EU prolongs duties on US biodiesel

The EU announced yesterday the start of an expiry review of anti-dumping and anti-subsidy duties against US biodiesel. Duties will now not expire in September but stay in place at least until the review is concluded.

The investigation should be concluded within 12 months but not later than 15 months from 14 September. The commission has noted "sufficient" evidence that expiry of the measures would be likely result in "continuation or recurrence" of subsidies and dumping and recurrence of injury to the EU biodiesel industry.

The European Biodiesel Board (EBB) formally lodged the request for a review on 11 June on behalf of producers representing more than 25pc of total EU biodiesel production. The product subject to the review is specifically defined as fatty-acid mono-alkyl esters, paraffinic gasoil of non-fossil origin obtained from synthesis or hydro-treatment in both pure form or blend.

The EU imposed definitive countervailing duties on imports of US biodiesel in 2009, extending them in 2011 to imports consigned from Canada, whether or not declared as originating in Canada.

The commission found alleged subsidy practices consisting, inter alia, of government revenue forgone or not collected, including tax credits and refunds for biodiesel production as well as grants, preferential lending and loan guarantees. It will review continuation or recurrence of subsidisation and dumping from 1 July 2019 to 30 June 2020 as well as assess likelihood of continuation or recurrence of injury from 1 January 2017 to the end of the review.

The review is likely to examine biodiesel tax credits retroactively instated by US president Donald Trump in December 2019, for the period 31 December 2017 to 31 December 2022.

The expiry review can lead to the duties being repealed or maintained whereby they would normally be in force for another five years. But the expiry review cannot change the levels or form of the duty.

By Dafydd ab Iago