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Groups 'Outraged' With EU's Ethanol Duties

Groups say proposal violates provisions of the World Trade Organization's Agreement on Antidumping

Published on: Jan 24, 2013

U.S. ethanol groups on Wednesday were "outraged" at European Commission plans to continue with anti-dumping duties against U.S. ethanol producers.

"The European Commission has proposed to the European Council an anti-dumping duty equivalent to 62.3 Euro per tonne on all ethanol produced in the United States, regardless of who produces the product or who sells it," Growth Energy and the Renewable Fuels Association said in a joint statement. "This decision is unprecedented. Not only does it fly in the face of over 30 years of consistent practice by the EC, but it also violates numerous provisions of the World Trade Organization's Agreement on Antidumping. "

Groups say proposal violates provisions of the World Trade Organizations Agreement on Antidumping
Groups say proposal violates provisions of the World Trade Organization's Agreement on Antidumping

The EU investigation into U.S. producers of ethanol revealed that U.S. exporters receive subsidies for it and then sell the fuel at low prices, according to reports from Reuters.

"This proposal is legally vulnerable on numerous grounds," said Bob Dinneen, President of the Renewable Fuels Association. "They selected six producers for investigation and none were found to be dumping; nonetheless, duties are being imposed.  In addition, all those producers not selected for review are also being penalized, again with no dumping having been found."

Tom Buis, CEO of Growth Energy, said, "we are exploring every option to overturn this decision.  Our producers and trading companies cooperated fully with the Commission's requests for information.  In the end, it was all ignored in favor of what can only be described as a political decision to erect an artificial trade barrier."

Meanwhile, ePURE, the European Renewable Fuels Association, endorsed the anti-dumping proposal late last year.