Mumbai: The European Union has recommended reimposition of anti-dumping duties on polyethylene terephthalate (PET) film imported from India even as the 27-nation bloc has sought early conclusion of a free-trade pact with this country.

The EU ministers are expected to formally approve the plan for renewal of duties imposed in 2001 ahead of the conclusion of the Indo-EU trade and investment talks.

The decision will mean that 17.3 per cent duties will be reimposed on Indian PET film, with some specified companies being charged variable rates (up to 18 per cent) or being exempted altogether.

Companies including Flex Industries, Jindal Poly Films and the Polyplex Corporation are exempted from paying duties while others like Ester Industries of New Delhi (17.3 per cent); Garware polyester of Mumbai (6.8 per cent); MTZ Polyfilms (18 per cent) and SRF of New Delhi (3.5 per cent) will have to bear the brunt.

EU has cited the relative levels of prices and spare capacities in the bloc to suggest a continuation of the dumping.

Meanwhile, EU officials concluded the third-round of negotiations for a broad-based trade and investment agreement with Indian trade officials in New Delhi yesterday.

Polyethylene terephthalate (PET) film is used for its tensile strength, chemical and dimensional stability, transparency, reflective, gas and aroma barrier properties and electrical insulation. It is widely used in packaging, insulation, electronic and acoustic industries.