EU imposes punitive tariff on glass fiber from China

The EU Executive Committee Thursday (September 16) imposes punitive tariffs on certain grades of fiberglass from China, although there is a concern that tariffs will limit the supply of such lightweight materials for wind turbines, automobiles and ships. .

The tariff rate is 43.6% and will be implemented for no more than six months, but the European Commission considers extending it for another five years. The EU executive committee stated that Chinese exporters are dumping illegally, which is causing an impact on European manufacturers. The tariff is intended to offset such effects.

The European Union stated in its official magazine that “(the Chinese producers)’s sharp price cuts have caused the EU’s glass fiber industry not to pass on rising costs... This has resulted in low margins or even losses.”

European manufacturers complained that Chinese glass fiber manufacturers dumped on the EU market threatened employment of workers such as PPG Industries and Saint-Gobain Vetrotex.

European fiberglass manufacturers, such as wind turbine manufacturer Vestas, oppose raising tariffs, arguing that this may cause supply shortages and raise the production costs of thousands of companies. These companies convert glass fibers into composite materials for turbine blades and ships and automotive light housings.

Taking this into consideration, the European Union stated on Thursday that its resolution on the collection of tariffs may require "further analysis."

Last month’s vote on the collection of tariffs also reflected differences surrounding the issue. Diplomats from 12 of the EU’s 27 countries voted against it.