Argentina and EU reach biodiesel deal

Argentina reached an agreement with the European Union (EU) to resume biodiesel exports to the trade bloc without paying extra duties, according to the country’s Ministry of Foreign Affairs. However, there is one catch, Argentina must agree to price and volume limits.

According to the European Biodiesel Board, the deal allows the South American country to export up to 1.2m tons of biodiesel per annum without paying duties. The local biofuel industry has welcomed the agreement. Argentina is the world’s largest soyoil producer, which is the primary raw material to produce biodiesel. The deal will help cash strapped Argentina’s soybean sector.

According to Reuters, the European Commission proposed a tariff of 25-33.4% on Argentine biodiesel producers in December, depending on the company. The EU’s removal of duties on low-price biodiesel from Argentina and Indonesia last September and the surge in imports which followed, forced European producers to cut production. Some of the leading Argentine biofuel exporters are Bunge Ltd, Cargill Inc, and Louis Dreyfus Corp, as well as, Molinos Rio de la Plata SA.

Meanwhile, Argentina complained to the World Trade Organization (WTO) about Peru’s anti-dumping and anti-subsidy tariffs on its biodiesel.

Source:

https://www.reuters.com/article/us-eu-biodiesel-argentina/eu-backs-curbs-on-argentine-biodiesel-eu-source-idUSKCN1PO25B

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