Australia implemented a tariff "dumping" cheap imports of U.S. biodiesel, said Monday the country's customs agency, after an official inquiry found that were sold heavily subsidized biodiesel shipments to Australia.
Services Customs and Border Protection in Australia concluded that subsidized exports and low prices were hurting U.S. industry and affected local market for similar goods.
U.S. subsidies to biodiesel, which generally occurs with grain and sold as a green alternative to petroleum-based fuel, increased supply of cheap fuel, which led to the European Union (EU) to impose tariffs on their importers 2009.
"What this does is to provide the Australian security industry or the certainty of progress," said Chris Attwood, CEO of Biodiesel Producers Ltd., the firm that made the original claim that led to government action against competition unfair prices.
"Undoubtedly relocates to imports within a level, where the biodiesel is produced locally in the same terms that biodiesel imported," said Attwood said.
The EU imposed antidumping and anti-subsidy tariffs on U.S. imports two years ago after an investigation revealed that European producers were being harmed by U.S. subsidies.
(Reporting by Amy Pyett)