Argentina will again export biodiesel to the European Union and a $ 1 billion US market will open

The European Union has decided not to impose sanctions on Argentine biodiesel after the conclusion of an agreement between the Argentine government and the European bloc and has approved the entry of biofuel in "certain volumes and prices ", which will be determined by the EU authorities and exporters. It is estimated that it is a market with a potential of about 1,000 million dollars.

The Argentine Foreign Ministry stressed that "after an intense year of coordinated work between the national government and the private sector, Argentina has reached an agreement with the European Union allowing it to return exporting biodiesel to the old continent ".

He also noted that in January 2018, after winning in 2016 a controversy against the EU within the World Trade Organization (WTO) regarding anti-dumping measures affecting Argentine exports of biodiesel, the European Commission had opened a new investigation into alleged cases. subsidies to these shipments.

"This is an agreement between the Argentine government and the EU that we are celebrating because we believe it is reasonable and beneficial to all parties," said the president of the Argentine Chamber of Biofuels ( Carbio), Luis Zubizarreta.

Although they did not transcend the terms of the agreement, Zubizarreta explained that "there is a customs duty (6.5%)On the other hand, this agreement agrees that Argentina does not apply sanctions as long as it remains within the limits of the agreement reached. This agreement consists of "not selling below a certain price level and with volume limitations".

In September of last year, faced with producer pressure, the European Commission decided to open an investigation into alleged subsidies to the Argentine export sector in order to reimpose tariffs on biodiesel imports. 25% to 33.4%. . According to the country's Ministry of Agri-Food, up to August 2018, just over one million tonnes had been exported to the Netherlands, Malta and Belgium, the only major countries in the world. 39 European Union for nearly 700 million US dollars.

In this way, it is guaranteed that the installed capacity for biodiesel production can be used and maintain the soybean price which is today 9300 pesos per ton for the producers. The United States has accused Argentina of unfair trade practices and applied high tariffs to the importation of Argentine biodiesel, which has closed this important market in the country. The opening of the EU is therefore fundamental.

The agreement is good news for the national government as it seeks to boost Argentine exports to reach increase in foreign exchange inflows and tax collection to foreign trade. These tax revenues will help Casa Rosada achieve the zero deficit goal in public accounts this year.