Dow Chemical Wins Challenge of EU’s Ethanolamine Tariffs

Dow Chemical Co. (DOW) won a court challenge overturning European Union tariffs on imports from the U.S. of ethanolamines, a chemical used for detergents and textiles.

The EU’s General Court annulled the anti-dumping duty imposed in 2010 on U.S. ethanolamines “in so far as it concerns” Dow Chemical, according to a ruling today. EU governments made a “manifest error” in concluding that U.S. producers had extra supplies of the chemical that they could use to increase exports and harm European producers, the court said.

Dow, based in Midland, Michigan, has had to pay a levy of 59.25 euros a ton on its exports of the chemical, also used for herbicides and cement. The 12-year-old levies punish U.S. exporters for selling the chemical in Europe below cost, a practice known as dumping.

The European Commission is examining whether to allow the the anti-dumping duties in today’s case to lapse. The measures have been in force since mid-2000 and were last renewed for two years in January 2010. The tariffs of as much as 111.25 euros a ton for manufacturers including Huntsman Corp. (HUN) can last as long as 15 months.

Dow Chemical “has been successful in its request for the European Court to annul the regulation in respect to Dow,” said Sue Breach, a director of public affairs at the company.

The EU’s press department in Brussels declined to comment, saying it hadn’t yet examined the ruling.

BASF SE (BAS), Sasol Germany GmbH and Ineos Europe AG, which account for more than half the EU’s production of ethanolamines are arguing that an end of the duties would probably lead to further dumping by U.S. competitors and injury to the European industry, the commission said in January.

The case is T-158/10 Dow Chemical v Council.

To contact the reporter on this story: Aoife White in Brussels at awhite62@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.