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The World Sugar Market--Government Intervention and Multilateral Policy Reform

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  • Lord, Ron
  • Barry, Robert D.

Abstract

Extensive government intervention in sugar markets significantly affects sugar production, consumption, and trade. Many countries provide support for sugar producers, placing the cost on consumers and/or taxpayers. A trade liberalization scenario is analyzed in which only the industrial market economies are assumed to liberalize their agriculture. The analysis shows that compared with actual 1986-88 levels, liberalized levels of sugar production in 1986-88 would have been lower in the industrial market economies, and higher in the less -developed countries. Liberalization would have led to an increase in the world sugar price of 10-30 percent from its 1975-89 longrun average level, and would have reduced world price variability while increasing domestic price variability in many industrial market economies. Sugar production in the United States would have been lower, and consumption slightly higher. World sugar trade patterns would have shifted dramatically, but overall trade volume would have increased only marginally. Sugar substitutes, primarily high fructose starch syrups, would have increased market share, mainly in a few industrial market economies.

Suggested Citation

  • Lord, Ron & Barry, Robert D., 1990. "The World Sugar Market--Government Intervention and Multilateral Policy Reform," Staff Reports 278353, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278353
    DOI: 10.22004/ag.econ.278353
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    References listed on IDEAS

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    2. Roningen, Vernon O. & Dixit, Praveen M., 1989. "Economic Implications Of Agricultural Policy Reforms In Industrial Market Economies," Staff Reports 278843, United States Department of Agriculture, Economic Research Service.
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    7. Joachim Zietz, 1986. "The potential benefits to LDCs of trade liberalization in beef and sugar by industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 122(1), pages 93-112, March.
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    10. Sturgiss, Robert & Tobler, Peter & Connell, Peter, 1988. "Japanese sugar policy: its effects on the world market," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 316183, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
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    Cited by:

    1. Pursell, Garry & Gupta, Anju, 1998. "Trade policies and incentives in Indian agriculture : methodology, background statistics, and protection and incentive indicators, 1965-95," Policy Research Working Paper Series 1953, The World Bank.
    2. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay round on the world sugar market," Agricultural Economics, Blackwell, vol. 15(2), pages 83-96, November.
    3. Eric Giraud-Heraud & Chantal Le Mouël & Vincent Requillart & . Inra - Direction Scientifique Des Sciences Sociales & . Inra - Esr. Département d'Economie Et Sociologie Rurales, Ivry, 1994. "Impact de la réforme de la PAC sur les débouchés du corn gluten feed," Post-Print hal-02299663, HAL.
    4. Schmitz, Andrew & Vercammen, James, 1990. "Trade Liberalization in the World Sugar Market: Playing on a Level Field?," CUDARE Working Papers 198574, University of California, Berkeley, Department of Agricultural and Resource Economics.
    5. Johnston, Warren E., 1994. "California Field Crops: Location and Trends in Acreage, Yields, and Production, 1945-1991," Information Series 251900, University of California, Davis, Giannini Foundation.

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