On August 22, the UK Trade Remedies Authority (TRA) published the Statement of Essential Facts (SEF) for its anti-dumping investigation into biodiesel imports from China. The investigation found that Chinese biodiesel was being dumped at unfairly low prices, causing material injury to UK producers. TRA also concluded that imposing anti-dumping measures would be in the economic interest of the UK.

The proposed measures include an ad valorem duty of 15.68% on exports from the Excellence Group and un-sampled cooperating exporters, while other exporters would face 54.64%. The investigation covers biodiesel fuels, particularly fatty acid methyl esters (FAME) and hydrotreated vegetable oils (HVO), whether in pure form or blends, commonly used for road transport in the UK.

Before a final decision is made, stakeholders are invited to submit comments or additional evidence by September 22 via TRA’s online Trade Remedies Service (TRS). The investigation was initiated on June 5, 2024, following an application from the Renewable Transport Fuel Association on behalf of UK producers. These proposed duties aim to mitigate injury to the domestic industry while maintaining fair competition, targeting imports sold below fair market value, and are subject to an economic interest assessment to ensure overall benefit to the UK economy.

The European Waste-based and Advanced Biofuels Association (EWABA) is pushing for the rapid adoption of the Union Database (UDB) to ensure the sustainability and traceability of biofuels across the EU. The database is designed to prevent fraudulent imports by recording every transaction from feedstock collection to final consumption. EWABA members have already completed two successful technical pilots involving biodiesel producers and waste collectors, confirming the system’s stability and reliability without major issues.

However, without binding targets and deadlines, the UDB risks limited effectiveness, leaving room for fraudulent practices that undermine fair competition and damage legitimate EU producers. While some member states have urged caution, the European Commission has emphasized that the system is already operational and requires mandatory use to achieve full traceability.

EWABA recommends an EU-wide coordinated plan to monitor participation, set a roadmap for improvements, and prioritize mandatory UDB implementation in mature liquid biofuel supply chains. Integration of national databases should not delay deployment, and coverage must extend to feedstock supply to prevent false data. EWABA stresses the urgency of clear implementation timelines, stronger enforcement, and immediate industry certainty to effectively combat fraud.

Indonesia has stepped up pressure on the European Union to immediately remove countervailing duties on biodiesel imports, following a World Trade Organization (WTO) ruling that sided with Jakarta on several key claims. The world’s largest palm oil exporter argued in its 2023 complaint that the EU’s tariffs, in place since 2019 at rates of 8% to 18%, violated global trade rules.

Last week, a WTO panel concluded that Indonesia’s export levies on palm oil could not be classified as subsidies and that the EU had failed to prove Indonesian biodiesel imports caused material harm to European producers. In response, Trade Minister Budi Santoso urged Brussels to withdraw the “non-compliant” measures without delay.

The dispute highlights years of tension between the two sides, ranging from duties on biodiesel to EU concerns about palm oil’s link to deforestation. Indonesia’s biodiesel exports to Europe have plummeted from 1.32 million kiloliters in 2019 to an expected 270,000 kiloliters in 2024. While Jakarta views the WTO decision as a victory, industry representatives remain cautious. Catra de Thouars of the Indonesian Biofuel Producers Association warned that the EU may resist full compliance, noting ongoing disputes over anti-deforestation rules.

The case comes as the EU and Indonesia move closer to finalizing a free trade agreement, which Jakarta hopes will secure wider market access for palm-based products. Although the WTO ruling can technically be appealed, the organization’s top appeals body has been paralyzed since 2019, making enforcement uncertain. For now, the spotlight is on whether Brussels will act—or prolong one of the most contentious trade battles in the biofuels sector.

The World Trade Organization (WTO) has issued a ruling that supports Indonesia in its dispute with the European Union (EU) over countervailing duties on biodiesel imports. The case, initiated by Indonesia in 2023, challenged the EU’s decision to impose tariffs on biodiesel made from Indonesian palm oil, arguing that such measures violated WTO rules under the Agreement on Subsidies and Countervailing Measures.

In its findings, the WTO panel concluded that several of Indonesia’s claims were valid and recommended that the EU bring its measures into compliance with international trade obligations. The ruling carries significant weight, as the EU is the third-largest export destination for Indonesian palm oil products and a key market for its palm oil–based biodiesel. For Indonesia, the world’s top palm oil producer, the decision represents a potential boost to its biodiesel exports and a step toward reducing trade barriers.

Indonesia’s Chief Economic Minister Airlangga Hartarto welcomed the ruling, noting that preparations are underway for its implementation, though he declined to provide further details. While the EU technically has the option to appeal, the WTO’s appellate body is currently non-functional, making a final resolution unlikely. This case not only highlights ongoing trade tensions between the EU and Indonesia but also underscores the challenges facing the multilateral trading system in resolving disputes amid institutional deadlock.