02.26.19

Cantwell, Colleagues to Commerce Secretary: Thoroughly Review Argentine Biodiesel Dumping Before Lifting Duties

WASHINGTON, D.C. – U.S. Senators Maria Cantwell (D-WA) and Chuck Grassley (R-IA) led a bipartisan group of 12 senators in writing to Secretary of Commerce Wilbur Ross, questioning the Trump administration’s changed circumstances review of antidumping and countervailing duty orders that were imposed only months prior on imports of certain biodiesel products from Argentina. The senators are pressing the department to rigorously and transparently review actions by the Argentine government and industry to determine if revisiting the antidumping and countervailing duty rates is warranted. 

“It is unclear why Commerce would afford a special review to Argentina and its biodiesel industry when the ink on these antidumping and countervailing duty orders is barely dry,” the senators wrote. “Under the statutory scheme, Commerce’s standard practice is to review post-investigation developments and their impact on duty rates in annual administrative reviews.”

“In the short period since the antidumping and countervailing duty orders were imposed, U.S. biodiesel producers have been able to compete on a more level playing field and the U.S. biodiesel industry has begun to recover from the injury caused by the unfair trade practices of the Argentine government and industry,” the senators continued.

Joining Cantwell and Grassley were Senators John Thune (R-SD), Sheldon Whitehouse (D-RI), Roy Blunt (R-MO), Dick Durbin (D-IL), Joni Ernst (R-IA), Debbie Stabenow (D-MI), Mike Braun (R-IN), Tina Smith (D-MN), Deb Fischer (R-NE), Maggie Hassan (D-NH), Jeanne Shaheen (D-NH), and Patty Murray (D-WA).

The letter can be found HERE or below.

February 26, 2019

The Honorable Wilbur Ross
Secretary of Commerce
U.S. Department of Commerce
1401 Constitution Ave NW
Washington, DC 20230

Dear Secretary Ross:

In January and April 2018, the Department of Commerce (Commerce) issued countervailing duty and antidumping orders on imports of certain biodiesel products from Argentina. In December, Commerce initiated “changed circumstances reviews” to assess Argentina’s most recent modification to its export tax regime, which Argentina claims warrants review of the U.S. antidumping and countervailing duty orders entered within the past year.

It is unclear why Commerce would afford a special review to Argentina and its biodiesel industry when the ink on these antidumping and countervailing duty orders is barely dry. Under the statutory scheme, Commerce’s standard practice is to review post-investigation developments and their impact on duty rates in annual administrative reviews.  

In the short period since the antidumping and countervailing duty orders were imposed, U.S. biodiesel producers have been able to compete on a more level playing field and the U.S. biodiesel industry has begun to recover from the injury caused by the unfair trade practices of the Argentine government and industry. U.S. biodiesel producers have increased production by more than 16 percent, producing more than 1.5 billion gallons of fuel over the first 10 months of 2018.  The industry is reinvesting in its operations, building additional capacity for future production and growing jobs.  The U.S. biodiesel industry supports more than 60,000 U.S. jobs and $11 billion in domestic economic activity. 

We understand that Commerce has already initiated these changed circumstances reviews and must carry through with them. We ask that the agency apply the same rigor and transparency that it applies in standard administrative reviews. Commerce should develop a complete record of actions by the Argentine government and industry to determine if revisiting the antidumping and countervailing duty rates is warranted. 

We appreciate your attention to this important matter and look forward to receiving updates as Commerce proceeds with these reviews.

Sincerely,

###