A petition by three American based polyester staple fibre (PSF) producers alleged that producers from Asian countries are dumping fine denier PSF in the US market at sizeable margins. The five Asian nations included in the anti-dumping and countervailing duty probe are India, China, South Korea, Taiwan and Vietnam.
The petition also claimed that the Chinese fine denier PSF industry benefits from 20 different Chinese government subsidies, and that the Indian fine denier PSF industry benefits from 33 Indian government subsidies. The allegations identify many significant national and regional programs, including preferential export financing, preferential income tax treatment, tax exemptions, rebates and credits on imports of inputs and capital goods used in the production of fine denier PSF and grants for fine denier PSF producers to assist in the development of export market and to protect against commercial risk.
The International Trade Commission (ITC) of America will make its inquiry determinations by July 2017. If the trade authority can determine that PSF imports from the five Asian countries are threatening or injuring the domestic industry, the probe will be continued. Meanwhile in response to the probe, the ministry of commerce of China urged the US to keep its commitment against protectionism and maintain an open international trade environment.