Dumping complaint threatens Argentina’s biodiesel exports

Updated 02 April 2017
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Dumping complaint threatens Argentina’s biodiesel exports

BUENOS AIRES: Argentina’s biodiesel exports could be devastated if the US government imposed anti-dumping duties on the country based on a complaint by the US National Biodiesel Board (NBB), the heads of two local industry chambers said.
The board last week asked the US government to impose anti-dumping duties on imports of biodiesel from Argentina and Indonesia after two years of tension between the US and foreign producers over soaring imports.
“If a sanction is applied against Argentina in the US market, our exports will no longer be viable. At this point, there is no alternative market,” Claudio Molina, executive director of the Argentine Biofuels Association said on Friday in an interview.
The US is Argentina’s No.1 biodiesel export market and US sanctions would hit large exporters such as Cargill, Bunge, Louis Dreyfus and COFCO Agri, part of China’s state-run COFCO Group
Argentine biodiesel exports to its previous No. 1 client, the EU, were suspended due to complaints and counter claims pending before the World Trade Organization (WTO). Peru, another buyer of Argentine biodiesel, has also placed tariffs on Argentine biodiesel based on dumping complaints.
The Argentine market, where biodiesel is mixed with diesel fuel, is not nearly big enough to absorb the excess should exports to the US be blocked. Of the 1.6 million tons of biodiesel that Argentina exported in 2016, 90 percent went to the US, according to Energy Ministry data.
A hearing will be held in the US next month to evaluate the NBB’s request, Molina said
Argentina taxes biodiesel at a variable rate, at 6 percent this month. But producers pay significantly less for soy oil, the main ingredient of biodiesel, than international competitors because they do not have to pay a 27 percent tax on exports. Local industry representatives say Argentina has an added advantage because its soy fields and crushing plants are located near the country’s ports.
“We have much more access to raw materials and we are more oriented toward exporting than the US is,” said Victor Castro, executive director of the Argentine Biofuels Chamber (ABC).
“The system (for resolving dumping complaints) is so bureaucratic and it takes so long that it can leave you out of the market for years without a ruling,” Castro added.
The WTO ruled last year in favor of several claims by Argentina against anti-dumping duties imposed by the EU but the adjudication continues and the duties remain.


Norway oil firms lower 2019 investment forecast

Updated 21 February 2019
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Norway oil firms lower 2019 investment forecast

  • Investment forecasts for 2019 lowered to $20.06 billion
  • Several plans for development and operation (PDOs) expected to be submitted

OSLO: Oil and gas companies operating in Norway have lowered their investment forecasts for 2019 to 172.7 billion crowns ($20.06 billion) from 175.3 billion crowns seen in November, a survey by the country’s statistics agency (SSB) showed on Thursday.
In 2020, investments are expected to fall to 158.5 billion crowns according to initial forecasts, but the forecasts could be revised upwards in the months to come, it added.
“Several plans for development and operation (PDOs) are expected to be submitted to the government in both 2019 and 2020,” the agency said in a statement.
“If the schedules for these plans are realized, the accumulated investment costs in 2020 from these projects will increase the investment in field development compared to the present estimate.”
Norway’s oil and gas investments have rebounded from a sharp fall as rising crude prices and cost cuts lift industry activity. It was SSB’s fourth release of companies’ forecasts for 2019 and the first for 2020.
Equinor is Norway’s largest oil firm.