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www.oilsandfatsinternational.com26 OFI JUNE 2013, BIOFUELS ISSUE
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ARGENTINA
last year by countries like the USA, Japan andMexico. Under
Kirchner, Argentina has restrictedimports in an attempt to promote
national indus-try and halt a shrinking trade surplus.
In a recent statement, CARBIO argues: There
exists no form of subsidy on biodiesel exportsfrom Argentina. It
adds: CARBIO and its mem-bers reiterate their compromise to keep
collabo-rating with the EC investigations so they can beclosed
definitively without the imposition of tar-iffs. EC investigators
visited Argentine plants lastmonth.
There is no evidence whatsoever of dumpingor export subsidies,
says Gustavo Idgoras,CARBIOs international markets consultant.Were
facing a crisis that may force plants to closedown and the only
reason is the protectionistlobby in Europe.
These European industry players point toArgentina imposing a 32%
export tariff on rawsoyabeans, 13% more than the current rate
forbiodiesel. But Idgoras rejects allegations that thedifferential
export taxes (DETs) are effectively a
subsidy for biodiesel. How can you allege that theDETs encourage
the domestic sale of feedstocks?
Argentina is the worlds third largest exporter ofraw soyabeans
[behind the USA and Brazil],Idgoras says.
A scapegoat for EU problems?
Idgoras also accuses Europe of pointing the fingerat an external
enemy in order to cover up its prob-lems in the biodiesel sector,
which include over-capacity. Spain, for example, uses just 14% of
itsinstalled capacity, according to the US
Department of Agriculture (USDA)s ForeignAgricultural
Service.
The biodiesel demand in Europe is nine mil-lion tonnes a year,
but they rode a financial bub-ble and invested in a production
capacity of 22M
tonnes a year, says Idgoras, who adds that it wasstill cheaper
for the EU to ship Argentine biodieselstraight to its coastal
refineries than to load uptrucks at plantations in central and
easternEurope, and not because of the feedstock exportduties.
DETs in Argentina promote the industrialisa-tion and
verticalisation of the soya industry and,as a result, it is just
that value-added productshave lower export tariffs, says Jos Luis
MartnezJusto, president of the biodiesel committee atCADER, the
Argentine Chamber of RenewableEnergies.
Justo says it was absolutely erroneousto accuse Argentina of
dumping. He alsoinsists Europe cannot satisfy its biodiesel
demand through local production, butrevealed that in the face of
registeredimports and possible retroactive duties
Argentina is looking for new markets, espe-cially China, where
it already exports anestimated 20% of its raw soyabeans
andsoyameal.
With production and exports ofArgentinas biodiesel falling,
there has beena rise in soya oil exports, according toGermany-based
Oil World, an independentforecasting service. Argentine exports
ofsoya oil to the EU rose to 230,000 tonnes inFebruary this year, a
year-on-year increaseof 80,000 tonnes. There are companiesthat are
now focusing on oil, rather thanbiodiesel, Justo confirms.
Argentina to raise mandates
Argentina's biodiesel mandate law, whichwent into effect in
2010, currently requiresa seven percent blend, but that will rise
to10% in June.
Analysts such as Schuff, however, say theincrease is the result
of an explosion atYPFs main refinery, which has forced thecompany
to import more oil, rather thanreduce biodiesel exports.
Argentina is considered the worldsbiggest exporter of soya
biodiesel, which itships from Rosario, a port in Santa Fe,
theprovince where production is centred. In
2011, exports reached a record value ofmore than US$2bn.
As Oils & Fats International went topress, the Argentine
government launchedwhat could be seen as a retaliatory action atthe
WTO, starting disputes proceedingsalleging EU support for its
biodiesel produc-tion broke world trading rules.
Argentina highlights EU support fordeveloping energy from
renewable sourcesand its measures to control and reducegreenhouse
gas (GHG) emissions, claimingthat this illegally supported European
bio-fuel production. Its dispute claim also criti-cised EU-funded
support schemes for theEuropean biodiesel sector.
Jonathan Gilbert and Keith Nuthall arefreelance journalists
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