Final Determination on HVO Biodiesel Imports from the USA
On 10th September, the Trade Remedies Authority (TRA) released its final determination regarding the subsidy investigation into hydrotreated vegetable oil (HVO) biodiesel imports from the United States. The TRA concluded that these imports were indeed subsidised, resulting in significant harm to the UK biodiesel industry.
The TRA has proposed implementing a fixed duty ranging from £258.10 to £266.68 per tonne on these HVO imports. Following this recommendation, the TRA is mandated to evaluate whether the application of a countervailing measure would align with the economic interests of the UK. This assessment is crucial as it ultimately influences the Secretary of State’s decision on whether to accept the TRA’s proposed measures. In this instance, the TRA determined that imposing such duties would not be beneficial for the UK’s economy.
Secretary of State’s Decision on Anti-Subsidy Measures
After a thorough review of the TRA’s recommendation alongside broader public interest considerations, the Secretary of State has opted against the implementation of any anti-subsidy measures. Consequently, no anti-subsidy duties will be levied on imports of HVO biodiesel from the USA.
Context of the Investigation
The investigation was initiated on 17th March 2025 and focuses on biodiesel—or paraffinic diesel fuel/gasoil—derived from the synthesis or hydrotreatment of oils and fats that are not fossil-based. This includes both pure forms and blends originating from the USA. Commonly referred to as renewable or green diesel, it is important to note that synthetic paraffinic kerosene, also known as sustainable aviation fuel, is not included in this classification.
While the UK has a well-established FAME biodiesel production sector, it lacks a dedicated production facility for HVO. The investigation period for this case spans from 1st January to 31st December 2024, with the injury assessment covering the timeframe from 1st January 2021 to 31st December 2024.
Understanding the Economic Interest Test
The economic interest test (EIT) is a critical component of the TRA’s procedure for investigating trade practices that may adversely affect the UK industry. This test is required in nearly all investigations and reviews where the TRA suggests imposing or extending a measure. For further details regarding the EIT, comprehensive guidance is available. Full case particulars can be accessed through the TRA’s public file.