The Government has decided against a rescue package for the UK's bioethanol industry, which now faces a very uncertain future. Negotiations between the Government and Britain’s bioethanol industry began in June and ended this week. Britain’s bioethanol industry was plunged into crisis by the Government’s decision to axe a 19% tariff on US bioethanol imports, allowing cheap, subsidised American fuel to flood the UK market. This equates to around £3 million (€3.5 million) per month, or £36 million (€41 million) per year. The industry had already been in talks with Government over the UK’s unfair regulatory system that favours overseas producers, but the trade deal was a hammer blow for Britain’s domestic industry.