ISLAMABAD: The United States has hinted that it may impose a preliminary anti-dumping duty on the import of polyethylene terephthalate (PET) from Pakistan in March 2018.

An official source in the Ministry of Commerce told Dawn on Friday the US Department of Commerce has already initiated a preliminary investigation against five countries, namely Pakistan, Brazil, Indonesia, South Korea and Taiwan.

Popularly known as resin, PET is bottle-grade polyester chip that is used in the production of disposable bottles for beverages.

Imports from five countries are allegedly being sold in United States at less than fair value

The United States has initiated several dumping cases against many other countries since President Donald Trump came into power.

He has shown his resolve to erect high tariff walls to protect American companies.

In this background, the Office of the United States Trade Representative (USTR) made many such attempts recently. The latest one was at the 11th ministerial conference of the World Trade Organisation (WTO) where it sought to pressure the organisation’s appellate body not to challenge these measures. If these measures were challenged, the United States would want no determination against them.

On Sept 26, four US-based companies filed a petition with the US Department of Commerce for the imposition of anti-dumping duties on imports of PET resin from these countries.

The US International Trade Commission (USITC) made a positive preliminary determination of the injury on Nov 20.

According to the report, there is an indication that its imports from the five countries are allegedly sold in the US market at less than the fair value.

The official said the final decision will be taken following the report by the USITC.

The USITC will send a questionnaire to Pakistani exporters to seek required information.

Interestingly, Pakistan was celebrating the WTO dispute settlement system’s landmark verdict in July in which it upheld Islamabad’s position and rejected the European Union’s decision on countervailing duties imposed on the imports of PET resin from Pakistan.

The first surprise after the WTO ruling came from Turkey, which imposed safeguard measures on its imports from Pakistan. Since August, Canada has also started a countervailing investigation against Pakistani PET resin. The United States is the third country to initiate a dumping duty on the import of this chemical.

After losing the EU market due to countervailing duties, Pakistani exporters are exploring new markets, especially the United States.

Total US imports of this chemical from the global market is around $1 billion. The share of Pakistan is just 4pc.

According to the official, Pakistani exporters may lose the US market in case the National Tariff Commission does not provide timely support to local manufacturers.

Published in Dawn, December 30th, 2017