EC finally adopts much-awaited safeguard measures on ethanol from Pakistan

Following extensive discussions over a long period and repeated demands from industry stakeholders and EU Member States, the European Commission has finally triggered the suspension of tariff preferences on ethanol imports from Pakistan.

These long-overdue safeguard measures come in response to persistent and documented injury suffered by the EU’s domestic ethanol industry, which has faced significant market disruption and loss in competitiveness since a surge in imports from Pakistan in 2022.

This decision marks an important step toward restoring fair competition in the EU’s non-fuel ethanol market. Unfortunately, it comes after an extremely long delay in implementing safeguards which, by definition, call for urgent measures as soon as the damage is proven. This administrative slowness has only deepened the harm to European ethanol producers—resulting in substantial loss of market share, capacity reductions, and the erosion of established client relationships.

Moreover, serious concerns remain about the exclusion of fuel ethanol from the scope of the measures. This loophole is an invitation to circumvention and fraud, potentially undermining the intended impact of the safeguard action.

These measures reflect the seriousness of concerns voiced by EU Member States and acknowledge the structural damage experienced by the domestic ethanol industry. But, given the market dynamics, the industry called for a three-year duration of the measure as opposed to two-year proposed by the Commission.
Industry stakeholders will regularly provide market intelligence to the European Commission and Member States to ensure proper implementation and to monitor for circumvention.