EBB welcomes EU adoption of definitive anti-subsidy duties against unfair Argentine biodiesel imports
During the EU Trade Defence Committee (TDC) meeting on January 30, 2019, Member States’ representatives discussed and approved with a large majority anti-subsidy (AS) duties against unfair imports of Argentine biodiesel. A Price Undertaking (PU) agreement between the European Commission and Argentinian producers was also approved. The European Biodiesel Board (EBB) welcomes the adoption of the definitive anti-subsidy duties against unfair Argentinean exports.
According to the European Biodiesel Board (EBB), the measures were approved by a large majority and represents an “important confirmation” that the EU considers Argentinean Export Taxes an illegal subsidisation practice generating unfair and distorting effects in the international market of biodiesel.
Price Undertaking agreement approved
A Price Undertaking (PU) agreement between the European Commission and Argentinean producers was also approved by a majority of Member States. Such agreement was part of the package of measures against Argentina.
The PU provides that Argentinean exporters will be allowed to export towards the EU, without paying the duties, a maximum of approximately 1,2 million tonnes 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 says that it will monitor “very closely” the correct implementation of the PU, both in the form and in the substance and will promptly inform EU authorities of any unfair or untrustworthy practice linked to the execution of the agreement.
In case the PU 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 PU agreement in the next months. EBB will remain extremely vigilant and promptly denounce any future unfair practice to EU institutions, said Kristell Guizouarn, EBB President.