EU slaps anti-subsidy duties on Indonesian biodiesel

The European Union has imposed duties on imports of subsidised biodiesel from Indonesia in order to level the playing field for EU producers, officials said yesterday. The European Commission, the EU’s executive arm, imposed temporary duties ranging from eight percent to 18 percent but warned it could impose permanent measures by the end of the year.

A Commission investigation “found that Indonesian biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices,” it said.

“This inflicts a threat of economic damage to EU producers,” the commission statement said. The commission said its investigation focused on possible subsidies for biodiesel production, whether it involved palm oil or other, less-used, raw material. It said the EU biodiesel market is worth an estimated nine billion euros ($10.1 billion) a year, with imports from Indonesia amounting to 400 million euros.