03/04/2014
II Expert Ad-Hoc Group: Trade remedy measures
in Renewable Energy
UNCTAD, Geneva 03-04 April
GASTON FUNES
Minister Counselor Agricultural Affairs
Embassy of Argentina to the EU
ARGENTINA
Efficiency and competitiveness of Argentina's biodiesel industry
Assets of developing countries:
• regions with strong renewable natural resources;
• profile of lower costs for the production of raw materials, intermediate
products and bio-fuels
• Integration (agri-industrial-port cluster), scale (size), technology, &
sustainability (GAPs)
High competitiveness and efficiency on biodiesel industry
1
03/04/2014
Some figures of biodiesel sector in Argentina:
• Installed capacity: 33 biodiesel plants ; 4 millions TNs/year;
(average capacity of larger plants 263.000 Tns/year)
• 1.200 US$ MM; Foreing (Europe & US) and National investments
and technology (since 2007);
• Employment creation: +5.000 jobs (direct & indirect);
• Export/year US$1.800 MM (untill EU investigations);
Incentives for developing Argentine Biodiesel sector:
• Policies implemented by some countries/markets (EU-RED);
• Biodiesel cut share obligation in diesel in domestic market (initially
5% in 2010, currently 10%);
• Environmental, Economic, Social, Productive (added value), Energy
supply, and Trade objectives;
“Developing countries need such kind of industries to
add value to the primary production, create jobs, and
promote social, productive & economic
development”;
2
03/04/2014
EU AD & AS investigations (& AD measures):
Impact on Argentine exports of biodiesel to the EU
EU monthly Biodiesel Imports from Argentina.
(volume)
Tons
250,000
Ago/12.
Inicio
investigación
por dumping
200,000
150,000
Nov/12. Inicio
investigación
por subsidios
100,000
May/13.
Imposición
Oct/13.
derecho
antidumping Finalización
provisional investigacion
antisubsidios y
antidumping.
Abr/13.
Registro de
Nov/13.
importaciones
Aplicación
derechos
antidumping
definitivos
50,000
Jan. 2009
Feb. 2009
Mar. 2009
Apr. 2009
May. 2009
Jun. 2009
Jul. 2009
Aug. 2009
Sep. 2009
Oct. 2009
Nov. 2009
Dec. 2009
Jan. 2010
Feb. 2010
Mar. 2010
Apr. 2010
May. 2010
Jun. 2010
Jul. 2010
Aug. 2010
Sep. 2010
Oct. 2010
Nov. 2010
Dec. 2010
Jan. 2011
Feb. 2011
Mar. 2011
Apr. 2011
May. 2011
Jun. 2011
Jul. 2011
Aug. 2011
Sep. 2011
Oct. 2011
Nov. 2011
Dec. 2011
Jan. 2012
Feb. 2012
Mar. 2012
Apr. 2012
May. 2012
Jun. 2012
Jul. 2012
Aug. 2012
Sep. 2012
Oct. 2012
Nov. 2012
Dec. 2012
Jan. 2013
Feb. 2013
Mar. 2013
Apr. 2013
May. 2013
Jun. 2013
Jul. 2013
Aug. 2013
Sep. 2013
Oct. 2013
Nov. 2013
Dec. 2013
0
Argentina
EU AD & AS investigations (& AD measures):
Impact on Argentine exports of biodiesel to the EU
• Argentine biodiesel exports to the EU dropped from US$ 1.800 MM
in 2011 to US$ 500 MM in 2013;
• No exports since Nov 2013
“actual impact US$ 1.800 MM “
• Argentine biodiesel went from 0% tariff duty (beggining 2013) to 31%
tariff duty (beggining 2014: NMF 6,5% + ADD)
EU Market for Argentine Biodiesel “(de facto) closed”
3
03/04/2014
Protectionism on biofuels
(combination of tariff & non-tariff measures):
• Some trade remedy measures go beyond counteracting “unfair”
trade practices, but protecting less competitive and les efficient
biofuel industry;
• Other “non-tariff” protectionist measures:
• Quality standards for iodine and CFPP (cloud point) values,
(discrimination of some biodiesel feedstock).
• Environmental standards: non-scientific and arbitrary criteria:
GHG saving values; ILUC; etc (discrimination of some biodiesel
feedstock).
• Criteria for allocation of biodiesel quotas for national targets
(discrimiation of biodiesel depending on its origin);
Worries & Consequences of “trade remedies”
(& other protectionist non-tariff) measures:
• Increasing trend of regulatory framework as result of or influenced by
lobbying and politic groups or sectors, rather than scientific-basis;
• Uncertainty, lack of predictability and sudden changes on regulatory
framework (Modification of RED; Modernization of EU trade remedies rules)
• Contradictory economic-policy positions Vs. commitments at multilateral fora
(G20 : non-proteccionism);
• Contradictory trade measures Vs. environmental policies;
• More expensive (and less environmental friendly?) bio-fuels;
• Greater reliance (of EU) on imported fossil fuels;
• Higher costs of fuels for (EU) consumers;
4
03/04/2014
Consequences of “trade remedies”
(& other protectionist non-tariff) measures:
• Trade: EU AD measures caused a drop of 15% of total Argentine exports to
the EU, worsening the current negative bilateral trade balance.
• Inactive production capacity (Argentine current production: 40% of its
capacity as result of EU AD measure); Uncertainty on the future of the sector.
• Uncertainty for investors (foreing and national) and traders;
• Jeopardizing research and innovation;
•Threatening industrialization of agricultural commodities in Developing
countries, which prevents escalating positions in the value chain
(protectionist measures compensate relative low NMF duties).
• Threatening job creation, social, regional, productive & economic
development of Developing Countries (with great potential on clean
energies);
Thank you for your attention
GASTON FUNES
Minister Counselor Agricultural Affairs
Embassy of Argentina to the EU
funes@agricola-ue.org
225 Avenue Louise - 1050 Bruxelles – Belgium
 + 32 2 640 33 33 -  +32 2 640 00 08
5