CAOBISCO: Planned suspension of inward processing for sugar would weaken EU competitiveness and set a dangerous precedent

Export Competitiveness and Supply Resilience at Risk

The European chocolate, biscuit and sugar confectionery sector is raising serious concerns following the announcement of a planned temporary suspension of the Inward Processing Relief (IPR) mechanism for sugar in the EU.

IPR is a crucial trade tool that enables EU manufacturers to remain competitive on global markets by accessing sugar not readily available in Europe, particularly cane sugar, while continuing to support value-added production, investment and jobs within the EU.

CAOBISCO warns that suspending the mechanism would not address any market imbalance, as sugar imports have declined in recent years and the system is directly linked to export activity. Instead, it risks increasing production costs, weakening export performance, reducing supply resilience and potentially shifting investment and production outside the EU.

At a time of global supply chain uncertainty, the sector argues that removing a well-functioning and trade-flow-neutral instrument could undermine both competitiveness and the EU's industrial stability.

Read the full press release on the CAOBISCO website to learn more about the potential economic and industrial impact.