As I told you a couple of weeks ago, the European Union for some time has been threatening to slap tariffs on American biodiesel coming into Europe… barring some deal today to derail the measures.
Well, this story from Reuters says that there was no last-minute reprieve and the duties are set to hit on March 13th:
The EU firms accuse U.S. producers of being involved in a “splash and dash” scheme, whereby they import cheaper biodiesel from countries such as Brazil and add less than 5 percent of U.S. diesel. The producers then qualify for a subsidy from Washington before exporting it to Europe.
From March 13, U.S. firms exporting biodiesel into the EU will have to pay additional tariffs for an initial six months, ranging from 26 euros ($32.88) to 41 euros per 100 kg…
After six months, the executive European Commission must decide whether to propose definitive duties, which normally last five years. Definitive duties must be approved by EU governments to enter into force…
The temporary duties will make it hard for U.S. biodiesel to compete in the European market, said Manning Feraci, a vice-president with the U.S. National Biodiesel Board.
But for the duties to stick, the Commission will need to find that U.S. imports have harmed producers, Feraci said.
“This simply is not the case,” Feraci said, noting some European producers are doing well, while others have been hurt by factors unrelated to U.S. imports, he said.
You and I both know this is not the last we’ll hear about this. Stay tuned…