Core Viewpoint - The UK bioethanol industry is at risk due to the US-UK trade agreement, which could jeopardize a proposed £250 million green fuel "super center" project unless government intervention occurs [1][2] Group 1: Industry Impact - The trade agreement signed on May 8 provides US ethanol producers with a tax-free quota of 1.4 billion liters, equivalent to the UK's annual bioethanol demand [1] - Two major UK bioethanol plants have indicated that such a large quota would force them to close [2] - The ABF Sugar-owned Vivergo plant is facing a deadline for negotiations with the government regarding its future, with potential layoffs for 160 employees if no agreement is reached [1][2] Group 2: Financial Implications - Prior to the US-UK trade agreement, the Vivergo plant was already losing between £30 million to £40 million annually, attributed to pollution permit regulations that favor US competitors [2] - Industry executives are calling for regulatory changes to increase the bioethanol blending ratio in gasoline from 10% to 15% and are requesting £75 million in annual short-term subsidies to offset losses during the transition [2] Group 3: Collaborative Efforts - The proposed collaboration between Vivergo and green hydrogen producer Melder Energy aims to create a "super center" that would utilize green hydrogen for grain drying in bioethanol production, while Vivergo would supply ethanol for sustainable aviation fuel [2] - Vivergo's general manager has highlighted that recent government decisions, including the trade agreement with the US, have severely threatened the survival of the bioethanol industry [2]

Core Viewpoint - The recently signed UK-US Economic Prosperity Agreement has not fulfilled all prior commitments, particularly regarding tariffs on steel and pharmaceuticals, leading to concerns about its stability and enforceability [1][5][8]. Summary by Sections Agreement Details - The agreement provides a tariff quota of 100,000 vehicles per year for UK-produced cars, with a 10% tax rate, lower than the 25% imposed on other trade partners [4] - Import tariffs on UK aerospace products will be eliminated immediately under the WTO Civil Aircraft Agreement [4] - The agreement is seen as a symbol of strong UK-US relations, but there are still unresolved issues regarding steel and pharmaceutical tariffs [4][5] Tariff Negotiations - Steel and aluminum tariffs remain undecided, with the US Secretary of Commerce to evaluate the UK's compliance with supply chain security standards before setting quotas [5] - Ongoing negotiations for pharmaceutical tariff reductions depend on the results of the Section 232 investigation and the UK's adherence to supply chain security standards [5][6] Agricultural Trade - The agreement allows US farmers to export 13,000 metric tons of beef to the UK annually, a significant increase from the previous quota of 1,000 metric tons [6] - The UK will also grant a duty-free quota of 1.4 billion liters for US ethanol, which matches the UK's total annual demand for ethanol, raising concerns among domestic producers [6][7] Political and Economic Implications - The agreement has faced criticism in the UK for being a limited tariff arrangement rather than a comprehensive trade deal, with some political figures labeling it as insignificant [8] - The agreement lacks legal binding force, allowing either party to modify or withdraw at any time, which raises concerns about its implementation [1][5][8] Future Negotiations - The US is expected to pursue further trade negotiations with other countries, including Canada and the EU, but the complexity of these negotiations may limit the outcomes compared to the UK agreement [9]