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EU Commission reopens US ethanol antidumping case; extends duty for 15 months

The European Commission announced Tuesday it will initiate an expiry review ofthe antidumping duty against US fuel ethanol imports, with the duty staying inthe place for another 15 months while the investigation takes place.

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The duty of 9.5% has been in place since February 23, 2013 and was due toexpire Friday.

European ethanol producers submitted an appeal in November 2017, through theEuropean Renewable Ethanol Association (ePURE), and the response from theCommission's side had been eagerly awaited.

ePURE said that the removal of the duty would be damaging to the Europeanethanol industry, considering US ethanol overcapacity and increased exports,which have already resulted in retaliation measures from China and Brazil anda similar antidumping investigation case from Peru.

"With other export markets closing their doors to dumped US ethanol, coupledwith a saturated US fuel ethanol market at home, US exporters will be lookingfor alternative export opportunities for close to 1.5 billion liters ofproduct," said Emmanuel Desplechin, Secretary General of ePURE.

"If only a fraction of this volume were to be diverted to the EU market, itwould severely damage the EU industry, putting at risk the 50,000 direct andindirect jobs linked to renewable ethanol production in Europe."

--Chrysa Glystra, chrysa.glystra@spglobal.com

--Edited by Maurice Geller, maurice.geller@spglobal.com