A recent proposal from the European Commission is raising concerns in Morocco, as it could disrupt one of the kingdom’s key export channels for white sugar. The Commission is considering a temporary suspension of the inward processing regime, known as IPR, a trade mechanism that allows sugar to enter the European Union tariff-free if it is processed and then re-exported outside the bloc.
This system has become an essential route for Moroccan sugar exporters, positioning the country among the leading suppliers of white sugar to the EU under the IPR framework, alongside Brazil, Egypt, and Ukraine. During the 2024-2025 season, EU imports of white sugar under this regime reached 155,000 tons, up 5 percent from the previous year. Nearly half of this volume came from Brazil, with Morocco following as one of the top contributors.
While the IPR was designed to support EU-based food manufacturers that sell globally, it has drawn sharp criticism from within the European sugar industry. European beet growers argue that rising imports are flooding the market and driving sugar prices to their lowest levels in three years. As pressure mounts, Brussels is proposing to suspend the IPR to allow time for a reassessment of its impact on internal market balance.
If approved, this move could significantly limit export opportunities for Moroccan refiners who have built their strategy around the IPR. The timing is particularly sensitive, as Morocco’s sugar sector is actively working to reposition itself in the global market amid increasing international competition.
Officials in Rabat are watching the situation closely. A suspension of the IPR would likely force Moroccan exporters to revise their short-term plans and explore alternative markets or trade routes to maintain their momentum.
