TRA Proposes to Keep Import Duty on Argentinian Biodiesel Unchanged Until 2029

On Friday, 8 November, the UK’s Trade Remedies Authority (TRA) provisionally recommended that a countervailing duty on biodiesel imported from Argentina be maintained until February 2029. In its Statement of Essential Facts (SEF), the TRA suggested that this duty should remain between 25% and 33.4%. The products included in this review are “fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin in pure form or as part of a blend,” commonly referred to as biodiesel. This recommendation is part of the TRA’s ongoing transition review assessing the impact and future need of existing trade measures following the UK’s exit from the EU.

The TRA’s investigation into the UK biodiesel market revealed that the UK consumes approximately 1.8 million metric tonnes of biodiesel annually, driven largely by the government’s commitment to reducing greenhouse gas emissions. This demand aligns with the UK’s goal of achieving net-zero emissions by 2050. Given the increase in Argentinian biodiesel production, the TRA determined that, without the countervailing duty, subsidised biodiesel imports from Argentina would likely increase, posing a threat to the UK’s biodiesel industry, which remains in a vulnerable state. Without these duties, the UK biodiesel sector could face injury from low-cost Argentinian imports, impacting domestic growth and development within this renewable fuel industry.

The review’s period of investigation spanned from 1 October 2022 to 30 September 2023, with the injury assessment period covering 1 October 2019 to 30 September 2023. In its findings, the TRA noted an increase in UK biodiesel demand, bolstered by government policy, and identified that the UK biodiesel market has significant growth potential. However, the UK remains one of the few accessible markets for Argentina’s expanding biodiesel capacity, raising concerns that removing these measures could lead to a market surge of subsidised biodiesel from Argentina.

The TRA also announced its intention to revise the scope of goods subject to the countervailing measure to explicitly exclude sustainable aviation fuel. This amendment aims to focus the duty on products that directly impact the UK biodiesel market while aligning with broader trade policies.

As the independent UK body responsible for examining unfair trade practices, the TRA was established after the UK’s departure from the EU, assuming duties previously managed by the European Commission. Since Brexit, the TRA has been evaluating trade remedy measures transitioned into UK law, ensuring they align with UK-specific economic needs. Businesses impacted by this provisional decision can submit their comments on the SEF via the TRA’s online platform until 29 November 2024.