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Anti-dumping duties on Chinese imports will affect the competitiveness of the EU paint industry. The European paint association CEPE warns and calls on member states to reject the European Commission’s proposals.
The white pigment is an important raw material for varnishes, paints and printing inks and accounts for up to 40% of raw material costs and 20% of the cost of the end product. Therefore, such punitive tariffs permanently threaten the viability of the EU paint industry, which has an annual turnover of EUR 33 billion and more than 150,000 jobs.
In July 2024, the European Commission imposed provisional tariffs on titanium dioxide imports from China for a period of six months. The EU Commission accuses the Chinese government of artificially suppressing prices through subsidies, thereby distorting competition. The member states will soon vote on the European Commission’s latest proposal to make the tariffs permanent.
Immediate negative impact on the industry
‘Should the majority of member states confirm the Commission’s proposal, this will have an immediate impact on the paint industry, one of the largest users of TiO2,’ says Christel Davidson, managing director of CEPE. ‘The Commission is taking a short-sighted approach to EU competitiveness here: we fear that the impact of these tariffs on the paint sector – particularly on small businesses and downstream industries such as construction – will outweigh any short-term relief for European TiO2 producers.’
Davidson goes on to explain that European titanium dioxide manufacturers are currently unable to meet the demand of EU industry, so imports from China are hardly replaceable. In any case, TiO2 from China will become significantly more expensive. ‘One consequence is that the EU paint manufacturers will suffer a competitive disadvantage compared to manufacturers in other parts of the world who will continue to be able to purchase TiO2 from China at lower prices and sell their paints on the EU market.’
Punitive tariffs jeopardise exports and competitiveness
CEPE is also concerned about further-reaching consequences for EU manufacturers that export their products outside Europe: the increase in production costs will affect the competitiveness of these companies on the global market, reduce exports and jeopardise the market position of European manufacturers.
‘The overall attractiveness of investing in the EU paints sector is expected to be reduced, with a direct impact on European TiO2 suppliers,’ Davidson said. ’This would be an unfortunate outcome for a measure designed to protect European companies from unfair foreign competition. We therefore hope that member states will analyse the situation carefully and oppose the imposition of permanent duties when they meet next week.’
慧樂(lè)居歡迎您關(guān)注中國(guó)家居產(chǎn)業(yè)，與我們一起共同討論產(chǎn)業(yè)話(huà)題。
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