UK proposes duty on imports of Chinese rutile titanium dioxide

LONDON, Oct 7 (Reuters) - Britain's trade watchdog has recommended that the government impose new anti-dumping duties on imports of rutile titanium dioxide from China, used in paints and paper, after finding that domestic industry was at risk of harm.

Britain has acted to protect domestic industries in an increasingly fragmented global trade environment, and earlier this year replaced steel safeguards with a tougher new measure amid concern over a glut of cheap steel from countries like China.

On Wednesday, Britain's Trade Remedies Authority (TRA) said its investigation of rutile titanium dioxide, a whitening agent, found that it was being dumped in Britain from China and there was a imminent threat of injury to UK production.

"Our investigation has found that the UK’s titanium dioxide production industry faces a real and immediate threat from dumped imports from China," said TRA Chief Executives Jessica Blakely and Carmen Suarez.

"The measure that we have proposed today will help to protect this key UK industry that employs over 570 people, contributes millions to the country's economy and supplies hundreds of downstream UK businesses."

The TRA will now take feedback on its initial recommendation before making a final recommendation to Britain's business minister, who will take a decision on whether to impose the duties.

Britain is attempting a delicate balance in its trade interests. It has clinched a deal with the United States to avert some of President Donald Trumps tariffs, sought to avoid oversupply of some Chinese goods while keeping a valuable export market open, and looked to deepen co-operation with the European Union.

It is keeping tariffs on Chinese EVs under review - not wanting to provoke backlash from China against British exporters while also looking to reduce policy differences with the EU as it seeks access to its proposed "Made in Europe" scheme.

(Reporting by Alistair Smout; editing by Sarah Young)