EC Imposes Countervailing Duties on Indonesian Biodiesel

The European Commission is to impose effective September 06 countervailing duties of 8% to 18% on imports of subsidized biodiesel from Indonesia with a view to restore a level playing field for European Union producers.  The EU executive  said in a statement that the new import duties are imposed on a provisional basis as the investigation continues .  Definitive duties, usually applied for five years at the end of an investigation, would need to be set by 4 January 2020.
In response, Indonesian trade minister Enggartiasto Lukita has said he would recommend a 20% to 25% tariff on EU dairy products and ask dairy importers to find sources outside of the bloc, according to a Euractiv report.  The EU duties are another blow to Indonesian biodiesel producers after the bloc said in March that it planned to cut its use of palm oil-based biofuels by 2030 because of deforestation concerns. The European Commission, which coordinates trade policy for the EU, launched an anti-subsidy investigation against Indonesia in December following a complaint by the European Biodiesel Board.
  
Indonesia Biofuels Producers Association (APROBI) Chairman M.P. Tumanggor told Reuters that companies impacted by the anti-subsidy duties will likely be forced to renegotiate their contracts with buyers in the EU and it may reduce 2019’s biodiesel exports to around 1 million tons from a projected 1.4 million tons.  The proposed import duty rates vary from exporting companies: 8% for Ciliandra Perkasa, 15.7% for Wilmar Group, 16.3% for Musim Mas Group and 18% for Permata Group, according to Reuters.