Phosphorous acid is used to produce phosphonates and related speciality chemicals, which are applied across a range of downstream sectors, including water treatment, agriculture, construction, textiles and pharmaceuticals, where they function as corrosion inhibitors, fertiliser components and plant growth regulators. Around 9,000 tonnes are consumed annually in the EU, produced domestically by manufacturers based in Germany and the Netherlands, making this a relatively small but strategically relevant segment of the specialty chemicals value chain.

The EU market for the product is worth approximately €18 million, with total imports valued at €9.7 million, all of which originated from China during the investigation period, underscoring how concentrated the import dependency had become for this particular substance. The Commission's investigation, conducted according to the EU's standard anti-dumping procedures, further found that the duty would have limited impact on EU importers or downstream users of the substance, since alternative supply from EU producers and other third countries remains available.

The case illustrates a pattern increasingly visible across the EU chemicals sector, where trade defence instruments are being used to protect niche but strategically important production capacity from underpriced imports, particularly for substances feeding into water treatment, agriculture and other applications tied to the EU's broader sustainability and food security objectives.

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