NFU Sugar expressed disappointment with the government’s decision to expand and extend the ATQ (Autonomous Tariff Quota) for raw cane sugar.
On 26 November, the UK government published the outcome of its review of the ATQ for raw cane sugar, announcing a 25% volume increase of 65,000 tonnes. This means that from 1 January 2026, 325,000t of raw cane sugar a year will be able to enter the UK tariff-free, regardless of its origin. The new raw cane sugar ATQ is intended to be in place until 31 December 2033.
NFU Sugar has opposed to an ATQ for raw cane sugar of any size since the government first consulted on its introduction in 2020. Back then, and at every opportunity since, it has continued to stress how the ATQ fundamentally undermines a level-playing field on trade, according to the press release.
While UK sugar beet growers continue to contend with ever tighter regulation and an ever diminishing plant protection toolbox, the ATQ provides tariff-free access for sugar produced anywhere in the world which often derives a competitive advantage from having been produced in ways which simply would not be legal or possible in the UK.
In allowing such sugar to enter the UK tariff-free, the ATQ poses a fundamental threat to the homegrown sector and the ongoing viability of sugar beet within the rotation.
The 2025 consultation detailed that the government was looking to take a decision regarding the ATQ for 2026 and beyond. In submitting evidence, NFU Sugar raised additional concerns in relation to a multi-year ATQ and the negative impact this was likely to have on UK beet growers, so it is especially disappointing to see that the 325,000t ATQ will now remain in place until December 2033.
NFU Sugar remains wholly opposed to an ATQ for raw cane sugar, regardless of its size or duration. It will continue to highlight to government the severe limitations of, on the one hand defending the interests of growers in Free Trade Agreement negotiations, while on the other fundamentally undermining them through its broader trade policy and the ATQ, instead advocating for a joined-up policy approach and a level-playing field on trade.
Finally, we note that the government incorrectly assessed the impact of the ATQ when it was first introduced. As a result, we will continue to push for it to share the analysis which supports its decision to expand and extend the ATQ from 2026 onwards.
‘Unwelcome uncertainty’
NFU Sugar Board Chair Kit Papworth said: “We continue to consider a zero-tariff quota for raw cane sugar highly concerning, unjustified, and unnecessary. British sugar beet growers are among the most efficient in the world but allowing tariff free access to sugar from any country, produced in ways that would be illegal in the UK, simply undercuts them.
“We commended the government for its approach to negotiations with India on sugar market access and the decision, ultimately, not to grant any concessions on sugar to a country whose sugar subsidy regime had been found in breach of world trade law. But the decision to expand and extend the ATQ for raw cane sugar of any origin, regardless of method of production or the agricultural policy regime under which it has been produced, is even more concerning.
“This decision brings further unwelcome uncertainty to homegrown sugar beet growers at a time when they already face considerable challenges in relation to costs of production, changing government agricultural support and pests and disease.
“We remain fundamentally opposed to an ATQ for raw cane sugar, regardless of its size.”
