(Reuters) - A key European Union trade panel has slapped anti-dumping and anti-subsidy duties on imports of biodiesel from the United States, sources with knowledge of the decision said Tuesday.
Who pays what?
- Daniels Midland will pay 26 euros per 100 kg
- Cargill 27 euros per 100 kg
- Imperium Renewables 29 euros per 100 kg
- Green Earth Energy Fuels 28 euros per 100 kg
- World Energy Alternatives 29 euros per 100 kg
- Peter Cremer North America 41 euros per 100 kg
- Most other U.S. biodiesel companies exporting to Europe will pay around 41 euros per 100 kg
When do the duties come into force and for how long?
- The duties will be published in the EU’s Official Journal on March 12 and will come into force the next day (March 13).
- They will remain in place for up to six months when the Commission must then decide whether to propose “definitive” duties, which normally last for five years. Definitive duties must be approved by EU governments before coming into force.
What is an anti-dumping and anti-subsidy duty ?
- “Dumping” is the act of charging a lower price for a product in a foreign market than is charged for the same product in a domestic market, otherwise known as selling at less than “fair value.”
- Anti-subsidy duties, also known as “countervailing duties,” are imposed on imports from countries that award unfair financial subsidies to their domestic manufacturers within a particular industry.
Under World Trade Organization (WTO) rules, both practices are not prohibited, but are frowned upon. A country or region may take retaliatory action if it feels it has suffered material injury to its own industry.
What action can now be taken by the United States?
Washington can appeal against the EU’s decision to the World Trade Organization if it believes Brussels has acted unfairly. But any such litigation can take years to complete.
Writing by Darren Ennis, editing by Sue Thomas