EUROPEAN UNION AND A MEMBER STATE – CERTAIN MEASURES CONCERNING THE IMPORTATION OF BIODIESELS
Document: Request for Consultations by Argentina
Date: 23 August 2012
Document codes: WT/DS443/1; G/TRIMS/D/30; G/L/994
Complainant: Argentina
Respondent: EU, Spain
Dispute stage: Panel
Agreements cited: Art. III:1, III:4, III:5  GATT 1994Art. 2.1, 2.2  Trade-Related Investment Measures (TRIMs)Art. XVI:4  Agreement Establishing the World Trade Organization

EUROPEAN UNION AND A MEMBER STATE – CERTAIN MEASURES
CONCERNING THE IMPORTATION OF BIODIESELS

Request for Consultations by Argentina

 The following communication, dated 17 August 2012, from the delegation of Argentina to the
delegations of the European Union and Spain and to the Chairperson of the Dispute Settlement Body,
is circulated in accordance with Article 4.4 of the DSU.

 I have received instructions from my au thorities to request consultations with the
European Union (EU) as well as with the Kingdom of Spain, in accordance with Articles 1 and 4 of
the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes, Article XXII
of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article 8 of the Agreement on
Trade-Related Investment Measures (TRIMS Agreement), with regard to the provisions affecting the
importation of biodiesels for the purpose of computing compliance with mandatory biofuel targets.

 Ministerial Order (OM) IET/822/2012 gove rning the allocation of biodiesel production
volumes for computing compliance with mandatory biofuel targets was published in the
Official Journal of the Kingdom of Spain
1 on 21 April 2012.

 The Order appears to have been promulga ted under the powers delegated to EU Member
States by Directive 2009/28/EC of the European Par liament and of the Council, "on the promotion of
the use of energy from renewable sources"; Dire ctive 2003/30/EC, and the amendments thereto,
establishing "annual targets for biofuels and ot her renewable fuels for transport purposes";
Royal Decree No. 459/2011, which establishes "ma ndatory targets for biofuels for the years 2011,
2012 and 2013"; and Ministerial Order ITC/2877/2008 "establishing a mechanism to promote the
use of biofuels and other renewable fuels for transport purposes".

 The operative part of Ministerial Order (OM) IET/822/2012 provides that computing for
mandatory biofuel targets may only be conducted in relation to biodiesel produced entirely in plants
located on the territory of Spain or of another EU Me mber State, and in line with previously allocated
volumes, in accordance with the procedure established in the same Ministerial Order.

 The Argentine Republic has since 2007 developed one of the most efficient biodiesel
production sectors in the world and has now consolid ated its position as the world's leading exporter
of the product. The European Union is the main ex port market, and Spain is the main buyer on that
market. In 2011, Argentine exports of biodiesel amounted to US$2.1 billion, with more than

1 Official Journal (BOE), No. 96, Section 1, page 30992.

US$1.9 billion going to the EU and more than US $1 billion of the latter figure representing purchases
by Spain.

 Ministerial Order (OM) IET/822/2012 and the implementation thereof would create
discrimination between the product of European origin and that of other origins, implying a de facto
prohibition on imports of biodiesel from outsi de the Community, for purposes of computing
compliance with mandatory biofuel targets. This would totally exclude the Argentine product from
the market.

 It is Argentina's understanding that the Sp anish Ministerial Order and its implementation
would in principle constitute an infringement of obligations, including, but not limited to, the
obligations of that country and of the EU under Ar ticles III:1, III:4, III:5 and XI:1 of the GATT 1994.
Argentina also considers that the Order would be inconsistent with Articles 2.1 and 2.2 of the
Agreement on Trade-Related Investment Measures (TRIMS), and with Article XVI:4 of the
Marrakesh Agreement. Argentina considers that Ministerial Order (OM) IET/822/2012 would nullify
or impair the benefits accruing to it under the covered agreements.

 Argentina reserves the right to include rules related to or amending those referred to in this
request for consultations, as well as to increase the claims relating thereto, in the course of the
consultations.

 Argentina looks forward to a favourable res ponse to this request for consultations and
expresses its readiness to coordinate the date and place for the consultations.