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AMIS Market Monitor

last release: Feb 2018

Policy Developments

ACROSS THE BOARD

  • On 16 January 2018, Argentina issued Decree No. 9-E/2018 to cap the costs of port docking and undocking services, which is expected to decrease such costs by 20 to 40 percent. 
  • In the wake of the EU's decision to extend the authorization to use the glyphosate herbicide for another five years, in December 2017 France decided to ban its use after three years.
  • On 22 December 2017, the US instituted a tax law that grants farmers a tax deduction of up to 20 percent conditional upon sales being made to agricultural cooperatives versus other big trading companies. 

BIOFUELS

  • Effective from 1 January 2018, Argentina modified its variable export tax on biodiesel to a fixed rate of 8 percent.
  • On 27 December 2017, Brazil passed a national biofuel policy (No. 13.576/2017) called RenovaBio to foster commitments made under the Paris Climate Agreement. The policy is designed to expand biofuel production and enhance the predictability of energy markets by establishing mandates related to biofuel certification and tradable decarbonisation credits.
  • On 17 January 2018, in order to reform the energy market and reduce negative environmental impacts, the European Union Parliament approved a draft measure to ban the use of palm oil in biofuels by 2021. The European Parliament, the European Commission and EU national governments are yet to negotiate a final draft. 
  • In December 2017, the European Council proposed to retain the existing target of 27 percent of renewable energy in total EU energy consumption for 2030. The target would be 14 percent for the transport sector in each EU member State, with a sub-target of 3 percent for advanced biofuels. The existing 7 percent cap on first generation biofuels would also be maintained. EU member states who lower their first-generation cap would be able to lower the overall renewable energy target in the transport sector.
  • On 25 January, a WTO panel recommended that the European Union bring its measures on biodiesel from Indonesia into conformity with its obligations under the Anti-Dumping Agreement and the GATT 1994 (DS480). 
  • On 27 December 2017, the US Environmental Protection Agency proposed amending the Renewable Fuel Standard regulations to define the term ‘distiller's sorghum oil’ as oil from the sorghum, conditional upon its conversion to ethanol.
  • On 28 December 2017, the Department of Commerce of the US issued final determinations in countervailing duty orders on biodiesel ranging from 71.87 to 72.28 percent for imports from Argentina; and 34.45 to 64.73 percent for imports from Indonesia, applicable from 4 January 2018.