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Sugar and Spice and all things nice? Assessing the Impact of the 2006 EU sugar regime reforms

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  • Renwick, Alan W.
  • Revoredo-Giha, Cesar
  • Philippidis, George
  • Bourne, Michael
  • Reader, Mark A.
  • Lang, Ben

Abstract

This paper investigates the economic impacts of the reforms both on the EU sugar sector but also more globally and examines the intended and unintended consequences of the reforms. This provides insights into the likely impacts of the further reforms proposed for 2015 – namely the removal of sugar beet quotas within the EU. We find, in line with other studies that whilst the reforms have improved the economic efficiency of the EU sugar sector the nature of the reform process has meant that these gains have not been maximised. This is due to the fact that production was cut in some of the more efficient regions of Europe as well as the least efficient. Our modelling highlights that the reforms have led to alternative trade patterns emerging both internally within the EU as well as externally. Internally, cessation of production in a number of countries provides opportunities for those remaining in production. Externally the significant decline in EU sugar on the world market has provided opportunities for other countries. It would appear that Brazil and Thailand have been amongst the main beneficiaries of the disappearance of EU sugar from the world market.

Suggested Citation

  • Renwick, Alan W. & Revoredo-Giha, Cesar & Philippidis, George & Bourne, Michael & Reader, Mark A. & Lang, Ben, 2012. "Sugar and Spice and all things nice? Assessing the Impact of the 2006 EU sugar regime reforms," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134706, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc12:134706
    DOI: 10.22004/ag.econ.134706
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    References listed on IDEAS

    as
    1. 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.
    2. Jeroen Buysse & Bruno Fernagut & Olivier Harmignie & Bruno Henry de Frahan & Ludwig Lauwers & Philippe Polomé & Guido Van Huylenbroeck & Jef Van Meensel, 2007. "Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(1), pages 21-52, March.
    3. Alexandre Gohin & Jean-Christophe Bureau, 2006. "Modelling the EU sugar supply to assess sectoral policy reforms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 223-247, June.
    4. Elbehri, Aziz & Pearson, Ken, 2000. "Implementing Bilateral Tariff Rate Quotas In Gtap Using Gempack," Technical Papers 28715, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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