WTO rules for some Argentina claims in EU anti-dumping biodiesel duty row

GENEVA (Reuters) - The World Trade Organization ruled on Tuesday in favour of several claims by Argentina against anti-dumping duties imposed on its biodiesel imports by the European Union, but said the EU regulation at the heart of the row did not violate WTO rules.

The ruling by a WTO dispute panel in the case, begun in late 2013, called on the EU to bring its measures into conformity. Both sides have 60 days to appeal.

Argentina, a major exporter of biodiesel, called the EU measures protectionist. The EU argued that Argentina was "dumping" or selling biodiesel at below the cost of production and harming local producers.

A separate case brought by Indonesia against EU anti-dumping duties on imports of biodiesel from Jakarta is pending at the Geneva-based trade watchdog.

The WTO panel rejected Argentina's claim that a central article of the EU regulation "as such" violated the WTO's anti-dumping agreement, but upheld other claims that the EU had acted inconsistently with the pact.

"We see this as excellent news," said Luis Zubizarreta, head of Argentina's biodiesel industry chamber, CARBIO.

"The European Union's decision regarding Argentine biodiesel was unjust," he added. "Now we'll be able to reopen a market that we had developed very well."

Zubizarreta said the decision would help fortify demand for Argentine soybeans, which are used to make biodiesel.

The EU anti dumping duties were imposed after then President Cristina Fernandez ordered the seizure of Argentina's top energy company, YPF , from its previous parent, Spain's Repsol .

There was no immediate comment from the EU.

(Reporting by Stephanie Nebehay in Geneva and Nicolas Misculin in Buenos Aires; editing by Richard Balmforth)