UK ADD: Biodiesel from Argentina
The UK Trade Remedies Authority has launched a transition review into countervailing measures on biodiesel imported from Argentina.
On October 5th, the Trade Remedies Authority (TRA) began a transition review of countervailing measures on biodiesel imported from Argentina.
The TRA is a UK organization that investigates potential unfair trade practices and sudden import increases. To address these issues, trade remedies may be implemented as import duties at the border.
Before the UK's departure from the EU, the EU Commission conducted trade remedy investigations on behalf of the UK. After the UK left the EU, over 40 EU trade remedy measures were integrated into UK law
Countervailing duties are designed to counteract imports that are subsidized by their country of origin and harm domestic industries.
Recently, the UK government accepted the TRA's recommendation to maintain current levels of import measures for fatty-acid mono-alkyl esters (FAME) biodiesel from the USA and Canada for five years starting January 30th, 2021. However, the tariffs on imports of hydrotreated vegetable oils (HVO) biodiesel were removed.
These measures were inherited from the EU system, and the TRA is evaluating whether they are appropriate for the UK's needs. Currently, imported biodiesel from Argentina is subject to a duty of 25%-33.4%. The review will specifically examine "fatty-acid mono-alkyl esters or paraffinic gas oils obtained from synthesis or hydro-treatment, of non-fossil origin, in pure form or as included in a blend," which is commonly known as biodiesel.
In 2022, the UK consumed 1789 million litres of biodiesel, with 97% used for road transport. Biodiesel can be blended with mineral diesel for use as road fuel. The investigation period for the transition review will be from October 1, 2022, to September 30, 2023. The injury period will be from October 1, 2019, to September 30, 2023.
Businesses that may be impacted by this review, such as importers or exporters of the products or UK producers of similar products, can contribute to the review process by registering their interest in the case on the TRA's online case platform by October 23, 2023. All updates in the case will be posted on the TRA's public file.
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