So you are saying that if you were a US biodiesel manufacturer on the verge of bankruptcy who could import palm oil for less than the cost of soybean oil, make biodiesel from it to collect the US subsidy and then export it to Europe at a price cheaper that the EU companies could produce it - and also collect their credits, that you would not.

The uncertainties on whether palm biodiesel would count against strict sustainability criteria set by the EU weighed on European demand for Asian palm-based material. The $300/tonne tax credit for US exports to Europe also sidelined most Asian biodiesel producers from off-loading their cargoes.

http://www.icis.com/Articles/2009/04/22/9209906/asias-palm-oil-derivatives-market-takes-a-hit-from-biodiesel-and.html

If you think that is bad, how about importing South American biodiesel to the US, blending it to get the $1/gallon tax credit and immediately re-exporting it to the EU. Called “splash & dash” in the trade. Then, there is the even more onerous “u-turn”. Import EU biodiesel, blend it for the US tax credit and re-exporting it back to the EU.

US taxpayers have been taken big time; all in the name of US farmers.