US to rethink on inclusion of Indian PET in GSP
With the US set to rethink the inclusion of polyethylene terephthalate (PET) in GSP, Reliance Industries, Ltd. has requested the US International Trade Commission to deny the US Pet Resin Coalition's petition to withdraw GSP duty free treatment for PET imported from India.
It said the petitioners have not been adversely affected by the modest level of Indian imports that currently enter the US market. “Conversely, GSP benefits have significantly furthered the economic development of Indian producers and the Indian people. Without continued benefits, India will be at a significant competitive disadvantage to other major PET producers like Canada, Mexico, and Oman who receive duty-free treatment," RIL said in a written submission to USITC.
“In past proceedings, US International Trade Commission and/or GSP Subcommittee have repeatedly examined PET imports from India in the context of trade remedy and GSP proceedings. In each case India retained GSP status and was found not to be injuring the US industry. The findings of USITC remain valid today,” it pointed out.
RIL insisted that Indian PET resin constitutes an insignificant share of the US PET market. US PET producers' shipments account for an ‘overwhelming share’ of the US PET resin market. :The US PET resin market is dominated by four U.S. producers who are part of large multi-national companies that produce and source PET resin around the world. The US industry continues to benefit from a huge market share, the ability to construct new gleaming facilities and dominate key segments of the market.”
“Mexican and Canadian imports dwarf lndian PET resin imports. The US producers' position in the US market is further fortified by imports from affiliates in Mexico that U.S. producers' control. The largest source of imports is from Mexico. 100% of Mexican PET resin production facilities are owned and controlled by the same corporate groups that control two of the key US producers. The domestic industry treats North America as a single integrated market, drawing upon substantial imports from its Mexico and Canada plants to supply the US market,” RIL maintained.
RIL maintained India will continue to be a marginal supplier to the US market. “Under these circumstances, it is inconceivable that continuation of duty-free treatment will adversely affect the US PET resin industry,” it said.
RIL’s response came after the PET Resin Coalition filed a petition with the US Trade Representative (USTR) requesting the removal of products from India classified under the HTS subheading from India from the list of articles eligible for duty-free treatment under the provisions of the GSP.
The PET Resin Coalition is an ad hoc group of US PET resin producers and composed of DAK Americans, LLC, Indorama Ventures, M&G Chemicals, and NanYa Plastics Corporation, America.