EU to extend tariffs on U.S. and Canadian biodiesel exports

The European Union (EU) will retain its tariffs on U.S. biodiesel for a further five years. According to the Official Journal of the European Union, the tariffs, which were originally imposed in 2009, will be extended until 2026.

The request for review was lodged last year by the European Biodiesel Board (EBB), on  behalf of EU producers, which represents more than 25 % of the total EU production of biodiesel. The request for review was based on the grounds that the “expiry of the measures would likely result in continuation or recurrence  of subsidised biodiesel entering the Union and of recurrence of injury to the Union industry. “

The EU also extended the definitive  countervailing duty to imports of biodiesel consigned from Canada, whether declared as originating in Canada or  not, with the exception of those produced by BIOX Corporation, Oakville and Rothsay Biodiesel,  Guelph, both located in Ontario, Canada, as well as by DSM Nutritional Products Canada Inc.,  Dartmouth, Nova Scotia, Canada.

Published on Monday by the Official Journal of the European Union, the implementing regulations were dated July 29, 2021.

The European Commission, which reviewed the case, concluded that U.S. producers could increase to full capacity and also divert sales from some of their exports from less profitable markets to the European Union, the world’s largest market.

However, due to the lack of  cooperation from the exporting producers and from the U.S. authorities, it  was not possible to carry out an analysis based on verified data supplied by the exporting producers and by the U.S.  authorities, the commission noted.

Nonetheless, the commission concluded that U.S. producers were already selling to third countries at prices below those in the United States, meaning they were being dumped. It also said U.S. producers were benefiting from subsidies, including tax credits, grants and loan guarantees.

The anti-dumping duties range from zero to EUR198.0 euros (USD235) per tonne, and duties related to subsidies from EUR211.2 to 237.0 (USD250-281) per tonne. The duties are not cumulative, so whichever is the higher rate of the two forms of duties applies.