The NFU has expressed its disappointment with the government’s decision to retain the autonomous tariff quota (ATQ) for raw cane sugar in 2025.
Since 2021, the ATQ has allowed 260,000t of raw cane sugar to enter the UK tariff-free each year, regardless of where it comes from. ATQs enable imports of a product to enter tariff-free or at reduced rates up to a specified limit for a set period of time.
Despite significant concerns from the UK sugar beet industry, the government has opted to maintain the ATQ at its current levels for next year. This decision places UK growers in direct competition with major producers such as Brazil, who benefit from a competitive edge due to regulatory differences.
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Responding to the decision, the NFU stated that the ATQ poses a 'significant threat' to British growers by exposing them to sugar from around the globe, often produced using lower standards. The union argued that allowing tariff-free imports not only undercuts domestic producers but also shifts the environmental burden of production abroad.
The NFU has been opposed to the ATQ since its introduction and has consistently lobbied for its removal. UK import figures show Brazil accounted for 52% of non-EU raw cane sugar imports in 2021, rising to 70% by July 2023. The fact that Brazilian growers use certain plant protection products banned in the UK has raised concerns among British producers.
Michael Sly, NFU sugar board chair, described the zero-tariff quota for raw cane sugar as 'highly concerning, unjustified, and unnecessary'. He said: "As recently as August, the government committed in its ‘new deal for farmers’ that we would not be undercut by low standards in trade deals."
Sly highlighted that British sugar beet growers are among the most efficient globally but allowing tariff-free sugar imports from countries using practices illegal in the UK undermines their efforts. He added: "This quota system also undermines the existing preferential access granted to developing countries."
Mr Sly concluded: "We remain fundamentally opposed to an ATQ for raw cane sugar, regardless of its size."
The government has also committed to reviewing the ATQ process and related considerations for 2026 and beyond.
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