As reported by "The National" the EU bloc has applied significant tariffs on to petrochemicals product of UAE, Pakistani and Iranian origin.
The duties imposed are for four to six months and may be extended to five years. They are as high as €142.97 (Dh640.89) a tonne.
Petrochemical subsidies have been a central sticking point in negotiations over a free trade agreement between the EU and GCC. European policymakers argue petrochemical companies in the GCC have an unfair advantage over EU producers because of the lower price of oil, which is the result of government subsidies. They claim this helps to make GCC goods artificially competitive against EU products.
These protectionists moves are just an effect of the worsening economic situation in Europe and doesn't spell good news for some of the manufacturing companies that rely on European demand and will force the latter to find new ways to increase their competitiveness, or perhaps cry for additional oil subsidies.
Full article on The National here.
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