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Coping with the fallout for preference-receiving countries from EU sugar reform


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  • Hannah Chalplin
  • Alan Matthews


Developing countries can produce sugar at much lower cost than in the EU, yet reform of the EU sugar policy will result in both winners and losers among them. This is because the EU is both an exporter and importer of sugar. Sugar policy reform will mean a reduction in EU sugar production, benefiting competitive sugar exporters such as Brazil. But sugar policy reform will adversely affect those developing countries which currently benefit from preferential import access to the EU’s high-priced sugar market, while diminishing the benefits of those least developed countries to which duty-free and quota-free access has been promised after July 2009. This paper concentrates on the latter group of preference-receiving countries. It identifies the countries concerned and the extent of their potential losses. It critiques alternative proposals which have been put forward to assist these countries to adjust to the adverse effects of EU sugar policy reform. The paper concludes by proposing a modified package of measures to offset the negative effects of EU sugar policy reform on preference-receiving countries.

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Bibliographic Info

Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp100.

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Date of creation: 15 Dec 2005
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Handle: RePEc:iis:dispap:iiisdp100

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Keywords: EU sugar policy; preference erosion; compensation;

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  1. Larson, Donald F. & Borrell, Brent, 2001. "Sugar policy and reform," Policy Research Working Paper Series 2602, The World Bank.
  2. Leena Kerkelä & Ellen Huan-Niemi, 2005. "Trade Preferences in the EU Sugar Sector: Winners and Losers," Discussion Papers 358, Government Institute for Economic Research Finland (VATT).
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Cited by:
  1. Christopher Stevens, 2006. "Why unwinding preferences is not the same as liberalisation: the case of sugar," The Institute for International Integration Studies Discussion Paper Series iiisdp137, IIIS.
  2. 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.
  3. Alan Matthews & Hannah Chaplin & Thomas Giblin & Marian Mraz, 2007. "Strengthening Policy Coherence for Development in Agricultural Policy: Policy Recommendations to Irish Aid," The Institute for International Integration Studies Discussion Paper Series iiisdp188, IIIS.
  4. Alan Matthews & Jean-Christophe Bureau, 2005. "EU Agricultural Policy: What Developing Countries Need to Know," The Institute for International Integration Studies Discussion Paper Series iiisdp91, IIIS.
  5. Lionel Fontagné & David Laborde & Cristina Mitaritonna, 2009. "An Impact Study of the Economic Partnership Agreements (EPAs) in the Six ACP Regions," PSE - G-MOND WORKING PAPERS halshs-00967434, HAL.
  6. Bureau, Jean-Christophe & Gohin, Alexandre & Guindé, Loïc & Millet, Guy & Brandão, Antônio Salazar P. & Haley, Stephen & Wagner, Owen & Orden, David & Sandrey, Ron & Vink, Nick, 2008. "The future of global sugar markets: Policies, reforms, and impact," IFPRI discussion papers 829, International Food Policy Research Institute (IFPRI).
  7. Alan Matthews, 2008. "EPAs and the Demise of the Commodity Protocols," The Institute for International Integration Studies Discussion Paper Series iiisdp258, IIIS.
  8. Gotor, Elisabetta, 2009. "The Reform of the EU Sugar Trade Preferences toward Developing Countries in Light of the Economic Partnership Agreements," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(2).
  9. Lionel Fontagné & David Laborde & Cristina Mitaritonna, 2009. "An Impact Study of the Economic Partnership Agreements (EPAs) in the Six ACP Regions," Working Papers halshs-00967434, HAL.


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