May 25, 2020

Trump penalizes "dumping" of Spanish acetone exports to the US of course

The US government ordered today to penalize exports to the US with a special tax. of acetone by Spanish companies, such as the Cepsa oil company, which he accuses of having sold this product below the "reasonable" market price, a practice known as "dumping."

The decision of President Donald Trump, of provisional character, was published today in the Federal Register, the official bulletin of the State in which laws, normative proposals and public notices are disseminated.

Specifically, it is determined that, as of today, Cepsa will have to pay US customs agents a 171.81% rate for acetone sold to the US, while the rest of Spanish acetone exporters -whose names are not specified- must pay 137.39%.

Cepsa is the largest Spanish exporter of acetone to the US

The final decision on this rate will occur within 45 days and will be issued by the US International Trade Commission, a federal agency that has the final say in commercial disputes.

That agency must determine whether US producers have suffered "material damages" from the sale in the US. of Spanish acetone at prices "below fair value".

If the US International Trade Commission determines that the American acetone industry has not suffered damages, will return to Cepsa and the rest of Spanish companies the money that, as of today, will begin to collect through these penalties.

However, if the International Trade Commission proves that there was "damage" to the US side, then it could take additional measures against Spanish companies.

For its part, a spokeswoman for Cepsa told Efe that her company believes that it has not committed "dumping" and believes that the US decision. on acetone it will have a "minimal impact" on its operations "given the volume of said product and the existence of alternative export markets."

Also, sources from the Spanish embassy in the US They pointed out to Efe that their "preliminary opinion" is that penalties for acetone should not be so high, and explained that, during the process, they were in talks with the US Department of Commerce.

Acetone exports from Spain to the US they have grown significantly the last two years, according to data from the US Department of Commerce.

Only in 2017, Spain exported to the US 4,065 metric tons of acetone worth 7.3 million dollars, while in 2018 exports rose 512.18% and totaled 24,885 metric tons, which was valued at 17.4 million dollars.

This process against Spanish acetone exporters, among which Cepsa occupies a prominent role, began in February 2019 at the request of the so-called "Coalition for the fair trade of acetone", which includes the US petrochemical companies, as the multinational Olin Corporation, based in Clayton (Missouri).

The denunciation of the "Coalition for the fair trade of acetone" was directed, in addition to against Spain, against five other countries: Belgium, South Korea, Saudi Arabia, Singapore and South Africa.

The US Government In April of this year, it decided to close the investigation against Riyadh for the importation of acetone, while in the other cases the US authorities have determined that "dumping" could have been committed but have not made a final decision.

(tagsToTranslate) Trump (t) penalizes (t) exports (t) Spanish (t) USA

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