EU Eyes Safeguards Against China Imports

European governments are poised to request the European Union deploy robust trade safeguards against a significant influx of imports, with China being a primary focus. France, Italy, and Germany, the bloc's largest economies, are expected to formally submit these requests within weeks.

The proposed measures target key sectors such as chemicals and plastics, specifically mentioning polymer resin polyethylene terephthalate (PET), epoxy resin, and glass fibres. This initiative aims to shield European industries facing intense competition from cheap foreign goods.

This strategic shift signals a toughening of the EU's trade policy, driven by mounting economic pressures and a changing geopolitical landscape. The European chemical industry, in particular, is experiencing one of its most severe crises in three decades, with high energy costs and declining demand exacerbating the situation.

While safeguards are rarely used due to their broad application, the current economic climate and warnings from industries about potential job losses have prompted a re-evaluation of this approach. The European Commission is reportedly reviewing its stance on safeguards, acknowledging that even free-trade partners are employing such measures.

The German chemical industry's trade association, VCI, indicated that companies are preparing to support member states' safeguard requests. However, VCI stressed the importance of considering diverse interests across the value chain during any potential investigation by the European Commission.