UFOP welcomes EU Commission resolution expanding punitive duties on imports of subsidized biodiesel

UFOP demands fair competition in the international trade with raw materials and biodiesel

The resolution by the European Commission regarding the expansion of the anti-dumping duties introduced in 2009 to include biodiesel from the United States is seen very favourably by the Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP). The anti-dumping duties on U.S. biodiesel now also extend to so called „evasion countries“, such as Canada, as well as the repeatedly criticized U.S. imports of mixed diesel fuels containing less than 20 per cent biodiesel with retroactive effect from mid-August 2010. The EU Commission resolution closes the „loophole“ that had been left in the context of the ongoing anti-dumping process. So far, the anti-dumping process ended at a proportion of 20 per cent biodiesel. The anti-dumping duties amount to between 213 and 409 EUR/tonne.

UFOP reiterates that other exporting countries, such as Argentina and Indonesia, also pursue a questionable and – finally – image damaging policy of biodiesel exports. The Association, which represents the German oilseed producers, calls on the European Commission to review all export practices that distort competition. For example, Argentina subsidizes exports by charging a low export duty on biodiesel. As a result of this, prices within the European Union are distorted to a degree that had nothing in common with fair competition. Indonesia also subsidizes the export of biodiesel to such an extent that it even undermined the raw material prices of palm oil for the production of biodiesel. With 10 per cent utilization of the available capacity of 4.1 million tonnes, the production of biodiesel in Spain has virtually come to a standstill.

Looking at the German market, UFOP does not fear any consequences of that kind of export policy for the time being because the quality requirements of the Biofuel Sustainability Ordinance in effect since January 1, 2011 are such that predominantly German or European rapeseed will be used as input material for the production of biodiesel. Access to the market is blocked without proof of sustainability, UFOP stresses.