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Taiwan textile firms hail US ruling against PRC exporters

Nov '19
Pic: Shutterstock
Pic: Shutterstock
Most Taiwanese textile exporters welcomed the November 14 ruling by the US department of commerce that said exporters from China and India had been dumping polyester textured yarn (PTY) in the US market v at margins ranging from 76.07-77.15 per cent and 17.62-47.51 per cent respectively. They perceive this as a chance to compete in a fair market.

The US commerce department said it has also issued a final ruling after finding Chinese and Indian polyester textured yarn received countervailable subsidies at rates ranging of 32.18-473.09 per cent and 4.29-21.83 per cent respectively.

Based on the findings, the US department of commerce has imposed anti-dumping and anti-subsidy tariffs on Chinese and Indian PYT exporters.

In response to the rulings, some Taiwanese companies said the heavy US tariffs in the case will give Taiwanese exporters a break from the unfair competition waged by their Chinese counterparts.

The investigations were launched after Nan Ya Plastics Corp. America, a subsidiary of Taiwan's Nan Ya Plastics Corp., and US-based Unifi Manufacturing, Inc. brought a petition against Chinese and Indian exporters.

Lealea Enterprises Co., a Taiwanese manufacturer of artificial fibre, said it had almost given up on the US market due to the unfair competition from China.

With the heavy tariffs now imposed on Chinese PTY exporters, however, Taiwanese companies will have a chance to return to the US market, Lealea said.

Some other Taiwanese exporters, however, said it remains to be seen whether the ruling will result in any benefits, but they think it will serve as a bargaining chip for the US in its negotiations with China as the two countries seek to resolve their trade disputes.

According to Nan Ya Plastics, after the petition was filed with U.S. authorities, PTY exports from China and India to the United States fell to 229 tonnes and 341 tonnes per month on average, respectively, as of September of 2019 from 1,939 tonnes and 1,006 tonnes as of January 2018, the website of a Taiwanese news channel reported.

According to industry sources, Chinese firms that face heavy tariffs in the United States are likely to sell their products in the domestic market, which would tighten the competition for Taiwanese companies operating in China.

Fibre2Fashion News Desk (DS)

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December 2019

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