The European Union has opened anti-subsidy and anti-dumping investigations into imports of biodiesel from the United States, following complaints by the European biodiesel industry of subsidies to the U.S. biodiesel sector and American dumping of biodiesel on the European market.  The European Commission will investigate these allegations and determine whether countervailing measures are justified under European trade rules.

"We have always said that the EU will not tolerate unfair trade practices, and will pursue vigorously any well founded complaint," said EU Spokesperson for Trade, Peter Power. "The Commission will leave no stone unturned in these investigations and will act in accordance with the findings."

The European Biodiesel Board lodged anti-subsidy and anti-dumping complaints with the European Commission on April 29, citing evidence of federal excise and income tax credits to the U.S. biofuels industry, as well as subsidy programs at the U.S. state level. The Board also alleged the existence of a U.S. federal grant program to finance the increased production capacity of biofuels, and the dumping of U.S. biodiesel on the EU market. According to the European biodiesel industry, subsidies and dumping adversely affect the performance and finances of the European Community's industry by artificially depressing prices and decreasing European market share.

The Commission will investigate the Board's allegations and present its provisional findings by March 13, 2009. Countervailing duties – duties specific to the product in question – as well as anti-dumping duties will be instituted if measures are deemed justified by the European Commission.

U.S. imports of biodiesel, which comprise the largest share of the EU market, have increased from about 7,000 metric tons in 2005 to about one million metric tons in 2007.

 For further information please visit:  http://ec.europa.eu/trade/issues/respectrules/index_en.htm

 View Ambassador John Bruton's January 2008 statement on U.S. biodiesel subsidies: http://www.eurunion.org/News/press/2008/2008003.htm.

No. 61/08

June 13, 2008

Source: www.eurunion.org