The Gulf Petrochemical Industries Company (GPIC) has welcomed a European Union (EU) decision to suspend the custom duties levied on the import of methanol from Arabian Gulf States.
The 5.5% levy on such imports from outside EU countries, implemented in January, was proving to be a “significant financial burden” and had affected the competitiveness of GCC exporters in the important European Markets.
GPIC president Dr Abdulrahman Jawahery said the move has been made possible as a result of efforts at the government and personal levels in Bahrain, particularly those from His Royal Highness the Prime Minister’s Adviser on Oil and Industrial Affairs and GPIC Chairman Shaikh Isa bin Ali Al Khalifa, Industry and Commerce Minister Dr Hassan Fakhro and Finance Minister and Minister in charge of Oil and Gas Affairs Shaikh Ahmed bin Mohammed Al Khalifa.
“This was a major challenge we were facing since the imposition of the new tax which was affecting us negatively,” he said. “We whole-heartedly appreciate the efforts of Bahrain’s Ministry of Foreign Affairs and Gulf Petrochemicals and Chemicals Association (GPCA) Chairman and Saudi Basic Industries Corporation Vice chairman and Chief Executive Officer Mr.Mohamed Al-Mady.” He also thanked the International Trade Committee of GPCA for playing a critical role in the matter. “This has been the result of all their joint efforts.”
He said the decision would have a positive effect on Arabian Gulf methanol exports to Europe, which would now return to their previous levels before the tax was imposed. “This will also enhance our competitiveness in the Gulf countries’ traditional European market and serve producers’, including the GPIC’s, common interests.” He said all suppliers in the region would now be able to contribute positively to meet the growing demand for methanol.
