TRA Releases Final Decision on HVO Biodiesel Importation from the USA

The Trade Remedies Authority (TRA) has announced its final determination regarding the subsidy investigation into the importation of hydrotreated vegetable oil (HVO) biodiesel from the United States. This conclusion, made public on Thursday, 10 September, reveals significant findings about the impact of these imports on the UK industry.

Findings of the Investigation

The TRA concluded that HVO biodiesel imported from the USA benefitted from subsidies that resulted in considerable injury to the domestic industry. In light of this, the authority proposed a fixed duty ranging from £258.10 to £266.68 per tonne on these imports to mitigate the adverse effects on local producers. However, the TRA is also tasked with evaluating whether the implementation of such countervailing measures would align with the economic interests of the UK. After careful consideration, it determined that applying these duties would not be in the best economic interest of the country.

Decision by the Secretary of State

In response to the TRA’s recommendations, the Secretary of State opted not to impose any anti-subsidy measures on HVO imports from the USA. This decision indicates a divergence from the TRA’s findings, prioritising broader economic considerations over protective measures for the UK industry.

Context of the Investigation

The investigation commenced on 17 March 2025, focusing on biodiesel derived from the synthesis or hydrotreatment of non-fossil oils and fats, whether in pure form or as part of a blend. This type of biodiesel is often referred to as renewable or green diesel. It is important to note that synthetic paraffinic kerosene, commonly known as sustainable aviation fuel, does not fall within this classification of biodiesel.

The UK currently possesses a well-established biodiesel production industry, specifically FAME biodiesel, but lacks dedicated facilities for HVO production. The investigation covered a period from 1 January to 31 December 2024, while assessing injury to domestic producers from 1 January 2021 to 31 December 2024.

Understanding the Economic Interest Test

The economic interest test (EIT) is a critical component of the TRA’s evaluations when investigating trade practices that may negatively affect UK industries. This test must be conducted in nearly all cases where the TRA recommends the imposition or extension of trade measures. For further insights into the EIT, stakeholders are encouraged to refer to the TRA’s comprehensive guidance materials.

Complete details regarding this case are accessible on the TRA’s public file, providing transparency and clarity on the proceedings and outcomes of this significant investigation.