London — The European Commission has provisionally imposed anti-subsidy measures ranging from 8 to 18% on imports of biodiesel from Indonesia, according to a document released Tuesday.
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In the document, the EC goes on to detail "a link between the increasing imports of subsidized imports from Indonesia during the period considered and the threat of material injury."
Secretary General of the European Biodiesel Board Rafaello Garofalo welcomed the decision. "This is an important step in the right direction of stopping unfair biodiesel trade at international level". He dismissed the idea of Indonesia imposing countermeasures, saying: "An Indonesian threat to react levying duties on EU dairy product is not credible at international level."
When the measures are enacted, imports by Cilantro Perkasa would be subject to a duty of 8%, Musim Mas to a 16.3% duty, Permata Group 18%, and Wilmar 15.7%. Other Indonesian companies exporting to the EU would have to pay a duty of 18%.
A previous letter seen in June stating the EC's intentions resulted in a surge in European fatty acid methyl ester (FAME 0) prices as palm methyl ester -- the main biodiesel export from Indonesia -- is a major constituent of FAME 0. The price spiked $35/mt on the day.
The regulation will come into force the day following its publication in the Official Journal of the European Union.
--Huw Shortland, firstname.lastname@example.org
--Edited by Jonathan Dart, email@example.com