IDEAS home Printed from https://ideas.repec.org/p/ags/tragwp/18872.html
   My bibliography  Save this paper

WTO Discipline and the CAP: the Constraints on the EU Sugar Sector

Author

Listed:
  • Gohin, Alexandre
  • Bureau, Jean-Christophe

Abstract

The various assessments of the effects of a liberalization of world sugar markets are inconsistent with each other. One cause seems to be the modeling of the EU supply response. We investigate three possible linkages between sugar production under quota and the out-of-quota or "C" sugar supply: i/ the existence of fixed costs covered by the in-quota sugar; ii / the "overshooting" behavior as prevention against poor yields; iii/ the production of C sugar as "reference building" in view of expected reforms. Modeling these effects results in the introduction of an implicit crosssubsidy between in-quota sugar and C sugar. The resulting specification is included in a detailed model of the EU agricultural sector so as to account for intersectoral linkages. We simulate the effects of the 2005 reform of the sugar sector and the effects of a ban on sugar export subsidies.

Suggested Citation

  • Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "WTO Discipline and the CAP: the Constraints on the EU Sugar Sector," Working Papers 18872, TRADEAG - Agricultural Trade Agreements.
  • Handle: RePEc:ags:tragwp:18872
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/18872
    Download Restriction: no

    References listed on IDEAS

    as
    1. Alan W. Renwick & Cesar L. Revoredo Giha & Mark A. Reader, 2005. "UK Sugar Beet Farm Productivity under Different Reform Scenarios: A Farm Level Analysis," Environmental Economy and Policy Research Working Papers 04.2005, University of Cambridge, Department of Land Economics, revised 2005.
    2. Witzke, Heinz Peter & Heckelei, Thomas, 2002. "Eu Sugar Policy Reform: Quota Reduction And Devaluation," 2002 Annual meeting, July 28-31, Long Beach, CA 19807, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Marcel ADENÄUER & Kamel LOUHICHI & Bruno HENRY DE FRAHAN & Heinz Peter WITZKE., "undated". "Impact of the "Everything but Arms" Initiative on the EU Sugar Sub-Sector," EcoMod2004 330600001, EcoMod.
    4. Antoine Bouët & Jean-Christophe Bureau & Yvan Decreux & Sébastien Jean, 2005. "Multilateral Agricultural Trade Liberalisation: The Contrasting Fortunes of Developing Countries in the Doha Round," The World Economy, Wiley Blackwell, vol. 28(9), pages 1329-1354, September.
    5. Poonyth, Daneswar & Westhoff, Patrick & Womack, Abner & Adams, Gary, 2000. "Impacts of WTO restrictions on subsidized EU sugar exports," Agricultural Economics, Blackwell, vol. 22(3), pages 233-245, April.
    6. Jean-Christophe Bureau & Herve Guyomard & Laurent Morin & Vincent Requillart, 1995. "Quota mobility in the european sugar regime," Post-Print hal-01607840, HAL.
    7. Nancy H. Chau & Harry de Gorter, 2005. "Disentangling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions, and Output," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1174-1181.
    8. V.E. Ball & J.C. Bureau & J.P. Butault & H.P. Witzke, 1993. "The stock of capital in European Community agriculture," Post-Print hal-01072680, HAL.
    9. Alexandre Gohin & Laure Latruffe, 2006. "The Luxembourg Common Agricultural Policy Reform and the European Food Industries: What's at Stake?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 175-194, March.
    10. Bureau, Jean-Christophe, et al, 1997. "Quota Mobility in the European Sugar Regime," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 1-30.
    11. Dominique van der Mensbrugghe & John C. Beghin & Don Mitchell, 2003. "Modeling Tariff Rate Quotas in a Global Context: The Case of Sugar Markets in OECD Countries," Food and Agricultural Policy Research Institute (FAPRI) Publications 03-wp343, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    12. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    13. Jean-Claude Sourie & David Tréguer & Stelios Rozakis, 2005. "L'ambivalence des filières biocarburants," INRA Sciences Sociales, INRA Department of Economics.
    14. 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.
    15. Alexandre Gohin & GianCarlo Moschini, 2006. "Evaluating the Market and Welfare Impacts of Agricultural Policies in Developed Countries: Comparison of Partial and General Equilibrium Measures," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 195-211.
    16. Rozakis, S. & Sourie, J. -C., 2005. "Micro-economic modelling of biofuel system in France to determine tax exemption policy under uncertainty," Energy Policy, Elsevier, vol. 33(2), pages 171-182, January.
    17. Poonyth, Daneswar & Westhoff, Patrick & Womack, Abner & Adams, Gary M., 2000. "Impacts of WTO restrictions on subsidized EU sugar exports," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(3), April.
    18. Ball, V Eldon, et al, 1993. "The Stock of Capital in European Community Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(4), pages 437-450.
    19. Mahler, Peter, 1994. "Efficiency Losses as a Result of Insufficient Structural Adjustments Due to the EC Sugar Regime: The Case of Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(2), pages 199-218.
    20. Peterson, Everett B & Hertel, Thomas W & Preckel, Paul V, 1994. "A General Equilibrium Framework for the Food Marketing System," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(1), pages 37-57.
    21. Adenäuer, Marcel & Heckelei, Thomas, 2005. "Economic Incentives to Supply Sugar Beets in Europe," 89th Seminar, February 2-5, 2005, Parma, Italy 231822, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alan Matthews & Jacques Gallezot, 2006. "The role of EBA in the political economy of CAP reform," The Institute for International Integration Studies Discussion Paper Series iiisdp133, IIIS.
    2. Jean-Pierre Butault & Jean-Christophe Bureau, 2006. "WTO Contstaints and the CAP: Domestic Support in EU 25 Agriculture," The Institute for International Integration Studies Discussion Paper Series iiisdp171, IIIS.

    More about this item

    Keywords

    Common agricultural policy; sugar; general equilibrium models; WTO; International Relations/Trade; D58; Q17; Q18;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:tragwp:18872. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://tradeag.vitamib.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.