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Ethanol Groups Intend To Challenge EU Tariff

Ethanol Groups Intend To Challenge EU Tariff

Groups call EU tariff 'blatant protectionism'

The European Commission this week announced it would impose an $ 83.03 per metric ton tariff on U.S. ethanol imports for five years, much to the dismay of U.S. ethanol producers, who say the tariff is "unfounded."

The tariff comes as a resolution to a November 2011 complaint that U.S. ethanol importers were selling the fuel below cost – or "dumping" – a practice that EU ethanol producers say caused ethanol prices in Europe to fall.

But, American groups Renewable Fuels Association and Growth Energy released a statement on the announcement, saying the tariff is "outrageous" and "based on absolutely no facts or evidence of harm."

Groups call EU tariff 'blatant protectionism'

"An extensive investigation was conducted and there was no proof to substantiate the European Union's protectionist claims of dumping. Imposing a country wide anti-dumping tariff is unprecedented," the groups said, vowing to challenge the policy in every manner possible.

The commission first announced it would endorse a penalty tariff of 9.6% on U.S. ethanol in December.

European ethanol group ePURE also welcomed the commission decision shortly after endorsement.

"This positive outcome is not only a legitimate compensation for the past injury but it also sets a good precedent for challenges that the industry will be facing in the future," said Rob Vierhout, Secretary General of ePURE.

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