US asked to slap duties on biodiesel from Indonesia, Argentina

The newly completed RM12mil biodiesel blending plant in the Independent Oil Terminal at Sejingkat in Kuching.

NEW YORK: The trade group for US biodiesel producers on Thursday petitioned the US government to impose antidumping and countervailing duties on imports of biodiesel from Argentina and Indonesia that it says have that flooded the US market and violated trade agreements.

The National Biodiesel Board trade group filed the request with the US Department of Commerce and US International Trade Commission on behalf of US biodiesel producers, who have been hurt by soaring imports of the biofuel in recent years, the group said in a statement.

The move comes after years of rising tensions between US and foreign producers. 

Biodiesel imports from Argentina and Indonesia rose 464% from 2014 to 2016 due to “illegal trade activities,” taking about 18% of market share, the biodiesel group said.

Total US imports rose to a record 916 million gallons in 2016, according to a US government report published this week, representing an increasing portion of 2 billion gallons of US demand for the fuel, which is made of vegetable oils.

Argentina was the largest exporter, representing two-thirds of total foreign volumes. 

Indonesia and Canada were the next highest exporters to the United States.

“Our goal is to create a level playing field to give markets, consumers and retailers access to the benefits of true and fair competition,” said National Biodiesel Board chief executive officer Donnell Rehagen.

The Department of Commerce and Argentina’s trade, agriculture and foreign ministries did not respond immediately to requests for comment.

Futures for soyoil, used to make biodiesel, rose to a 2½-week high on the Chicago Board of Trade as chatter about the petition swirled, before trimming gains. Futures for palm oil, used for biodiesel production in Indonesia, fell about 2%.

The Advanced Biofuels Association, a rival trade group with international members, said in a statement the allegations of illegal dumping were untrue. “The members of the Advanced Biofuels Association vehemently oppose this action and expect these petitions’ rejections,” said Michael McAdams, president of the group.

The National Biodiesel Board has sought to stymie imports since the US Environmental Protection Agency in 2015 made it easier for foreign supplies to qualify for use in the US renewable fuels programme. - Reuters