Details
- Status
- Closed
- Opening date
- Deadline
- Department
- Directorate-General for Trade and Economic Security
- Country or region
- Pakistan
- Trade topics
- Generalised Scheme of Preferences
Target audience
Stakeholders with an interest in the EU ethanol market situation.
Why we are consulting
The present notice presents preliminary facts on the basis of which the European Commission (“the Commission”) determines whether imports from Pakistan of products under CN code ex 2207 10 (Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol. or higher obtained from the agricultural products listed in Annex I to the Treaties) and ex 2207 20 (Ethyl alcohol and other spirits, denatured, of any strength, obtained from the agricultural products listed in Annex I to the Treaties) cause, or threaten to cause, serious disturbance to Union markets. The serious disturbance is assessed within the meaning of Article 30 of Regulation 978/2012 (the GSP regulation).
The Commission invites stakeholders to submit information and data regarding the facts hereby presented, in particular the level of imports to the EU (from Pakistan and other countries), production capacity of the EU industry, EU domestic and import prices, and the 2024 EU ethanol market situation.
Context
Pursuant to Article 30 of the GSP Regulation, where imports of products included in Annex I to the TFEU cause, or threaten to cause, serious disturbance to Union markets, the Commission, on its own initiative or at the request of a Member State, is to adopt an implementing act in order to suspend the preferential arrangements in respect of the products concerned.
On 15 May 2024, the Commission received a joint request from several EU Member States to adopt measures under Article 30 of the GSP Regulation with regard to ethyl alcohol of agricultural origin (hereinafter ‘ethanol’) originating from Pakistan falling under CN codes 2207 10 and 2207 20.
Ethanol classified under CN code ex 2207 10 (Undenatured ethyl alcohol of an alcoholic strength by volume of 80 % vol. or higher obtained from the agricultural products listed in Annex I to the Treaties) and ex 2207 20 (Ethyl alcohol and other spirits, denatured, of any strength, obtained from the agricultural products listed in Annex I to the Treaties) is a product included in Annex I to the TFEU and in Annex IX to the GSP Regulation.
Information available
Under the GSP+ scheme, Pakistan exports ethanol under the above two CN codes to the Union at zero duty rate.
Imports from Pakistan have grown by 167% between 2020 and 2023, with a peak in 2022 (representing 231% increase compared to 2020). In 2022, Pakistani exports represented 25% of total Union ethanol imports (compared to 14.6% in 2021). As a result, since 2022, Pakistan has become the leading exporter of ethanol to the Union. There is evidence of Pakistani producers redirecting increasing volumes away from traditional Asian export markets towards the Union market. Most of these exports are aimed at the non-fuel ethanol segment.
According to available industry data, while EU consumption of non-fuel ethanol, which represents one fourth of total EU ethanol consumption, decreased somewhat (about 9%) between 2021 and 2023, EU output of non-fuel ethanol decreased at twice the speed by about 17% during the same period. According to the same sources, the EU industry’s market share decreased in the non-fuel ethanol sector from 77% in 2021 to 68% in 2022 and 69% in 2023, while the share of Pakistani imports increased from 7% in 2021 to 20% in 2022 and 18% in 2023.
Between 2021 and 2023, EU ethanol prices and Pakistani prices fluctuated rapidly during the pandemic and post-pandemic period, with Pakistani prices on average lower than EU prices. Pricing trends for 2024 are under examination.
Invitation to comment
In assessing whether a serious disturbance to Union markets has been caused, or threatened to be caused, for the purposes of the implementation of Article 30 of Regulation 978/2021, the Commission seeks input from stakeholders. Stakeholders are invited to provide any views and information they consider relevant to the determination of a serious disturbance to Union markets caused by imports from Pakistan of products under tariff codes 2207 10 and ex 2207 20, as well as any other relevant input.
The submission should include the names of the legal or physical person making the submission and their full contact details.
To receive full consideration, all written comments should be in English, comprehensive, relevant, timely and accompanied by supporting documentation.
Pursuant to Article 38 of the GSP Regulation, information received shall be used only for the purpose for which it was requested. Each request for confidentiality shall state the reasons why the information is confidential. However, if the supplier of the information wishes neither to make it public nor to authorise its disclosure in general terms or in the form of a summary and if it appears that the request for confidentiality is unjustified, the information concerned may be disregarded. Information shall in any case be considered to be confidential if its disclosure is likely to have a significantly adverse effect upon the supplier or the source of such information.
Stakeholders event
A dialogue with stakeholders on the potential application of Article 30 of the GSP Regulation will be organized on 24 October 2024.
Registration to this meeting will be possible until 22 October 12:00 midday (UTC+01:00), Brussels time.
Information provided during the meeting may not be considered if it is not confirmed by a written submission supported with sufficient evidence.