CEPE Calls on Member States to Oppose Antidumping Duties on Chinese TiO₂

CEPE is urging member states to oppose the European Commission's (EC) proposal to impose antidumping duties on titanium dioxide (TiO₂) imports from China. TiO₂, a key raw material for coatings manufacturers, represents up to 40% of raw material costs and 20% of the finished product's cost. The proposed duties jeopardize the €33 billion-per-year EU paints industry, which supports over 150,000 jobs.

In July 2024, the European Commission (EC) introduced provisional duties on Chinese titanium dioxide (TiO₂) imports for six months, with member states set to vote on the latest proposal next week.

“Should the member states confirm the proposal, it will heavily impact the paints sector, one of the largest users of TiO2,” said Christel Davidson, Managing Director of CEPE. “The commission is demonstrating a short-term approach to EU competitiveness. We fear that the impact of these duties on the paints sector, especially to small companies and related industries such as the construction sector will outweigh any short-term relief for European manufacturers of TiO2.

“European TiO2 suppliers are currently unable to meet the EU industry’s demand and imports from China are thus hard to substitute” Davidson said. “One likely consequence is that paint manufacturers in the EU will find themselves at a competitive disadvantage compared to manufacturers in other parts of the world, who can continue sourcing TiO2 from China at lower prices and sell their paints on the EU market.”

CEPE is also worried about the broader impact on EU manufacturers exporting outside Europe. Higher production costs will diminish the competitiveness of EU-based companies globally, leading to reduced exports and jeopardizing the market position of European manufacturers.

“Overall, investment in the EU paints sector is expected to become less attractive, which will have a direct impact on European suppliers of TiO2,” Davidson said. “This would be an unfortunate outcome for a measure meant to shield Europeans from unfair foreign competition. We hope that Member States will closely analyse the situation and vote against the decision of the EC to impose these duties when they meet next week.”

Source: CEPE