Beam me to Planet Gore !
Posted on 06/14/2008 7:09:58 PM PDT by DeaconBenjamin
BRUSSELS: Picking a new trade fight with the United States, the European Union on Thursday accused U.S. producers of biodiesel of benefiting from subsidies that threaten to put European producers out of business.
Biofuels are bitterly contested because of allegations that they raise food prices and do little to fight global warming.
But they are also a big business, with sales of about €8 billion, or $12.3 billion, annually in Europe. EU trade officials say European producers are at risk because of a tax credit that is granted to American exporters.
The commission said it would begin a formal anti-dumping investigation on Friday that could lead to the imposition of punitive tariffs.
The commission "will leave no stone unturned in this investigation and will act in accordance with its findings," said Peter Power, a spokesman for Peter Mandelson, the EU trade commissioner.
The EU said the suspect subsidies consisted of federal excise and income tax credits along with a federal program of grants for increases in production.
The EU said it also was concerned by various subsidies from state governments. Initial findings are expected by mid-March.
Europe makes large amounts of biodiesel from plant oils like canola and sunflowers. But the Continent, where diesel-powered cars and trucks are widespread, is also a net importer of diesel, including biodiesel made from crops like soy in the United States.
To be sure, both the EU and the United States generously subsidize their biodiesel industries.
But European producers complain that U.S. producers benefit twice - from subsidies by the U.S. government to produce the biodiesel, and then again from subsidies granted by individual European governments when it sold in Europe.
(Excerpt) Read more at iht.com ...
Whats up with the EU crying about US subsidies, while a major part of the production of goods in the EU are subsidized?
Namby pambies, those whining Euroweenies. They ought to be on board in the war on terror. Instead they look endlessly for reasons to find fault with the United States. Hope they enjoy the future that they’ve certainly got coming to them.
....they’re reacting in the typical liberal way: raise taxes.
Of course, the effect on the “little people” they represent will be for more price spikes - but who cares? This is about who’s the most powerful lib in the world...
You are making the same point I did...The EU subsidizes not only their farms, but also much of their industry...but they whine about the US doing the same for our farmers.
Exactly - both the EU and the US play the agricultural subsidies game at a cost to their taxpayers and distort the market.
Subsidies can be justified sometimes for national interests, but not at the same time as both groups pontificate to other producers against doing so on their own pet areas.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.