CEPE urges member states to reject anti-dumping duties on titanium dioxide, fearing that it will affect the competitiveness of the EU coatings industry

The European Council for Paints, Printing Inks, and Artists' Colours has implored member states to expunge the advice of the EC to lay anti-dumping duties on TiO2 imported from China. It is a major raw material quantity for coatings manufacturers, constituting 40% of the raw material cost and 20% of that of the finished products. Therefore, these tariffs could disrupt the future of the European coatings industry that is worth €33 billion per year and employs more than 150,000 people. 

The European Commission has imposed provisional tariffs on Chinese TiO2 imports for six months in July 2024, and member states are due to vote on the latest proposal next week.

“If member states confirm the proposal, it will have a significant impact on the coatings industry, which is one of the largest users of TiO2,” said Christel Davidson, CEPE Managing Director. “The European Commission is presenting a short-term approach to EU competitiveness. We are concerned that the impact of these tariffs on the coatings industry, especially on small companies and related sectors such as construction, will outweigh any short-term relief for European TiO2 manufacturers.

“European TiO2 suppliers are currently unable to meet the needs of the EU industry, so TiO2 imports from China are difficult to replace,” said Davidson. "One possible consequence is that coatings 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 coatings on the EU market."

CEPE is also concerned about the wider impact on EU manufacturers exporting products outside Europe. Rising production costs will make EU companies less competitive on the global stage, reduce exports and threaten the market position of European manufacturers.

"In general, investment in the EU coatings industry is expected to become less attractive, which will have a direct impact on European TiO2 suppliers," said Davidson. "This would be an unfortunate outcome for a measure designed to protect Europeans from unfair foreign competition. We hope that the member states will carefully analyze the situation when they meet next week and vote against the European Commission's decision to impose these tariffs."