EU proposes suspending a duty-free sugar import scheme

PARIS, Jan 27 (Reuters) - The European Commission proposed suspending a scheme allowing some duty-free sugar imports into the bloc, aiming to ease pressure on European producers facing falling prices and increased competition.

"I will propose a temporary suspension of the sugar inward processing regime to ease pressures on sugar producers," European Commissioner for Agriculture and Food Christophe Hansen said on X late on Monday.

The IPR scheme allows companies to import sugar at zero duty and without limits, provided the sugar is refined or processed into food products and then re-exported outside the European Union.

Raw sugar imported into the EU under the IPR in the 2024/25 marketing year totalled 587,000 metric tons, up 19% on the previous year, of which 95% came from Brazil, European Commission data showed.

White sugar imports under the IPR totalled 155,000 tons in 2024/25, up 5% year-on-year, of which 43% came from Brazil, followed by Morocco, Egypt and Ukraine, the data showed.

European sugar beet producers have raised concerns about unfair competition and the potential impact of a trade deal with the Mercosur bloc of South American countries which includes a larger sugar quota.

Producers say imports have contributed to a supply glut that led EU sugar prices to slump to their lowest in at least three years.

The European sugar beet growers lobby CIBE expressed strong support for the decision, calling it timely and necessary.

"It will provide the right signal and some relief on a very depressed EU sugar market," the group said on X.