EU holds off on tariffs for cheaper Argentine biodiesel

In France, in a major blow for European biofuel producers, the European Commission will not be imposing provisional import tariffs on cheaper Argentine biodiesel until it gathers more information. EU biodiesel producers were negatively affected when the EU scrapped duties last year in response to a ruling by the World Trade Organization, which allowed Argentina’s cheaper biodiesel to come into the EU, threatening local producers.

“The Commission’s preliminary conclusions are that the Argentinian imports of the product concerned into the Union are subsidized and that there appears to be a threat of material injury to the Union industry,” the Commission said in the document obtained by Reuters.

“However, the Commission finds it necessary to collect further information on developments after the investigation period which could further confirm the Commission’s preliminary findings in this investigation as well as shed more light on the Union interest,” it said. “In view of its findings, the Commission will continue the investigation without the imposition of provisional measures.”

Several biodiesel makers including Saipol, Bunge and Archer Daniels Midland Co have been reducing production or even closing plants in the EU, saying the poor market conditions are due to the huge influx of cheaper Argentine biodiesel coming in.