINS chairman
CINS, the Cargo Incident Notification System, has elected Capt Y S Hwang (Evergreen
Marine Corp.) as its new chairman. In addition, the CINS board has elected Uffe V Ernst-
Frederiksen (Maersk Line) as its deputy chairman.
“I’m looking forward to undertaking this challenging role for CINS and the industry that the organisation
represents,” commented Capt Hwang. “My role is to lead CINS forward on a path towards the
development of improved safety in the logistics chain and the promotion of best practice in the shipment
all types of containerised cargoes.”
Capt. Hwang is an experienced container shipping industry professional. An Evergreen employee for over
25 years, he holds a UK MCA Master Unlimited Certificate of Competency and is an active Evergreen Fleet
Captain.
Currently department head of operation, his role covers operational affairs, including: stowage planning,
scheduling, dangerous goods and special cargoes and actual loading data system (EDI Exchange).
Stalled Brexit
negotiations
worry chem
industry
With national governments and the
European Commission preoccupied
with the COVID-19 pandemic, attention has
drifted from the potential for a hard, chaotic
Brexit.
The UK government has said already this year
that it will not use the pandemic as an excuse to
delay further trade negotiations with the EU
despite the fact that few believe a deal is now
possible given the current circumstances, and
despite the UK’s inevitable nosedive into recession
this year.
Most economists believe that a ending the
12-month transition period with no deal will deliver
a further shock to the UK economy just as it is
struggling to cope with the fallout from the
pandemic.
Against this background the Chemical Industry in
the UK and in Europe has spoken of the
importance of an agreed trade deal between the
EU and the UK.
Steve Elliott, chief executive of the Chemical
Industries Association (whose members are
chemical and pharmaceutical businesses in the UK)
said: “The EU remains our biggest customer and
supplier, so securing a tariff-free, frictionless free
trade agreement is essential. Most crucially creating
a parallel UK regulatory regime for chemicals, while
still needing to meet the legal requirements of our
biggest market place under EU REACH will, in our
view, bring no commercial or environmental
benefit and could put businesses and jobs at risk
right across the country, including seeing a whole
new programme of animal testing, something that
none of us wants to happen. I think we can get a
good trade deal without compromising the Brexit
wish of the British people”.
Marco Mensink, director general of Cefic (whose
members are chemical businesses from across
Europe) commented: “We would like to see an
agreement comprising tariff and quota free
chemicals trade and the UK staying in REACH and
ECHA to ensure full regulatory alignment. We and
the UK chemical industry will be working to
support all sides in achieving that”.
The industry which is the UK’s biggest
manufacturing exporter and Europe’s fourth has
nearly €44 billion worth of trade flowing between
the two jurisdictions. An agreed trade deal would
also strengthen the sector’s work that is already
delivering significant solutions to global challenges
such as climate change, the two bodies added.
Perfect storm
In a separate move, Chemical Business Association
(CBA) chairman Darren Budd, who is also
commercial director of BTC-Europe, said that the
twin challenges of Covid-19 and Brexit amounted
to a ‘perfect storm’ for many companies.
He said: “We have the immediate reality of the
Covid-19 pandemic and waiting in the wings we
have the prospect of further Brexit uncertainties.”
The CBA chairman’s message replaced his speech
to the association’s annual lunch scheduled to for
29 April but was cancelled because of the Covid-19
lockdown.
“CBA has continued to call for an end to
uncertainty and, like most of UK business, close
regulatory alignment and continuing frictionless
trade with the EU. Our advocacy campaign will
continue to secure market access and frictionless
trade with the EU – the destination for 60 percent
of the UK’s chemical exports and the source of 70
percent of the UK’s chemical imports.
“But the UK Government has made it clear that it
has no intention of even attempting to achieve
regulatory alignment with the European Union as
far as chemicals are concerned.
CBA is therefore now advising member
companies trading with the EU to pursue a number
of options before the end of the transition period
in order to secure EU market access.
These are: either use an existing subsidiary or
create a new one in the EU and transfer any EU
REACH registrations to that subsidiary; establish a
partnership with a company in the EU and transfer
any EU REACH registrations to that company;
support CBA’s plan to create or contract with a
collective Only Representative entity in the EU for
member companies.