The European Union (EU) announced on Wednesday the commencement of an anti-dumping investigation into biodiesel imports from China, responding to claims from the European Biodiesel Board (EBB) that such imports have significantly impacted domestic production.
The investigation comes on the heels of a prior inquiry in August, which examined whether biodiesel from Indonesia was skirting EU duties by passing through China and Britain. Prompted by a formal complaint from the EBB, the new investigation will scrutinize biodiesel imports from China during the period from October 1, 2022, to September 30, 2023.
Expected to span up to 14 months, the investigation may result in provisional duties within eight months, providing a mechanism for the EU to respond promptly to any identified issues.
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The European Commission stated, “EU producers have submitted evidence of biodiesel imports from China entering the EU at artificially low prices, claiming that these imports severely harm their industry by creating an unfair competitive advantage.”
China's mission to the EU and the Chinese Chamber of Commerce have yet to respond to requests for comments regarding the investigation.
According to the EBB, China emerged as the largest biodiesel exporter to the 27-member bloc in 2023. In a separate statement, the EBB noted, “In 2023, Chinese dumped imports have caused a collapse in the market, leading to the closure of production sites in several member states.”
Apart from concerns over possible transit routes of Indonesian biodiesel, the EBB highlighted structural imbalances in biodiesel trade with China, citing discrepancies in pricing that do not align with the categories of advanced or waste-based biofuels attributed to most cargoes.
Biodiesel is a key component of alternative fuels aimed at curbing carbon emissions in the transport sector. Valued at 31 billion euros ($34 billion) annually, the EU's biodiesel industry has been a recurrent point of contention in trade disputes with various partners. Palm oil-based biodiesel from Indonesia has also faced restrictions due to EU measures against commodities associated with deforestation.
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In a separate trade dispute, the EU launched an investigation in September into Chinese electric vehicle imports, alleging that they benefit from state subsidies. China has criticized this probe, labeling it a “naked protectionist act.”
