The European Commission has decided not to reinstate tariffs on Argentine biodiesel imports for now, saying that although it considers them to be subsidized and a threat to the EU industry, it wants more information on the matter.
The surprise decision, detailed in a document seen by Reuters, was taken after an investigation requested by EU producers and represents a major blow to the industry which has suffered severely from massive imports of Argentine biodiesel since the European bloc removed tariffs last year.
This should be welcome news in the country where the threat of tariffs had stalled sales to the EU, the world's largest producer of the renewable fuel, due to anticipated prohibitive barriers.
Preliminary conclusions of the EC
EU and Argentine producers had hoped that the Commission would reinstate the tariffs.
«The Commission's preliminary conclusions are that Argentine imports of the product concerned reaching the EU are subsidized and that there appears to be a threat of material injury to the Union industry."the Commission said in the document.
"However, The Commission considers it necessary to gather more information "on developments after the investigation period that could further confirm the Commission's preliminary findings in this investigation as well as shed further light on the Union interest," he argued.
"In light of its findings, the Commission will continue the investigation without the imposition of provisional measures," it added.
Background
The European Union cut tariffs on Argentine biodiesel imports in September 2017 after Buenos Aires filed a successful complaint with the World Trade Organization (WTO).
The European Biodiesel Board protested the decision and called for an investigation into the alleged subsidies, which was formally opened in January.
The EU's removal of tariffs on low-priced Argentine and Indonesian biodiesel created a sharp surge in imports that forced European producers to cut production.
French biodiesel maker Saipol, the European Union's largest producer, had implemented a six-month plan to cut output in March, blaming huge imports of Argentine biodiesel for exacerbating poor market conditions.
Other major producers, including Bunge and Archer Daniels Midland Co, announced they would cut output or close plants in the European Union.
Source: Reuters
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