The Trade Remedies Authority (TRA) of UK has announced the commencement of dual investigations into imports of Hydrotreated Vegetable Oil (HVO) biodiesel from the United States, citing concerns over potential dumping and unfair subsidisation. The move, initiated on March 17, follows an application from UK biodiesel producers who argue that recent market shifts necessitate a reassessment of the competitive landscape.

The investigations, encompassing both anti-dumping and countervailing measures, will scrutinize whether US-produced HVO biodiesel is being sold in the UK market at prices below its fair value (dumping) and whether it benefits from unfair government subsidies.

This development marks a significant shift from the TRA’s previous review in 2022, which did not identify sufficient grounds for intervention. According to the TRA, the current investigations are prompted by new evidence suggesting a narrowing price gap between US-imported HVO and UK-produced biodiesel.

The period under investigation spans from April 2023 to March 2024, during which the TRA will meticulously examine import data, pricing structures, and subsidy details. It will assess if the alleged unfair trade practices have resulted in material injury to the UK.

HVO biodiesel, a renewable fuel derived from vegetable oils and waste fats, has gained prominence as a sustainable alternative to traditional fossil diesel. However, the UK’s domestic producers are now raising red flags, asserting that the influx of potentially unfairly priced or subsidised US imports is undermining their competitiveness and market share.

The TRA, an independent body responsible for investigating unfair trade practices, has called upon interested parties to contribute to the investigations by accessing the public file. This invitation extends to UK biodiesel producers, importers, consumers, and other stakeholders who may have relevant information or perspectives to share.

The outcome of these investigations could have far-reaching implications for the UK’s renewable energy sector and its trade relations with the United States. If the TRA concludes that dumping or unfair subsidisation has occurred and caused harm to the UK industry, it may recommend the imposition of trade remedies, such as tariffs or duties, to level the playing field.

The TRA’s decision reflects its commitment to ensuring fair competition and safeguarding the interests of UK industries in the face of potentially unfair trade practices. As an arm’s length body of the Department for Business and Trade, the TRA plays a crucial role in maintaining a balanced and equitable trade environment.

The UK’s ability for its industries to request trade remedy measures in place since January 2021 underscores the nation's proactive approach to addressing trade-related challenges.