Peter Mandelson, the European Union trade commissioner, has fired the first salvo in a potential transatlantic trade war by agreeing to challenge the U.S. over its biofuel subsidies, that are having a disastrous effect on U.K., German and other biodiesel producers, The Guardian reports Monday.
Confidential documents seen by the U.K. daily show that Mandelson and the European Commission have put their signatures to anti-dumping complaints lodged by the European Biodiesel Board with the trade commissioner last month.
Washington will be asked this week to answer allegations that subsidies amounting to 11 pence a liter on B99 exports from the U.S. represents unfair competition.