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Changing the U.S. Sugar Program into a Standard Crop Program: Consequences under the North American Free Trade Agreement and Doha

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  • David Abler
  • John C. Beghin
  • David Blandford
  • Amani Elobeid

Abstract

We analyze the impact of continuing the existing U.S. sugar program, replacing it with a standard program, and implementing the standard program with multilateral trade liberalization. Under the North American Free Trade Agreement (NAFTA), duty-free sugar imports from Mexico could undermine the program's ability to operate on a "no-cost" basis to taxpayers as large public stocks of sugar could accumulate. The replacement of the current sugar program by one similar to other major U.S. crop programs would solve the problem of potential stock accumulation, accommodate further trade liberalization under a new WTO and future bilateral trade agreements, but would induce significant fiscal outlays through direct payments.

Suggested Citation

  • David Abler & John C. Beghin & David Blandford & Amani Elobeid, 2008. "Changing the U.S. Sugar Program into a Standard Crop Program: Consequences under the North American Free Trade Agreement and Doha," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 82-102.
    • Handle: RePEc:oup:revage:v:30:y:2008:i:1:p:82-102.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2007.00393.x
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    References listed on IDEAS

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    1. Gwo-Jiun M. Leu & Andrew Schmitz & Ronald D. Knutson, 1987. "Gains and Losses of Sugar Program Policy Options," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 591-602.
    2. Unknown, 2007. "Achieving NAFTA Plus," 2006 NAAMIC Workshop III: Achieving NAFTA Plus 252452, North American Agrifood Market Integration Consortium (NAAMIC).
    3. Haley, Stephen L., 1998. "Modeling The U.S. Sweetener Sector: An Application To The Analysis Of Policy Reform," Working Papers 14610, International Agricultural Trade Research Consortium.
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    Cited by:

    1. Schmitz, Troy G. & Lewis, Karen E., 2015. "Impact of NAFTA on U.S. and Mexican Sugar Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), pages 1-18, September.
    2. John C. Beghin & Amani Elobeid, 2015. "The Impact of the U.S. Sugar Program Redux," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 1-33.
    3. Gregory McKee & Michael Boland & Alex Offerdahl, 2009. "American Crystal Sugar Company: Making Ethanol from Sugar Beets?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(2), pages 383-392, June.
    4. John C. Beghin & Amani Elobeid, 2015. "The Impact of the U.S. Sugar Program Redux," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 1-33.
    5. Whistance, Jarrett & Payen, Andrick & Thompson, Wyatt, 2015. "Suspension Agreements and Antidumping/Countervailing Duties: US-Mexico Sugar Markets and the Effects of Alternative Trade Policies," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205550, Agricultural and Applied Economics Association.
    6. Meade, Birgit Gisela Saager & Grant, Jason H. & Regmi, Anita, 2010. "Trade and Welfare Impacts of Partial Liberalization of U.S. Sugar TRQs: The Application of a PE/GE Modeling Approach," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61657, Agricultural and Applied Economics Association.
    7. Troy G. Schmitz, 2018. "Impact of the 2014 Suspension Agreement on sugar between the United States and Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 55-69, January.
    8. Carlos J. O. Trejo-Pech & Karen L. DeLong & Dayton M. Lambert & Vasileios Siokos, 2020. "The impact of US sugar prices on the financial performance of US sugar-using firms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-17, December.

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