Review of Transition to Indonesian Biodiesel Imports in UK

The Trade Remedies Authority (TRA) in the UK has initiated a transition review into the countervailing measure imposed on biodiesel imports from Indonesia. This measure, which was inherited from the European Union, is scheduled to expire on 10 December 2024. As part of its responsibilities, the TRA will assess whether this duty remains effective in protecting UK biodiesel producers from unfair trade practices, particularly the subsidies provided to Indonesian biodiesel manufacturers. The review will cover imports during the period from 1 October 2023 to 30 September 2024, providing an opportunity to evaluate the impact of the measure on the UK market and its domestic producers.

At present, biodiesel imports from Indonesia are subject to a countervailing duty ranging from 8% to 18%. This duty is intended to counteract government subsidies given to Indonesian biodiesel producers, which, without such measures, could result in material injury to UK-based biodiesel manufacturers. Countervailing duties are a standard trade remedy used by governments to protect domestic industries from unfair competition caused by subsidized foreign goods. In this case, the TRA aims to assess whether the current duties continue to effectively shield UK producers from the detrimental effects of subsidized Indonesian biodiesel, and if they are still justified under the current market conditions.

Businesses that may be impacted by this countervailing measure have the opportunity to engage in the review process by registering their interest through the public file, which must be done by 23 December. It is important for affected businesses to register by this deadline to ensure they can fully participate in the review process. Those who fail to register by the deadline may face limitations in their ability to contribute to the review. The TRA encourages all relevant parties to take part in this process to ensure a comprehensive assessment of the measure’s effectiveness and its future relevance.

The TRA is an independent body established in the UK to investigate and make recommendations regarding trade remedies, including the imposition of anti-dumping and countervailing duties. Its role is to protect UK industries from unfair trading practices, such as foreign subsidies or dumping, which could harm domestic producers. Countervailing duties are specifically aimed at addressing situations where foreign governments provide subsidies that enable their industries to sell goods at artificially low prices, thereby undermining fair competition.

This review is a key part of the UK’s post-Brexit trade framework, which allows the TRA to examine EU-originated trade measures and assess their suitability for the UK market. Following Brexit, the UK is no longer part of the European Union’s trade policies and regulations. As a result, the TRA is responsible for reviewing and determining the appropriateness of inherited EU measures, such as the countervailing duty on Indonesian biodiesel, to ensure they align with the UK's trade interests and economic circumstances. The TRA's review will ultimately determine whether the current duty should be extended, adjusted, or removed entirely.