Somewhere, a strident free marketeer is crying. The heavily subsidized U.S. biofuel industry is coming under attack from protectionist measures in Europe.
The EU intends to slap a tariff on U.S. imports of biofuels because the U.S. biofuel industry is benefitting from a double dip of discounts. The United States heavily subsidizes biofuels, and some European countries give U.S. producers a discount on biofuels sold in their country. This, argues Euro biofuel makers, is unfair and needs to be changed. Our question: If some European countries want to discount the U.S. biofuels, why is the EU going to over-ride them? Confusing.
We’re certain some people at The Business Insider would argue that letting some nations over pay for biofuels actually gives some European countries an advantage, based on efficiency, but that’s neither here nor there. Possibly in the next four months, the EU will enact a tariff.
Sayeth the IHT: The EU duties would total about €44 per 100 kilograms, or [$56 per] 220 pounds, of biodiesel, according to the EU diplomats. The diplomats requested anonymity because governments still needed to be formally consulted on the decision.