Argentina introduces biofuel export duty to counter anti-dumping claims

In the wake of US anti-dumping duties, Argentina is to impose an 8% export duty on its biofuels exports from January 1, a government announcement said Wednesday.

In October, US officials put duties ranging from 54.36-70.05% on Argentina biodiesel imports for five years, having found the product in the US fuel mix and entering the country at prices below domestic market value.

The move comes in the wake of US trade reform, with the Trump administration looking to amend and enforce trade laws.

Argentina’s response to the move may be a sop to the US, intended to reduce duties rather than face accusations of dumping its product on the international market.

Keen to bolster its beleaguered image on international markets after decades of economic mismanagement, president Mauricio Macri has been on a charm offensive since coming to power in 2015.

Argentina, as part of the Mercosur bloc, is currently looking to seal a trade deal with the EU.                                                                                                            

While negotiations between the EU and Mercosur have been fitful, Argentina has been exporting significant volumes of SME to the EU since September, market sources said, when anti-dumping restrictions lapsed and the market reopened to Argentinian producers.

However, overall exports of Argentinian biofuel have fallen 30% in the third quarter of this year compared to the corresponding period.