The world sugar market
The current world market is a residual dump market subject to high volatility that frequently trades below the average production costs of even the most efficient global industries. This is due in large part to the trade-distorting support measures of some of the major sugar producers and exporters, such as Brazil, Thailand, and Mexico. The result is that the EU beet sugar industry is not competing on a level playing field with sugar producers in third countries.
The EU sugar market is one of the most deregulated in the world. We support a trade policy that will allow the EU sugar industry to compete on a level playing field on the EU and world markets.
To this end, we have identified six priorities:
- Maintain the EU’s import tariffs on sugar: The EU’s current import tariffs on raw and white sugar must be maintained. This includes the EU’s Most Favoured Nation tariffs, the 98 EUR/tonne CXL duty, and the WTO special agricultural safeguard (SSG).
- Eliminate trade-distorting support measures: Third country trade-distorting support measures must be addressed, both at WTO level and via the EU’s Free Trade Agreements.
- No level playing field, no concessions: Where no level playing field exists, the EU must not offer market access concessions on sugar and high sugar-containing products in the context of its trade negotiations.
- Support the creation of added value through strict rules of origin: The EU should maintain strict rules of origin in order to maximise the local added value for the contracting parties.
- A net exporter clause: Where a risk of triangular trade exists, the EU must insert a net exporter clause into its trade agreements.
- Foster opportunities for export on a level playing field: CEFS calls on the Commission to open new markets for EU sugar. Where a country is a sugar importer, the EU sugar industry has clear offensive interests in future trade negotiations. However a level playing field with those countries must be ensured.