EU Biofuels Policy – Raising the Question of WTO Compatibility

This article examines the question of the compatibility of the new EU Biofuels regime with the disciplines established by the WTO. After an explanation of the evolution of the Biofuels regime, the authors consider whether that regime is compatible with the rules on subsidies established by the WTO Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures. Thereafter the authors assess the compatibility of the regime with the national treatment provision of the GATT, Article III. Concluding that there may be an incompatibility with the latter, the authors conclude by suggesting the need for international negotiations on the liberalization of trade in Biofuels and more especially on the issue of the sustainability of Biofuel production, an issue that lies at the heart of the changes made recently to the EU Biofuels regime.