EU-India trade agreement: Why it’s important that Europe kept renewable ethanol out of it

The European Commission’s decision to safeguard sensitive agricultural sectors such as ethanol and sugar against additional tariff removal in the EU-India trade deal sends a clear signal about the strategic importance of domestic renewable ethanol production.

This important message should also have been sent in the recently agreed EU-Mercosur deal, which instead will allow a total volume of 650,000 tonnes of ethanol to be imported into the EU at a reduced duty (200,000 tonnes all uses) and completely duty-free (450,000 tonnes chemical uses).

Let’s hope the EU-India deal is a sign that in future free-trade agreements the EU will not continue to give up its markets on sensitive sectors like ethanol.