Brussels trade war with US looms over biofuel [View All]

[CHIMO]

Source: The Guardian

Peter Mandelson, the European commissioner, has fired the first salvo in a potential transatlantic trade war by agreeing to challenge the US over its biofuel subsidies, which are chasing British and continental firms out of business.

Confidential documents seen by the Guardian show that Mandelson and the European commission have put their signatures to anti-dumping complaints lodged by the European Biodiesel Board.

Washington will be asked this week to answer allegations that subsidies amounting to 11p a litre on B99 exports from the US, plus "splash-and-dash" operations being conducted through the US, represent unfair competition.

Industry figures who asked not to be named said they were "delighted" that their allegations that US biodiesel was being dumped on the European market were being taken up by Brussels. "This is a huge step forward for us," said a producer. "It opens the way for us to finally put to an end practices that are contrary to the rules of the World Trade Organisation."



Read more: http://www.guardian.co.uk/environment/2008/may/26/biofuels.energy

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Biofuels. One big scam.