Spain to lift self-imposed embargo on biofuel imports

A resolution following a lift of the embargo by Spain on any imported non-EU biofuels which caused dispute with Argentina has been announced

The Spanish government, since the spring of last year, decreed that only fuel produced within the EU could meet its quota for biofuels used in transport. Europe is Argentina’s second biggest trading partner, after Brazil, so that prompted the South American country to complain about ‘discrimination’ and added the law was in violation of World Trade Organisation rules.

However this complaint has now been dropped.

‘We decided not to proceed with the case,’ Enrique Ferrer, an Argentinean diplomat, was quoted as saying. ‘Spain’s government issued a new decree, so for the time being we are able to export biodiesel to Spain. We are still following it very closely to see if our exports don’t have any problems in the market and then we won’t proceed with the case.’

The initial chain of events that led to the embargo is believed to have stemmed from the Argentinean government’s perceived unfair 51% purchase of a Spanish Repsol oil and gas refinery last year, a story covered in Biofuels International at the time.