The news source reported that the European commissioner, Peter Mandelson, has expressed his support for the anti-dumping complaints by agreeing to challenge the US over its biofuel subsidies.
The US administration will reportedly be enquired, under WTO framework, to respond to allegations that its GBP0.11 subsidy on a liter of B99 biodiesel meant for export represents unfair competition along with splash-and-dash operations being carried out in the US, according to The Guardian.
The European Commission (EC) is reportedly concerned over splash-and-dash operations, where traders export European biodiesel to the US, to benefit from a subsidy, and mix it with regular diesel and import it back to Europe.
The European biofuel industry is reportedly relieved that the EC has indicated its willingness to take up the biodiesel dumping issue. The European Biodiesel Board (EBB) claims that US exports of B99, with 1% regular diesel, to Europe increased from 100,000 tonnes in 2006 to one million tonnes in 2007, accounting for 15% of the entire European market for the product.
The US National Biodiesel Board is considering counter-complaints against the EC as it believes that European biodiesel specifications are discriminatory and breach WTO rules.
