EU Ends Ethanol Anti-Subsidy Case

Anti-subsidy announcement comes shortly after a European Commission recommendation in a separate anti-dumping case

Published on: Dec 13, 2012

The Council of the European Union said this week that it would not enforce anti-subsidy tariffs on U.S. ethanol, Bloomberg reports, though anti-dumping procedures continue.

The European Commission facilitated anti-subsidy proceedings against U.S. ethanol producers, which alleged that the producers received subsidies that were trade-distorting.

The subsidy investigation began at the request of European Renewable Ethanol group ePURE. The group also requested an investigation regarding ethanol "dumping."

In the anti-dumping case, the European Commission on Dec.6 proposed a nearly 10% tariff on ethanol imports. The investigation addresses allegations that U.S. ethanol exporters have "dumped" ethanol in EU markets. ePure says the anti-dumping procedure is based on lost competiveness and "consequent closing down of several EU factories."

Anti-subsidy announcement comes shortly after a European Commission recommendation in a separate anti-dumping case
Anti-subsidy announcement comes shortly after a European Commission recommendation in a separate anti-dumping case

The Renewable Fuels Association and Growth Energy said they were "troubled" by the proposed anti-dumping tariff in a joint statement last week, and said they were convinced that the EU would drop tariff plans.

ePURE expects the anti-dumping case to wrap up in February, 2013. Bloomberg reports the final ruling on the anti-subsidy case will be published by Dec. 25.