Detail

European Union

Biofuels

Biodiesel

01/05/2013

Trade

Trade restrictions

Imposed provisional anti-dumping duties on imports of biodiesel and biodiesel blends from Argentina and Indonesia.

EUROPEAN UNION – biodiesel anti-dumping/subsidy duties: Provisional anti-dumping duties have been imposed on imports of biodiesel and biodiesel blends from Argentina and Indonesia, which together account for 90 percent of the EU’s imports. The measure results from an investigation launched last year in response to complaints by a group of EU biodiesel producers over sales of imported biodiesel below its normal value overseas (see also MPPU Nov’12). The investigation found that the volume of low-priced imports doubled during 2011-2012, leading to a significant increase in the total market share of the two countries – at the expense of EU industry. Depending on the company involved, the countervailing duties range from 76 to 105 ˆ per ton (or 6.8 to 10.6 percent) for soyoil-based fuel from Argentina and from zero to 84 ˆ (or zero to 9.6 percent) for palmoil-based fuel from Indonesia. Definitive duties could be set in November, depending on the investigation’s final results. Reportedly, the EU Commission is also conducting a separate investigation on whether Argentina and Indonesia have been providing their producers with unfair indirect subsidies, causing additional damage to the EU industry. Allegedly, the differential export tax regimes maintained by the two countries discourages raw material exports in favour of biodiesel exports, and the practice of offering biodiesel at lower prices than the raw material used to make the final product is said to put EU biodiesel production from imported feedstock at a disadvantage. If confirmed, these allegations could lead to the imposition of additional anti-subsidy duties later this year.