Economy January 27, 2026

European Commission Seeks Temporary Pause to Duty-Free Sugar Import Scheme

Proposal aims to relieve price pressure on EU beet producers by suspending the Inward Processing Regime

By Derek Hwang
European Commission Seeks Temporary Pause to Duty-Free Sugar Import Scheme

The European Commission has proposed a temporary suspension of the Inward Processing Regime (IPR) that permits duty-free sugar imports, citing pressure on domestic sugar producers from rising imports and falling prices. Commissioner Christophe Hansen announced the move on Monday, highlighting the intent to ease strains on European sugar growers. Commission figures show significant increases in raw and white sugar imports under the IPR in the 2024/25 marketing year, with Brazil accounting for the majority of raw sugar entries.

Key Points

  • European Commission proposes a temporary suspension of the Inward Processing Regime (IPR) to reduce pressure on EU sugar producers - sectors affected include agriculture, food processing, and trade.
  • In the 2024/25 marketing year, IPR-registered raw sugar imports reached 587,000 metric tons (up 19% year-on-year), with Brazil accounting for 95% of that raw sugar volume - impacts commodity and import-export flows.
  • White sugar imports under the IPR totaled 155,000 tons in 2024/25 (up 5% year-on-year); Brazil supplied 43%, followed by Morocco, Egypt, and Ukraine - relevant to confectionery and food manufacturing supply chains.

Brussels - The European Commission has put forward a proposal to temporarily suspend a program that currently allows companies to import sugar into the bloc without paying duties, a move intended to alleviate mounting pressure on European sugar producers facing lower prices and heightened competition.

European Commissioner for Agriculture and Food Christophe Hansen announced the measure on Monday on X, saying:

"I will propose a temporary suspension of the sugar inward processing regime to ease pressures on sugar producers."

The Inward Processing Regime, commonly referred to as the IPR, permits businesses to bring sugar into the European Union duty-free and without limits on quantities provided the imported sugar is refined or processed into food products and subsequently exported outside the EU.

Commission data for the 2024/25 marketing year indicate a material increase in imports under this program. Raw sugar imports recorded under the IPR reached 587,000 metric tons, a rise of 19% compared with the previous marketing year. Brazil was the source for 95% of those raw sugar shipments.

White sugar imports routed through the same regime totaled 155,000 tons in 2024/25, representing a 5% increase year-on-year. Of that volume, Brazil supplied 43%, with Morocco, Egypt, and Ukraine making up the following largest shares.

Producers of sugar beet within the EU have voiced concerns about what they describe as unfair competition from these imports. They have also flagged the potential implications of a trade agreement with the Mercosur bloc of South American countries, which would include a larger sugar quota and, in their view, could intensify competitive pressures.

Industry representatives argue that import volumes have contributed to a surplus in supply that pushed EU sugar prices down to levels not seen in at least three years. The Commission's proposed temporary suspension of the IPR is presented as a response intended to ease those pressures on domestic producers.


Next steps - The proposal will require consideration within EU policymaking channels before any suspension of the regime could take effect.

Risks

  • Uncertainty over trade terms with the Mercosur bloc - a deal including a larger sugar quota could increase import volumes and further pressure EU producers and domestic sugar markets (affecting agriculture and trade sectors).
  • Persistent import-driven supply surplus may keep EU sugar prices at historically low levels, potentially reducing producer margins and affecting investment decisions in the sugar-beet farming and processing sectors (impacting agriculture and food processing).

More from Economy

SNB Chair Calls Low Inflation and 0% Rates a Challenge for Policy Feb 2, 2026 Bostic: Warsh Confronts 'Tall Task' in Winning Fed Committee Support Feb 2, 2026 U.S.-India Trade Steps and Tariff Timeline After 50% Duty Imposed Feb 2, 2026 U.S. and India Reach Trade Agreement; U.S. Tariffs Cut to 18% Feb 2, 2026 House Prepares Vote to End Brief Partial Shutdown, Final Ballot Expected Tuesday Feb 2, 2026