EU states seen backing duties on U.S. biodiesel

BRUSSELS (Reuters) - Most European Union member states indicated on Thursday they would support a European Commission plan to extend anti-dumping and anti-subsidy duties on imports of biodiesel from the United States, EU sources said.

The European Union's executive arm, which oversees trade policy for the 27-country bloc, submitted a proposal to impose "definitive," or permanent, tariffs of up to five years to member states at a meeting of the EU's anti-dumping committee.

"There were a number of questions raised, but those opposed were certainly in the minority," one source with knowledge of the meeting said.

The EU in March imposed temporary duties on the imports following a probe prompted by a complaint from EU producers of biodiesel -- the main biofuel produced in Europe -- that they were being hammered by U.S. subsidies.

An investigation by the Commission since March found further fault and some companies will have to pay more than the initial duties. But those that cooperated with Brussels would have some tariffs reduced.

Under the Commission proposal, U.S. agricultural processor and ethanol producer Archer Daniels Midland would face an additional duty of 359 euros ($500) per metric ton of biodiesel exported to the EU, up from the temporary duty of 261 euros per metric ton.

Cargill would have to pay 213.80 euros per metric ton, down from 275 euros per metric ton announced in March.

Over 50 companies that cooperated with the probe would face a tariff of 335 euros per metric ton. All others would pay 409 euros per metric ton, down from the temporary duty of 419 euros per metric ton.

Governments must submit their positions in writing before June 2 before approval by EU ministers next month.

A spokeswoman for the U.S. Trade Representative said Washington does "not comment on reports of anticipated measures."

"We continue to believe, however, that cooperative efforts by the U.S. and EC to facilitate the growth of the biofuels industry are preferable to the imposition of definitive measures," Nefeterius McPherson told Reuters.

(Additional reporting by Roberta Rampton in Washington; Editing by Dale Hudson and Anthony Barker)