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Post date: 31/03/2016

A definitive WTO Panel Report was circulated yesterday, 03/29/16, concerning the case European Union Antidumping Measures on Biodiesel from Argentina (WT/DS473). The Panel upheld the main legal claims raised by Argentina in relation to the measure imposed by the European Union.

This dispute was initiated after the imposition by the EU of definitive antidumping measures which in practice meant the complete closure of the European market for the biodiesel of Argentina, its main supplier by then, with annual exports in the vicinity of the USD 1.6bn. The biodiesel from Indonesia, the second supplier by volume and value was also subject to the same measures.

Argentina is one of the main exporters and perhaps the most efficient producer of biodiesel in the world. Given the great damage inflicted to one of its main export products, the Government filed a claim before the Dispute Settlement Body of the WTO challenging the consistency of the European measures measure under the WTO law.

Specifically, Argentina claimed that the EU s decision to disregard the records kept by the Argentinean producers / exporters on the then proved flaunty during the course of the proceedings ground that those records did not reasonably reflect the costs of production and sale of the product under investigation solely because there were export duties in place, was inconsistent with several provisions of Article 2 of the Antidumping Agreement. The Panel sided with Argentina, and found that many aspects of the investigation as well as the determination imposing the AD duties were inconsistent with the EU obligations in the WTO.

Argentina also raised a claim against the inconsistency of certain provisions of the EU Basic Regulation with the Antidumping Agreement as such, but the Panel found that Argentina had not proved its claims so it refused to conclude against the EU on this aspect of the case.

Both Parties can file an appeal on part of the entirety of the Report. If they do not, the Report circulated could be adopted by the DSB, but not earlier than 22 April 2016.

This case illustrates the firm determination of the Government of Argentina to stand by its exporters and to resort to all available mechanisms in order to ensure a fair access for all its exports to the international markets.

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