The European Commission (EC) has announced that it will launch an investigation into allegations that biodiesel imports from China are being sold in Europe at artificially low prices, as reported by Reuters. According to the EC, “EU producers claim that these imports seriously harm their sector, as they are unable to compete with such low prices”.
This investigation was prompted by a complaint made by the European Biodiesel Board (EBB) and could take up to 14 months to complete, with the possibility of interim tariffs being imposed within eight months. The period investigated runs from October 1, 2022 to September 30, 2023, as reported by Reuters on December 20.
Last August, the EU investigated whether Indonesian biodiesel circumvented EU tariffs via re-export through China and the United Kingdom.
Impact of Chinese exports and trade disagreements in the EU in 2023
China was the biggest exporter of biodiesel to the 27-nation bloc in 2023, as stated by the EBB in a separate statement. “In 2023, dumped Chinese imports impacted the EU market, causing a decline and closure of production units, according to EBB.”
The association cited concerns about the possible transit of Indonesian biodiesel and structural imbalances in biodiesel trade with China. She pointed out that prices do not reflect the categories of advanced or waste-based biofuels, as the classification of most shipments suggests.
At the press conference, when responding to a question about the investigation, Shu Jueting, spokesperson for China's Ministry of Commerce, stated that China "firmly opposes protectionist behavior that abuses trade correction measures."
The EC estimates that the EU biodiesel sector has an annual value of US$ 34 billion (€31 billion).
Source: Oils & Fats International
