S Korean PTA, PET Exports to EU Enjoy 25% Tariff Cut Due to FTA

South Korean purified terephthalic acid Positron emission tomography (PET) bottle chip exports to the European Union are enjoying a 25% cut in import tariffs which started July 1 as its free trade agreement with the continent takes effect.

Previously, South Korean (PureTerephthalicAcid) PTA and PET exports to the EU were subjected to a 6.5% customs duty. Under the Free Trade Agreement (FTA), the duty will be reduced in four equal annual stages until it is totally eliminated. This means that South Korean PTA and PET import duty to the EU starting July will be at 4.875%.

For now, South Korean PTA makers said they do not expect to see any increase in exports to Europe. "We get very little inquiries from Europe. The market there is usually quite well balanced unless there's a plant outage," said a source from TK Industry.

Another source from Samsung Petrochemical Co. concurred. "We're already exporting to Europe. We could get a better price with lower taxes but I'm not sure if we could sell more volume over there," said the source.