The European Union (EU) imposes customs duties on imports of sugar in order to protect the minimum prices which are offered to EU growers and processors under the common organisation of the market. The rates of import duty vary; for white and raw sugar they are €0.419 per kilogram, or €0.339 per kilogram where the sugar is imported for refining.
In principle, these duty rates apply to imports from all third countries but some countries are eligible for preferential terms. Currently, the African, Caribbean and Pacific (ACP) group of countries may supply 1.3 million tonnes to the EU, duty-free, and at the EU market price. However, under the Everything But Arms agreement, the duty that would otherwise be payable by the least developed countries is being progressively reduced and will be completely suspended from 2009.
My Department has not made an assessment of the balance between world sugar production and consumption.