EBB: European Commission should extend duties on US biodiesel

This month the European Commission published the notice of initiation of investigation within the framework of the B99 expiry review request.

The European Biodiesel Board, representing the major biofuels producing industry in the EU, applauds the commission’s decision to initiate the investigation looking into the factual grounds for a potential extension of duties on biodiesel imports originating in the U.S.

The “B99” expiry review request had been lodged by the EBB at the beginning of April 2014. EBB asked for a renewal of the antidumping and countervailing duties imposed on U.S. biodiesel in 2009 through Council Regulation (EC) 599/2009 and Council Regulation (EC) No 598/2009, respectively. Given that the required level of overall EU industry support for the expiry request has been largely met, the European Commission has been provided with all of the legal grounds for initiating the investigation, which is forecast to last between 12 and 15 months. Throughout this period, the currently applicable level of remedies, ranging from €213/ton to €409/ton ($288/300 gallons to $553/300 gallons), will be maintained. At the end of the investigation period, the EU authorities are expected to announce whether they will extend the duties, at the same level, for another five years, as the European industry requests.

The initiation of investigation is welcomed by the European industry as an important step towards preventing the recurrence of flows of cheap U.S. biodiesel to the EU market, and maintaining a fair and balanced global trading system.

Raffaello Garofalo, EBB’s secretary general, praised the commission’s decision. “Should the antidumping and countervailing duties cease to apply, the EU biodiesel industry would certainly witness the recurrence of the situation from five years ago,” Garofalo said. “Back then, heavily subsidized U.S. biodiesel flooded the EU, causing severe financial damage to our domestic producers, thus strangling the European market’s competitiveness. The European Commission’s decision confirms that there is still a persistent threat to the EU biodiesel market in place. It is the EU authorities’ duty not to let unfair competition resume and nullify the efforts made over the last years to develop an efficient European biodiesel industry able to compete on the global market.”