The EU has extended punitive anti-dumping duties on imports of US biodiesel for another five years, effectively closing the once thriving transatlantic arbitrage until 2020.
The original duties were put in place in 2009 after a complaint was lodged a year earlier by the European Biodiesel Board (EBB), a non-profit organisation which represents 75% of European biodiesel producers by volume, in reaction to a $1/gallon biodiesel tax credit that was passed by US legislators ten years ago that sent millions of tonnes of biodiesel blended with a “splash” of diesel cascading across the Atlantic to the world’s largest biodiesel end-user market.
The original tax credit has since expired numerous times and been subsequently reinstated retroactively as part of the tax extenders’ package; most recently through to the end of 2016. The original countermeasures to the $1/gal credit put in place by the EU were set to expire this year, but have now been extended through to September 2020, as the ongoing US tax credit is still deemed to be harmful to European producers. This was the culmination of a year-long investigation by the European Commission after the EBB lodged an expiry review request in April 2014.