The UK bioethanol industry faces a potential collapse due to the new trade deal between Keir Starmer and Donald Trump, which includes reducing tariffs on American ethanol. Industry leaders have warned that this could endanger hundreds of jobs in north-east England and Yorkshire and threaten the closure of the country's largest bioethanol plants. Executives highlighted the risk of losing a crucial domestic market for wheat growers and expressed concern that without government intervention, the industry could disappear, leading to increased reliance on imports and a loss of local production of byproducts like carbon dioxide and animal feed.
The new US-UK trade deal includes a concession by Starmer to reduce British tariffs on American ethanol from 19% to zero, threatening local production.
Without immediate action, this vital sovereign capability will be lost. We are fast approaching the point where we need to decide whether to sign new contracts.
Hundreds of growers will lose a dependable market for wheat that cannot be used in bread making, forcing them to export it at lower prices.
Without urgent government action, the UK's bioethanol industry will simply vanish, leaving the country dependent on imported ethanol and losing domestic production.
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