EU to opt for higher Argentina biodiesel duties: Update

Adds European Commission comment

The EU Commission is set to impose higher anti-subsidy duties (ASDs) on Argentinian biodiesel exports than previously thought. But provisional duties will not be imposed while the ASD investigation is ongoing.

Anti-subsidy duties may be as high as 25.3-38.1pc of the cif EU price of Argentinian SME cargoes, once finalised, a document seen by Argus shows.

The investigation is due to be completed within 13 months of its 31 January 2018 start date. It also had nine months to decide whether to impose provisional duties against Argentinian soy methyl ester (SME) biodiesel exports to Europe. Market participants on either side of the Atlantic had expected that provisional duties of up to 29.5pc would apply from September-October this year.

While the deadline for a final decision on ASDs is not until the end of February 2019, market participant say that a conclusion may be reached during the fourth quarter this year.

The European Commission would not confirm the proposed ASD level as the investigation is ongoing and is also market sensitive. An official said that the final decision still has to be made.

Argentina-EU biodiesel shipment declined steeply to around 14,000t in August — from around 150,000t/month previously — on expectations of provisional duties.

The original complaint lodged by the European Biodiesel Board (EBB) on 18 December 2017, alleged that the Argentinian government was giving financial support and below-market prices for feedstock soybean oil to exporting biodiesel producers.