The EC proposes suspending the duty-free import mechanism for sugar

The European Commission has proposed temporarily suspending the duty-free import mechanism for sugar to reduce pressure from oversupply and support the EU sugar industry amid falling prices.

The European Commission (EC) has proposed temporarily suspending the program that allows duty-free sugar imports into the bloc, aiming to ease pressure on regional sugar producers amid falling sugar prices and increasing competition. However, the EC did not disclose when this measure might be implemented.

The Internal Processing Facility (IPR) mechanism allows businesses to import sugar into the EU with zero tariff and no quotas, provided that the sugar is refined or processed into food products and then exported outside the EU. Information about the possibility of suspending this mechanism has met with mixed reactions.

According to EC data, in the 2024-2025 season, raw sugar imports into the EU under the IPR mechanism increased by 19% compared to the previous year, reaching 587,000 tonnes, of which 95% came from Brazil. White sugar imports under this mechanism also increased by 5%, to 155,000 tonnes, with 43% originating from Brazil, followed by Morocco, Egypt, and Ukraine.

The European Sugar Beet Promoters Association (CIBE) has expressed strong support for the proposal to temporarily suspend the International Price Reduction (IPR), considering it a timely and necessary measure. According to CIBE, this move would send the right signal and help alleviate some of the pressure on the EU sugar market, which is currently in a serious downturn. Sugar producers say that increased imports have contributed to an oversupply situation, causing EU sugar prices to fall to their lowest levels in at least three years.

Source: VTV