The EU has initiated, on the 13th June 2008, anti-subsidy and anti-dumping investigations into imports of biodiesel from the United States. Examination by the European Commission of complaints lodged by European industry found that an investigation was warranted – sufficient evidence was provided of subsidies to the US biodiesel sector, as well as dumping of biodiesel in the European market. The complainant has argued that this has had an adverse effect on the European biodiesel industry. A detailed investigation by the Commission will now determine whether measures are justified under EU trade rules.

Anti-subsidy and anti-dumping proceedings are a normal part of trade policy to ensure free and fair trade. Anti-subsidy and anti-dumping complaints concerning imports of biodiesel from the USA were lodged with the Commission on 29th April 2008. The complaints were lodged by the European Biodiesel Board, which represents the interests of a major proportion of EU producers of biodiesel. Having examined the complaints, the Commission is satisfied that they fulfil the requirements of the EU's basic anti-subsidy and anti-dumping regulations in order to initiate further proceedings.

With regard to the anti-subsidy complaint, the complainant has provided sufficient evidence of subsidies to the biodiesel sector in the USA. These subsidies would include federal excise and income tax credits as well as a federal programme of grants to finance increased production capacity. Various subsidy programmes would also exist at state level. In regard to the anti-dumping complaint, the complainant has provided sufficient evidence of dumping of biodiesel on the EU market.

The effect of the subsidisation and dumping is, according to the complainant, a deterioration in the prices charged and market share held by the Community industry, which has led to substantial adverse effects on the overall performance and the financial situation of the industry. Thus the Commission will now investigate the allegations in the complaints. The Commission will make its provisional findings by 13th March 2009 at the latest which it will then present to EU member states.