The European Commission has withdrawn tariff preferences for non-fuel ethanol imports from Pakistan, following growing concerns from EU ethanol producers about market disruption caused by surging low-cost shipments.
According to a decision published in the EU’s Official Journal, Pakistani ethanol accounted for over 25% of all non-fuel ethanol imports into the EU last year, making it the top source for such imports. Customs data revealed that total non-fuel ethanol imports nearly doubled from 376,000 tonnes in 2021 to 726,000 tonnes in 2024.
Pakistan’s share rose sharply during this period. Imports jumped by nearly 300% to 393,590 tonnes between 2021 and 2022, and remained 244% higher than 2021 levels in 2023.
At the same time, the EU’s own non-fuel ethanol production dropped by 8% compared to 2021, prompting EU authorities to act. The Commission said the increase in cheaper imports from Pakistan coincided with serious disturbances in the local market.
It concluded that the influx of low-priced ethanol hurt EU producers and led to a notable decline in domestic output.
The temporary measure, effective for two years, was welcomed by EU ethanol manufacturers, though they expressed concern that fuel-grade ethanol was not included, leaving room for possible trade circumvention.
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