The EU restricts the import of biodiesel from Argentina

on Wednesday, the EU decided to introduce a 30% import duty on Argentine biodiesel, which will be delivered over the threshold of 1.2 million tonnes per year, subject to a minimum price level.

the Decision of the Committee on trade defense instruments, EU obliges Argentine producers to sell biodiesel at higher prices, and those exporters that will not do, will be subject to a surcharge.

This commitment will create equal conditions for European producers and will exclude certain Argentine producers antisubsidies duties.

Traders reported that this decision is already priced in prices in the beginning of the month, when the European Commission declared its readiness to accept an agreement that will support the government of Argentina.

earlier, imposed duties on Argentinian and Indonesian biofuels was reduced, and then abolished the EU in late 2017 after the judgments of the European court and the WTO.

a year ago, the EU began an investigation into anti-subsidy after the statements of the European manufacturers received by Argentine exporters benefited from a number of subsidies, allowing them to sell their products at prices significantly below the cost to producers from the EU.

the European Commission on 29 January also allowed to use for biofuel production in the EU soy that is exported from the United States until July 1, 2021. This decision takes into account achieved in 2018, the agreement between the US and the EU to increase imports of U.S. soybeans that will allow refiners in the EU to load capacity and compensates for the deficit of rapeseed in biodiesel production, especially given the reduction of rapeseed production in the EU in the new season.