Imports from Argentina and Indonesia hurting U.S. biodiesel producers ?

A research

Firstly, some very interesting news are happening. Following, U.S. said it would start an investigation into its import of biodiesel. As mentioned, this biodiesel is coming from Argentina & Indonesia. It is possible that there are some signs of dumping and subsidization in the importing process.

In addition, the United States International Trade Comision is doing a research on this subject. It is scheduled to make a preliminary decision on May the 8^th. The decision will be about whether such imports from Argentina and Indosnesia hurt U.S. economy and its diesel producers.

U.S. biodiesel producers asked their government last month to impose anti-dumping duties on imports of biodiesel. They said it has flooded the U.S. market. While it also violated the trade agreements. As that is happening, there are few more days left ahead Mike Pence’s visit to Indonesia. Mike Pence, U.S. Vice President is visiting Indonesia to check some real issues about anti-dumping prices of biodiesel.

Indonesian government stating the opposite

-“The Indonesian government, especially the trade ministry, will be cooperative in the investigation by providing arguments and supportive data. We can also give the documents which show that there was actually no dumping or subsidies.” (Indonesia’s director for international trade, Oke Nurwan.)

Following, the biodiesel group from Indonesia is saying that it had asked its government to bring up the issue. To bring it during Pence’s visit to Jakarta next week. Previously, Argentina’s biodiesel association called CARBIO rebuffed dumping accusations.

Indonesia is a world’s top producer of PALM OIL. As a very competitive resource it can be used to ruffle the biodiesel. Indonesia relies heavily on exports. Yet their economy highly depends on palm oil. Being able to export tons of palm oil to the world’s market, Indonesia puts itself to a very high place in trading with this resource.

Charts show amount of CPO to be used in biodiesel production in Indonesia. Those are the forecasts based on Indonesias Estate Corp Fund for Palm oil. Information From 2016, predictions are till the year 2020.

U.S. Imports

Charts: Showing 2016 & 2017 statistic data. U.S. production and import. (Millions of gallons, in January & February)

Total U.S. imports rose to 3.5 billion liters (916 million gallons). It was a record in 2016 according to the U.S. government data published in March. Argentina represents about two-thirds of United States foreign imports. It is followed by Indonesia and Canada.

In the meantime, Indonesia is facing a pressure in Europe too. It is happening because of its government filling a WTO complains against European Union’s anti-dumping duties on Indonesian biodiesel.

Finally, the European parliament voted last week to call on the EU to easily phase out the use of Palm Oil in biodiesel by 2020. Indonesia, along with Malaysia is planning to send a joint mission to Europe next month. They want to prevent the adoption of this resolution.