Sugar uncertainty clouds EU‑India free‑trade deal

Brussels – Uncertainty over sugar is weighing on the EU‑India trade deal​. A possible free trade agreement, which the EU executive is negotiating in response to the whims of Donald Trump’s United States, poses serious risks for local European producers, especially those in the outermost regions, complain French MEPs from the opposition (RN/PfE) in a parliamentary question. There is concern for Guadeloupe, Réunion, and Martinique, overseas territories whose economies are heavily dependent on the sugar cane sector, and the Commission is considering safeguard clauses or even excluding them altogether. 

The Commissioner for Agriculture, Christophe Hansen, has not offered a definitive response. After all, negotiations are still ongoing, even as they near a conclusion. However, the Commissioner acknowledges that “the sensitivity of the EU sugar sector has long been recognised,’ and that, since 2019, the High-level group on sugar has recommended that sugar “continue to be treated as a sensitive product in trade negotiations with major sugar-producing countries,” precisely to safeguard the competitiveness and resilience of the EU sugar industry. Furthermore, “EU sugar producers also expressed their serious concerns regarding the possible inclusion of sugar in the ongoing EU-India trade negotiations.” 

In light of all this feedback, “the Commission has given due care to the sensitivity of the sugar sector,” Hansen said. This means that the EU executive intends to act “in line with its commitment to address the specific sensitivities of the EU sugar sector in all its FTA negotiations.. However, it is unclear how this will translate into practice. The Commissioner does not explicitly rule out excluding sugar from free trade agreements, leaving open the possibility of a quota system or special clauses. However, this remains to be seen.