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Coping with the fallout for preference-receiving countries from EU sugar reform


  • Hannah Chalplin
  • Alan Matthews


Developing countries can produce sugar at much lower cost than in the EU, yet reform of the EU sugar policy will result in both winners and losers among them. This is because the EU is both an exporter and importer of sugar. Sugar policy reform will mean a reduction in EU sugar production, benefiting competitive sugar exporters such as Brazil. But sugar policy reform will adversely affect those developing countries which currently benefit from preferential import access to the EU’s high-priced sugar market, while diminishing the benefits of those least developed countries to which duty-free and quota-free access has been promised after July 2009. This paper concentrates on the latter group of preference-receiving countries. It identifies the countries concerned and the extent of their potential losses. It critiques alternative proposals which have been put forward to assist these countries to adjust to the adverse effects of EU sugar policy reform. The paper concludes by proposing a modified package of measures to offset the negative effects of EU sugar policy reform on preference-receiving countries.

Suggested Citation

  • Hannah Chalplin & Alan Matthews, 2005. "Coping with the fallout for preference-receiving countries from EU sugar reform," The Institute for International Integration Studies Discussion Paper Series iiisdp100, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp100

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    References listed on IDEAS

    1. Larson, Donald F. & Borrell, Brent, 2001. "Sugar policy and reform," Policy Research Working Paper Series 2602, The World Bank.
    2. Kerkelä, Leena & Huan-Niemi, Ellen, 2005. "Trade Preferences in the EU Sugar Sector: Winners and Losers," Discussion Papers 358, VATT Institute for Economic Research.
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    Cited by:

    1. Christopher Stevens, 2006. "Why unwinding preferences is not the same as liberalisation: the case of sugar," The Institute for International Integration Studies Discussion Paper Series iiisdp137, IIIS.
    2. Lionel Fontagné & David Laborde & Cristina Mitaritonna, 2009. "An Impact Study of the Economic Partnership Agreements (EPAs) in the Six ACP Regions," Working Papers halshs-00967434, HAL.
    3. Thomas Kopp & Sören Prehn & Bernhard Brümmer, 2016. "Preference Erosion – The Case of Everything But Arms and Sugar," The World Economy, Wiley Blackwell, vol. 39(9), pages 1339-1359, September.
    4. Alan Matthews & Hannah Chaplin & Thomas Giblin & Marian Mraz, 2007. "Strengthening Policy Coherence for Development in Agricultural Policy: Policy Recommendations to Irish Aid," The Institute for International Integration Studies Discussion Paper Series iiisdp188, IIIS.
    5. Fontagne, Lionel & Laborde, David & Mitaritonna, Cristina, 2008. "An Impact Study of the Economic Partnership Agreements (EPAs) in the Six ACP Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44194, European Association of Agricultural Economists.
    6. Gotor, Elisabetta, 2009. "The Reform of the EU Sugar Trade Preferences toward Developing Countries in Light of the Economic Partnership Agreements," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(2).
    7. Bureau, Jean-Christophe & Gohin, Alexandre & Guindé, Loïc & Millet, Guy & Brandão, Antônio Salazar P. & Haley, Stephen & Wagner, Owen & Orden, David & Sandrey, Ron & Vink, Nick, 2008. "The future of global sugar markets: Policies, reforms, and impact," IFPRI discussion papers 829, International Food Policy Research Institute (IFPRI).
    8. Alan Matthews & Jean-Christophe Bureau, 2005. "EU Agricultural Policy: What Developing Countries Need to Know," The Institute for International Integration Studies Discussion Paper Series iiisdp91, IIIS.
    9. Osman, Rehab Osman Mohamed, 2012. "The EU Economic Partnership Agreements with Southern Africa: a computable general equilibrium analysis," Economics PhD Theses 0412, Department of Economics, University of Sussex.
    10. 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.
    11. Alan Matthews, 2008. "EPAs and the Demise of the Commodity Protocols," The Institute for International Integration Studies Discussion Paper Series iiisdp258, IIIS.
    12. Massimiliano Calì & Stephan Nolte & Nicola Cantore, 2013. "Sweet and Sour Changes in Trade Regimes," The World Economy, Wiley Blackwell, vol. 36(6), pages 786-806, June.

    More about this item


    EU sugar policy; preference erosion; compensation;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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