My feeling has always been that many alleged trade and the environment conflicts are overblown. But here's a conflict that seems real and problematic:
The European Biodiesel Board (EBB) said it plans to submit antidumping trade complaints to the European Union and the World Trade Organization against U.S. subsidies, citing the possible disadvantages of "massive exports of unfair subsidized U.S. biodiesel" to Europe. The group called on the U.S. Congress to end the subsidy program for B99 biodiesel producers that gives U.S. producers around $283 per metric ton for B99 biodiesel. The group estimates that some 700,000 metric tons of biodiesel have entered into the EU since January 2007 compared to only 90,000 tons for 2006. Indonesian and Malaysian producers also are taking advantage of the subsidy by shipping biodiesel to the U.S. and onward to Europe, EBB said.
I don't see an easy way out. One way to address the problem would be to establish rules that make subsidies designed to promote a clean environment permissible under certain circumstances, but that will be a difficult negotation.
