New rules stop US splash and dash biofuel dump on EU

Brussels has acted to stop a so-called ’splash and dash’ operation in which the US dumped biodiesel on Europe. The move comes after around one million tonnes of US-produced biodiesel entered the EU in 2007 alone.

The EU Commission investigation confirmed the claims brought by the European biodiesel industry and have introduced temporary anti-dumping and anti-subsidy duties on the imports. The duties, which will start today (Friday), vary depending on the company, but range from €260 up to €410 per tonne. They will remain in place for up to six months when the Member States must vote on whether to propose ’definitive’ duties, which normally last for five years.

News of the anti-dumping duties has led to traders predicting the price of European biodiesel will firm up.

NFU combinable crops board chairman Ian Backhouse said: "For the past 20 years subsidised US soybean products have been seriously undermining our biofuel markets here and in Europe.

"The dumping or so-called splash and dash has undermined our domestic industry and many small companies have operated below capacity or have gone out of business.

"The EU Commission has now listened to us and acted to reduce this impact and this is good news."