The European Commission has imposed countervailing duties ranging from 8% to 18% on imports of biodiesel from Indonesia for four months starting from 13 August (see EUROPE 12308/6).
“The measure aims to restore a level playing field for EU biodiesel producers”, the European institution explains. Following an investigation, it concluded that Indonesian producers “benefit from subsidies, tax advantages and access to raw materials at below market prices”.
The main raw material used for biodiesel production in Indonesia is palm oil, whose production is a major cause of deforestation.
The EU had imposed definitive anti-dumping duties on Indonesian biodiesel imports in November 2013, but they were cancelled in March 2018 by the World Trade Organization (see EUROPE 12154/24).
Since then, “imports have increased dramatically” to reach a market share of 3.3%, according to the Commission. This trend has prevented the European industry from benefiting from market growth.
The Commission is continuing its investigation and may impose definitive measures by mid-December 2019.
See the wording of the regulation: https://bit.ly/2HhAu5Z (Lionel Changeur)