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Ethanol Europe US

Blocked EU-Canada trade deal offers relief to European ethanol producers

European ethanol producers will be breathing easier following the torpedoed EU-Canada Comprehensive Economic Trade Agreement (CETA) on Monday. The landmark free trade deal failed to win full Belgian consent, leading to the expected cancellation of the EU-Canada summit which was scheduled to take place in Brussels on Thursday.

According to the European renewable ethanol association (ePURE), CETA could have been a major threat to the European ethanol industry, potentially allowing US ethanol exporters feed European demand through the “back door” of Canada’s duty free entry to the European market. This could have allowed up to 1.2mn m3 more duty free ethanol be imported into the EU from Canada according to ePURE, amounting to roughly 20% of total European production.

The fall of the already negotiated CETA at the last ratification hurdle meanwhile will drastically lengthen the EU’s odds of progressing with separate trade agreements with the US and Latin American countries.


NB 24/10/2016

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