US Ethanol Imports under Scrutiny by the EU
The European Commission has today published its decision to proceed to the registration of ethanol imports coming from the USA by issuing a new regulation (n°771/2012)1. The decision comes in response to a request within an anti-subsidy case ﬁled by the European Renewable Ethanol Association (ePURE) in November last year.
“This decision represents an important step forward for the European ethanol industry and acknowledges the signiﬁcant damage caused to European ethanol producers by massive quantities of subsidised ethanol imported from the USA”, said Mr. Rob Vierhout, Secretary General of ePURE.
Through this Regulation, the European Commission has oﬃcially acknowledged the damage caused to the EU industry by a signiﬁcant increase of imports of ethanol from the USA both “in absolute terms and in terms of market share”, and the negative impact that these imports have had on ethanol prices in the EU market and for EU ethanol producers. As a result, EU ethanol production has been badly aﬀected, leading to a critical ﬁnancial situation within some EU ethanol producers, culminating in the temporary shut down of several ethanol plants.
The decision to proceed to the registration of imports will not aﬀect the decision by the European Commission not to apply provisional measures as a result of the removal of the VEETC biofuels subsidy scheme in the USA in late 2011. But by allowing for strict monitoring of imports from this country, this regulation will discourage the USA from reinstating the VEETC scheme retroactively and it will entitle the EU to adopt provisional countervailing duties if the US scheme is reinstated. READ MORE and MORE (Bloomberg BusinessWeek)