How Safe is Your Country's Biodiesel?

I recently received a big packet of information from the European Union. Well, more specifically, the European Commission Directorate-General for Trade.

I was a bit surprised.

After all, the EU and I had never really been properly introduced, and here I was getting stuff from a Directorate-General. I mean, I don't even know what a Euro looks like.

Ah, so that's what they look like!

Now, all kidding aside, this packet that I received is a very serious matter. It was sent to my company because we are part of the American biodiesel industry, against which two complaints have been filed by the European Union:

1) An anti-dumping proceeding concerning imports of biodiesel originating in the United States of America (wherein "dumping" is defined as "based on a comparison of normal value established on the basis of domestic prices, with the export prices of the product concerned when sold for export to the [EU]").

2) An anti-subsidy proceeding concerning imports of biodiesel originating in the United States of America (wherein the "subsidy" is not just the series of federal tax credits and incentives, but additionally individual state programs in Illinois, Florida, Iowa, Texas, Missouri, Washington, Alabama, North Dakota, Indiana, Kentucky, and Nebraska).

Basically, the European biodiesel industry is upset that American companies are bringing in heavily subsidized fuel, and selling it at much lower prices than their European competitors.

Do they have a point? Probably.

It sure seems like unfair business practices to me.

Plus, it screws the American taxpayer, who is financing the practice thanks to our fine legislative minds. (Note: when you are looking to assign blame on this, look first toward your senators and congresspeople, the same folks that work hard to put extra money in the petroleum industry's coffers through a litany of equally ridiculous subsidy programs).

Oh... heh heh... [giggling, batting eyes] did I just say all that?

The National Biodiesel Board's official response to these complaints is typical Western "cowboy diplomacy":

"A protectionist ploy?" It seems to me that protecting the domestic supply of biodiesel should be a critical issue in our own biodiesel industry, and that if the tables were turned, the NBB would certainly be crying foul. Apparently, the "splash and dash" loophole is about to be closed by pending legislation that would also level the feedstock playing field.

I applaud the European Union for making an issue out of this, and hope that it helps direct biodiesel policy in this country in a more positive, sensible direction. S