Sugar has been at the centre of international tussles before. It was Napoleon who introduced sugarbeet to Europe after his access to cane was threatened. In 2017, new battle lines are being drawn over the British sugar industry, with Brexit as the potential flashpoint.
British Sugar, part of Associated British Foods, supports 9,500 jobs in the UK economy and supplies 60 percent of the domestic market from sugarbeet. It says it will be at the mercy of cheap imports made from sugarcane unless an existing EU tariff is replaced with a new one in the post-Brexit world.
Removal of all tariffs when the UK exits the single market and customs union would open doors to a flood of sugarcane imports from countries such as Thailand and Brazil where governments actively protect and support cane growers.
To prevent this dumping and create a level playing field, British Sugar wants the government to erect a new tariff governing trade with non-EU countries that actively support their sugar industries. This would allow it to continue to invest and thrive, it says.
Meanwhile, industry insiders say the case of British Sugar underscores the need for bespoke Brexit deals that take into account the needs of specific industries, particularly in agriculture.
“It is a very political crop. Every country trade protection regime and tariffs that recognise the distorted nature of the market,” says British Sugar managing director Paul Kenward.
Source: www.cityam.com