Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

US biodiesel makers rap EU trade tariff extension

ForexApr 01, 2011 12:32PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

* U.S. biodiesel group says decision breaks EU law

* Duties to hit all U.S. blends, some Canadian shipments

* EU officials discussed risks of U.S. legal claim - source

By Juliane von Reppert-Bismarck

BRUSSELS, April 1 (Reuters) - U.S. biodiesel makers said on Friday that a European Union decision to extend tariffs on imported biodiesel blends was illegal, fuelling a transatlantic battle for a share in the world's renewable energy market.

On Thursday, EU government representatives backed a plan to extend tariffs on evidence that U.S. exporters have either been smuggling biodiesel to Europe via Canada or mixing it into weaker blends to avoid high tariffs at EU borders, diplomatic, EU and industry sources said.

"We think this would be a bad decision that runs directly counter to current EU law," said Manning Feraci, vice president of federal affairs at the U.S. National Biodiesel Board, the country's leading biodiesel industry group.

"We're waiting to get final confirmation of the decision and will go from there."

The fight over EU biodiesel duties, which sliced U.S. exports to less than a third of their 1.5 million tonne level when they launched in 2009, highlights the global race for a share of the world's booming renewable energy market.

EU firms accuse U.S. producers of being involved in a "splash and dash" scheme, whereby they may import cheap biodiesel from countries such as Brazil and add less than 5 percent of U.S. diesel. The producers then qualify for a subsidy from Washington before exporting it to Europe.

Sources said the extension, due to launch in May and apply until 2014, was approved by 25 votes to two.

LEGAL ROWS OVER BLENDS

Specifically, the plan foresees tariffs of up to 400 euros ($566.40) per tonne of biodiesel on all U.S. blends, regardless of strength, and some blends entering the EU from Canada in an effort to fight tariff evasion, the sources told Reuters.

So far duties have hit only U.S.-shipped blends made up of at least one fifth biodiesel. Exporters who can prove they have always exported weaker blends than that - rather than making a calculated switch - may be granted an exemption.

Previously sources said the EU had backed away from slapping the duty on weaker blends.

Sources said EU diplomats approved extending the duties after debating whether they risked U.S. legal action.

"The sense was that Canada wouldn't really mind the extension, because it only affects the imports that are coming from the United States," said a person familiar with the issue.

"The sense seemed to be that there was a higher risk of the United States challenging the extension," the person added.

An investigation into whether ports in Singapore had served as illegal trans-shipment sites was dropped after finding too little evidence that such smuggling was hurting EU industry.

Canadian exporters BIOX Corp and Rothsay Biodiesel, affiliated to Maple Leaf Foods Inc, are exempted under the plan, the sources said.

In 2009 the EU slapped duties of 305 euros per tonne on Archer Daniels Midland, 213 euros on Cargill's exports and 410 euros on Peter Cremer North America and many others, in dual anti-subsidy and anti-dumping duties.

(Reporting by Juliane von Reppert-Bismarck; editing by Jane Baird)

US biodiesel makers rap EU trade tariff extension
 

Related Articles

Dollar Up, Buoyed by Omicron Uncertainty
Dollar Up, Buoyed by Omicron Uncertainty By Investing.com - Dec 06, 2021 1

By Gina Lee Investing.com – The dollar was up on Monday morning in Asia, with uncertainty surrounding the omicron COVID-19 variant and expectations of more hot U.S. inflation data...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email