By DANIEL CANCEL
Argentina will temporarily scale back taxes on biodiesel for
domestic use to help the industry as the South American
nation battles the Europe
an Union over anti- dumping
The government will send a bill to Congress ordering the
exemption of a 22% tax on biodiesel used in thermoelectric
plants and a 19% tax on biodiesel for gasoline blends until
the dispute with the EU is resolved, President Cristina
Fernandez de Kirchner said in a speech in Buenos Aires.
The EU slapped Argentina with duties on biodiesel imports
last year, saying producers have access to raw material at
prices that are kept artificially low. Argentina has
requested the formation of a panel at the World Trade
Organization in order to resolve the dispute and said the
nation is being punished for being competitive in a free
market, Fernandez said.
Were in the middle of a true trade war,
Fernandez said during the speech. We have to protect
those who need our help.
Argentinas biodiesel industry has about 33 processing
plants and employs 1,600 people, she said. Fernandez
inaugurated a biodiesel plant in Santa Fe province this week
run by Renova. Renova is a joint venture between Glencore
Xstrata and local producers Vicentin and Molinos Rio de la
Plata, according to a 2011 Economy Ministry report on the
Louis Dreyfus Commodities, Bunge and Cargill also operate
biodiesel plants in Argentina, according to the report.
Argentina is the worlds largest exporter of soybean oil
and derivatives and the third-biggest exporter of soybeans
Sometimes it seems these decisions are taken against
the president or the government without thinking about the
individuals that are affected, Fernandez said.