EU to impose provisional tariffs on Chinese biodiesel amid trade dispute

The European Union could impose provisional tariffs on Chinese biodiesel after an investigation concluded that the product is being 'dumped' at unfair prices in EU markets.

The move would be part of a wider EU campaign against what it perceives as unfair trade practices from China.

It has proposed 'provisional' tariffs of between 12.8 per cent and 36.4 per cent, with the new duties due to come into force by mid-August.

The probe into the practices will run until February, when definitive duties may be set for five years.

Duties proposed range from 12.8 per cent on EcoCeres Group, 36.4 per cent on Jiaao Group, including Zhejiang Jiaao Enproenergy Co, and 25.4 per cent on Zhuoyue Group, including Longyan Zhuoyue New Energy Co.

The European Biodiesel Board has been lobbying for the measures, claiming a flood of low-priced Chinese imports had a devastating impact on EU biodiesel output.

The EBB said imports of biodiesel from China had surged, with 1.8 million tonnes entering the EU in 2023, accounting for 90 per cent of all Chinese biodiesel exports.

That has caused major distortions in the European market, the group said, including losing jobs and putting plans on hold; companies like Chevron Renewable Energy Group, Shell, BP, and Argent Energy are affected.

The European Waste-based and Advanced Biofuels Association has backed the proposed tariffs, which it hopes can rebalance market conditions following what it called an "extremely adverse" situation since late 2022.