EU opens investigation into U.S. bioethanol subsidies

Reuters ^ | Friday, November 25, 2011 | Charlie Dunmore; ed by Rex Merrifield

[SunkenCiv]

The European Commission launched an investigation on Friday over complaints that U.S. bioethanol exporters are using unfair state subsidies to sell their fuel to Europe at illegally low prices, a statement in the EU official journal showed.

The investigation follows a formal complaint by EU bioethanol industry association ePURE in October, which alleged that tax credits in the United States allow its exporters to cut their EU selling price by about 40 percent, EU diplomats said.

If the EU authorities find evidence of unfair trade practices, it could result in import tariffs on millions of liters (gallons) of bioethanol imports from August 2012.

"The EU has today initiated anti-subsidy and anti-dumping investigations into imports of bioethanol from the USA in order to establish if U.S. imports of bioethanol have an adverse effect on the European bioethanol industry," EU trade spokesman John Clancy said in a statement.

"These investigations are based on a complaint lodged by the European bioethanol industry. Provisional findings are due by August 24, 2012," the statement said.

Industry group ePURE, whose members produce 80 percent of Europe's bioethanol and include Germany's CropEnergies and Spain's Abengoa, requested the investigation in October, saying "massive and sudden imports" of U.S. bioethanol are damaging EU producers.

Europe used about 5 billion liters of bioethanol in 2010, with about 12 percent imported from the United States and Brazil, according to industry estimates. The percentage is expected to rise as EU producers struggle with colder weather and smaller fields than their rivals in those countries.

In a similar case, the EU imposed tariffs in 2008 of up to 400 euros ($530) per tonne on U.S. biodiesel and extended them to Canada in 2009.

[SunkenCiv]

It's the Obamacare, stupid! One-half gallon of oil in the form of pesticides per bushel of corn would cost $2 to $3 per bushel. If this were true -- and it clearly isn't -- it should be enough to illustrate to literally anyone that the price of petroleum is quite literally the ONLY thing driving corn prices. And this idiotic piece of agitprop -- from a hydrogen "energy" advocacy site -- also shows the guy in the encounter suit spraying chemical fertilizer, a sight that I've never been privileged to see, what with me *growing up on a farm*. The Bum Rap on Biofuels [2008] Campaign to vilify ethanol revealed [2008] Oil Price Pressure Driving Global Switch to Biofuels [2006]

[SunkenCiv]

EU slaps duties on U.S. biodiesel imports
reuters.com/ | Tue Mar 3, 2009 | Darren Ennis
Posted on 03/05/2009 3:19:38 PM PST by patriotmediaa
http://www.freerepublic.com/focus/news/2200185/posts

Biofuel Push Stalls In ‘Car Crazy’ Germany
NPR | May 26, 2011
Posted on 05/26/2011 7:54:28 AM PDT by La Lydia
http://www.freerepublic.com/focus/news/2725390/posts

Europe’s gasoline surplus seen continuing to feed US deficit
Platts | March 13, 2009 | Platts European Marketscan
Posted on 03/13/2009 2:42:03 PM PDT by thackney
http://www.freerepublic.com/focus/news/2206139/posts

[GeronL]

I hope the US loses this one.

[Olog-hai]

Yeah, why? It won’t stop ethanol production that way anyhow, and the US has a lot to countersue with besides. And that’s aside from the fact that it’s an attack by the EU on our sovereignty.

[cripplecreek]

I’m not a fan of the subsidies but the EU can mind their own business and buy elsewhere if its bothers them so much.

[2111USMC]

From Wikipedia:

In 2010, the EU spent €57 billion on agricultural development, of which €39 billion was spent on direct subsidies.[1] Agricultural and fisheries subsidies form over 40% of the EU budget.[2] Since 1992 (and especially since 2005), the EU's Common Agricultural Policy has undergone significant change as subsidies have mostly been decoupled from production.

Hmmm... so that's roughly $85.5 billion U.S.

[GeronL]

Lots of countries have sued each other over these stupid WTO regulations.

If we can end these subsidies, everyone is better off.

[RetiredTexasVet]

It’s criminal that we are subsidizing ethanol production in the first place. If it takes a subsidy then it is not worth doing. What everyone is overlooking is that the Midwest is planting every available acre in corn to get the subsidy for ethanol production. Back in the 1920s, they planted every available acre in wheat so as to make tons of money from the world shortage of wheat. Then drought stuck, yes UNEXPECTEDLY, and the whole Midwest was devestated for a decade. And just why do these Midwestern farmers think that they now have some special exemption from Nature?

[SaraJohnson]

Me too.

[SunkenCiv]

Thanks!

[SunkenCiv]

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