EU to Impose Provisional Tariffs on Chinese Biodiesel Amid Trade Dispute

The European Union may soon impose temporary tariffs on Chinese biodiesel following an investigation that found the product is being sold at unfairly low prices in EU markets.

This move is part of a broader EU effort to combat what it considers unfair trade practices by China.

The EU has proposed “provisional” tariffs ranging from 12.8% to 36.4%, with these duties expected to be implemented by mid-August.

The investigation into these practices will continue until February, at which point permanent tariffs might be established for five years.

The proposed tariffs include 12.8% on EcoCeres Group, 36.4% on Jiaao Group (including Zhejiang Jiaao Enproenergy Co), and 25.4% on Zhuoyue Group (including Longyan Zhuoyue New Energy Co).

The European Biodiesel Board (EBB) has been advocating for these measures, arguing that an influx of inexpensive Chinese imports has severely impacted EU biodiesel production.

According to the EBB, biodiesel imports from China surged to 1.8 million tonnes in 2023, making up 90% of all Chinese biodiesel exports, causing significant disruptions in the European market. These disruptions have led to job losses and halted projects for companies like Chevron Renewable Energy Group, Shell, BP, and Argent Energy.

The European Waste-based and Advanced Biofuels Association also supports the proposed tariffs, hoping they will restore balance to the market after an “extremely adverse” situation since late 2022.