Trade deals, tariffs and turbulence

The year began with yet another volatile month for international trade policy. The European Commission signed two of its largest trade agreements in history, with Mercosur and India. The US White House continues to weaponise tariffs, making little distinction between (former) allies and strategic competitors. Meanwhile, China and several other countries are introducing specific HS codes for renewable diesel and sustainable aviation fuel (SAF). <strong>EU–Mercosur: Opportunity with caveats</strong> Mercosur countries such as Brazil and Argentina are major conventional biofuel production hubs and among the world’s largest suppliers of tallow and sugarcane feedstocks. The signing of the EU–Mercosur trade agreement is therefore a major development. It is expected to lead to a gradual increase in EU imports of ethanol, biodiesel and feedstocks from the South American bloc. In return, EU exporters are set to gain improved access for cars, pharmaceuticals and chemical products. The deal has been presented as a flagship example of how multilateral blocs can still liberalise trade in...