Paris — European governments are preparing to press the European Union to expand restrictions on chemical and plastics imports as manufacturers across the bloc come under increasing pressure from lower-cost overseas competition.
France, Italy and likely Germany are expected to submit requests within weeks seeking safeguard measures for several products, according to people familiar with the discussions.
The proposed measures would cover polyethylene terephthalate, or PET, a polymer resin commonly used in packaging, along with epoxy resin and glass fibres.
The effort is primarily aimed at rising imports from China. However, safeguard measures would be broader than targeted anti-dumping actions because they can place tariffs on imports exceeding specified quotas and apply to all trading partners, including countries that have free-trade agreements with the EU.
As a result, the proposed safeguards could have a considerably wider reach than the EU’s current trade defenses.
The EU has more than 150 trade measures in place, with most involving tariffs on individual products accused of being dumped or unfairly subsidized. Safeguards, by comparison, have been used only in a limited number of cases, including protections for ferro-alloys and a separate framework covering steel.
France has said it supports, in principle, launching a safeguard investigation into certain chemicals and plastics. Italy has likewise expressed interest in investigations involving chemicals used in the defense, automotive, energy, shipbuilding and infrastructure sectors.
Germany’s economy ministry has indicated that it is open to the possibility of such measures. A ministry source said Germany’s chemical industry was preparing an application covering certain products, with the government planning to evaluate the matter in light of the European Commission’s investigation.
The potential shift comes as European manufacturers face mounting challenges. The region’s chemical sector is contending with elevated energy costs, weak demand and stronger competition from China and other Asian suppliers.
Companies such as BASF, Lanxess and Wacker are eliminating thousands of jobs as the industry confronts what representatives have characterized as one of its toughest periods in decades.
Germany is also under growing pressure from its domestic industry to take a firmer stance toward China, which remains the country’s most important trading partner. Two years ago, Germany opposed EU tariffs on electric vehicles manufactured in China.
Any proposed safeguard would need backing from EU member states. Final measures require a qualified majority of at least 15 countries representing 65% of the bloc’s population.
The European Commission has acknowledged that it has traditionally been hesitant to deploy safeguards because of their protectionist character. But escalating trade tensions, U.S. tariffs and a widening EU trade deficit with China have led officials to reconsider the approach.
The Commission has also recorded a significant rise in trade complaints from companies and industry organizations. EU trade lawyers say cases are currently encountering a backlog of about four months before investigations can begin.
The proposed safeguards for chemicals and plastics could consequently represent a notable shift in how the EU seeks to shield strategic industries from international competition.
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