European Biodiesel Board preparing to launch anti-subsidy case against Argentina

In Belgium, the European Biodiesel Board (EBB) is preparing to launch an anti-subsidy case against Argentine an biodiesel imports, following last week decision by the European Union (EU) to significantly lower the anti-dumping duties for the country.

The EBB is highly concerned about the impact that Implementing Regulation 2017/1578 is having on the EU market.

A fast-track imposition of high level countervailing duties will be necessary to prevent an influx of products from Argentina.

The revised anti-dumping duties on Argentinian biodiesel imports are now ranging from 43,18 to 79,56 euros/ton–a much lower level than those set previously.

The move has led to a major increase in the volumes of subsidized biodiesel exports from Argentina into EU markets. The subsidies mean that Argentinian exporters are able to sell biodiesel at a price that is lower than the cost of the raw materials alone in the EU.

This is resulting in severe damage to the EU biodiesel industry and related economic activities, which is expected to worsen over the next weeks and months. Following feedback from the EU Commission itself, the EU biodiesel industry is responding quickly by making an anti-subsidy complaint against such unfair trade flows from Argentina.

With damage allegedly occurring in the markets just a few days after the duties were lowered, the EBB is raising the attention of the delegates of member states and the European Commission to raise awareness of the absolute necessity of shortening all possible delays to starting the registration of all future imports, as well as beginning an investigation and quickly adopting a provisional countervailing duty against Argentinean imports. Such “fast-track” duty adoption against unfairly priced exports from Argentina was recently implemented by US trade defense authorities and the EU biodiesel industry is hoping for a similar approach in the EU, if possible.