Trade Remedies Authority Proposes Measure On Argentinian Biodiesel Is Maintained

9th November 2024

In a Statement of Essential Facts, the TRA has proposed that the duty payable on imports of Argentinian biodiesel is maintained until February 2029.

The Trade Remedies Authority (TRA) has on Friday 8 November provisionally proposed that a countervailing measure on biodiesel imported from Argentina is maintained.

In a Statement of Essential Facts, the TRA proposed that the duty payable on imports of biodiesel from Argentina be kept at a range of 25%-33.4% until February 2029.

The products in scope of this review were "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin in pure form or as included in a blend, in pure form or as included in a blend" - commonly known as biodiesel.

During the period of investigation, the UK's consumption of biodiesel was around 1.8 million metric tonnes. The UK's demand for renewable fuel is driven by the Government's aims to reduce greenhouse gas emissions from vehicles, ultimately supporting its target of net zero by 2050.

The TRA found trends to suggest that UK biodiesel is a growth industry, but that the UK is one of few available markets for an increasing Argentinian production capacity.

As a result, the TRA determined that subsidised imports of Argentinian biodiesel would be likely to recur if the measures were no longer applied to those goods. Furthermore, as the UK biodiesel industry is in a vulnerable position, injury would likely recur if the countervailing measure was no longer applied.

Businesses that may be affected by these initial findings can comment on the SEF via the TRA's online case platform until 29 November 2024.

The period of investigation for this transition review was 1 October 2022 - 30 September 2023 and the injury period was 1 October 2019 - 30 September 2023.

At initiation, the products in scope of this review were "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin in pure form or as included in a blend, in pure form or as included in a blend". The TRA intends to recommend a revision to the goods subject to the countervailing measure to explicitly exclude sustainable aviation fuel.

The TRA is the UK body that investigates whether trade remedy measures are needed to counter unfair trading practices and unforeseen surges of imports.

Trade remedy investigations were carried out by the European Commission on the UK's behalf until the UK left the EU. A number of EU trade remedy measures of interest to UK producers were transitioned into UK law when the UK left the EU and the TRA has been reviewing each one as they approach expiry to assess whether they are suitable for the UK's needs.

What AI Says
The world's biodiesel consumption and production are both increasing:

Consumption
In 2023, the world consumed 65.86 million metric tons of biodiesel, which is a significant increase from 2004 when consumption was only 2.2 million metric tons. Consumption is expected to continue to increase, reaching over 75 million metric tons by 2030.

Production
In 2023, the world produced 71.5 million tonnes of biodiesel, which is an 11% increase from the previous year. Production is expected to continue to increase, reaching 76.3 million tonnes in 2024.

The United States, Brazil, and Indonesia are the top producers of biodiesel, accounting for almost 60% of global production. In the US, biodiesel production has nearly doubled since 2020.

Biodiesel is an oxygenated fuel, meaning it contains more hydrogen and oxygen and less carbon than fossil diesel. It can be used in any diesel engine when mixed with mineral diesel.