Paris: The European Commission has withdrawn tariff preferences for non-fuel ethanol imports from Pakistan, responding to mounting pressure from European ethanol producers who blamed a surge in low-cost imports for distorting prices and impacting the domestic market, reports Arab News.
In a decision published in the EU’s Official Journal on Friday, the Commission noted that Pakistan had become the largest supplier of non-fuel ethanol to the European Union in 2023, accounting for over 25% of total imports in this category.
EU customs data revealed that non-fuel ethanol imports into the bloc nearly doubled over three years — from 376,000 metric tons in 2021 to 726,000 tons in 2024. Pakistani ethanol shipments were a major contributor to this trend, surging by almost 300% in 2022 compared to 2021 and remaining 244% above 2021 levels in 2023.
At the same time, EU production of non-fuel ethanol declined by 8% from 2021 levels, raising concerns among domestic producers.
The Commission said that the timeline of the import surge from Pakistan coincided with significant market disruptions. “There is evidence of a serious disturbance in the Union market for non-fuel ethanol, characterised by a significant increase in imports at significantly lower prices compared to Union producers and a decline in Union production,” it stated.
The new measure will apply for two years. Although EU ethanol manufacturers welcomed the decision, they had initially sought a three-year suspension and raised concerns that the exclusion of fuel ethanol from the measure might allow for circumvention.
