On 30 April, EU Member States endorsed the European Commission’s proposal to suspend the use of inward processing when raw cane sugar is imported and then refined into white sugar.
This suspension, announced by the Commission on 26 January, will provide relief for the EU sugar market and help restore market balance by removing the pressure exerted by duty-free imports under the so-called inward processing (see EUROPE 13794/2). At the same time, farmers have already made an effort to reduce the sugar beet acreage in the EU to adjust to the market situation, the Commission points out.
This measure will support European sugar producers and ensure fair competition so that sugar beet cultivations remains viable in the EU.
The measure adopted will not affect inward processing imports of white sugar. Operators across downstream industries using white sugar as a raw material to manufacture products for export can continue to rely on these imports without disruption. Imports of raw sugar that is processed without refining are excluded. This targeted approach responds to identified market concerns while ensuring continuity for other operators and trade flows.
The suspension will be limited to one year and will cover both new and existing authorisations or rights for the use of inward processing. During this period, operators who previously used this scheme to import raw cane sugar for refining into white sugar will have access to raw cane sugar from origins benefiting from preferential access to the EU market.
The Commission will assess the effects of the suspension within the first six months after its entry into force. During the suspension period, it will also assess options to improve the functioning of inward processing in the sugar sector.
The CEFS (manufacturers) and CIBE (beet growers) organisations have welcomed this suspension of inward processing. The 12-month suspension is deemed necessary and proportionate to stabilise the market and protect European producers. The CEFS and CIBE claim, however, that this measure should be a first step towards more sustainable structural reform. (Original version in French by Lionel Changeur)