Anti-dumping law on tiles from China
Low cost imports hurt local companies
China seeks other markets to US
Oman plans to implement anti-dumping measures on ceramic tile imports from China and India, saying the materials that are widely used in the building industry are being sold at below-cost prices.
This comes amid a global debate around the impact of increased US import tariffs on China, the world’s biggest manufacturer, and whether the tax by China’s biggest export market will lead it instead to flood the rest of the world with cut price products.
Some business leaders and economists in the Gulf say Oman’s measures on tiles should be expanded to other products and to other member-countries of the Gulf Cooperation Council to protect local producers.
“For long-term market stability, the anti-dumping law should be adopted to all GCC countries to prevent China from dumping their cheap exports in the region,” said Salah Al-Harthy, economics lecturer at the Sultan Qaboos University.
Chinese and Indian companies supplied nearly half of Oman’s ceramic tile market last year.
In response to the low cost tile imports, the Omani Ministry of Commerce, Industry and Investment Promotion (MCIIP) has said new duties will be imposed starting on May 29. It has not yet disclosed at what rate. The move is “to control unfair competition”, the MCIIP has said.
The sultanate previously imposed duties on Chinese products in 2020.
There are at least 15 companies in Oman which manufacture ceramic tiles. Several are struggling to survive in the face of cheaper imports.
“Chinese imports are taking away their profitability and this is the reason the government is introducing the anti-dumping law,” said Issa Al-Qahtani, a member of Oman Society of Manufacturers.
Companies in Oman have welcomed the move towards higher protective import duties.
“This is not just good news for ceramic tiles,” Abdullah Al-Mahrizi, owner of Hi-Tech Products, told AGBI.
“This is about all cheap imports to Oman that goes against the interests of local manufacturers. I hope the anti-dumping law will be extended to all cheap products, not just ceramic tiles.”
Chinese manufacturers are looking for alternative markets to the US to take their product, a Chinese executive said.
“With the tariffs imposed on China, we see GCC countries as a diversion for us to move our exports from the United States,” said Xiao Shang, marketing manager of Shanghai Cimic Tiles Co.
“There is a construction boom in this region and now we see it as an opportunity to export more ceramic tiles and other building materials meant for the United States.”
The Omani plan to introduce anti-dumping measures is not without its critics.
“It is not all good news for all of us,” said Khalfan Al-Barwani, owner of Al-Barwani Construction.
“For construction companies, we have to push up our quotes to people who want to build their properties. Ceramic tiles will be expensive because the anti-dumping duties will increase their prices.”
