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Sugar and Spice and all things nice? Assessing the Impact of the 2006 EU sugar regime reforms

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  • Renwick, Alan W.
  • Revoredo-Giha, Cesar
  • Philippidis, George
  • Bourne, Michael
  • Reader, Mark A.
  • Lang, Ben

Abstract

This paper investigates the economic impacts of the reforms both on the EU sugar sector but also more globally and examines the intended and unintended consequences of the reforms. This provides insights into the likely impacts of the further reforms proposed for 2015 – namely the removal of sugar beet quotas within the EU. We find, in line with other studies that whilst the reforms have improved the economic efficiency of the EU sugar sector the nature of the reform process has meant that these gains have not been maximised. This is due to the fact that production was cut in some of the more efficient regions of Europe as well as the least efficient. Our modelling highlights that the reforms have led to alternative trade patterns emerging both internally within the EU as well as externally. Internally, cessation of production in a number of countries provides opportunities for those remaining in production. Externally the significant decline in EU sugar on the world market has provided opportunities for other countries. It would appear that Brazil and Thailand have been amongst the main beneficiaries of the disappearance of EU sugar from the world market.

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File URL: http://purl.umn.edu/134706
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Bibliographic Info

Paper provided by Agricultural Economics Society in its series 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK with number 134706.

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Date of creation: Apr 2012
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Handle: RePEc:ags:aesc12:134706

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Keywords: GTAP model; Agricultural Policy; EU Sugar Regime; Agricultural and Food Policy; Crop Production/Industries;

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  1. Elbehri, Aziz & Umstaetter, Johannes & Kelch, David R., 2008. "The EU Sugar Policy Regime and Implications of Reform," Economic Research Report 56457, United States Department of Agriculture, Economic Research Service.
  2. Jeroen Buysse & Bruno Fernagut & Olivier Harmignie & Bruno Henry de Frahan & Ludwig Lauwers & Philippe Polomé & Guido Van Huylenbroeck & Jef Van Meensel, 2007. "Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(1), pages 21-52, March.
  3. Alexandre Gohin & Jean-Christophe Bureau, 2006. "Modelling the EU sugar supply to assess sectoral policy reforms," Working Papers 15464, Institut National de la Recherche Agronomique, France.
  4. Elbehri, Aziz & Ken Pearson, 2000. "Implementing Bilateral Tariff Rate Quotas in GTAP using GEMPACK," GTAP Technical Papers 475, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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