EU Faces Surge in Biodiesel Import with Removal of Anti-Dumping Duties

Thursday, April 19, 2018

The EU’s removal of duties on Argentina and Indonesian biodiesel could result in a flood of imports starting in April and the closure of some small producers, according to Claus Sauter, chief executive of Geman biofuels producer Verbio AG, in a Reuters report last month.  “I expect about three to five million tons will be imported in 2018 and afterwards,” Sauter said. “As EU biodiesel is mainly produced from rapeseed oil, European farmers will lose a huge market for their rapeseed.”  The EU biodiesel market is about 12 million tons per year, Reuters said.

The EU imposed anti-dumping duties on biodiesel imports from Argentina and Indonesia in 2013 but has since faced a series of legal challenges at the European Court of Justice and the World Trade Organization.  Both bodies have ruled against the EU measures. 

The EU had removed duties on biodiesel imports for 13 Argentine and Indonesian producers following the end of legal proceedings at the European Court of Justice.  The verdict, however,  applies to some producers who have filed a lawsuit with the EU court. Hence, other biodiesel importers will need to await a resolution announced by the Dispute Settlement Body of World Trade Organization (DSB WTO).    

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