The European Union dropped a threat to impose anti-subsidy tariffs on Argentinian and Indonesian biodiesel after approving five-year levies to counter below-cost, or “dumped,” imports from both countries.

The EU closed a probe into whether Argentinian and Indonesian biodiesel exporters receive trade-distorting government aid. The step removes the possibility of anti-subsidy duties by the 28-nation bloc on imports of biodiesel from Argentina and Indonesia.

The European Biodiesel Board withdrew its subsidy complaint on Oct. 7, the European Commission, the EU’s trade authority in Brussels, said today in the bloc’s Official Iournal. The commission opened the subsidy inquiry in November 2012 as a result of the biodiesel producer group’s complaint.

Last week, the EU decided to hit Argentina and Indonesia with “definitive” anti-dumping duties as high as 245.67 euros ($332.59) a metric ton. That was the outcome of a separate inquiry that the EU opened in August 2012 after a dumping complaint by the European Biodiesel Board.

The five-year anti-dumping duties against Argentina and Indonesia, also published today in the Official Journal and due to take effect tomorrow, are more than twice as high as provisional anti-dumping levies imposed in May. No provisional anti-subsidy duties were imposed against the two countries.

Source: Bloomberg