
EU-Mercosur deal: impact on EU sugar
European Commission and trade sources
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Monday, September 8, 2025
The European Commission advanced the EU-Mercosur trade agreement for ratification on September 3, 2025. Brazil retains its existing CXL sugar quota of 353,219 tonnes at 98 €/t duty, but with 180,000 tonnes per annum at zero duty. Paraguay obtains a new 10,000 tonnes duty-free quota for raw sugar for refining. Argentina and Uruguay receive no preferential treatment. Speciality sugars are specifically excluded from the agreement. Industry groups have warned of EU market destabilization equivalent to "one French sugar factory." There are additional concerns concerning 2,000 tonnes of other sugar derivatives at 50% tariff preference and high-sugar products (≥70% content) facing 11-year duty elimination. The Commission has proposed to split ratification into trade-only and broader partnership components, allowing qualified majority approval rather than requiring unanimity. French sugar stakeholders and nine European industry organizations condemned this as antidemocratic, citing inadequate sustainability safeguards. The timeline remains uncertain amid strong resistance.
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