The European Commission’s move to protect sensitive farm sectors such as ethanol and sugar from further tariff cuts under the India-European Union trade agreement highlights the strategic value of domestic renewable ethanol production, according to the European renewable ethanol association, ePURE.
In a statement, ePURE said the decision sends a strong message about the importance the EU places on safeguarding its own ethanol industry. The association added that a similar approach should have been taken in the recently concluded EU-Mercosur agreement. Under that deal, up to 650,000 tonnes of ethanol will be allowed into the EU at lower duties, including 200,000 tonnes for all uses and 450,000 tonnes for chemical uses that will be fully duty-free.
The ethanol body expressed hope that the India-EU agreement signals a shift in the EU’s future trade policy, where markets will no longer be opened in sensitive sectors such as ethanol without sufficient protection.
Meanwhile, speaking earlier in an interview with ChiniMandi, Abinash Verma ethanol expert, ex-bureaucrat, Former DG ISMA and Promoter Shareholder of Grain-based ethanol plant, said ethanol should be placed on the EU’s zero-duty import list. He said this step could help absorb surplus ethanol supplies and provide producers with a stable export market.
The developments come as India and the European Union formally announced the conclusion of their long-awaited free trade agreement. Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa jointly made the announcement at the 16th India-EU Summit, held during the visit of European leaders to India.
The official documents marking the conclusion of the agreement were exchanged by EU Trade Commissioner Maros Sefcovic and Union Commerce Minister Piyush Goyal, underscoring what both sides described as a major step forward in India-EU economic ties and trade relations with key global partners.
