The National Biodiesel Board filed an antidumping and countervailing duty petition on March 23 making the case that Argentine and Indonesian companies are violating trade laws by flooding the U.S. market with dumped and subsidized biodiesel. The petition was filed with the U.S. Department of Commerce and the U.S. International Trade Commission on behalf of the National Biodiesel Board Fair Trade Coalition, which is made up of the National Biodiesel Board and U.S. biodiesel producers.
“The National Biodiesel Board and U.S. biodiesel industry is committed to fair trade, and we support the right of producers and workers to compete on a level playing field,” said Donnell Rehagen, National Biodiesel Board CEO. “This is a simple case where companies in Argentina and Indonesia are getting advantages that cheat U.S. trade laws and are counter to fair competition. NBB is involved because U.S. biodiesel production, which currently support more than 50,000 American jobs, is being put at risk by unfair market practices.”
Because of illegal trade activities, biodiesel imports from Argentina and Indonesia surged by 464% from 2014 to 2016. That growth has taken 18.3 percentage points of market share from U.S. manufacturers.
“The resulting imbalance caused by unfair trade practices is suffocating U.S. biodiesel producers,” Rehagen explained. “Our goal is to create a level playing field to give markets, consumers and retailers access to the benefits of true and fair competition.”
Based on NBB’s review, Argentine and Indonesian producers are dumping their biodiesel in the United States by selling at prices that are substantially below their costs of production. This is reflected in the petition’s alleged dumping margins of 23.3% for Argentina and 34.0% for Indonesia. The petition also alleges illegal subsidies based on numerous government programs in those countries.
This is not the first time that Argentine and Indonesian biodiesel producers have been charged with violating international trade laws. In 2013, the EU imposed 41.9% to 49.2% duties on Argentina and 8.8% to 23.3% duties on Indonesia. Just last year, Peru imposed both antidumping and countervailing duties on Argentine biodiesel.
ASA President Ron Moore, a soybean farmer from Roseville, Ill., confirmed the America Soybean Association's support for the NBB petition in a media statement:
"Biodiesel imports from Argentina and Indonesia have flooded the U.S. market in recent years and these imports receive trade and market distorting subsidies in their home countries that provide an unfair advantage over U.S. biodiesel. Soybean farmers have a vested interest in the biodiesel industry, having made substantial investments over the past several decades to established and build a domestic biodiesel industry and market. We believe an investigation by the Department of Commerce and the International Trade Commission will show that unfair subsidies provided by Argentina and Indonesia are resulting in imports being unlawfully dumped on the U.S. market. We look forward to the appropriate anti-dumping and countervailing duties being imposed to remedy these unfair and unlawful practices.”
The National Biodiesel Board is the U.S. trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers, and fuel distributors.
Source: ASA, NBB