The European Commission will consider a request to review its position on anti-dumping and anti-subsidy duties against US biodiesel.

The European Biodiesel Board (EBB) said it has requested the commission review the duties, which are due to expire in September. The commission has until 16 September to respond. A review could take 15 months, during which time the duties would remain in place.

An expiry review can only lead to repealing or continuing duties, normally for five years. It cannot change the level or form of the duties.

The US and EU have been at loggerheads over biofuels subsidies for years. The most recent bone of contention for EU producers is a biodiesel tax credit retroactively instated by President Donald Trump in December 2019, that covers the period 31 December 2017 to 31 December 2022. The US House of Representatives is considering a measure that would effectively extend this tax credit, so that it phases out over three years and only expires after 2025.

"Considering the subsidy was retroactively imposed in the US, the likelihood of an investigation being opened and successfully concluded should be high. At least, we think there's a strong case," said a biodiesel industry source. "Nothing has substantially changed in US subsidy policy since 2009. The situation has actually worsened."

Before it starts an expiry review, the commission could sound out European companies on how much support the European biodiesel industry has for continuation of EU measures. The EBB did not want to comment further.

Source: Argus Media