EU Slaps Provisional Duties on Chinese Biodiesel to Curb Unfair Trade Practices

The European Union is imposing provisional duties on Chinese biodiesel to counteract unfair pricing practices. Duties range from 12.8% to 36.4% and are set to start in mid-August. This move follows similar actions against Chinese electric vehicles. The investigation will continue until February for potential long-term tariffs.

The European Union is set to impose provisional duties on Chinese biodiesel after determining it is being sold in EU markets at unfairly low prices. This is the latest in a series of trade cases targeting China.

The European Commission, responsible for EU trade policy, has proposed provisional tariffs ranging from 12.8% to 36.4%, according to a document released on Friday. These measures are expected to take effect in mid-August. The ongoing investigation will conclude in February, potentially leading to definitive five-year duties.

The EU has already applied provisional duties on Chinese electric vehicles due to perceived unfair subsidies in its most high-profile case. For biodiesel, the proposed tariffs are set at 12.8% for EcoCeres Group products, 36.4% for Jiaao Group, including Zhejiang Jiaao Enproenergy Co, and 25.4% for exports from Zhuoyue Group, including Longyan Zhuoyue New Energy Co.

The European Biodiesel Board (EBB), which filed the complaint, indicated that an influx of Chinese biodiesel has severely impacted EU production. Chevron Renewable Energy Group furloughed German workers, Shell halted Dutch plant construction, BP delayed a project in Germany, and Argent Energy closed a biorefinery, according to the EBB.

"While Chinese imports are not the sole reason for these decisions, biodiesel dumping has significantly contributed to the challenges producers are facing," the EBB noted. Chinese biodiesel exports to the EU hit 1.8 million tonnes in 2023, representing 90% of China's total biodiesel exports.

The European Waste-based and Advanced Biofuels Association welcomed the measures, expressing optimism that they would bring about a normalization of market conditions from an "extremely adverse" situation since late 2022.

(With inputs from agencies.)