UK Trade Remedies Authority Proposes Extension of Anti-Subsidy Duties on Indian PET
The United Kingdom's Trade Remedies Authority (TRA) has recommended maintaining anti-subsidy duties on imports of polyethylene terephthalate (PET) from India for an additional five years. This recommendation follows an investigation into the potential impact of removing these duties on the UK domestic industry.
Background and Investigation Findings
The review, initiated in July 2023, examined the effects of countervailing measures imposed to address subsidised imports of PET—a plastic widely used in food and beverage packaging such as bottles and containers. The TRA's 'Statement of Essential Facts' indicates that eliminating the duties could result in a return of subsidised Indian imports, harming UK manufacturers.
Despite low import volumes recorded in 2023, totaling just 24 tonnes, the TRA found that subsidy programs identified in previous European Union measures remain active. Consequently, these could lead to renewed unfair pricing and injury to domestic producers.
Impact on UK Industry
The authority highlighted ongoing vulnerabilities within the UK PET sector, including:
- Declining sales figures
- Reduced production capacity
- Underutilisation among producers
Given these challenges, the TRA concluded that continuing the countervailing duties aligns with the UK’s broader economic interests and supports industry stability.
Proposed Measures and Next Steps
The TRA proposes to maintain the existing duty rates, which range from 0% to 13.8%, effectively extending them until August 2029. Stakeholders have been invited to submit comments on the Statement of Essential Facts by June 13, 2025. The TRA will consider this feedback before making a final recommendation to the UK Secretary of State for Business and Trade.
Context on Trade Remedies in the UK
As an independent regulatory body, the TRA oversees investigations into unfair trade practices, including subsidised or dumped imports and sudden surges that may damage UK industries. Since Brexit, the TRA has assumed responsibilities previously handled by the European Commission, reviewing inherited EU trade remedy measures to ensure they meet the UK's economic and industrial requirements.
Polyethylene terephthalate (PET) remains a significant import category due to its widespread applications. The TRA's ongoing measures aim to preserve fair competition and protect domestic manufacturing capabilities.
