According to the National Association of Distilling Industries, it must not favor the import of spirits obtained from low-quality alcohol
AssoDistil – National Association of Distilling Industries – is closely following the recent approval by the European Commission of the trade agreement between the European Union and Mercosur Countries. For producers of spirits and liqueurs, the agreement with South American countries represents an opportunity to access markets more easily that could appreciate the value of national distillates and liqueurs.
GROWTH FORECASTS
The European Commission’s forecast of a 50% growth in agri-food exports, accompanied by a 35% reduction in tariffs (source: EU Commission), certainly represents a breath of fresh air after the difficulties caused by recent U.S. impositions. In particular, for Grappa IG, scenarios of great interest are opening up, as it is a designation that will be protected in Mercosur countries. An interesting export opportunity and expansion of reference markets for producers.
CONCERNS AND RISKS
At the same time, this opening, the distillers explain, must not serve as leverage to import spirits obtained from low-quality alcohol into the Union. Beverages with controls and prices lower than European standards. AssoDistil will therefore monitor market trends and report any damage to member companies.
The agreement raises serious concerns regarding the massive import of ethanol from Mercosur countries to the EU, which risks suffering heavy repercussions due to an influx of product at competitive prices but with quality standards likely different from European ones.
ETHANOL FOR INDUSTRIAL USE
Regarding ethanol intended for industrial use, Italian distilleries report that the quota of 650,000 tons of ethanol – of which 450,000 duty-free for industrial use – equal to approximately 50% of total EU consumption in this sector, risks seriously jeopardizing European production and the entire connected agricultural supply chain. A supply chain already less competitive due to lower availability of raw materials and, above all, higher requirements that guarantee product quality and environmental impact containment.
Added to these concerns is the lack of clarity regarding the actual intended use of the product, which should be limited to use in the chemical industry and not to blending ethanol with other products. And we know well that, once imported under the same combined nomenclature code as ethyl alcohol, it will be impossible to trace it. It will be necessary, where imports cause documented damage to European producers, to activate safeguard clauses, establishing adequate economic support for this purpose.
