The journal alleged in its report that the sole producer of the product under investigation originating in Saudi Arabia has benefited from a number of subsidies granted by the government of Saudi Arabia. The sole producer is Saudi Basic Industries Corporation (SABIC) at its Arabian Industrial Fibers Company (Ibn Rushd) in Yanbu. PET is used to make plastic bottles for carbonated drinks, juices, oils, cosmetics, and water.
This is the first EU investigation into trade with Saudi Arabia. Normally such investigations are the result of a formal complaint to the EU followed by preliminary inquiries. The investigation is expected to take months, even "up to a year" according to the spokesman for the EU delegation in Riyadh. SABIC has been given until March 25 to provide answers to the investigation.
In 2010, the EU imposed anti-subsidy tariffs on PET from Iran, Pakistan and the UAE for five years and renewed PET anti-dumping levies against China until late 2015 to curb import competition for European producers including Spain's Novapet. In 2007, the bloc reimposed for five years anti-dumping duties on PET from India, Indonesia, Malaysia, South Korea, Thailand and Taiwan as well as separate anti-subsidy levies against India.
Under EU rules, the commission can impose provisional anti-subsidy duties for four months and provisional anti-dumping levies for six months. The EU's national governments — acting on a commission proposal — can turn those measures into "definitive" five-year duties at the same or different rates. The commission has nine months from the start of an investigation to decide on provisional measures. EU governments have 13 months from the beginning of a probe to impose five-year anti-subsidy - or "countervailing" - duties and 15 months to impose definitive anti-dumping measures.
