AreaArgentina

Commodity GroupBiofuels

CommodityBiodiesel

Date01/12/2017

Policy CategoryTrade

Policy InstrumentExport policy

DescriptionIncreased the country\'s variable export tax on biodiesel from 0 to 8 percent, effective 1 January 2018.

NotesThe Government announced a rise in the country’s variable export tax on biodiesel from zero percent applied in December 2017 to a fixed rate of 8 percent, effective 1 January 2018. Considering that, at the same time, the January export tariff rate for soy oil is going to be lowered to 26.5 percent (from 27 percent applied in December), the tax difference between the two products is set to drop from 27 percent to 18.5 percent. Reportedly, the reduced tax differential could result in negotiations with the United States regarding last year’s introduction of anti-dumping and countervailing duties on imports of Argentine biodiesel (N.B. The United States likened Argentina’s tax differential to a subsidy for the country’s biodiesel producers – see MPPU Sep.’17). Market observers pointed out that the higher taxation of biodiesel exports could negatively affect Argentina’s sales of the fuel to the European Union.