WTO sides with Argentina in EU biodiesel anti-dumping tax row

The World Trade Organisation (WTO) has ruled in favour of Argentina in its row concerning the anti-dumping duties imposed by the EU since 2013 on the biodiesel imported from the country.

According to a panel report published on Tuesday, WTO upheld Argentina's claim that the reason stated by the EU authorities during their anti-dumping investigation for disregarding Argentine producers' costs of production of biodiesel does not constitute a "legally sufficient basis."

WTO found the EU had replaced the costs reported by the Argentinian producers for their soyabean feedstock, substituting them with reference prices published by the country’s Ministry of Agriculture.

According to the EU, the Ministry’s price estimates reflected international prices, but WTO stated in its findings that the EU had included costs not associated with the production and sale of biodiesel in the calculation of the cost of production.

The WTO panel also supported Argentina’s claim that the EU had imposed anti-dumping duties in excess of the margin of dumping that should have been established under the Anti-Dumping Agreement.

However, it considered that the profit margin selected by the EU authorities was the result of a reasoned analysis.

Argentina filed a formal complaint in November 2013 at WTO against EU's anti-dumping measures on its biodiesel exports.

Argentina’s Foreign Ministry said the anti-dumping measure imposed by the EU covers a cost range of between €216.64 to €45.67 per tonne, leading to “the direct and immediate closing” of the European market to Argentinian biodiesel.