The European Union (EU) has granted eight Argentine biodiesel producers zero duties on biodiesel exports to the bloc as long as they sell at a set minimum price.
The EU had imposed anti-dumping duties in 2013 on biodiesel raw material, soybeans for Argentina and palm oil for Indonesia, saying it was giving the producers unfair advantage to sell at unfairly low prices over European producers.
Argentina is the world third largest producer of soybeans, the major ingredient used to make biodiesel.
The EU will impose duties ranging from 25 to 33.4 percent but with exemptions for companies agreeing to a minimum price.
The companies that have signed up are Aceitera General Deheza, Bunge Argentina, LDC Argentina, Molinos Agro, Oleaginosa Moreno Hermanos, Vicentin, Cargill and COFCO International Argentina.
The EU’s Official Journal on Tuesday noted that the price would be linked to the average monthly soybean price quotations published by Argentina’s agriculture ministry, which reflect the inclusion of the export tax. These quotations are based on closing prices on the Chicago Board of Trade.
It added that the duties and the minimum price scheme will take effect from Wednesday.