Advertisement
Saturday, Dec 04, 2021
Outlook.com
trade relations: pp controversy

Plastic Degradation

Mutual ill-will over an anti-dumping row hits India-Saudi Arabia relations

Plastic Degradation
T. Narayan
Plastic Degradation
outlookindia.com
-0001-11-30T00:00:00+05:53

In Riyadh’s exclusive club of royals and business tycoons, among whom rank some of the world’s wealthiest, frowns and sneers appear on the faces of its members at the mention of three words—India, Reliance Industries Ltd (RIL) and Mukesh Ambani. Aware of Ambani’s political and economic clout, Riyadh has come around to believe, rightly or otherwise, that it was at his company’s behest that New Delhi has invoked the anti-dumping law against Saudi companies that want to sell polypropylene (aka PP), an important ingredient in making plastic and other items, in the Indian market. Such is the anger and dismay in Riyadh that the anti-dumping controversy threatens to cast a shadow on the strategic partnership that Prime Minister Manmohan Singh and the Saudi king, Abdullah bin Abdul-Aziz Al Saud, fostered through the signing of the Riyadh Declaration last February.

India called the anti-dumping law into use after a complaint was filed against the Saudi companies by RIL, Asia’s largest PP producer which has carved out a 70 per cent stranglehold on the Indian market. Bengal-based Haldia Petrochemicals Ltd subsequently signed on to RIL’s complaint, but its comparatively small share of the market has convinced the Saudi firms of the hand played by Ambani in fanning the PP controversy. India, sources say, has been informed by the Saudi Arabian leadership that it would not “expect such an unprecedented, economically harmful and WTO (World Trade Organisation)-inconsistent approach to be applied to a strategic partner with which one seeks to expand trade and improve relations overall”.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Five Points On How Taliban Wants To Define Marriage For Women

Five Points On How Taliban Wants To Define Marriage For Women

Taliban government's revised version of women’s rights decree largely emphasizes on marriage and re-marriage which predictably is in accordance with the Sharia law.

Hyderpora Encounter: Arrest Of Khurram Parvez Brings Focus Back On Human Rights In Kashmir

Hyderpora Encounter: Arrest Of Khurram Parvez Brings Focus Back On Human Rights In Kashmir

Alleging abuse of anti-terror laws, the United Nations and international human rights bodies seek release of rights activist Khurram Parvez and inquiry into the Hyderpora encounter.

2nd Test, Day 2: IND Take 332-Run Lead After Dismissing NZ For 62

2nd Test, Day 2: IND Take 332-Run Lead After Dismissing NZ For 62

On Ajaz Patel's record-breaking day, India dismissed New Zealand for 62 runs, then took a 332-run lead. Catch Day 2 highlights.

Omicron Severity Is Anticipated To Be Low: Health Ministry

Omicron Severity Is Anticipated To Be Low: Health Ministry

Will the Omicron variant drive the Covid-19 third wave in India? The Union Health Ministry says the chances are very low.

Advertisement