Fair trade is vital for a healthy world economy. Unfair practices cause distortions and ultimately endanger standards of living.

Ethanol is a bulk commodity which is widely traded and in significant quantities.

Certain countries around the world subsidize heavily their production of ethanol through numerous measures, therefore:

  • Imports of ethanol into the European Union may be available at artificially low prices.
  • During the WTO Uruguay Round of negotiations ethanol was given a ‘sensitive’ status. For this reason the EU has established appropriate tariff duties.
  • Due to these appropriate tariffs, trade in ethanol is often subject to fraudulent practices, whereby tariff duties are circumvented.

IEA supports fairness in trade and therefore EU tariffs. These are crucial to:

  • Avoid short term and unfair destruction of investment and employment.
  • Promote stability and a rational, long-term business climate.

Attempts to circumvent EU tariffs illegally or by exploiting legal ‘loopholes’ undermine the long-term stability of the whole ethanol market (synthetic and agricultural), whether it is for industrial, beverage or fuel use.