What is MEG used for?

MEG is a key ingredient in the production of polyester fibers, PET resins, and antifreeze.

Why was the anti dumping investigation initiated?

Domestic producers alleged that dumped imports of MEG were causing significant injury to their businesses.

What factors led to the termination of the investigation?

The DGTR's reevaluation of market conditions and the withdrawal of the complaint by Reliance Industries were key factors.

India drops Anti Dumping probe on Mono Ethylene Glycol

This move triggered the termination of the investigation under the provisions of the Anti Dumping Rules.

The Health Master

December 2, 2024

Table of Contents

Last Updated on December 2, 2024 by The Health Master

Anti Dumping

In a significant development for the Indian chemical industry, the Directorate General of Trade Remedies (DGTR) has officially terminated its anti dumping investigation into imports of Mono Ethylene Glycol (MEG) originating from Kuwait, Saudi Arabia, and the United States.

This decision comes after a series of legal challenges and a reevaluation of market conditions.

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What is MEG?

MEG, a crucial raw material in various industries, including plastics, textiles, and antifreeze, has been at the center of this trade dispute.

It’s particularly vital for the production of Polyethylene Terephthalate (PET), a widely used plastic for packaging, particularly in the pharmaceutical sector.

The Anti Dumping Probe

The investigation was initiated in June 2021 based on a complaint filed by India Glycols Limited (IGL) and Reliance Industries Limited (RIL).

The domestic industry alleged that dumped imports of MEG from the specified countries were causing significant harm to their business.

The Reversal

However, after a detailed investigation and subsequent legal challenges, the DGTR reached a different conclusion.

In October 2022, the authority determined that the domestic industry was not suffering material injury and recommended against imposing anti dumping duties.

A key turning point came in September 2024 when Reliance Industries, one of the original complainants, withdrew its application, citing outdated data and changing market dynamics.

This move triggered the termination of the investigation under the provisions of the Anti Dumping Rules.

Implications for the Indian Industry

The termination of the anti dumping investigation is likely to have positive implications for the Indian chemical industry.

By removing trade barriers and promoting fair competition, the decision could lead to:

Lower Input Costs: Reduced import duties on MEG can lower production costs for domestic industries.
Increased Competitiveness: A level playing field can help Indian manufacturers compete more effectively in both domestic and international markets.
Stimulated Economic Growth: The chemical industry, a major contributor to India’s economy, could benefit from increased investment and job creation.

Also read following FAQs

What is MEG used for?

MEG is a key ingredient in the production of polyester fibers, PET resins, and antifreeze.
Why was the anti dumping investigation initiated?

Domestic producers alleged that dumped imports of MEG were causing significant injury to their businesses.
What factors led to the termination of the investigation?

The DGTR’s reevaluation of market conditions and the withdrawal of the complaint by Reliance Industries were key factors.

Disclaimer: This article contains information derived from the source mentioned below. Our team utilized an AI language model to rewrite and present the news or article in a unique format.