PARIS — European governments are preparing to press the European Union to expand trade restrictions on imported chemicals and plastics as manufacturers contend with cheaper foreign supplies and increasingly difficult business conditions.
France, Italy and likely Germany are expected to submit requests within weeks for safeguard investigations covering several products, according to people familiar with the discussions. The products under consideration include polyethylene terephthalate, known as PET, epoxy resin and glass fibres.
PET is commonly used in packaging, while epoxy resins and glass fibres are key materials for sectors such as automotive manufacturing, energy, shipbuilding, infrastructure and defense.
The proposed safeguards would mark a major broadening of the EU’s trade-protection measures. Unlike anti-dumping actions, which generally target specific imports, safeguards can apply to goods from all trading partners, including countries that have free-trade agreements with the bloc.
Under the potential measures, imports exceeding established quotas could be subject to additional tariffs.
The push comes as Europe’s chemical sector faces what industry representatives describe as one of its most challenging periods in decades. High energy costs, subdued demand and stronger competition from producers in China and elsewhere in Asia have placed European manufacturers under increasing strain.
BASF, Lanxess and Wacker are among companies that have already announced job reductions as the industry responds to worsening conditions.
France has said it supports, in principle, an investigation into safeguard measures for certain chemicals and plastics. Italy is likewise interested in an investigation involving chemicals used across several strategically important industries.
Germany has also indicated it is receptive to the idea. Its economy ministry said the chemical industry was preparing an application for an investigation into certain products. The government is expected to determine its position after the European Commission reviews the issue.
The European Commission has traditionally approached safeguards cautiously because they apply broadly and carry protectionist implications. The EU currently has more than 150 trade-defense measures, with most consisting of tariffs directed at particular products alleged to have been dumped or supported by unfair subsidies.
Safeguards would have a substantially wider reach.
EU member states are required to request such investigations, while any final measures would need the backing of a qualified majority of member states — at least 15 countries representing 65% of the EU’s population.
The broader shift in global trade is also shaping the discussion. European industries are facing greater competition from Chinese imports at the same time that U.S. tariffs have limited access to parts of the American market.
European Trade Commissioner Maros Sefcovic recently recognized that the EU has historically been hesitant to deploy safeguards, but said the bloc was reassessing its position.
For European chemical producers, the question is becoming more pressing as companies seek greater protection from imports while attempting to remain competitive despite the high operating costs already weighing on the industry.
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