US turns up the heat in biofuels dispute

A transatlantic trade dispute over biofuels has escalated, with the US biodiesel industry accusing European companies of hypocrisy for protesting against subsidised fuel that they are themselves importing.

The European Commission launched an “anti-dumping” investigation earlier this year after European Union producers complained that they were being undercut by imports subsidised by the US government and priced unfairly low.

But the US National Biodiesel Board rejects the allegations. In a submission to the Commission, seen by the Financial Times, the board says that, rather than unfair competition, the European industry suffers from over-investment in capacity, rising prices of feedstocks such as rapeseed oil and the removal of a tax exemption for biodiesel in Germany, a key market.

Financial Times