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MARKET VIEWS: Argentina Biodiesel Not Reaping Subsidies as EU Claims
Cámara Argentina de Energías Renovables (CADER) has released a report titled State of The Argentine Biodiesel Industry that refutes EU claims that Argentine biodiesel exporters get unfair subsidies, stating that they actually have to pay a 20% export tax.
EU has been considering the 12% difference between the 32% soy oil export tax, and the 20% biodiesel tax an indirect subsidy for Argentine biodiesel producers, but CADER states that the amount of tax applied is based on value added before export.
In other words, biodiesel producers are not receiving a subsidy for exports, but paying the Argentine government a percentage of the soy-products value, in which biodiesel exporters pay less to the government than bean or bean oil exporters. CADER states, the nation's tax system, "seeks to drive investment towards value-added products in the country."
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