By JONATHAN STEARNS
an Union imposed five-year
tariffs on biodiesel from Argentina and Indonesia, expanding
renewable-energy trade barriers after similar EU import
levies against the US.
The duties punish Argentinian and Indonesian exporters of
biodiesel, a type of biofuel
made from vegetable oils
and animal fats for use in diesel engines, for allegedly
selling it in the EU below cost, a practice known as
Molinos Rio de la Plata SA, Aceitera General Deheza SA and
Pelita Agung Agrindustri are among the companies targeted by
the levies as high as 245.67 euros ($332.05) per metric ton,
EU producers including Verbio AG in Germany, Diester
Industrie SAS in France and Novaol Srl in Italy suffered
material injury as a result of dumped imports
from Argentina and Indonesia, the 28-nation bloc said today
in Brussels. The five-year duties are more than twice as high
as provisional levies imposed in May and will take effect
after publication in the EU Official Journal by Nov. 28.
The anti-dumping duties to curb competition for Europe
an biodiesel producers in
their 12 billion-euro home market highlight tensions
accompanying EU efforts to increase the use of biofuel
s, a renewable energy from
crops such as rapeseed, corn, wheat and sugar, amid a
crackdown on fossil fuels blamed for global warming. Ethanol
is another kind of
The EU decided in 2008 to require at least 10% of
land-transport energy in each member country to come from
renewable sources led by biofuel
s beginning in 2020. This
is part of a goal of more than doubling the total share of
renewable energy in the EU to an average 20%.
In 2009, the EU hit the US with five-year anti-dumping duties
on biodiesel. The bloc also applied separate anti-subsidy
levies on American manufacturers such as
Archer-Daniels-Midland Co. and Cargill Inc. The import taxes
brought $1 billion a year of trade to a halt.
Argentinian and Indonesian exporters increased their combined
share of the EU biodiesel market to 19.3% in the 12 months
through June 2012 from 9.1% in 2009, according to the bloc.
Indonesian exporters gained ground at a faster pace, raising
their European market share to 8.5% from 1.4% over the
period, according to the EU.
The duties are the outcome of an inquiry that the EU opened
in August 2012 after a dumping complaint by the Europe
an Biodiesel Board on behalf
of manufacturers that account for more than 60% of EU
production of biodiesel.
The five-year duties against Argentina range from 216.64
euros/ton on Aceitera General Deheza to 245.67 euros/ton on
exporters including Molinos Rio de la Plata. That compares to
provisional levies from 65.24 euros/ton on Molinos Rio de la
Plata to 104.92 euros/ton on exporters including Aceitera
Depending on the company, the five-year levies against
Indonesia range from 76.94 euros/ton to 178.85 euros/ton.
That compares to provisional duties from 24.99 euros/ton to
83.84 euros/ton. One Indonesian exporter, Ciliandra Perkasa
PT, had a zero provisional duty rate and faces a five-year
levy of 76.94 euros/ton.
The EU is also threatening to impose separate anti-subsidy
duties on biodiesel from Argentina and Indonesia. The bloc
began a probe in November 2012 into possible trade-distorting
government aid for Argentinian and Indonesian exporters and
is due to decide by Dec. 10 on any five-year levies to
counter subsidies. No provisional anti-subsidy duties have
been imposed against the two countries.