Thailand initiates safeguard investigation on polypropylene imports, says WTO
The World Trade Organisation (WTO) has confirmed that Thailand has launched an investigation into safeguard measures for the import of polypropylene plastic pellets.
The Department of Foreign Trade (DFT) has called on all relevant stakeholders, including importers, exporters, and interested parties, to submit evidence, documents, and opinions by October 1, 2025, following a significant surge in imports.
Polypropylene is a petrochemical product produced through the polymerisation of propylene gas, using catalysts and varying production conditions depending on the grade of the pellets.
Polypropylene is a versatile material used in the production of consumer goods such as packaging, food containers, construction materials, automotive parts, electrical components, durable textiles, and medical applications.
The end users of these products include packaging (both food and non-food), durable textiles (e.g., sacks, tarpaulins, nets, ropes), medical devices, construction materials, piping systems, automotive parts, electrical components, furniture, and household items.
Imports surge by 71% in three years
Preliminary data reveals a clear and ongoing rise in polypropylene imports to Thailand from 2020 to September 2024. Import volumes increased from 228,365 tonnes in 2020 to 390,583 tonnes in 2023, a growth of 71.03%.
A comparison between January–September 2023 and the same period in 2024 shows an 18.09% increase, from 297,871 tonnes to 351,764 tonnes.
This surge in imports has resulted in significant damage to the domestic industry, evidenced by a decline in market share, sales, production levels, and actual capacity utilisation, leading to financial losses.
Criteria for assessing domestic industry damage
The investigation will evaluate the extent of the damage to Thailand’s domestic polypropylene industry based on criteria including the rate and volume of increased imports, market share loss, changes in sales levels, production levels, actual capacity utilisation, profitability, and employment levels.
The DFT has already distributed questionnaires to stakeholders to gather relevant information for the investigation.
According to the WTO, the purpose of the safeguard investigation is to determine whether the rising imports are causing or threatening to cause serious harm to the domestic industry.
During the safeguard investigation, importers, exporters, and other stakeholders are allowed to present evidence and views, and respond to the submissions of other parties.
WTO members can implement safeguard measures (such as temporarily restricting imports) only if it is found that the increase in imports is causing, or threatening to cause, serious harm to the domestic industry.
