Argentina is the world's top producer of biodiesel. (Representative Image) Photograph: (AFP)
In April, the WTO had found fault with the EU's calculation of production costs in Argentina
The World Trade Organization confirmed on appeal Thursday its ruling partially in favour of Argentina in its dispute with the European Union over duties the bloc imposes on imported biodiesel.
Argentina, the world's top producer of biodiesel, which it makes from soybean oil, in 2013 challenged before the world trade court tariffs that the EU imposed to guard against "dumping" of fuel at cut-rate prices.
In April, the WTO found fault with the EU's calculation of production costs in Argentina, but also rejected some claims of mistreatment levelled by Buenos Aires.
Both sides appealed the ruling, but the WTO's appellate body let it stand.
Once the ruling becomes official in 30 days, the EU will have to inform the WTO how it plans to bring its measures into line.
The EU had argued that domestic tax breaks allowed Argentinian producers to sell biodiesel at artificially low prices, which it said put European producers at an unfair disadvantage.
The EU responded by hitting Argentinian biodiesel with a 24.6 percent tax, which had been due to remain in place for five years.