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EU to Place Anti-Dumping Duties on U.S. Biodiesel

The European Commission is proposing to impose anti-dumping duties on U.S. biodiesel imports. The proposal has been adopted by the 27-country bloc's finance ministers at a meeting in Brussels. The Commission suspects U.S. biodiesel is heavily subsidized. The duties will come into force by July 12 and range from 23 Euros to 41 Euros per 100 kilograms or about 160 pounds. The duties would last for up to five years.

The stakes are high as biodiesel represents around 80% of the total production in Europe of biofuels, which have become an important pillar of the EU's efforts to fight global warming. While both the United States and the EU support the use of biofuels, the group claims that US biodiesel is being sold at below U.S. producers' costs thanks to generous subsidies.

In response, Manning Feraci, Vice President of Federal Affairs for the National Biodiesel Board, called the move an unfortunate decision, and blamed factors outside U.S. control for problems within the EU biodiesel industry.