The European Commission has finally approved the use of the US soybeans in biofuels in the EU, to execute the alliance’s strategy to improve tense trade relations with the US. But, as per industry sources, there are not much chances of additional US soybean shipping into Europe.
In July, Donald Trump the President of US, ditched tariffs on the car imports from EU, as the two parties seek novel ways to increase trade, such as a possible agreement to wipe off charges on non-auto industrial goods. Besides, it could be a move to drive the U.S. liquefied natural gas and soybeans imports in EU.
The Commission said in a statement that the U.S. soybeans recognition for biofuels production was effective till July 1, 2021, but is likely to push further till the time they continue to comply the sustainability criteria imposed by the latest EU rules for the period 2021-2030. A Commission spokesman called the latest decision a new evidence of the EU delivering on their commitments.
As present, the US is exporting soybeans to the EU for usage in animal feed but the EU doesn’t allow the usage of soybean oil byproduct in fuel. The latest EU move is likely to change the prevailing scenario.
According to a US-based biodiesel industry lobbyist, the US has been doing nothing to boost soybean exports in the EU, instead is focused on helping European farmers in gaining maximum possible gains, and saves shipping costs for the U.S. farmers. A U.S. Congressional staffer has called the move an action to remove a trade barricade.
The Commission that works behind the trade deals for the huge alliance EU said that the agreement done in July resulted into a 112% rise in the U.S. soybean imports in the latter half of 2018. Presently, the US is the Europe’s key supplier, holding a 75% share of soybean imports in EU.
Sneha Varghese is an experienced food & beverage consultant. She covers the latest trends and analysis impacting the food & beverages industry, informing and educating audiences through her writing.