European Union Imposes Definitive Duties on Chinese Biodiesel
- 14-Jan-2025 10:15 PM
- Journalist: Philip Freneau
The European Biodiesel Board (EBB) has welcomed the recent approval of definitive anti-dumping duties on biodiesel imports from China, specifically Hydrotreated Vegetable Oil (HVO) and Fatty Acid Methyl Esters (FAME). This significant decision, finalized on January 8 during the Trade Defense Instruments Committee meeting, transitions the provisional measures implemented in July 2024 into definitive duties. These duties, which aim to protect the European biodiesel industry from unfair trade practices, will be in effect for the next five years.
The provisional anti-dumping duties, introduced last year, were initially subject to the approval of EU member states’ national governments. With this recent approval, the European Commission’s proposal to impose definitive duties has been formally adopted. The EBB has praised this decision, viewing it as a crucial step towards leveling the playing field for European biodiesel producers. However, the organization has also highlighted the need for ongoing vigilance to ensure the measures are effectively implemented and serve their intended purpose.
Xavier Noyon, Secretary General of the EBB, emphasized the extensive effort required to reach this point. “This has been a long journey, starting with the circumvention case and later transitioning into this anti-dumping case. After addressing unfair trade practices from countries such as Indonesia, Argentina, and the USA, we now have measures in place against China. However, it will be crucial to monitor biodiesel imports in the coming months, especially in light of the recent Chinese export tax on used cooking oil. Additionally, the potential for circumvention must be closely observed, particularly regarding Sustainable Aviation Fuel (SAF), which remains exempt from duties. We will also need to monitor discrepancies in anti-dumping duties, as some companies received lower rates than others,” he stated.
The next formal step involves the publication of the Implementing Regulation in the EU Official Journal, which will officially impose the definitive duties. This publication must occur no later than February 14, 2025, after which the measures will be applied for the full five-year duration. This process ensures the legal enforcement of the duties and provides the European biodiesel industry with much-needed protection against unfairly priced imports.
While the EBB acknowledges that the duties do not provide a flawless solution, they represent a significant milestone in the fight against anti-competitive practices in the biodiesel market. The organization has expressed its gratitude to the European Commission for its efforts and remains committed to ensuring the efficient application of the new measures. Continuous monitoring of the biodiesel import market will be essential to safeguard the European industry’s competitiveness and sustainability.