Asia’s free-trade agreement to remove tariffs on biofuels and feedstocks

In China, Argus Media reports that a new free-trade agreement between 15 Asia-Pacific countries will phase out tariffs on a host of biofuels and feedstocks, although existing trade flows may limit the immediate market impact.

“The Regional Economic Comprehensive Partnership (RCEP) was signed by China, Japan, South Korea, Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations (Asean) group. Most biofuels trade by these countries is done externally rather than within this bloc. A lack of regulatory support in most Asian countries means biodiesel and feedstocks are generally sold to Europe, which is the biggest and most lucrative market. And ethanol is mostly imported from the US, Brazil or Pakistan, which are likely to remain largely the lowest-cost suppliers, limiting the impact of the RCEP on intra-Asia trade flows.”