EU and Mercosur reach political agreement on groundbreaking partnership

European Commission
  -  
Friday, December 6, 2024
No new sugar quota will be created for Brazil. Brazil has been using a tariff quota allocated under the EU’s WTO schedule with an in-quota duty for its sugar exports to the EU. With the agreement, 180 000 tonnes of raw cane sugar for refining will be allowed into the EU duty-free under this existing quota. A new duty-free quota of 10 000 tonnes was agreed upon for Paraguay only. Speciality sugars are excluded from the agreement. The agreed amounts cover a volume accounting for 1.2% of EU sugar consumption (around 16 million tonnes). A duty-free quota of 450 000 tonnes will be opened for ethanol, to be used by the chemical industry. A quota of 200 000 tonnes will be opened for all other uses, to be phased in gradually over five years. This can be used for the fuel segment of the market, which represents by far the biggest chunk of EU ethanol consumption. Of the 6 million tonnes of ethanol consumed every year in Europe, 4 million are used for fuel.
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