The European Commission has withdrawn tariff preferences on non-fuel ethanol imports from Pakistan, responding to concerns raised by EU ethanol producers who claimed that a surge in low-cost imports from the country was driving down prices and disrupting the market.
According to the Commission’s decision, published in the EU’s Official Journal on Friday, Pakistan emerged last year as the leading source of non-fuel ethanol imports to the European Union, accounting for over 25% of such imports.
Ethanol imports into the EU have been steadily rising in recent years. Customs data showed that non-fuel ethanol imports nearly doubled between 2021 and 2024, growing from around 376,000 metric tons to 726,000 metric tons. Pakistan’s contribution was especially notable, with imports increasing by nearly 300% to 393,590 tons between 2021 and 2022. Although slightly lower in 2023, volumes were still 244% higher than those recorded in 2021.
At the same time, domestic production within the EU declined, with non-fuel ethanol output falling by 8% in 2023 compared to 2021 levels, reported Reuters.
The Commission stated that the timing of the import surge from Pakistan coincided with “serious disturbances” in the EU market. “The Commission considers that 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,” the statement said.
EU ethanol producers welcomed the decision, which will remain in effect for two years. However, they expressed disappointment that the measure was not extended to three years as they had hoped.
