EU MAY TAX U.S. BIOFUELS

EU to weigh duties on US biodiesel imports: officials
March 2, 2009 (AFP)

"…A panel of EU anti-dumping experts is to indicate [on Wednesday] whether member states are in favour of going ahead with proposals from the European Commission to impose provisional [import duties on US biodiesel producers] initially for four months.

"While member states cannot prevent the commission from going ahead with provisional duties, more long-term duties would require their backing…[T]he anti-dumping and anti-subsidy duties ranged from 23 euros (29 dollars) to 41 euros per 100 kilos (160 pounds)."

Splash and Dash: How foreign biofuels producers use U.S. subsidies to undercut EU producers. (click to enlarge)

"The commission launched an anti-dumping and anti-subsidy probe into US biofuels in June 2008 after industry lobby the European Biodiesel Board complained that the EU market was being flooded with heavily subsidised US imports…[T]he board claims that US biodiesel is being sold at below US producers' costs thanks to generous US subsidies.

"…US exports of a particular biodiesel blend known as B99 had surged by [an estimated] 40 percent in 2008 compared to 2007… threatening the viability of European producers…[The EU duties are] also aimed to prevent Latin American producers in countries such as Brazil from shipping biofuel to the United States to be blended with subsidised US biofuels before being exported again to Europe.

"A decision to slap duties on US exports could come amid tense US trade relations which have been frayed in recent months…"