European Industry Counterattacks against Argentine Biodiesel
by Aline Robert (EurActiv) A group representing European biodiesel producers filed a complaint about illegal state aid with the European Commission on 3 November.
It’s the latest episode in a commercial war between European biodiesel and its South American competitor. In September, the EU removed tariff barriers on biofuel from Argentina, following a WTO complaint. Now the European biodiesel producers’ organisation replies in kind.
“We lodged a complaint about unfair subsidies with the European Commission on 3 November,” said Raffaello Garofalo, secretary-general of the European Biodiesel Board, who hopes the investigation will be opened quickly because of the risks for the European industry.
Contacted by EURACTIV, the European Commission declined to confirm.
However, EURACTIV understands that the opening of an investigation is likely to be announced in November in the Official Journal of the EU.
In addition to a rising market share, Argentina’s biodiesel weighs heavily on prices: it is by far the cheapest on the market.
Citing state aid, the United States imposed this summer an import tariff of nearly 64% on the Argentinian biofuel.
As a result, Argentine biodiesel vessels destined for the American market changed course and sailed to Europe, after the news that European tariff barriers had been lifted. They had stood at between 22 and 25% of the price from 2013 until now. READ MORE