Cheap imported sugar is intensifying competition in the EU market

The European Union imported 870 thsd tons of sugar duty-free under a special customs procedure between October 2025 and June 2026, despite measures introduced to limit imports of cheap sugar. During the nine-month period, imports included 737 thsd tons of raw sugar and 133 thsd tons of white sugar. By comparison, imports under this scheme totaled 742 thsd tons for the entire 2024/25 season, including 587 thsd tons of raw sugar and 155 thsd tons of white sugar. As a result, shipments in just nine months exceeded the previous full-season total by more than 17%, FoodAgriBusiness reported.

More than 90% of these low-cost sugar imports originated in Brazil, which remains the main supplier under the scheme. Duty-free imports of Brazilian raw sugar through this special customs procedure significantly exceed the 180 thsd ton quota provided for under the EU–Mercosur trade agreement. However, these shipments are handled under a separate customs mechanism that allows European processors to import raw materials duty-free, provided the processed products are subsequently exported.

The increase in cheap sugar imports has raised concerns among European sugar beet growers and sugar processors. Industry organizations CIBE and CEFS have previously warned about the negative impact of such shipments on the EU market, particularly amid difficult conditions in the sugar sector. Representatives from Germany, France, Belgium, and Poland have opposed further increases in imports. Meanwhile, European farmers are already reducing sugar beet cultivation areas in an effort to adapt production to market conditions.

To stabilize the market, the European Commission decided to temporarily suspend the special customs arrangement for imports of raw cane sugar intended for white sugar production. The restriction took effect on May 27, 2026, and will remain in place until May 27, 2027. However, European companies were granted an additional 30 days to fulfill existing contracts, allowing shipments to continue until the end of June. Duty-free imports of finished white sugar under the relevant customs procedure remain permitted.

Large volumes of imported raw materials continue to affect competition in the European sugar market. Restrictions on raw sugar imports are intended to ease pressure on domestic producers and support the balance between supply and demand, although their effectiveness will depend on future import trends and domestic production. The situation is also relevant for Ukrainian exporters, as changes in EU trade policy and competition from cheaper imported products could affect sugar sales conditions in the European market.

Tags: Brazil, EU, sugar, imports