It alleges 'dumping' of imports
The NBB claimed that producers from the two countries are dumping biodiesel in the US by selling at prices “substantially below” the cost of production, alleging a margin of 23.3% for Argentina and 34% for Indonesia. The petition also claimed the existence of illegal subsidies, based on numerous government programmes in both countries.
The Argentine biofuels industry has lashed out against the petition, with local industry chambers claiming that exports could be “devastated” if anti-dumping duties are imposed, according to a Reuters report on March 31.
“If a sanction is applied against Argentina in the US, our exports will no longer be viable. At this point, there is no alternative market,” Claudio Molina, Executive Director of the Argentina Biofuels Association, told Reuters.
According to Reuters, Argentina exported 90% of the 1.6 million tonnes of biodiesel it produced last year. The country taxes biodiesel at a variable rate, but its producers pay significantly less for soybean oil than their US counterparts, as they do not have to pay import taxes.
Europe used to be Argentina’s leading export client, but the relationship came to an end when the EU imposed anti-dumping duties on the country in 2013.
The World Trade Organisation ruled in favour of Argentina’s complaint against the duties last year, but a counter-claim by the EU has kept these in effect for the time being.
Source: OFI Magazine, April 18, 2017
This is a slightly edited version of the article.