The European Commission (EC) has opened anti-subsidy investigations into polyester staple fibres originating in China, India and Vietnam, the Vietnam Competition Authority announced Friday.
The investigations will be concluded within 13 months, starting from December 19.
The EC said it had received a complaint of protectionism against subsidized imports from countries not members of the European Community alleging that imports of PSF originating in the three countries are being subsidized and therefore are causing material injury to the European Union industry.
The complaint was lodged on November 4 by the European Man-made Fibres Association on behalf of producers representing more than 25 percent of the total production of PSF in the EU.
The product subject to the investigation is synthetic staple fibres of polyesters, not carded, combed or otherwise processed for spinning, according to the EC.
The evidence provided by the complainant shows that the producers of the concerned product in China, India and Vietnam have benefited from a number of subsidies granted by their governments.
In the case of Vietnam, the subsidies consist of government provision of goods to the PSF industry by state-owned enterprises for less than adequate remuneration, government incentives (in the form of tax and duty exemptions and preferential loans) in the Dinh Vu Industrial Zone, government preferential lending to the PSF industry from state-owned banks and the government entrustment and direction of private banks, the government provision of land for less than adequate remuneration and exemptions or reductions from land and water rents, interest rate subsidies, and more.
The governments of China, India and Vietnam have been invited for consultations.