EU Hits Indonesian Biodiesel with Import Duties over Subsidies
by Philip Blenkinsop (Reuters) The European Union confirmed tariffs on Indonesian biodiesel imports on Monday to counter what it sees as unfair subsidies, the latest blow to producers after the bloc ruled that palm oil should be phased out of renewable transport fuels.
In the conclusion to a case that has lasted seven years, the duties, which normally remain in place for five years, have been set at between 8% and 18%, the same level as the provisional rates proposed by the EU in August.
The EU biodiesel market is worth an estimated 9 billion euros ($10 billion) a year, with imports from Indonesia worth about 400 million euros, the European Commission said.
Indonesian producers sold at unfairly low prices, the Commission, which coordinates trade policy for the EU, said, adding that its investigation found they benefit from grants, tax benefits and access to raw materials below market prices.
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Master Parulian Tumanggor, chairman of Indonesia’s biofuel producers association, told Reuters his group would ask the government to file a legal challenge at the World Trade Organization (WTO).
The EU and China are Indonesia’s biggest markets for its biodiesel exports and the Indonesian government has threatened to impose its own tariffs on EU dairy products amid fraught relations with the bloc.
The EU said in March that Indonesian palm plantations were contributing to deforestation and said palm oil should no longer be used in renewable fuels.
It has also imposed anti-subsidy duties on Argentine biodiesel producers, although they have tariff-free access for about 1.2 million tonnes as long as they sell no lower than a set minimum price. READ MORE
EU Fuels Indonesia Trade Tensions With 5-Year Biodiesel Tariffs (Bloomberg)
‘Unacceptable’ EU biofuel tariffs rile Indonesia (Bangkok Post)
EU sets tariffs on Indonesia biodiesel imports over subsidies (Hellenic Shipping News)
Indonesia preparing lawsuit against EU for import duties on biodiesel (Antara News)
Indonesia files WTO lawsuit against EU over palm oil biofuels (DW)
