The future: UK sugar trade in the global market post Brexit
The world sugar market is currently dominated by a small number of influential producing countries, each making a substantial portion of the world’s supply. These countries also have by and large all developed a mix of policies and subsidies to support domestic production. As the UK prepares to leave the EU, understanding the complexity of the trading landscape for the continued success of the UK sugar industry is critical.
AB Sugar wanted to play a part in helping the UK government make Brexit a success by providing objective data and analysis to help inform the choices they will have to make. It is on this basis, AB Sugar provided an unrestricted educational grant to Flint, in partnership with The European Centre for International Political Economy, to research the post-Brexit landscape in global sugar trade. To our knowledge, this is the first time a report of this kind has been published on UK trade in a liberalised sugar market that includes both qualitative and quantitative evidence. The report titled 'UK sugar trade in the global market after Brexit' doesn’t necessarily reflect the views and opinions of AB Sugar.
Addressing market distortions through a new trade remedy
The British homegrown beet sugar industry is one of the most competitive and efficient industries in the world1 and is just one industry example of operating in a global market heavily distorted by Government actions that needs to be considered when future trade deals are struck with other countries around the world. On this basis, British Sugar provided an unrestricted educational grant to Competere CEO Shanker Singham to research what new approach to international trade could be taken that considered the link between market distortions internally and tariff approaches externally.
The remedy proposed in the ‘Market Distortions and how best to deal with them: sugar sector case study’ demonstrates how the UK Government could introduce a model that would allow British beet sugar farmers to compete on a truly level playing field, and therefore free trade is genuinely fair for all parties if we want British industries to continue to thrive.
Further information on the proposals set out in the report can be viewed here and doesn’t necessarily reflect the views and opinions of AB Sugar and British Sugar.
1 LMC 2021 Report: Sugar and HFS Production Costs Global Benchmarking