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The European Union (EU) has retained its tariffs on US biodiesel for a further five years after concluding that removing them would lead to a surge in imports at artificially low prices, Reuters reported.

Dating back to 2009, the tariffs would be extended until 2026, the EU official journal said on 2 August.

In its review of the case, the European Commission (EC) had concluded that US producers could increase their capacity and also divert some of their exports from less profitable markets to the EU if the tariffs were removed, Reuters wrote.

US producers, who were benefiting from subsidies including tax credits, grants and loan guarantees, were already selling to third countries at prices below those in the USA, according to the report.

The anti-dumping duties ranged from zero to 198/tonne (US$235), and duties related to subsidies from €211.2 to €237.0/tonne, Reuters wrote, and were not cumulative, with the higher rate of the two duties applied.

The initial case was brought by the European Biodiesel Board on behalf of EU producers such as France's Saipol and Germany's Verbio, according to the Reuters report.