The European Commission is willing to settle a long-running trade dispute over imports of Argentine biodiesel into Europe and is likely to accept undertakings from producers that they would sell the product at a minimum price.
The EU limited biofuel imports from non-European countries in early 2012 and 2013 after concluding that Indonesia and Argentina were dumping biofuels at below cost to gain market shares. In September 2018, the European Commission decided not to reinstate provisional import tariffs on Argentine biodiesel even though it considered imports were subsidised and a threat to the EU industry, saying it needed to collect additional information on the issue. As a result, the removal of duties on on low-price biodiesel from Argentina and the subsequent import surge led European Union producers to cut their production.
Argentina is the world's fourth largest biofuel producer (after the United States, Brazil and Germany) with a production of 2.95 Mtep (2017). It is also the fifth largest biodiesel producer with a total output of 2.6 Mtep (2017).