EU enforces 'anti-dumping' duties on biodiesel imports

The EU has imposed duties on biodiesel imports from Indonesia and Argentina. The punitive tariffs are designed to stop the countries 'dumping' biodiesel on to the European market at low prices. The duties have been enforced following an investigation by the EU in response to complaints from European biodiesel manufacturers.

European fuel companies have argued that they have often been placed at a disadvantage in comparison to Argentine and Indonesian companies due to the subsidies and incentives offered to the two countries. The provisional tariffs will range between 6.8 and 10.6 per cent from Argentine imports and between zero and 9.6 per cent for imports from Indonesia.

The investigation will continue whilst these provisional tariffs are enforced, so as to assess whether the tariffs are accurate. EU member states are expected to vote before the end of November on whether definitive duties should be imposed and whether any alterations should be made to them.

Hector Timerman, Argentina's foreign minister, said: "This measure responds to the incapacity of European producers to compete with more efficient producers. In the same way that the measures announced in Europe show the decision to close the markets against the competition of more efficient producers."

Argentina is the world's biggest exporter of biodiesel. Together with Indonesia the two countries are representative of 90 per cent of EU biodiesel imports. The import of biodiesel from Argentina has reportedly fallen since September 2012 following trade disputes with the EU. The country lodged a formal complaint with the World Trade Organization (WTO) on May 15th in relation to EU import and marketing regulations.

Mr Timerman said: "Our response to the WTO shows the firm decision of the Argentine government to carry out all the necessary actions, within the margins of international law, to protect the actions that are opposite to in-force rules regarding production and exportation of our country."