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Impacts of Sugar Free Trade Agreements on the U.S. Sugar Industry

  • Zhuang, Renan
  • Koo, Won W.
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    We use a multi-region GTAP model to study the implications of a global sugar free trade agreement on the U.S. sugar industry. In general, the sugar net importing countries such as the former Soviet Union, Japan, and the United States would reduce sugar production and increase their net imports from the world market. By contrast, the sugar net exporting countries such as Australia, Brazil, and Thailand would increase their sugar production and increase their net exports. Under a scenario where import tariffs and export subsidies are completely eliminated, U.S. sugar production would decrease by 2.8%. This is in contrast to some of the previous studies, which argued that the U.S. sugar production would increase slightly annually. U.S. import prices would decrease by 21.9% and U.S. domestic sugar prices would decrease slightly by 0.8%. U.S. net imports of sugar of sugar would increase 478.1 million US dollars.

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    File URL: http://purl.umn.edu/21486
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    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21486.

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    Date of creation: 2006
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    Handle: RePEc:ags:aaea06:21486
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    1. Dean A. DeRosa & John P. Gilbert, 2005. "Predicting Trade Expansion under FTAs and Multilateral Agreements," Working Paper Series WP05-13, Peterson Institute for International Economics.
    2. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
    3. Amani Elobeid & John C. Beghin, 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Center for Agricultural and Rural Development (CARD) Publications 04-wp356, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Benirschka, Martin & Koo, Won W. & Lou, Jianqiang, 1996. "World Sugar Policy Simulation Model: Description And Computer Program Documentation," Agricultural Economics Reports 23432, North Dakota State University, Department of Agribusiness and Applied Economics.
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