Impact of the WTO trade disputes on the development of Argentina’s biodiesel sector

Abstract

This article describes and analyzes the state impact on the production of biodiesel in Argentina through the introduction of a differentiated system of export duties. It was also considered the WTO Dispute Settlement Body (DSB) proceedings on the introduction of an anti-dumping measure by the EU on Argentine biodiesel. The main problem as well as point of disputes was the calculation of the normal value of the products, the representation of which created a dispute between the Argentine side and the EU because of differences in the approaches of calculation. Furthermore, the conformity of the EU methodology to the WTO rules on the calculation of the normal cost of biodiesel was studied, as well as proceeding of this case in the court of General jurisdiction of the EU. The main result of the proceedings was the revision of the EU Commission of its calculations for the execution of decisions of the WTO DSB and of the court of General jurisdiction of the EU. The Commission was able to prove the significant damage to the EU industry, but it was impossible to establish a sustainable linkage between the import of biodiesel from Argentina and the deterioration of figures of the industry. Accordingly, the main purpose of the study was the analysis of the impact of WTO DSB decisions on the development of biodiesel production and trade.