Argentina Challenges EU Biodiesel Rules on Market Access Concern
20/05/2013 12:00
Argentina has filed a challenge against the European Union with the World Trade Organization amid signals the trade bloc may limit biodisel exports from the South American nation.
The complaint refers to EU measures to promote green energy and control greenhouse-gas emissions as well as supports for its biodiesel industry, the WTO said today on its website.
The EU is studying whether to levy import tariffs on countries including Argentina and Indonesia that may be exporting biodiesel with state aid like it did for U.S.-based ethanol producers in February, Roberto Rodriguez Labastida, a London-based analyst at Bloomberg’s New Energy Finance, said today by phone.
“The EU is now collating data on how much specific Argentinean companies are exporting so that if it decides that there’s a real threat of dumping it can quickly introduce measures to counter them,” Labastida said.
The EU has 60 days to address the complaint, according to the statement. The WTO will publish additional information on the complaint in the next few days, it said.
Argentina levies an export tariff on soybean that sometimes is lower than on biodiesel, the fuel that it’s processed into, Labastida said. That may lead to lower prices of the vegetable oil, which offers an advantage to Argentinean biodiesel refineries over European refineries that use the feedstock.
Argentina, the world’s largest exporter of soybean biodiesel, complained to the WTO in August over a decision by Spain to just use EU fuel to meet quotas for biofuels used in transport. Spain later reversed that decision.
The complaint refers to EU measures to promote green energy and control greenhouse-gas emissions as well as supports for its biodiesel industry, the WTO said today on its website.
The EU is studying whether to levy import tariffs on countries including Argentina and Indonesia that may be exporting biodiesel with state aid like it did for U.S.-based ethanol producers in February, Roberto Rodriguez Labastida, a London-based analyst at Bloomberg’s New Energy Finance, said today by phone.
“The EU is now collating data on how much specific Argentinean companies are exporting so that if it decides that there’s a real threat of dumping it can quickly introduce measures to counter them,” Labastida said.
The EU has 60 days to address the complaint, according to the statement. The WTO will publish additional information on the complaint in the next few days, it said.
Argentina levies an export tariff on soybean that sometimes is lower than on biodiesel, the fuel that it’s processed into, Labastida said. That may lead to lower prices of the vegetable oil, which offers an advantage to Argentinean biodiesel refineries over European refineries that use the feedstock.
Argentina, the world’s largest exporter of soybean biodiesel, complained to the WTO in August over a decision by Spain to just use EU fuel to meet quotas for biofuels used in transport. Spain later reversed that decision.
May 15, 2013 8:00 PM GMT
By Stephan Nielsen
Source: bloomberg.com
By Stephan Nielsen
Source: bloomberg.com
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