The EU will impose temporary anti-dumping and anti-subsidy duties on U.S. biodiesel.

The temporary duties range from €23 (USD $29) to €41 (USD $51) per 100kgs (160 pounds) and will last for up to four months, according to published reports. More long-term measures will require another vote.

The commission launched an anti-dumping and anti-subsidy probe into U.S. biofuels in June 2008 after the industry lobby European Biodiesel Board complained the EU market was being flooded with heavily subsidized U.S. imports.


While both the U.S. and the EU support the use of biofuels, the group claims that U.S. biodiesel is being sold at below U.S. producers' costs thanks to generous subsidies.

It estimated in January that U.S. exports of a particular biodiesel blend known as B99 had surged by 40% in 2008 compared to 2007, which the group said was threatening the viability of European producers.

The decision to impose duties on U.S. exports comes amid tense transatlantic trade relations which have been frayed in recent months by disputes ranging from restrictions on U.S. poultry to a European ban on U.S. hormone-treated beef.