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UPDATE 1-EU starts trade probe on Asia alcohol solutions

Published 08/13/2010, 06:26 AM
Updated 08/13/2010, 06:28 AM

(Adds quotes, detail)

BRUSSELS, Aug 13 (Reuters) - The European Union has begun to investigate whether Asian producers of alcohol solutions used in cosmetics and cleaning products are dumping their goods on the EU market, a move that could lead to extra EU import tariffs.

The investigation follows a complaint by two German producers of fatty acids that Indian, Malaysian and Indonesian exporters are undercutting market prices illegally, the EU's executive Commission said Friday.

German specialty chemicals producer Cognis GmbH and a German subsidiary of South African petrochemicals group Sasol lodged their complaint against their Asian competitors in June, the European Commission said.

"There is sufficient evidence to justify the initiation of a proceeding," the executive said in its official register.

The EU imported about 148 million euros' ($190.7 million) worth of fatty acids and their blends from India, Indonesia and Malaysia in 2009, up from 106 million euros' worth in 2005, according to EU data.

Brussels officials now have until November 2011 to decide whether to impose duties that could stay in place for five years. (Reporting by Juliane von Reppert-Bismarck; Editing by Mark Heinrich)

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