On 31 January 2018, the European Commission announced the initiation of an anti-subsidy proceeding concerning imports of biodiesel originating in Argentina. This procedure should be closely monitored by the importers concerned, as it could lead to the imposition of countervailing duties.
Application of European producers of biodiesel
The EU has been imposing anti-dumping duties on biodiesel from Argentina since 2012. Only in September 2017 were these reduced to customs duties of between 4 and 8 percent. The application to initiate anti-subsidy proceedings was submitted by the European Biodiesel Board (EBB) in December 2017. The producers on whose behalf the application was submitted account for more than 25% of total EU biodiesel production.
Sufficient evidence to open the investigation
The Commission has found that the evidence provided by producers regarding subsidies to producers in Argentina and the threat of injury to the European industry is sufficient to open an investigation. Manufacturers fear a further increase in imports of subsidized biodiesel from Argentina. They also argued that the US had recently introduced countervailing measures against Argentine biodiesel, while at the same time the current EU anti-dumping duties had been reduced. Therefore, a shift to the European market is likely.
Introduction of countervailing duties possible
Provisional countervailing duties could be imposed within nine months of publication of the notice of initiation of the procedure in the Official Journal of the European Union. The registration of imports could also be introduced by regulation. According to the announcement, the investigation is expected to be completed within 13 months of notification, i.e. by the end of February 2019.
Affected companies should participate in the investigation or at least keep an eye on its progress in order to be able to react in good time in the event of measures being imposed.
O&W Attorneys at Law have been advising clients on ongoing anti-dumping and anti-subsidy proceedings for years. We participate in the investigations and strategically adjust your company to the impending anti-dumping or countervailing duties.