U.S. Department of Commerce initiated antidumping and countervailing duty investigations aimed at biodiesel imports from Argentina and Indonesia

OMAHA (DTN) -- The U.S. Department of Commerce initiated antidumping and countervailing duty investigations aimed at biodiesel imports from Argentina and Indonesia, the department has announced in response to a petition filed by biodiesel industry interests in the United States.As part of the investigation, biodiesel industry representatives gave testimony to the department's International Trade Commission last week, making a case that biodiesel produced in Argentina and Indonesia has been flooding the United States market since 2014.The allegations are the countries' subsidized biodiesel essentially nudged U.S. producers out of their home market.In its notice of initiation released last week, the Commerce Department stated that based on information provided by the U.S. biodiesel industry, there is reason to believe that Argentine and Indonesian biodiesel companies were selling into the U.S. "at less-than-fair value." The Commerce Department estimates Argentina's dumping margin could be as high as nearly 27% and Indonesia's at about 28% from 2014-2016.In written comments to the commission, the Argentine government said the petition was based on "extremely limited" information and actually shows the U.S. industry was hardly harmed. Argentina makes the case that U.S. producers never make a claim that imported biodiesel actually hurt profits. In addition, the government argues U.S. producers alone were unable to fulfill Renewable Fuel Standard volume requirements from 2014-2016.IMPORTS INCREASEDThe National Biodiesel Board said imports from Argentina and Indonesia increased by more than 460% from 2014 to 2016, gaining about 18% in U.S. market share during that time.U.S. producers claim the two nations gained the market share illegally when the market expanded more than 58% in 2014-2016.