European Commission comments on the decision to impose duties on US biodiesel

Publication date: 13 March 2009

European Commission comments on the decision to impose duties on US biodiesel
 
   
Following the publication of provisional (temporary) anti-dumping and anti-subsidy ('countervailing') duties on imports of biodiesel from the United States, the EU Spokesperson for Trade Lutz Guellner made the following statement :

"After a thorough investigation based on the facts in this case, the Commission has today decided to apply temporary duties on imports of US biodiesel. Anti-dumping and anti-subsidy measures are not about protectionism, they are about fighting unfair trade. This decision was taken on the basis of clear evidence that unfair subsidisation and dumping of US biodiesel has taken place, and that this is harming otherwise competitive EU industry, with potentially dire long term effects."

The measures will come into effect from 13 March and will be in place for four months while the investigation and contacts with stakeholders continue. The level of the measures, which are applied together, is set at between 211,20 EUR and 237,00 EUR per tonne for the anti-subsidy duties and between 23,60 EUR and 208,20 EUR per tonne for the anti-dumping measures. At the end of this time, the Commission will make a final recommendation to EU member states on whether or not to impose so-called 'definitive' duties in this case, which if imposed would normally last for five years.

The investigation into US biodiesel was launched on 13 June 2008 following complaints received from EU industry. The investigations confirmed evidence provided by the European Biodiesel Board that US producers of biodiesel exported biodiesel to the Community at dumped prices, received countervailable Federal (in particular tax credits) and State subsidies and that the exports of dumped and subsidised biodiesel were causing material injury to the biodiesel industry in the EU. On the issue of "splash and dash" practices, whereby biodiesel produced in third countries is imported into the US in order to avail of alleged subsidies, the US has removed the "splash and dash" element of the subsidy programme.

Background

During the investigation period (April 2007 – March 2008) US imports held a market share of 17%. In the same period t he EU market for biodiesel was worth approx. €5 billion with imports from the US accounting for approx. € 700 million (total imports = approx. € 800 million). Imports from the US have increased significantly in recent years from approx. 7 000 tonnes in 2005 to more than 1 million tonnes in the investigation period. Provisional duties in anti-dumping and anti-subsidy cases are imposed by the Commission, while definitive measures are imposed by the Council.

Source: European Commission