This decisive move comes in response to mounting concerns about a significant and potentially damaging increase in the market share of imported chemicals within the European Union.

Key Takeaways:

• EU has initiated a three-year monitoring program for imports of specific ethylene and ammonia-based industrial chemicals.
• The surveillance covers copolymers of ethylene and alpha olefin, urea (over 45% nitrogen), and ammonium sulphate.
• The action is a response to a significant increase in imported chemicals' market share in the EU.
• The Commission is particularly concerned about imports from regions with excess production capacity like China.

The European Commission, on March 25, announced the implementation of a comprehensive monitoring system for the import volumes of ethylene and ammonia-based products, critical components in fertilizer production and various industrial applications. 

The surveillance initiative is set to remain in effect for three years, covering imports of the specified ethylene and ammonia products from all countries.

The surveillance, covering copolymers of ethylene and alpha olefin, urea with a nitrogen content exceeding 45% by weight, and ammonium sulphate, aims to provide the Commission with real-time data to swiftly address any market distortions. The primary objective is to safeguard the EU's industrial sector from the adverse effects of surging imports, particularly those originating from regions with substantial production overcapacity, notably China.

The Commission's action is further fueled by the escalating number of countries imposing trade defense measures on these chemical products, potentially diverting excess supply towards the EU market. This influx poses a threat to the competitiveness and stability of the European industry.

Crucially, the surveillance mechanism does not impose any immediate restrictions on imports. Instead, it prioritizes transparency and the provision of structured, factual information. Leveraging the EU customs Surveillance system, operated by DG TAXUD, the Commission will gather and disseminate daily updated import statistics on its website. This proactive approach empowers EU industries to analyze market trends and make informed decisions, including the potential initiation of trade defense investigations.

By enhancing the accessibility of import data, the Commission aims to foster a more transparent and equitable trading environment. The availability of real-time information will enable industry stakeholders to assess the impact of imports on their operations and take necessary measures to protect their interests.

This proactive stance by the European Commission underscores its commitment to maintaining a level playing field for EU industries and protecting them from unfair trade practices. By enhancing transparency and providing timely information, the Commission aims to ensure the long-term sustainability and competitiveness of the European chemical sector. The daily updates provided by the commission are expected to be a valuable tool for those within the EU chemical industry.