South American trading bloc Mercosur and the EU have reached a trade deal that sets a quota of 450,000 t/year for duty-free ethanol to enter Europe.
Biodiesel Magazine reported on July 2 that an additional 200,000 tons/year of ethanol for all uses would be subject to a quota tax at one-third the current rate.
According to the EU, the volume would be divided into six equal annual stages.
European Association for Renewable Ethanol ePure criticized the deal, calling it a blow to Europe's farmers and ethanol industry.
ePure said the deal made concessions to Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) that essentially sacrificed the EU's agricultural sector and domestic ethanol production in exchange for gains elsewhere.
“The deal essentially commercializes Europe's ethanol industry unless the EU can act quickly and grow the European ethanol market to accommodate a flood of imports,” the group said in a statement.
“This means aligning trade policy with environmental and renewable energy policy, for example by ensuring that the EU's long-term decarbonisation strategy includes a stronger push for sustainable biofuels such as ethanol. It also means that, during the implementation phase of the agreement, Member States and the European Parliament struggle to give EU farmers the tools to absorb negative imports from imports originating in Mercosur. ”
“By agreeing to open its markets to Brazilian ethanol, the EU is contradicting its own efforts to increase domestic sources of renewable energy in transport, killing incentives to invest in advanced ethanol and making life even more difficult for Europe's farmers,” said the secretary of ePure. General Emmanuel Desplechin.
The Brazilian Sugarcane Industry Union stated that “while we regret that the negotiations are not ambitious enough to comprehensively address sugar and ethanol, we recognize that the agreement today represents the best possible agreement based on the limitations imposed by HUH".
Post: Marina Carvejani
Author: OFI Magazine
Source: OFI Magazine
