Trade Barriers
US trade body flags India's ban on ethanol imports for fuel use as "unfair"
This story was originally published at 13:11 IST on 9 April 2025
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NEW DELHI – The United States Trade Representative has raised concerns over India's ban on ethanol imports for biofuel production. The US has identified trade barriers in several countries, labelling them as "unfair," amid escalating trade tensions between Washington and its key partners.
"India bans imports of US ethanol for fuel use. Similarly, Thailand restricts imports of fuel ethanol, requiring approval and issuance permits, and hasn't approved an import permit for fuel ethanol since 2005," the US trade representative agency said on Tuesday. "Securing market access to India and Thailand for exports of US fuel ethanol would result in at least an additional $414 million in annual export value."
The US and Brazil produce 80% of the world's ethanol.
Other listed trade practices include Japan's tariffs on US seafood imports, Algeria's restrictions on pharmaceutical products, and China's sale of low-cost American flags, among others. The body has listed 10 trade barriers imposed by India, China, Japan, the European Union, and others that hurt American exporters.
While India permits ethanol imports for non-fuel uses, it has banned the import of ethanol for biofuel production since 2019. India uses ethanol blending with petrol to reduce its dependency on crude oil imports and promote green mobility. As of February, India achieved 19.7% ethanol blending rate in petrol in 2024-25 (Nov-Oct), with the cumulative average for November to February reaching 18%. End
Reported by Afra Abubacker
Edited by Subhojit Sarkar
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