Sugar row undermines PM pledge to back farmers on trade
Government plans to consult on increasing imports of raw cane sugar have left farmers questioning the prime minister’s pledge to back them in trade talks.
In December 2020, ministers announced that 260,000t of raw cane sugar a year would be allowed to enter the UK without a tariff under an autonomous tariff quota (ATQ).
The decision was made in spite of the fact that 79% of respondents to the consultation on the issue at the time were opposed.
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Since then, Brazilian exports of sugar to the UK have rocketed. Australian imports have also begun under the terms of a separate free-trade agreement signed in 2021, and further concessions to the UK sugar market were granted as part of the UK’s accession to the trans-Pacific trade bloc.
Now, the government is consulting on a possible further increase of the raw cane sugar ATQ for the remainder of 2023, noting it is 97% utilised, and asking whether this would lead to a reduction in prices for consumers.
NFU sugar board chairman Michael Sly said: “The prime minister’s open letter to farmers and growers ahead of [Number 10’s] Farm to Fork Summit was positive, in which he committed to 60% self-sufficiency in UK food production, full impact analysis of prospective trade agreements and protection for our sensitive agricultural sectors.
“This commitment should be embraced by government by not increasing the 260,000t ATQ on raw cane sugar.”
Mr Sly went on to note that the current ATQ allows tariff-free access to sugar produced anywhere in the world, regardless of its environmental footprint.
“This risks sugar beet growers being undercut by sugar produced in ways which are illegal here in the UK,” he added.
A Department for Business and Trade spokesperson said: “We are engaging with farmers and stakeholders to understand the current challenges they are facing and to make sure our approach works for UK industries.
“We will not make any future policy decisions until our consultation has closed and we have analysed all responses from stakeholders.”