On July 7th, The Associated Press ran an article that discussed the European Union’s decision to extend duties on American biofuel. the purpose of this extension, specifically targeting biodeisel exports, appears to have been pushed through in an effort to level the International playing field for biofuel producers.
Author Aoife White provides more details here:
The United States is the EU’s biggest foreign supplier of biodiesel, providing euro700 million ($976 million) worth of fuel to a total market worth euro5 billion.
The European Biodiesel Board said the new import fees would help re-establish a level playing field for European producers, claiming unfair U.S. competition has already caused some companies to go bankrupt or to quit biodiesel production.
“For more than two years, U.S. biodiesel has been sold in the European market at a substantial discount, at an even lower price than the vegetable oil raw materials purchased by the EU industry for producing biodiesel,” it said.
White goes on to detail the potential imapct on food production and natural reserves, indicating the obvious dissatisfaction from environmentalists:
This biofuel target has come under fire from environmentalists and others who claim that it will see land taken away from food production and put pressure on natural reserves – especially in developing countries.
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