The European Commission has officially suspended Pakistan’s GSP+ status for ethanol imports, following concerns raised by six EU member states that Pakistani exports had distorted the European ethanol market since 2022. The suspension came into effect on June 20, 2025, under Article 30 of the GSP Regulation.
The complaint was submitted in May 2024 by France, Germany, Spain, Italy, Hungary, and Poland, who argued that Pakistan’s industrial-grade ethanol exports surged to disruptive levels. However, fuel-grade ethanol remains exempt from the measure due to separate EU sustainability standards that Pakistan has not met.
Granted in 2014, Pakistan’s GSP+ status allowed duty-free or reduced-tariff access to the EU for various products. While it was valid until 2027, this suspension now halts preferential treatment for ethanol, a product in which Pakistan had become the largest supplier to the EU by 2023.
According to EU customs data, ethanol imports from Pakistan surged nearly 300% in 2022 alone, reaching 393,590 tonnes, and remained 244% higher than 2021 levels in 2023. This spike caused alarm among local EU ethanol producers and led to pressure on the Commission to act.
The decision will significantly impact Pakistan’s ethanol industry, especially exporters who rely on the EU market. Some suppliers are already exploring alternative markets, such as Africa, to offset the expected losses. Meanwhile, the EU’s renewable energy industry has expressed concern that fuel-grade ethanol exemptions could create loopholes, weakening the intended protections.