US imposes provisional antidumping duties on Argentine biodiesel imports

The US commerce department (DOC) announced the imposition of provisional antidumping duties on Argentine biodiesel imports.

The decision is a preliminary determination and the DOC is scheduled to announce its final decision on or about January 3, 2018, unless the statutory deadline is extended.

Argentine exporters sold biodiesel to the US at dumping margins of between 54.36% and 70.05%, according to the DOC.

The government of Argentina has requested negotiations to suspend the antidumping duty, according to the DOC.

The DOC is working with interested parties on possible suspension agreements, but would only sign such agreements if they ensure that injury to the domestic biodiesel industry is eliminated and that the unfair trade practices are addressed, it stated.

"The Trump administration is committed to both free and fair trade and will defend American workers against unfair trade practices," US commerce secretary Wilbur Ross said.

"Still, we are thankful to the government of Argentina for their proactive approach to solving this issue, and remain optimistic that a negotiated solution can be reached both with Argentina and with Indonesia."

In 2016, Argentine biodiesel exports to the US were valued at an estimated US$1.2bn.

This is not the first time that Argentina has faced antidumping measures against its biodiesel exports.

Last year the World Trade Organization partially upheld a complaint filed by the Argentine government in 2013 against anti-dumping sanctions imposed by the European Union on imports of Argentine biodiesel.

The country produced around 2.5Mt of biofuels in 2016, of which around two-thirds are exported, mostly to the US.

Argentina had argued that the tariffs were protectionist and arbitrary, and that they effectively closed off the main export destination for local soybean growers.