Argentina is expected to export more than 500,000 tonnes of biodiesel into the European market in 2018 as a result of the EU’s September cut on import duties.
After the duty cut from 22-25.7% to 4.5-8.1% in late September, Argentina had already shipped 300,000 tonnes of biodiesel to Europe, Gustavo Idigoras, an analyst with industry chamber Carbio, told Reuters on 7 November.
Returning to the EU market – which was the largest outlet for Argentine biodiesel until the 2013 imposition of import tariffs – was crucial to Argentine producers after the USA enacted its own import duties in August.
According to Idigoras, the impact of the US tariffs was mitigated to a certain degree by the EU market opening up again in the aftermath of the World Trade Organization (WTO) deeming the bloc’s duties baseless.
Argentina’s biodiesel exports grew in the first half of 2017, but the US tariffs cut into profits in the third quarter, when exports to the USA fell by US$121M, bringing the export total down to US$739M from the US$768M year-on-year, Reuters wrote.