Lift of Methanol tariff suspension
The European Methanol producers and downstream users opposed a recommendation to lift the tariff suspension for Methanol, a waiver of the duties normally applicable upon importation. This could have threatened the whole supply chain. In June, several letters were sent by the industry to the European Commission voicing concerns and the lift was eventually not adopted.
Methanol is critical to many Methanol downstream processes (e.g. Formaldehyde, MDI, BDO, Biodiesel, Methylamines, Silicones, Alcoholates, POM, Clues and Resins etc.) in the European Union. Europe is overall a net importer of Methanol. Thus, its prices must remain affordable for the downstream processes and consumer products that result from them to remain competitive at a European and global level. As a commodity product, any minor change in prices and costs of Methanol have major consequences downstream users located in Europe. Therefore, a lift of the tariff suspension would have undermined the European industry’s competitiveness on external and domestic markets.