HomeStoresEU drops tax on biodiesel from Argentina and Indonesia

EU drops tax on biodiesel from Argentina and Indonesia

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The European Union has removed tariffs on biodiesel imports for 13 Argentine and Indonesian producers following the end of legal proceedings at the European Court of Justice (ECJ), an EU document shows.

El The European bloc imposed anti-dumping duties on imports of the renewable fuel from the two countries in 2013, but faced a series of dlegal challenges at the ECJ and the World Trade Organization. Both bodies have ruled against the measures.

The EU appealed against a September 2016 ruling by the ECJ, but dropped that appeal earlier this year. This was recorded by the court in February and the parties were notified in early March. The Commission's tax database shows the removed tariffs.

Companies that had challenged the measures at the ECJ now no longer face tariffs. They include some Argentine companies such as Bunge, Cargill and Louis Dreyfus, as well as Molinos Río de la Plata and Indonesia Ciliandra Perkasa.

For European Union, the world's largest producer of biodiesel, Rising shipments from Argentina and Indonesia threaten to cripple production, particularly after the United States imposed import tariffs of more than 70 percent.

Both countries have been hit with export tariffs on soybeans for Argentina and palm oil for Indonesia, which the EU says means biodiesel producers in the two countries have lower costs than elsewhere, allowing them to "sell" products at unfairly low prices.

The EU had argued that biodiesel markets in both countries were highly regulated, so it needed to construct a "normal value" for the product, including a higher reference price for soybeans or palm oil.

Argentina and Indonesia described the anti-dumping measures as protectionist.

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