UK proposes anti-dumping duties on Chinese biodiesel after finding unfair trade practices. The move is meant to protect UK producers from being undercut by cheap imports.
The UK's Trade Remedies Authority (TRA) has taken a significant step toward protecting the domestic biodiesel industry by recommending new anti-dumping duties on imports from China. In its newly published Statement of Essential Facts (SEF), the TRA concluded that Chinese biodiesel is being sold in the UK at "unfairly low prices," a practice known as dumping, and that this is causing "material injury" to local producers. The recommendation, which is not yet a final decision, proposes ad-valorem anti-dumping duties ranging from 15.68% to 54.64%.
The investigation, launched in June 2024 following an application by the Renewable Transport Fuels Association (RTFA), looked into imports of two key types of biodiesel: fatty-acid mono-alkyl esters (FAME) and hydrotreated vegetable oils (HVO). These biofuels are commonly used in the UK, either in their pure form or blended, as road transport fuel. FAME, a first-generation biofuel, is made from vegetable and animal oils, while HVO, a second-generation biofuel, is produced through a different process that gives it a lower viscosity and longer shelf life, making it a "drop-in" replacement for diesel.
The TRA's findings are based on a detailed analysis of the prices of Chinese biodiesel compared to its "normal value." The practice of dumping is a major concern in international trade as it can severely harm a country's domestic industry. By selling products below the cost of production or their price in the home market, foreign exporters can gain an unfair market advantage, potentially leading to financial losses, job cuts, and even the closure of local businesses. The anti-dumping duties are designed to level the playing field by raising the price of the imported goods to a fair market value.
A crucial part of the TRA's recommendation is the "Economic Interest Test," which assesses whether the proposed measures would be beneficial to the wider UK economy. The TRA concluded that applying these duties would be in the UK's economic interest, as they are designed to "mitigate injury to the UK industry while maintaining fair competition." The move highlights the UK's commitment to using its independent trade remedies system, established after Brexit, to defend against unfair trading practices.
The TRA is now inviting stakeholders—including exporters, importers, and domestic producers—to submit comments or provide additional evidence regarding the SEF. The deadline for these submissions is September 22, 2025. Following this consultation period, the TRA will make its final recommendation, which will then be subject to a decision by the government. The duties proposed are 15.68% for the Zhuoyue Group and other cooperating exporters, and a higher 54.64% for all other exporters.
