Anti-subsidy and anti-dumping investigations into imports of biodiesel from the United States has been initiated by the EU today (13th June). The decision follows complaints, lodged by the European Biodiesel Board, that US exporters were effectively dumping biodiesel on the European market.

EU Spokesperson for Trade Peter Power said: "We have always said that the EU will not tolerate unfair trade practices, and will pursue vigorously any well founded complaint. The Commission will leave no stone unturned in these investigations and will act in accordance with the findings."

Anti-subsidy and anti-dumping complaints concerning imports of biodiesel from the USA were lodged with the Commission on 29 April 2008. The complaints were lodged by the European Biodiesel Board, which represents the interests of a major proportion of EU producers of biodiesel. Having examined the complaints, the Commission is satisfied that they fulfil the requirements of the EU's basic anti-subsidy and anti-dumping regulations in order to initiate further proceedings.

With regard to the anti-subsidy complaint, the complainant has provided sufficient evidence of subsidies to the biodiesel sector in the USA. These subsidies would include federal excise and income tax credits as well as a federal programme of grants to finance increased production capacity. Various subsidy programmes would also exist at state level. In regard to the anti-dumping complaint, the complainant has provided sufficient evidence of dumping of biodiesel on the EU market.

The effect of the subsidisation and dumping is, according to the complainant, a deterioration in the prices charged and market share held by the Community industry, which has led to substantial adverse effects on the overall performance and the financial situation of the industry.

The Commission will now investigate the allegations in the complaints. The Commission will make its provisional findings by 13 March 2009 at the latest which it will then present to EU member states. If measures are considered justified these would be in the form of specific duties on the product in question, called 'countervailing duties' in the case of subsidies, and 'anti-dumping duties' in the case of dumping of the product in question.