Sino-US-Vietnam Packaging Material Trade Dispute Rags

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U.S. packaging companies accuse China and Vietnam of dumping PP corrugated boxes, the authorities launched a double-counter investigation, the global supply chain is facing a new round of trade game test.

The U.S. polypropylene corrugated packaging industry recently launched a trade remedy action. Three local companies jointly filed a complaint with the Ministry of Commerce, accusing similar products from China and Vietnam of dumping. The core evidence shows that the profit margin of Chinese exporters is as high as 74.63-83.49 per cent, and Vietnamese enterprises also have abnormal profit margins of 40.85 per cent, which has seriously impacted the pricing system in the US market.

According to the complaint material, the PP corrugated container involved is widely used in the field of waterproof and durable industrial packaging. The complainant believes that Asian manufacturers have taken advantage of government subsidies and low-cost advantages to seize market share in the United States at prices far below reasonable value, which has caused substantial damage to similar industries in the United States. The International Trade Commission (ITC) has initiated damage investigation procedures, and the Ministry of Commerce will simultaneously carry out anti-dumping and countervailing duty rates.

If the final ruling of the

is established, the US market will implement double countermeasures, which will directly affect the trade of packaging materials exported by China and Vietnam to the United States for more than 0.5 billion US dollars a year. While tariff barriers may benefit domestic producers such as Coolseal and Inteplast in the short term, downstream import-dependent companies will face surging costs. Industry analysts pointed out that under the background of the current global supply chain restructuring, the case may accelerate the trend of the packaging industry to the nearshore transfer.

, it is worth noting that this case coincides with the strengthening of the "America First" trade policy by the United States. ITC needs to complete the preliminary ruling within 45 days. Its ruling is not only related to the market structure of the packaging industry, but also regarded as an important weather vane to test the Biden administration's tolerance for Asian trading partners. With the deepening of the investigation, the industrial game between China, the United States and Vietnam has gone beyond the scope of individual cases and evolved into a new battlefield of disputes over the applicability of global trade rules.

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