In January 2018, after winning a dispute against the EU in the World Trade Organization (WTO) in 2016 over anti-dumping measures affecting Argentine biodiesel exports, the European Commission opened a new investigation into alleged subsidies. In that context, in December of last year it recommended imposing compensatory duties on Argentine exporters ranging from 25% to 33,4%, closing the market for our biodiesel sales to Europe.
The approved commitment implies the maintenance of a very important market for Argentine biodiesel, recovered from 2017 after Argentina prevailed at the WTO, which enabled the sale of more than one million tons since then, for an estimated value of more than 900 million dollars.
In order to find a definitive solution to the trade dispute, with the support of the National Government, the Argentine Chamber of Biofuels (CARBIO) offered a commitment on prices and volumes to allow the resumption of exports. The agreement was approved by the European Commission's Trade Practices Committee today.
The Secretary of International Economic Relations of the Argentine Foreign Ministry, Horacio Reyser, stated: "The government is supporting the negotiation process that has concluded successfully today; the result is an example of teamwork, both due to the commitment of the different portfolios of the national administration and the positive interaction with the private sector."
He added: “We hope that this development will have a positive impact on the entire soybean complex, as well as a new step towards continuing to clear the agenda of negotiations with the EU.”
This agreement, which was reached without appealing to the WTO Dispute Settlement Body, not only represents a benefit for the Argentine industry but also for European consumers with regard to a product with high added value and closely linked to environmental protection. In this sense, the willingness of the European authorities to reach this solution is noteworthy.
The European Commission's decision is expected to be published in the Official Gazette of the EU in the coming days and will enter into force.
Good news! We have reached an agreement to be able to export biodiesel to the EU again. The agreement reached will benefit the Argentine industry and European consumers, who will be able to access a product with high added value and that is environmentally friendly ???? https://t.co/9lm5GF8PCt
— Horacio Reyser (@HoracioReyser) January 30, 2019
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