Eurasian Economic Commission Proposes Anti-Dumping Duty on HDPE Imports from Uzbekistan

The EEC has proposed corrective measures against HDPE imports from Uzbekistan in the form of anti-dumping duty. The duty levied will be to the tune of 20.3% of the customs value for a period of five years. The investigations regarding HDPE dumping from Uzbekistan were initiated in July 2020. The investigations were initiated after an application was filed by TIAF and SIBUR holdings. 

As explained by the applicants, there was presence of dumped imports, and it was resulting in the damage to Eurasian Economic Union’s (EAEU) economy and that the HDPE was supplied to the EAEU territory by Uzbekistan at dumping prices that is the prices which were below the normal domestic costs in the republic of Uzbekistan. 

The major company producing HDPE in Uzbekistan is the Ustyurt Gas Chemical Complex (UGCC) with the annual production capacity of 386 Kilotons. The company produces HDPE under the license from Lotte chemical South Korea. 

EAEU is a free trade agreement that came into being in 2015 to increase economic cooperation and raise living standards of the member countries which include Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Unlike EU the EAEU doesn’t share the same currency. 

HDPE is the high density polyethylene which is produced by the polymerization of ethylene. The major application for HDPE include packaging, transportation, electrical and electronics, building and construction, agriculture, machinery, and others. The global demand for HDPE stood at around 45 million tonnes in 2020 and is expected to grow at a CAGR of 5% during the upcoming years. 

As per ChemAnalyst, “the proposed anti-dumping duty by the EEC on imports from Uzbekistan is an indication of EAEU’s protective policies against dumping practices. The economic union between the Eurasian countries was planned keeping particularly economic development in mind and the move reflects economic coordination between the member countries.”