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Last hurdle cleared in US biodiesel trade case as ITC votes 4-0

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By The National Biodiesel Board

April 03, 2018

PolicyDistributionNorth AmericaLatin AmericaAsia/Pacific

On April 3 the U.S. International Trade Commission voted 4-0 in favor of the National Biodiesel Board Fair Trade Coalition's position that the industry has suffered because of unfairly dumped imports of biodiesel from Argentina and Indonesia.

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ADM announced plans in March to temporarily cease production of biodiesel at its facility in Mainz, Germany, as a result of increased biodiesel imports into the EU. Last fall, looming imports caused France's Saipol to make a similar decision.

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Brazil's nationwide biodiesel mandate has increased from 8 to 10 percent on March 1, according to an announcement from the Ministry of Mines and Energy. The National Energy Policy Council approved the increase in December, one year ahead of schedule.

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The commerce department found that biodiesel imports from Argentina and Indonesia are sold into the U.S. below fair value, and the cash deposit requirements on imports from these countries will be updated based on the final amount of dumping found.

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Following an EBB complaint, the EU Commission initiated an antisubsidy investigation Jan. 31 targeting subsidized Argentine biodiesel exports. Since September when EU tariffs were reduced, Argentina shipped 600,000-plus tons of biodiesel to the EU.

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Brazilian President Michel Temer has approved legislation creating RenovaBio, a new national biofuels policy. The law was published in the official federal gazette of Brazil on Dec. 26. The Brazilian Senate approved the bill Dec. 12.

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Brazil's Senate approved a bill Dec. 12 creating a national biofuels policy, RenovaBio, to increase use of biodiesel and ethanol, in addition to other biofuels, to improve the nation's energy security and reducing greenhouse gas emissions.

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The U.S. International Trade Commission determined in a 4-0 vote that the U.S. biodiesel industry is materially injured by biodiesel imports from Argentina and Indonesia, which the U.S. Department of Commerce previously determined are subsidized.

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The commerce department issued its final determination in the case of subsidized biodiesel imports from Argentina and Indonesia. Importers must pay cash deposits of more than 70 percent for Argentine and 34 to 65 percent for Indonesian biodiesel.

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The U.S. International Trade Commission will hold a hearing Nov. 9 concerning biodiesel imports from Argentina and Indonesia. Members of the National Biodiesel Board Fair Trade Coalition will testify, as well as two U.S. senators.

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Ahead of a meeting Nov. 1 between the U.S. and Argentine governments on biodiesel imports, the National Biodiesel Board's CEO Donnell Rehagen said unless Argentina puts an end to its harmful differential export taxes, there is nothing to negotiate.

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The U.S. Department of Commerce found that biodiesel imports from Argentina and Indonesia are sold into the U.S. below fair value, so it imposed preliminary duties on imports from these countries based on the amount of dumping found.

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Industry stakeholders and legal experts discuss the recent RFS court ruling, the ongoing U.S. trade cases against Argentina and Indonesia, and the biodiesel tax credit in context of U.S. EPA's Notice of Data Availability.

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Biodiesel Magazine's 2018 Editorial Outlook Webinar, recorded Oct. 11, is available OnDemand, and registration is free of charge. Registrants are eligible for an exclusive advertising discount only available through this special offer.

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Major French biodiesel producer Saipol, a subsidiary of Avril, is cutting biodiesel production and rapeseed crushing activities in the wake of a recent decision by the EU to drastically lower antidumping duties on Argentine biodiesel imports.

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The European Biodiesel Board is preparing to launch an antisubsidy case against Argentinean biodiesel imports, following the recent decision by the European Union to significantly lower the antidumping duties for the country.

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French and German oilseed farmer organizations say the European Commission cannot propose a reduction of EU biofuel production from biomass driven by environmental issues while widely opening its markets to imported biodiesel and GMO protein meal.

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Following the recent EU decision to substantially lower import duties on Argentinian biodiesel, spurred by a World Trade Organization ruling last year, imports into the EU-28 are likely to rise sharply, producing considerable shifts in the market.

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According to information provided by the European Biodiesel Board, only six countries voted in favor of the proposal, while 10 voted against it and 12 abstained. EU ag and biodiesel groups are joining forces on antisubsidy measures against Argentina.

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The NBB Fair Trade Coalition won a preliminary countervailing duty determination from the U.S. Department of Commerce regarding subsidized biodiesel imports from Argentina and Indonesia. Importers will be required to pay cash deposits.

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The U.S Department of Commerce announced its preliminary decision Aug. 22 to impose countervailing duties on biodiesel imported into the U.S. from Argentina and Indonesia. REG's CEO said this is a victory for American manufacturing and job creation.

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EU member states are to decide on the European Commission's proposal to radically lower the antidumping duties on Argentinian and Indonesian biodiesel imports. The European biodiesel industry warns of the dramatic impact that this decision may have.

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The critical circumstances provision in antidumping and countervailing duties laws allows for imposition of duties on imports that enter the U.S. prior to preliminary determinations of subsidization and dumping. NBB filed a new claim on this basis.

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The NBB can make a request for a finding of critical circumstances. If granted, this would allow the U.S. government to retroactively impose duties on imports up to 90 days prior to the commerce department's preliminary determinations.

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In the ongoing biodiesel trade dispute between the U.S. and Argentina and Indonesia, the U.S. Department of Commerce has extended the deadline for making its preliminary determination on the countervailing duties claim until August.

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The USITC announced May 5 it has made unanimous affirmative determinations in its preliminary phase antidumping and countervailing duty investigations concerning biodiesel from Argentina and Indonesia, meaning the investigation will move forward.

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U.S. biodiesel production in February was up 1 million gallons from January, according to EIA data. Combined U.S. imports of biodiesel and renewable diesel totaled more than 33.43 million gallons, up more than 50 percent over January's imports.

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The U.S. Commerce Department announced April 13 initiation of antidumping and countervailing duty investigations of biodiesel imports from Argentina and Indonesia. U.S. producers testified on the same date to the International Trade Commission.

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The National Biodiesel Board filed an antidumping and countervailing duty petition March 23, making the case that Argentine and Indonesian companies are violating trade laws by flooding the U.S. market with dumped and subsidized biodiesel.

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