EBB welcomes antisubsidy duties, price undertaking agreement

During a Jan. 30 EU Trade Defense Committee meeting member states’ representatives discussed and approved with a large majority antisubsidy duties against Argentinean unfair imports of biodiesel. A price undertaking agreement between the European Commission and Argentinian producers was also approved.

The European Biodiesel Board welcomed the adoption of the definitive antisubsidy duties. This is an important confirmation that the EU considers Argentinean export taxes an illegal subsidization practice generating unfair and distorting effects in the international market of biodiesel. 

A price undertaking was part of the package of measures against Argentina. It provides that Argentinean exporters will be allowed to export towards the EU, without paying the duties, a maximum of approximately 1.2 million metric tons (approximately 360 million gallons) of biodiesel every year to be sold at a minimum price level set to create a level playing field. In order to avoid peak exports, no more than 37 percent of this annual volume will be allowed to be traded on a single quarter.

EBB will monitor very closely the correct implementation of the price undertaking, both in form and substance, and will promptly inform EU authorities of any unfair or untrustworthy practice linked to the execution of the agreement. In case the price undertaking will not be respected and the level playing field will not be restored in the coming months, EU authorities have the power to withdraw the agreement and simply apply the general ad valorem duty of around 30 percent to all Argentinian biodiesel exports towards the EU.

“The EU biodiesel industry will join its efforts with the EU Commission monitoring team in order to verify the correct execution of the price undertaking agreement in the next months,” said EBB President Kristell Guizouarn. “EBB will remain extremely vigilant and promptly denounce any future unfair practice to EU institutions.”