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EU to tax US biodiesel

The EU might impose a balancing duty on biodiesel coming from the US, trade organization leaders said.

The profits of EU biodiesel producers fell drastically in the past year due to cheap American biodiesel shipments flooding the market. The secret of the lower prices is the considerable state subsidy for the production overseas. The European Biodiesel Board (EBB) responded by requesting the European Commission (EC) to balance these incorrect advantages by imposing an appropriate import duty. The board have also won a number of politicians to lobby for their cause. The EC might have another reason to limit biodiesel import, namely the harmful effects of production on the environment. EC commissioner Stavros Dimas mentioned the extensive deforestation in Indonesia caused by palm-oil based biodiesel production. (Napi Gazdaság)