Dutch biodiesel outpriced by US

19th May 2009, Comments 1 comment

Biodiesel production in the States is subsidised by the government and hence cheaper than Dutch biodiesel.

The Netherlands – Dutch biodiesel producers are concerned about the unfair competition presented by American companies.

Producers of the company said their products cannot compete with prices offered by American companies.

Biodiesel production in the states is stimulated by the US government that offers export subsidies.
Although the European Union responded to the competitive US prices by introducing import duty, the US has managed to circumvent the extra duty by exporting to Europe through Canada.

Biodiesel has the allure of both environmental and political benefits – the use of biodiesel would reduce dependence on foreign oil.

Radio Netherlands / Expatica

1 Comment To This Article

  • HistoryTechDoc posted:

    on 19th May 2009, 15:15:39 - Reply

    Export subsidies abound on both sides of the Atlantic. The overpriced Euro has had more to do with Europe not being able to compete with foreign products and services than these so-called, unidentified U.S. export subsides.

    The U.S. has for decades had negative trade balances. This should tell us that net/net, they are still buying more foreign products than they are selling. The strong Euro could be reduced a bit if Germany and China would start consuming more imports, but, of course, it will probably take another 100 years for Germans to get over the hyper-inflation of the early 1920s.

    Finally, instead of coming up with this export subsidies 'strawman', why doesn't someone take a closer look to see, if and how, the U.S. hasn't used more productive biodiesel manufacturing technology to have gained their competitive advantage?

    Always trying to claim some trumped-up, uneven, economic playing field, takes the focus away from where it should be, namely local non-competitive factors of production, logistics, and marketing.