Countervailing duties on Egyptian fiberglass: what changes for importers in 2026

Key data

European importers of continuous filament fiberglass (GFR) originating from Egypt face an immediate additional cost: the Commission Implementing Regulation (EU) 2026/2107, published on 23 September 2026, maintains definitive countervailing duties on this product after concluding that their elimination would lead to the recurrence of subsidies harmful to the European industry.

The measure is not new in nature, but its renewal confirms that the price increase of Egyptian GFR is not temporary: it is a structural condition of the European market for the coming years. Any company that depends on this raw material must act now.

What does this regulation establish?

The regulation is the result of an expiry review in accordance with Article 18 of Regulation (EU) 2016/1037, the EU anti-subsidy framework. This type of review is triggered when existing protective measures are about to expire and the European industry requests their extension.

The European Commission has concluded, following the corresponding investigation, that:

• The expiry of the current measures would lead to the recurrence of subsidies by Egypt to its GFR exporters.
• Such subsidies would cause material injury to the Community fiberglass manufacturing industry.
• Therefore, the maintenance of definitive countervailing duties is justified.

In practical terms, this means that imports of Egyptian GFR remain subject to an additional tariff on top of the general rate, which raises its entry price in the European market compared to GFR produced in the EU or imported from countries without these measures.

Economic and operational impact

The maintenance of these tariffs has two distinct sides depending on the company profile:

For importers and users of Egyptian GFR: the cost of acquiring this raw material remains artificially elevated compared to what it would be in the absence of tariffs. This pressures the margins of companies that use GFR as an input in their production processes, especially in sectors with high sensitivity to raw material prices.

For European GFR manufacturers: the measure is positive. It protects them from competition from a subsidized product that, without tariffs, would enter the European market at artificially low prices, eroding their market share and profitability.

The sectors with the greatest exposure to negative impact are:

• Construction: GFR is used in panels, insulation, pipes and structural reinforcements.
• Automotive: lightweight fiberglass components for bodies and interior parts.
• Composite manufacturing: composite materials for aerospace, naval, wind and industrial equipment industries.

Who does it affect?

• European importers of GFR originating from Egypt: direct and immediate impact on purchase costs.
• Construction sector manufacturers using Egyptian GFR as raw material.
• Automotive sector manufacturers with fiberglass components in their production chain.
• Composite material manufacturing companies (aerospace, naval, wind, industrial).
• European GFR manufacturers: benefit from tariff protection against subsidized Egyptian competition.
• Foreign trade advisors and procurement departments managing supply chains with origin in Egypt.

Practical example

Imagine a Spanish construction panel manufacturer that regularly imports 500 tons annually of GFR from Egypt. With definitive countervailing duties in force, each ton imported bears an additional tariff cost that raises its entry price compared to GFR of European origin or from countries without these measures.

If this company has not reviewed its procurement strategy, it has two clear options:

• Absorb the tariff surcharge, which compresses its operating margin.
• Pass the increase to the selling price, which can reduce its competitiveness against manufacturers already using GFR from other sources.

The most efficient alternative is to evaluate GFR suppliers in countries not subject to countervailing duties — such as other Asian markets or European suppliers — and compare the total cost of acquisition including tariffs, logistics and quality. This analysis should be done before the next round of supply contracts.

What should companies do now?

1. Identify if your company imports GFR of Egyptian origin: review the certificates of origin from your current suppliers. If the origin is Egypt, you are directly affected by these countervailing duties.
2. Quantify the tariff impact on your cost structure: calculate the annual volume of Egyptian GFR imported and the surcharge that the countervailing duty represents on your gross margin.
3. Evaluate alternative suppliers: analyze GFR supply sources in countries not subject to countervailing duties. Compare total cost (price + tariff + logistics + quality) before changing suppliers.
4. Review current supply contracts: if you have long-term contracts with Egyptian suppliers, verify if they include price review clauses for tariff changes and negotiate accordingly.
5. Update cost forecasts and budgets: inform the finance department and procurement team of the sustained impact of this measure to adjust margin forecasts and selling prices.
6. Consult with a foreign trade specialist: a customs advisor can confirm the exact NC codes affected and the type of duty applicable to your specific product.

Official source

Consult full regulation at official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202602107