EU slaps biodiesel duties on Indonesia over subsidy concerns
By ASSOCIATED PRESSIndustry Energy Government Manufacturing biodiesel energy EU indonesia manufacturing tariffs trade
Probe found producers benefit from grants, tax benefits and access to raw materials below market prices.
BRUSSELS — The European Union says it has imposed extra duties on imports of biodiesel from Indonesia, claiming that the government in the Southeast Asian country is subsidizing the fuel.
The EU’s executive commission said a probe “found that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices.”
The commission says “this inflicts a threat of economic damage to EU producers,” so it’s imposing duties of 8% to 18% “to restore a level-playing field for EU biodiesel producers.”
So-called “countervailing duties” are permitted under global trade rules.
The commission says the duties are temporary but that more definitive measures could be imposed by December as the investigation evolves.
The 28-nation EU imports around 400 million euros ($450 million) worth of Indonesian biodiesel annually.