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EU imposes anti-dumping duties on Argentine, Indonesian biofuel

July 19, 2013

The European Union (EU) has imposed punitive duties on imports of biodiesel from Argentina and Indonesia, charging them with selling the product into the EU at unfairly low prices, Reuters reports.

The European Union (EU) has imposed punitive duties on imports of biodiesel from Argentina and Indonesia, charging them with selling the product into the EU at unfairly low prices, Reuters reports.

The European Commission (EC) said in May that it had set provisional tariffs ranging from 6.8% to 10.6% for imports from Argentina and between zero and 9.6% for those from Indonesia.
Together, the countries represent 90% of EU biodiesel imports. Their share of the EU market rose 22% in 2011 from nine percent in 2009. The duties became effective on 29 May, while the investigation continues. Member states are expected to vote on definitive duties – typically imposed for five years – before the end of November.

The EU is conducting a parallel investigation into allegations of unfair subsidies for producers in Argentina and Indonesia, expected to conclude by the start of December, the Reuters report said.
EU regulators have said taxes imposed on Argentina’s exports of crops such as soyabean oil used to make biodiesel, but not on the finished product, make it uneconomical for EU refiners to produce biofuel from Argentine raw materials.

A similar export tax exists in Indonesia, which the EC says also undercuts EU refiners.
Argentina and Indonesia have fought back, saying their measures comply with World Trade Organization (WTO) rules.

  •  The Renewable Fuels Association and Growth Energy have filed a joint complaint with the General Court in Luxembourg challenging the EU’s decision to impose a 9.6% anti-dumping duty on ethanol imported from the USA.
    The complaint outlines 10 specific violations of one established trade law commited by the EC in its investigation of anti-dumping claims, Ethanol Producer magazine reports. These include errors in the assessment of relevant facts in determining injury and dumping margins as well as violations of the EU’s own rules regarding the implementation of anti-dumping penalties, such as their refusal to calculate individual dumping margins and assign individual dumping duties, their incomplete and inaccurate calculation of an alleged injury margin, and their overstatement of the volume of imports from the USA.
    The complaint requests the complete and total end of the duty.

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