The EU Commission accuses the Chinese government of artificially depressing prices through subsidies and thereby distorting competition. Following the introduction of temporary punitive tariffs in July, the EU Commission has now spoken out in favor of their permanent introduction. The European Coatings, Paints and Printing Ink Manufacturers' Association (CEPE) is disappointed by this.
Survival of the EU paint sector threatened
The white pigment TiO2 is an important raw material for paint manufacturers, is used in many coatings, paints and printing inks and accounts for up to 40 percent of raw material costs and 20 percent of the cost of the end product. According to CEPE, the punitive tariffs therefore threaten the viability of the EU paint sector. This sector has an annual turnover of 33 billion euros and employs around 150,000 people.
Fears that tariffs will be circumvented
CEPE fears that the foreseeable increase in production costs for EU manufacturers will lead to increasing imports of cheaper paints produced outside the EU using Chinese TiO2. "Paint manufacturers in the EU will be at a competitive disadvantage compared to manufacturers in other parts of the world who can continue to source TiO2 from China at lower prices and sell their paints more cheaply on the European market," commented CEPE Managing Director Christel Davidson on the EU decision.
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