Mexico drastically increases import duties on sugar. Trade with the EU will no longer be possible

The Mexican government has imposed extremely high tariffs on sugar and sugar products, which will effectively reduce sugar trade between the Central American country and the European Union to zero, experts say.

On 11 November, the Mexican government imposed an import tariff of as much as 156% on sugar (including syrups) and 210% on refined liquid sugar.

The decision was made in response to falling global sugar prices and a growing domestic market surplus — in recent years, Mexico has become increasingly dependent on imports due to poorer domestic harvests.

Analysts believe the move is aimed at protecting domestic sugar producers, reducing import pressure and stabilising domestic prices ahead of the 2025–2026 harvest season.

But such tariffs will dramatically reduce the flow of imports, as trade links with other countries – the US, Brazil, as well as the European Union, could be disrupted. Mexico is seeking to renew its free trade agreements with the European Community, but the imposition of tariffs on sugar of this magnitude could complicate negotiations between the two sides.

Such sudden protectionist actions could disrupt supply chains and price balances in the global sugar market. This means that EU sugar exports to Mexico will become virtually impossible, while huge volumes of sugar from the US and Brazil could also flow into EU raw material markets. It is true that EU import rules still restrict the free entry of sugar from other countries, but sugar quotas are negotiated in each case (e.g. with Ukraine).

However drastic the actions of third countries may be, they may influence the negotiations with the European Union, for example in the case of freer trade with the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay).  

The EU and Mexico are currently working to modernise the free trade agreement.