NEW DELHI: Firms such as Reliance Industries can now export PET resin - an ingredient in plastic containers for water, soft drinks and food products - to the US duty-free.

A US-based law firm, Steptoe & Johnson LLP, said in a statement that it has won approval to continue exporting Indian polyethylene terephtalate (PET) resin to the US market free of duty.

“This is an important victory for Indian PET resin manufacturers and sends a message affirming the importance of the US-India bilateral trade relationship and of keeping our markets open, especially as our countries confront the global economic downturn, ” Steptoe & Johnson LLP Partner and Chair International Department, Ms Susan Esserman said.

On June 30, the US President Mr Barack Obama announced the continuation of duty-free import for the substance under the Generalised System of Preferences (GSP), which promotes “economic development of developing countries through expansion of exports”.

In 2005, the US International Trade Commission (USITC) rejected the plea of US PET resin manufacturers to impose anti-dumping duty on import from India, Indonesia and Thailand.

Around 12,000 tonnes of PET resin was exported to the US market from India in 2004. Among major Indian players in the segment are Reliance Industries Ltd, SPIC Petrochemicals and Indian Organic Chemicals. – PTI