The European Commission has removed preferential tariffs for non-fuel ethanol imports from Pakistan.
The European Commission has removed preferential tariffs for non-fuel ethanol imports from Pakistan for two years, effective June 21, 2025, following concerns from EU producers about significant low-priced imports disrupting the European market. This action followed a request from European ethanol producers and was driven by a significant increase in Pakistani ethanol exports that coincided with a decline in EU domestic production. While this decision impacts the ethanol market, Pakistan's overall access to EU markets under the GSP+ scheme remains in place for other products.
Reason for Suspension
The EU ethanol producers reported that the dramatic increase in low-priced non-fuel ethanol from Pakistan disrupted the EU market and suppressed domestic prices. This will consequently affect the product of wheat and corn, which are the major raw material used in the production of Ethanol in the EU market. Therefore, the EC has decided to suspend the tariff preferences is for two years, beginning on June 21, 2025.
Pakistani ethanol imports to the EU increased by nearly 300% between 2021 and 2022, continuing to be significantly higher in 2023 compared to 2021 levels. Simultaneously, the EU's own domestic ethanol production decreased by 8%.
The preferential treatment was previously granted under the EU's Generalized Scheme of Preferences Plus (GSP+), which provides market access to developing countries. The suspension represents a temporary revocation of these preferences for a specific product.
Mutual economic impact
This measure will impact the price and volume of non-fuel ethanol exports from Pakistan to the EU and could influence the EU's domestic ethanol market dynamics.
Market Stability
The suspension is intended to restore fair competition and market stability within the EU's ethanol sector.
Context
The situation highlights the challenges of balancing trade preferences with the need to protect domestic industries from market disruptions. The balancing trade preferences policy of the EU is one of the main reasons why, CassavaTech Ethanol Plant (CEP) is designed to produce all the main different types of ethanol products to easily get access the European Union Market without stress and anxiety and under on the Trade Deals between the EU and ECOWAS and the EU's Generalized Scheme of Preferences Plus (GSP+), which provides market access to developing countries. The Cassavatech Ethanol Plant (CEP) is designed and built by the EU Companies to produce the highest-quality ethanol products and animal feed products and meet all the requirements and needs of MDACI's EU offtakes.