Brussels, 28/04/2014 (Agence Europe) - On 25 April, the dispute settlement body of the WTO approved the creation of a special group to decide on the case of anti-dumping duty imposed by the EU on Argentinian bio-diesel (DS 473). Verdict expected within six to nine months.
On 27 March, Argentina officially applied to the WTO for a panel of the dispute settlement body to be set up to examine its complaint against EU anti-dumping duty on its exports of bio-diesel, which have risen from 22% to 25.7%, and have been in place since late November 2013. Buenos Aires argues that the EU's measures "run counter" to the anti-dumping agreement of the WTO and GATT.
These taxes (which also affect Indonesian bio-diesel, albeit at lower levels), which the EU brought in temporarily in May 2013, and then definitively (for a period of five years) in late November, aim to re-establish a situation of competition in the face of dumping which, according to a Commission investigation, arises from a differential export tax system introduced by Argentina (and Indonesia) to promote their bio-diesel. This system is based on the application of a higher tax for raw materials (Argentinian soy and Indonesian palm oil) than for processed products made from these raw materials.
According to the European sector, this instrument has allowed bio-diesel from these two countries to cover 90% of the EU's imports of bio-diesel and win 30% of the European market between 2010 and 2012. At the end of last year, the Argentinian sector blamed the EU anti-dumping taxes for its exports dropping by 75% compared to 2012 figures. The Argentinian side anticipates a consistent fall in exports in 2014, estimated at 39%, due to European anti-dumping duty. Pending the outcome of its action before the WTO, the Argentinian President, Cristina Kirchner, announced on 21 April that Buenos Aires would cover some of the taxes paid by producers of bio-diesel in order to help them ride out the situation. (EH)