Multilateral Trade and Agricultural Policy Reforms in Sugar Markets
We analyze the removal of current market interventions in world sugar markets using a partial-equilibrium international sugar model calibrated on 2002 market data and current policies. We analyze the impact of trade liberalization and the removal of production subsidies and consumption distortions. The removal of trade distortions alone induces a 27 percent price increase by the end of the decade relative to the baseline level for sugar. The removal of all trade and production distortions induces a 48 percent price increase by the end of the outlook period. Aggregate trade expands moderately, but location of production and trade patterns are substantially affected. Protectionist countries of the Organisation for Economic Cooperation and Development (OECD) (the European Union, Japan, and, to a lesser extent, Mexico and the United States) experience an import expansion or export reduction and significant contraction in production in unfettered markets. World beet production decreases by 21 percent by the end of the decade, whereas world cane production increases by 8 percent. Brazil, Australia, Cuba, Indonesia, and Turkey expand production when all distortions are removed. Aggregate world sugar production and use decrease by 2 percent. We discuss the significance of these results in the context of the mounting pressures to reform U.S. and E.U. sugar policies and increase market access in OECD countries.
|Date of creation:||2004|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S¯ren E. Frandsen & Hans G. Jensen & Wusheng Yu & Aage Walter-J¯rgensen, 2003. "Reform of EU sugar policy: price cuts versus quota reductions," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 1-26, March.
- John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2003.
"The Cost Of The U.S. Sugar Program Revisited,"
Contemporary Economic Policy,
Western Economic Association International, vol. 21(1), pages 106-116, January.
- Beghin, John C. & El Osta, Barbara & Cherlow, Jay R. & Mohanty, Samarendu, 2002. "The Cost of the U.S. Sugar Program Revisited," 2002 Conference (46th), February 13-15, 2002, Canberra 125058, Australian Agricultural and Resource Economics Society.
- M. Ataman Aksoy & John C. Beghin, 2005. "Global Agricultural Trade and Developing Countries," World Bank Publications, The World Bank, number 7464, January.
- Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers Archive 12228, Iowa State University, Department of Economics.
- Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
- Babcock, Bruce A. & Beghin, John C. & Fuller, Frank H. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Kaus, Phillip J. & Fang, Cheng & Hart, Chad E. & Matthey, Holger & de Cara, Stephane & Kovarik, Kare, 2001. "FAPRI 2001 U.S. and World Agricultural Outlook," Staff Reports 32052, Food and Agricultural Policy Research Institute (FAPRI). Full references (including those not matched with items on IDEAS)