NBB files anti-dumping duty petition against Argentina and Indonesia over biodiesel imports

The National Biodiesel Board (NBB) said it has filed an antidumping and countervailing duty petition with the US government to investigate imports from Argentina and Indonesia, saying the countries have violated trade laws by flooding the US market with dumped, subsidised biodiesel.

The petition was filed with the US Department of Commerce and the US International Trade Commission on behalf of the National Biodiesel Board Fair Trade Coalition, which is made up of the NBB and US biodiesel producers. 

“The National Biodiesel Board and US biodiesel industry is committed to fair trade, and we support the right of producers and workers to compete on a level playing field,” said Donnell Rehagen, CEO of NBB.

He added: “This is a simple case where companies in Argentina and Indonesia are getting advantages that cheat U.S. trade laws and are counter to fair competition. NBB is involved because US biodiesel production, which currently support more than 50,000 American jobs, is being put at risk by unfair market practices.”

Because of illegal trade activities, biodiesel imports from Argentina and Indonesia surged by 464% from 2014 to 2016. That growth has taken 18.3% points of market share from US manufacturers.

“The resulting imbalance caused by unfair trade practices is suffocating US biodiesel producers,” Rehagen explained. “Our goal is to create a level playing field to give markets, consumers and retailers access to the benefits of true and fair competition.”

Based on NBB’s review, Argentine and Indonesian producers are dumping their biodiesel in the United States by selling at prices that are substantially below their costs of production.  This is reflected in the petition’s alleged dumping margins of 23.3% for Argentina and 34.0 percent for Indonesia.  The petition also alleges illegal subsidies based on numerous government programs in those countries.

This is not the first time that Argentine and Indonesian biodiesel producers have been charged with violating international trade laws.  In 2013, the EU imposed 41.9 to 49.2% duties on Argentina and 8.8 to 23.3% duties on Indonesia.  Just last year, Peru imposed both antidumping and countervailing duties on Argentine biodiesel.

The NBB is the US trade association representing the biodiesel and renewable diesel industries, including producers, feedstock suppliers, and fuel distributors.