USA reduced rates on Argentine biodiesel | Chronic

The United States on Tuesday determined on a preliminary basis that the application of 72% anti-subsidy tariffs on Argentine biodiesel did not apply, even though they left the anti-dumping duties unchanged at about 74%.

Despite the reduction in subsidy duties, the industry has found that the continuity of anti-dumping duties "keeps the US market totally closed"

The closure of the US biodiesel market resulted in a loss of US $ 1,300 million.

After the imposition by the United States of customs duties on the import of Argentine biodiesel for allegation of dumping and production subsidies in early 2018 (which totaled a tariff of nearly 150% ), Argentina requested reconsideration of the measure "change of circumstances" based on the new retention regime.

This regime provides for convergence between soy and biodiesel duties, so the US Department of Commerce (DOC) published on Tuesday in the US Official Journal that the application of anti-subsidy 39, do not apply.

"Argentina has eliminated the retention differential between soybean oil and biodiesel, which has resulted in a process of changing circumstances"said the president of the Argentine Chamber of Fuels (Carbio), Luis Zubizarreta.

Last May, the Argentine government imposed 15% withholding tax on biodiesel and equated it with the tax paid by soybean oil (raw material for fuel production), to which was added the collection of source deductions at $ 4 per dollar exported. .

"The DOC has made a preliminary decision: it eliminates the right to subsidy, but maintains dumping (about 74%), it serves us no good, that's good news because we are reducing the problem but this is n & rsquo; Is not enough for Argentina to resell biodiesel in the US ", maintained Zubizarreta.

According to the DOC, this measure has been maintained because "There is no change in circumstances that justifies changes in the anti-dumping order on biodiesel from Argentina."

According to the US agency, soybean prices in Argentina are still below international market prices and this "Differential price is a consequence of the export duty on soybeans in Argentina (about 28% today).

"The Argentine government is trying to negotiate, it is a first step but not enough to open the market", maintained Zubizarreta.

In addition, the President of the Chamber of the Petroleum Industry and Cereal Exporters Center (Ciara-CEC), Gustavo Idígoras, despite the decline in anti-subsidy rights, the North American market "It's still totally closed."

"The DOC decision does not change the biodiesel situation, maintains anti-dumping duties at over 70% for all, and also eliminates countervailing duties for one company and leaves 10% to others. Argentine industry is equal and not apply subsidies "said Idígoras.

"We will continue to participate in the lawsuit against the commerce department and support the Argentine government's negotiations with the United States," Idígoras concluded.

Interested parties may submit comments in writing within 30 days of their publication in the Official Journal and may also request a hearing.

Once the RFSO receives comments, they will be evaluated and will have to make a final determination.