Brussels trade war with US looms over biofuel
28/05/2008 12:00
Peter Mandelson, the European commissioner, has fired the first salvo in a potential transatlantic trade war by agreeing to challenge the
Confidential documents seen by the Guardian show that Mandelson and the European commission have put their signatures to anti-dumping complaints lodged by the European Biodiesel Board.
Industry figures who asked not to be named said they were "delighted" that their allegations that
The European Biodiesel Board lodged a formal complaint against the
D1, one of the leading
The British government had mandated that from mid-April 2.5% of all petrol and diesel sold on the forecourt must be made of crop-based fuel in a bid to reduce carbon pollution and slow global warming. A huge row has since broken out with environmentalists who say that many biofuels are not sustainable and are adding to soaring food prices and deforestation.
Last week Linda McAvan, the Labour MEP for Yorkshire and the
This is the loophole that allows traders to export biodiesel to the
In an official reply, Mariann Fischer Boel, the European agriculture commissioner, said: "While the commission cannot comment on the extent of the alleged practice referred to in the question, it shares the concerns about the impact on the European industry of the
The European Biodiesel Board claims that US exports of B99 - biodiesel with up to 1% petroleum added - to the European Union rose from 100,000 tonnes in 2006 to 1m tonnes in 2007, which is equal to about 15% of the entire European market.
The case against the
He believes that EU biodiesel specifications are discriminatory and also breach WTO rules. He has been threatening to lodge a counter-complaint with the
McAvan said she was pleased that the EC was finally taking the issue seriously but added: "My fear is that by the time we get something done, the European industry will be out of business."
Terry Macalister
The Guardian,
Source: www.guardian.co.uk
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