Brussels, July 19, 2024 (Finance Flash News) The European Union (EU) is set to impose temporary tariffs on Chinese biodiesel after finding that it is being sold on markets in the European bloc at unfairly low prices.
According to a document released on Friday, the European Commission, which oversees EU trade policy, has proposed introducing temporary tariffs of between 12.8% and 36.4% based on an investigation. These are to be implemented in mid-August.
The investigation is to continue until February, when definitive tariffs could be set for five years. The EU has already imposed temporary tariffs on electric vehicles made in China for unfair subsidies.
In the case of biodiesel, the proposed tariffs are 12.8% for EcoCeres Group products, 36.4% for Jiaao Group products, including Zhejiang Jiaao Enproenergy Co, and 25.4% for Zhuoyue Group exports, including Longyan Zhuoyue New Energy Co.
The European Biodiesel Board (EBB), which filed the complaint, said earlier this month that the flood of cheap biodiesel from China is having a devastating impact on EU production.
As a result, Chevron Renewable Energy Group has already laid off employees in Germany, Shell has suspended construction at its Dutch plant, BP has suspended a project in Germany, and Argent Energy has closed a biorefinery, the EBB said.
“While Chinese imports are not the only reason for these decisions, dumped biodiesel has contributed to the difficulties faced by producers,” the report said.
Chinese companies exported 1.8 million metric tons of biodiesel to the EU in 2023, representing 90% of all Chinese biodiesel exports.
The European Waste and Advanced Biofuels Association welcomed the measures, saying it believes they will lead to a normalization of market conditions from the “extremely unfavorable” situation since the end of 2022.
Key Points:
- The EU is imposing temporary tariffs on Chinese biodiesel due to unfair pricing.
- The tariffs will range from 12.8% to 36.4% and will be implemented in mid-August.
- The investigation into unfair pricing will continue until February 2025.
- The EU biodiesel industry has been struggling due to the influx of cheap Chinese imports.
- The European Waste and Advanced Biofuels Association welcomes the tariffs.
Additional Notes:
- The tariffs are a temporary measure and could be made permanent if the investigation finds evidence of unfair pricing.
- The EU is also considering other measures to support its biodiesel industry, such as increasing subsidies.
- The Chinese government has not yet commented on the EU’s decision.
