World Grain - October 2008 - 57

BIOFUELS QUARTERLY: E.U. BIODIESEL INDUSTRY FEELS STING OF SUBSIDIES

essential that countervailing measures
targeting B99 imports are imposed by
the E.U. authorities in a reasonable
timeframe.
"We need to see this situation changing
rapidly because our industry is really suffering," Alourt said. "If the United States
does not close this loophole on their own,
we hope that the European Commission
will institute measures that protect our industry from highly subsidized imports."
He said the B99 subsidization scheme
breaches World Trade Organization
(WTO) rules and threatens the concept of
international trade in biodiesel. EBB stated that it will be necessary to re-establish
promptly a level playing field, ensuring
the "harmonious development of the E.U.
and international biodiesel markets."
The main volume of imports from the
U.S. to Europe involves splash-and-dash
scenarios rather than coming from domestic producers themselves, Fox said.

"Producers in Europe are less affected
by the $1-per-gallon tax credit than they
say they are," Fox said. "I think the Na-

"Yellow grease is in many
ways the most sustainable
feedstock. It has a good carbon footprint, so we are able
to get a premium price. Big
Oil sees it as a way to fulfill
their blending requirements
in a sustainable way."
- Falk von Kriegsheim,
director of investor and
public relations, Petrotec

tional Biodiesel Board (NBB) accurately
depicts the situation in Europe - their
industry is primarily driven by rapeseed
oil, which is usually the most expensive

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feedstock for biodiesel production, and
the dollar is weak, which makes buying
U.S. goods attractive."
As a company with stakes in the European market, Fox said he is not concerned about the potential "countervailing measures" that might be imposed on
imports.
"I am actually supportive of the work
that the European Commission is doing,"
he said. "I think they are going to find
that there is fair competition, and that's
good for the European consumer."
OPTIMISTIC FORECAST
While EBB reports that the industry
is the victim of serious injury because
of unfair trade, feedstock prices and the
food-versus-fuel debate have hurt the industry as well. The NBB has argued that
imports have been a scapegoat for a more
diverse group of problems.
Nevertheless, some companies have

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October 2008 / World Grain / www.World-Grain.com

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World Grain - October 2008

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