Following a year of intensive coordinated efforts between the Argentine Government and the private sector, Argentina reached an agreement with the European Union to resume biodiesel exports.
In January 2018, after winning a dispute in 2016 against the EU at the World Trade Organization (WTO) on anti-dumping measures affecting Argentine biodiesel exports, the European Commission launched an investigation into alleged subsidies on Argentina's biodiesel. Within this context, last December the European Commission recommended the imposition of countervailing duties ranging from 25% to 33,4% on imports from Argentina, closing its market to Argentine biodiesel sales to Europe.
The approved agreement preserves an important market for Argentine biodiesel, recovered in 2017 after Argentina won the dispute at the WTO, which enabled the sale of more than one million tonnes of biodiesel since then, for an estimated value of more than USD 900 million.
In order to find a lasting solution to this trade dispute, the Argentine Chamber of Biofuels (CARBIO) offered a price and volume commitment to allow the resumption of exports, with the support of the Argentine Government. Today, the agreement was approved by the Trade Practices Commission of the European Commission.
The Secretary for International Economic Relations of the Argentine Foreign Ministry, Horacio Reyser, stated that: "The Argentine Government has supported the negotiations which were successfully concluded today. The result is an example of teamwork, both in terms of the commitment of various Argentine ministries and positive cooperation with the private sector. He also added that: "We hope that this agreement has a positive impact on the soy industry, as well as being a new step towards concluding negotiations with the EU."
The agreement, which was reached without resorting to the Dispute Settlement Body of the WTO, is not only of benefit to the Argentine industry but also for European consumers of a product with high added-value and closely connected with environmental protection. In this regard, it is worth highlighting the willingness of European authorities to arrive at a solution.
The decision of the European Commission is expected to be published in the Official Journal of the European Union for its entry into force.