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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. Copyright 2008, Oxford University Press.

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. 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), August.
    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. 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;Western Agricultural Economics Association.
    4. 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.

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