EU to impose fines on biodiesel imports from Argentina, Indonesia

28 May 2013 17:47  [Source: ICIS news]

EU to impose fines on biodiesel imports from Argentina, IndonesiaMEDELLIN, Colombia (ICIS)--The EU on Tuesday imposed punitive duties on imports of biodiesel from Argentina and Indonesia, charging them with selling the product at unfairly low prices.

EU producers suffered "material injury" as a result of dumped imports from Argentina and Indonesia, the European Commission said on Tuesday in the Official Journal. The European Commission is the 27-nation bloc’s trade authority in Brussels.

The levies, due to take effect on 29 May, are for six months and may be prolonged for five years.

The duties are the preliminary outcome of an inquiry that the commission opened last August after a dumping complaint by the European Biodiesel Board (EBB) on behalf of European producers.

The provisional duties against Argentina range from €65.24/tonne ($84.73/tonne) on Molinos Rio de la Plata to €104.92/tonne on exporters including Aceitera General Deheza.

Depending on the company, the levies against Indonesia range from €24.99/tonne to €84.72/tonne. One Indonesian exporter, Ciliandra Perkasa PT, has a zero duty rate.

EU governments, acting on a proposal from the commission, must decide within six months whether to turn the provisional anti-dumping duties into definitive levies lasting for five years.

Definitive-duty rates can differ from the level of provisional fines.

Argentina and Indonesia have fought back, saying their measures comply with World Trade Organization (WTO) rules.

Indonesia has said it might complain to the WTO if the EU imposed penalties, while Argentina launched a challenge at the WTO last week against EU rules for importing and marketing biodiesel.

European trade relations with Argentina have worsened since April last year, when President Cristina Fernandez seized control of oil firm YPF from its parent company, Spain's Repsol.

The EU is also threatening to impose separate anti-subsidy duties on biodiesel from Argentina and Indonesia.

The commission began a probe in November into possible government aid for Argentine and Indonesian exporters and is due to decide by 10 August on any provisional anti-subsidy levies.

EU governments would have four months from then to decide on any definitive five-year measures to counter subsidies.

Argentine biodiesel producers say they are running at half their capacity.

($1 = €0.77)


By: Leela Landress
+1 713 525 2653



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