The European Commission’s move to provisionally apply the EU-Mercosur trade agreement without completing the full democratic process has drawn sharp criticism from industry body ePURE, which called the decision further proof that the deal is flawed for Europe, biofuels international reported.
ePURE said the agreement poses serious risks to the EU’s renewable ethanol industry and the wider agricultural sector. It argued that the Commission has disregarded a vote by the European Parliament seeking a review by the EU Court of Justice on the legality of the deal. The association also claimed that warnings from sensitive agricultural sectors, including European bioethanol producers, have been ignored.
According to ePURE, the agreement effectively grants Mercosur countries – particularly Brazil – a significant share of the EU’s ethanol market. It warned that this could threaten European biorefineries that produce food, feed, fuel and fertilisers.
The group described recently introduced “safeguards” aimed at addressing farmers’ concerns as largely cosmetic. In the case of ethanol imports, it said the measures would be ineffective due to complex procedures, high thresholds and slow response times. The possibility that Mercosur could substantially increase its annual ethanol exports was cited as a major weakness in the agreement.
ePURE maintained that ethanol should have been classified as a sensitive product from the outset. It said the duty-free volumes granted to Mercosur are based on outdated models that do not reflect current market conditions or pricing realities. The organisation also pointed out that no dedicated economic impact assessment on renewable ethanol had been carried out by the Commission.
It further raised concerns about the potential circumvention of fuel and beverage ethanol through the so-called chemical-use route, warning of uncertainties around future customs compliance under end-use procedures.In light of these concerns, ePURE said the EU should focus on expanding its domestic ethanol market to absorb potential import volumes and create new outlets for European producers. This, it argued, would require including crop-based biofuels in CO2 regulations for cars and vans, and permitting their use in aviation and maritime sectors.
