Argentina will retroactively cut the duty for biodiesel exported in March from 21.75% to 11.07%, according to Claudio Molina, executive director of the Argentina Association of Biofuels and Hydrogen.
The official announcement has yet to be made, Molina said.
The retroactive reduction in duties comes as the Argentinian government seeks to support a biodiesel industry that has been struggling since the European Union introduced anti-dumping duties of Eur216-246/mt in November.
The government has also introduced a bill for biodiesel to be exempted from a 41% domestic consumption tax, for which the Congress is set make a deciding vote May 14.
Exports to what was Argentina's main export market for biodiesel started to fall at the tail end of 2012 after the EU started anti-subsidy and anti-dumping investigations.
Members of the Argentine Biofuels Association, CARBIO, exported 85,000 mt of biodiesel in March, a 5.2% fall compared with the same period in 2013 and a 41.3% drop compared with 2012, according to data from the industry body.
The anti-dumping tariffs were formally challenged by Argentina at the World Trade Organization in December, with Argentina claiming it is being made subject to protectionist measures by the EU biodiesel industry.
The EU claims that Argentina's biodiesel industry has access to raw materials at below international market prices due to a differential export tax system.
