Trade and markets
 

Detail

Area
Argentina
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/12/2017
Policy Category
Trade
Policy Instrument
Export policy
Description
Increased the country\'s variable export tax on biodiesel from 0 to 8 percent, effective 1 January 2018.
Notes
The Government announced a rise in the country’s variable export tax on biodiesel from zero percent applied in December 2017 to a fixed rate of 8 percent, effective 1 January 2018. Considering that, at the same time, the January export tariff rate for soy oil is going to be lowered to 26.5 percent (from 27 percent applied in December), the tax difference between the two products is set to drop from 27 percent to 18.5 percent. Reportedly, the reduced tax differential could result in negotiations with the United States regarding last year’s introduction of anti-dumping and countervailing duties on imports of Argentine biodiesel (N.B. The United States likened Argentina’s tax differential to a subsidy for the country’s biodiesel producers – see MPPU Sep.’17). Market observers pointed out that the higher taxation of biodiesel exports could negatively affect Argentina’s sales of the fuel to the European Union.