EU MARKETS MANAGEMENT
The European Commission manages the EU sugar market through the Management Committee. During the monthly meetings of this Committee the European Commission and Member States discuss the market situation. Subjects of discussion include production, trade, price reporting, or the adoption of exceptional measures when necessary.
ASSUC through its network assures this useful information is disseminated to its members.
EU SUGAR MARKET
The European Sugar Market was reformed in 2014. The reform abolished the quota production of 14.2 million tonnes and lifted the export limit of 1,35 million tonnes as from 1 October 2017.
For the first marketing year without the quota system, the EU is expected to produce over 21 million tonnes of sugar and to export over 3 million tonnes. Imports on the other hand are expected to decrease from 3 million tonnes to 1.2 million tonnes.
ASSUC, representing European sugar traders, advocates to develop and maintain trade flows based on a level playing field.
THE EUROPEAN SUGAR TRADE
Sugar is worldwide one of the most regulated commodities. Due to the high duties on sugar, trade can only happen on preferential terms, either through unilateral concessions or Free Trade Agreements.
Most of the European sugar is exported to Northern Africa and the Middle Est countries which have a Free Trade Agreement with the EU. In 2017, the EU became the second largest global exporter of refined sugar after Brazil.
Imports of sugar to the EU have different schemes depending on the origin. Most of EU sugar imports come from the ACP – African Caribbean and Pacific group of states which have an Economic Partnership Agreement in place with the EU and from Least Developed Countries. These countries have quota-free and duty-free access to the EU market. In addition, there are several quotas in place which allow imports of certain quantities from origins such as Brazil and India. Finally, sugar producing countries which have a Free Trade Agreement in place with the EU enjoy access for restricted volumes to the EU market. Imports consist of white sugar but also of raw sugar which is later refined in the EU.