Disastrous Mercosur deal opens door to South American biofuels while palm oil biodiesel use reaches record high. Anyone who takes the time to read about the Mercosur trade deal realises it is not in the interest of the environment, neither in Europe or South America. It is however excellent news for the European car lobby. Not only cheap “renewable” fuel, but reduced duties on car imports to South America. The agreement allows for a lower tariff rate on ethanol imports to be phased in over five years: a quota of 200,000 tonnes with an in-quota rate of one-third of the current high duty (up to €19/hectolitre) will be opened for fuel and other uses beyond the chemical industry, according to a European Commission briefing.