Europe reopens Argentine biodiesel market with discounted prices and tariff agreement

As resolved Wednesday in Brussels, most countries of the European Union have agreed to the removal of barriers that hinder trade. Biodiesel exports to Europe remain paralyzed, with the European Commission having opened an investigation into dumping and subsidies in the domestic industry. This measure compelled Argentina to apply customs duties of the order of the 30%

The bloc imposed anti-dumping duties in 2013, but then had to eliminate most of them in March 2018, following successful challenges in the World Trade Organization and the European Court of Justice. In August 2018, exports were again paralyzed and Europe threatened to reinstate the tariffs 25% and 33.4%.

Due to the management of the Ministry of Foreign Affairs and the Argentine Chamber of Biofuels, reduced rates have now been set 6.5%, minimum competitive prices for European biodiesel and export cap limits: the last levels can not exceed a growth rate of 2% per year over the next five years. In the Carbio, between 900 and 1 billion dollars, equivalent to one million tons.

The president of Carbio, Luis Zubizarreta, He explained that while "There is a tariff (6.5%)." This agreement accepts that Argentina does not apply sanctions as long as it remains within the limits of the agreement reached. ".

The stable small print "does not sell below a certain price level and with volume limitations".

"This is a reasonable and important agreement, especially if we take into account the significant soybean crop we feel we have, so it is necessary to open this market for biodiesel ", Zubizarreta added.

At the Chancery, they celebrated the announcement. "The government is supporting the negotiation process that is now successfully completed, resulting in an example of teamwork, both for the engagement of the various portfolios of the national administration and the government. for positive interaction with the private sector, "said the secretary. international economic relations,Horacio Reyser.

He added: "We hope this will have a positive impact on the entire soybean complex, as well as a new step to further clarify the agenda of the negotiations with the EU. "

According to the government, the agreement was obtained without appeal to the WTO Dispute Settlement BodyThis represents not only an advantage for the Argentine industry, but also for European consumers with regard to a high value-added product closely linked to the defense of the environment.

The decision of the European Commission should be published in the Official Bulletin of the European Union in the coming days, with a view to its entry into force.