Argentina Disputes the Increase of U.S. Duty for BiodieselOct 3rd, 2017
The Argentinian government is considering all possible options to abolish an increase in a duty for biodiesel fuel imposed by the U.S. Exceeding 50%, the duty is inconsistent to the standards and methodology accepted by the World Trade Organization (WTO).
The Ministry of Foreign and Religious Affairs of the country is expressing a dissent on the size of the imposed tariff by the States directing all efforts to the abolishment of the provisional decision of the U.S. to raise the duty. As stated, the Argentinian authorities will persist protecting the national interests and reserve the right to initiate legal efforts.
Despite the official statement proclaimed by the U.S Vice President Mike Pence during his visit to Argentina, in which he talked about the Washington’s profound interest in the development of trading relationships with the Argentine Republic, Buenos Aires is suffering from the ongoing economic pressure from the north partner.
Announcing the duty increase for Argentinian biodiesel fuel, United States Department of Commerce reasons it by the evidence that this sector has been already well-backed while Buenos Aires assures that domestic producers are underfinanced.
According to the Argentinian industry chamber, biodiesel sold to the U.S. is the biggest export revenue source for the country. In 2016, the earnings of domestic producers from biodiesel export reached over $ 1, 2 billion which is 2, 1 % of total national exports. In this regard, the situation created is assessed as the most severe for the national biodiesel industry.
Along with the call of the government to the national biodiesel producers to appeal to the commissioners, Mauricio Macri has taken the matters into his own control by sending a protest letter to Mike Pence.