EU takes measures to limit ethanol imports by Pakistan

The European Commission ended its tariff preference for imports of non-fuel ethanol from Pakistan. This was in response to EU ethanol producers' concerns that an influx of cheap imports coming from Asia were putting pressure on prices and disrupting markets.

In the EU Official Journal, published on Friday, the Commission stated that ethanol imported from Pakistan last year accounted for over a quarter (25%) of all non-fuel imports. This made Pakistan the biggest source of imports.

It said that the rise in ethanol imports is a trend that has lasted for many years. According to EU customs data, imports of nonfuel ethanol in the EU almost doubled between 2021-2024. They reached 726,000 metric tonnes in 2024 from 376,000 tons about ten years ago.

In 2023, imports of ethanol in Pakistan grew by 244% to 393,590 tonnes from 2021.

Meanwhile, the EU's non-fuel ethanol production dropped. It said that last year, the output was 8% less than it would have been in 2021.

The Commission stated that the data and information they had available indicated a coincident time between the development of imports coming from Pakistan and the severe disruption to the Union's markets.

The Commission stated that "there is evidence of a severe disturbance on the Union market for nonfuel ethanol. Characterised by an increase in imports, at prices significantly lower than Union producers, and a decrease in Union production."

The EU ethanol producers welcomed the two-year ban, but had hoped it would last three years. They also expressed concern over possible circumvention due to the fact that the ban did not cover ethanol used as fuel. (Reporting and editing by David Evans; Sybille De La Hamaide)

(source: Reuters)