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October 2017

U.S. Producers of PET Resin File Trade Petitions Against Five Countries

Four major U.S. plastics producers – DAK Americas LLC, Indorama Ventures USA, Inc., M&G Polymers USA, LLC, and Nan Ya Plastics Corporation, America – filed petitions alleging that imports of polyethylene terephthalate (PET) resin from Brazil, Indonesia, Korea, Pakistan, and Taiwan are being sold at less than fair value in the United States and causing material injury to the domestic industry.


The four petitioning domestic producers asked the U.S. government to investigate the dumping and injury, and to impose antidumping duties on the imports of PET resin from the subject countries.


The petitions allege that producers in each of the five countries are dumping PET resin in the U.S. market at sizeable margins:




Dumping Margins Alleged


18.76-114.84 percent


8.49-95.06 percent


58.73-103.48 percent


27.69-59.92 percent


18.47-45.97 percent



The petitions were filed concurrently with the United States Department of Commerce ("Commerce Department") and the United States International Trade Commission ("USITC"). The filing is in response to surging volumes of aggressively-priced PET resin imports from Brazil, Indonesia, Korea, Pakistan, and Taiwan.


Subject import volume increased from 148.0 million pounds in 2014 to 599.8 million pounds in 2016, or by over 305 percent over that three-year period. PET resin from the subject countries continued to rapidly enter the U.S. market in the first half of 2017. The subject imports undersold the domestic industry, taking sales from and exerting considerable downward pricing pressure on U.S. producers. 


As a result of increasing volumes of low-priced imports, the condition of the domestic industry has suffered. U.S. producers have experienced declining production and shipment volumes and deteriorating financial performance as a result of the lost sales and price depression caused by the subject imports. 


Foreign producers of PET resin also continue to threaten the domestic industry with additional injury due to their massive and growing production capacity and extensive unused capacity that will be used to export large volumes of unfairly low-priced product to the United States. The injury to the domestic PET resin industry is likely to continue if duties are not imposed to offset these unfair trading practices.


"The substantial increase in unfairly-traded PET resin from these five subject countries has hit the domestic industry hard and threatens the livelihoods of American workers," according to Paul Rosenthal of Kelley Drye & Warren LLP, counsel for the petitioning companies.


"U.S. PET resin producers are seeking the trade relief that is badly needed for the recovery and future success of the industry in the United States."

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