The UK has concluded its investigation into subsidies on hydrotreated vegetable oil (HVO) biodiesel imported from the United States, deciding not to impose anti-subsidy duties despite finding that the imports are subsidised and have caused injury to the domestic industry, Traders Union reported.
The UK Trade Remedies Authority (TRA) published its final determination on September 10 following an investigation into subsidies associated with US-produced HVO biodiesel.
The TRA found that US HVO imports benefited from subsidisation and caused injury to the UK industry. Based on its findings, the authority recommended a countervailing duty of between £258.10 and £266.68 per tonne on the imports.
However, under the UK’s trade remedies framework, the TRA must assess whether imposing such a measure would be in the country’s wider economic interest before recommending its implementation.
In this case, the TRA concluded that applying the proposed countervailing measure would not be in the UK’s economic interests.
Following consideration of the TRA’s recommendation and broader public-interest factors, the Secretary of State decided not to impose the anti-subsidy measure.
As a result, US HVO biodiesel imports will continue to enter the UK without anti-subsidy duties, despite the formal findings of subsidisation and injury.
The decision highlights the role of the UK’s economic interest test in determining whether trade remedies should ultimately be imposed. While the investigation established that subsidised US HVO was affecting the domestic industry, the government concluded that the wider economic considerations did not support imposing additional duties.
The outcome leaves the UK market open to US HVO imports and provides continued access for American renewable fuel suppliers to the British market.
