US bioethanol makers face 5-year EU anti-dumping tariff

The duty of 62.30 euros a metric ton punishes US exporters of bioethanol for selling it in the EU below cost, a practice known as dumping. The levy follows existing EU anti-dumping duties on biodiesel imports from the US.

European bioethanol manufacturers including CropEnergies Bioethanol GmbH of Germany, Tereos BENP of France and Ensus of the U.K. suffered “material injury” as a result of dumped imports from the US, the 27-nation EU said in a decision in Brussels on Monday. The levy, which applies only to US bioethanol used for fuel, will take effect after publication in the bloc’s Official Journal by Feb. 25.

Strong increase in US bioethanol exports to EU

The duty is the outcome of a dumping probe opened in November 2011 after a complaint by European manufacturers. In the 12 months through September 2011, US ethanol producers increased their combined share of the EU bioethanol market to 15.7 % compared with 1.9 % in 2008, according to the bloc.

“This clearly exerted pressure on the Union industry,” the EU said. The main other country that ships bioethanol to the EU is Brazil, whose share of the European market in the same period fell to 4.5 % from 30.3 %, the bloc said.