Eight nations warn EU over biofuel barriers

By Pete Harrison

BRUSSELS (Reuters) - Eight developing nations warned the European Union on Thursday they could file a World Trade Organisation complaint over what they see as unfair barriers being raised against their biofuels.

The EU, which is currently fine-tuning its biofuel regulations, should steer away from dictating where developing nations can grow biofuels and where they can not, said a draft letter seen by Reuters.

The EU's final stance will be decided in coming weeks between member states and the European Parliament, which has so far angered biofuel producers by suggesting dozens of restrictions.

"They impose unjustifiably complex requirements," said the draft letter. "Some of our countries don't exclude the possibility of defending their rights in the World Trade Organisation, as a last resort."

"The letter is being signed today by the ambassadors of Argentina, Brazil, Colombia, Malawi, Mozambique, Sierra Leone, Indonesia and Malaysia," said a diplomat from one of the countries.

A spokesman for the European Commission, which originates EU laws, said it was too early to comment while parliament and member states are still thrashing out the final version.

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