IDEAS home Printed from https://ideas.repec.org/p/isu/genres/12419.html
   My bibliography  Save this paper

Multilateral Trade and Agricultural Policy Reforms in Sugar Markets (Revised)

Author

Listed:
  • Elobeid, Amani
  • Beghin, John C.

Abstract

We analyze the impact of trade liberalization, removal of production subsidies, and elimination of consumption distortions in world sugar markets using a partial-equilibrium international sugar model calibrated on 2002 market data and current policies. The removal of trade distortions alone induces a 27% price increase while the removal of all trade and production distortions induces a 48% increase by 2011/12 relative to the baseline. Aggregate trade expands moderately, but location of production and trade patterns change substantially. Protectionist OECD countries (the EU, Japan, the US) experience an import expansion or export reduction and significant contraction in production in unfettered markets. Competitive producers in both OECD countries (Australia) and non-OECD countries (Brazil, Cuba), and even some protected producers (Indonesia, Turkey), expand production when all distortions are removed. Consumption distortions have marginal impacts on world markets and location of production. We discuss the significance of these results in the context of mounting pressures to increase market access in highly protected OECD countries and the impact on non-OECD countries.

Suggested Citation

  • Elobeid, Amani & Beghin, John C., 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets (Revised)," Staff General Research Papers Archive 12419, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12419
    as

    Download full text from publisher

    File URL: http://www.card.iastate.edu/products/publications/pdf/04wp356.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 1-26, March.
    2. John C. Beghin & Barbara El Osta & Jay R. Cherlow & Samarendu Mohanty, 2003. "The Cost Of The U.S. Sugar Program Revisited," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 106-116, January.
    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. Zhuang, Renan & Koo, Won W., 2006. "Impacts of Sugar Free Trade Agreements on the U.S. Sugar Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21486, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Nolte, Stephan, 2008. "The Future Of The World Sugar Market--A Spatial Price Equilibrium Analysis," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6663, European Association of Agricultural Economists.
    3. Amani Elobeid & John Beghin, 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 23-48, March.
    4. Mohamed Abdelasset Chemingui, 2011. "Welfare Effects From Reforming Agricultural Policies In Rich Countries In A Spatially Small Heterogeneous Agricultural Economy," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 191-213.
    5. 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.
    6. Surabhi Mittal & Jeffrey J. Reimer, 2008. "Would Indian farmers benefit from liberalization of world cotton and sugar markets?," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 301-312, May.
    7. Jo Lorentzen & Anton Cartwright & Charles Meth, 2010. "Trade Liberalization, Rural Poverty and the Environment: A Case Study of Sugarcane Production in the Incomati River Basin in Mpumalanga, South Africa," Chapters, in: Jonathan A. Cook & Owen Cylke & Donald F. Larson & John D. Nash & Pamela Stedman-Edwards (ed.), Vulnerable Places, Vulnerable People, chapter 6, Edward Elgar Publishing.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amani Elobeid & John Beghin, 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 23-48, March.
    2. Bonnet, Céline & Requillart, Vincent, 2010. "Is The Eu Sugar Policy Reform Likely To Increase Obesity?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116414, European Association of Agricultural Economists.
    3. Beghin, John C. & Jensen, Helen H., 2008. "Farm policies and added sugars in US diets," Food Policy, Elsevier, vol. 33(6), pages 480-488, December.
    4. Conconi, Paola, 2008. "Comment: EC – Export Subsidies on Sugar," World Trade Review, Cambridge University Press, vol. 7(1), pages 179-182, January.
    5. Lenka Rumánková & Luboš Smutka, 2013. "Global sugar market - the analysis of factors influencing supply and demand," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(2), pages 463-471.
    6. John C. Beghin & Amani Elobeid, 2015. "The Impact of the U.S. Sugar Program Redux," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 1-33.
    7. Fang, Cheng & Beghin, John C., 2002. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 732-753, December.
    8. Won W. Koo, 2002. "Alternative U.S. and EU Sugar Trade Liberalization Policies and their Implications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 336-352.
    9. Jeroen BUYSSE & Bruno FERNAGUT & Olivier HARMIGNIE & Bruno HENRY DE FRAHAN & Ludwig LAUWERS & Philippe POLOMÉ & Guido VAN HUYLENBROECK & Jef VAN MEENSEL, 2010. "Modelling the Impact of Sugar Reform on Belgian Agriculture," EcoMod2004 330600031, EcoMod.
    10. Fadiga, Mohamadou L. & Mohanty, Samarendu & Pan, Suwen & Welch, Mark, 2006. "U.S. Proposal for WTO Hong Kong Ministerial Conference: What's at Stake for Cotton Producers?," 2006 Annual meeting, July 23-26, Long Beach, CA 21273, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. 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.
    12. Brockmeier, Martina & Sommer, Ulrich & Thomsen, Karin, 2005. "Sugar Policies: An Invincible Bastion for Modelers?," 89th Seminar, February 2-5, 2005, Parma, Italy 232588, European Association of Agricultural Economists.
    13. Amani E. Elobeid & Miguel A. Carriquiry & Jacinto F. Fabiosa, 2012. "Land-Use Change And Greenhouse Gas Emissions In The Fapri-Card Model System: Addressing Bias And Uncertainty," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-26.
    14. David Abler & John C. Beghin & David Blandford & Amani Elobeid, 2006. "U.S. Sugar Policy Options and Their Consequences under NAFTA and Doha," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 06-wp424, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    15. Irena Benešová & Helena Řezbová & Luboš Smutka & Karel Tomšík & Adriana Laputková, 2015. "European Sugar Market - Impact of Quota System," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 1825-1838.
    16. Huan-Niemi, Ellen & Niemi, Jyrki S., 2003. "The Impact of Preferential, Regional and Multilateral Trade Agreements: A Case Study of the EU Sugar Regime," ENARPRI Working Papers 25134, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    17. Ellen Huan-Niemi & Jyrki Niemi, 2003. "The impact of preferential, regional and multilateral trade agreements: a case study of the EU sugar regime," ENARPRI Working Papers 001, ENARPRI (European Network of Agricultural and Rural Policy Research Institutes).
    18. Huan-Niemi, Ellen & Kerkela, Leena, 2005. "Reform in the EU Sugar Regime: Impact on the Global Sugar Markets," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24733, European Association of Agricultural Economists.
    19. Yu, Wusheng, 2006. "Improving Agricultural Market Access for African LDCs: Deepening, Widening, Broadening and Strengthening Trade Preferences," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25732, International Association of Agricultural Economists.
    20. Alexandre Gohin & J.C. Bureau, 2005. "Sugar market liberalization : modeling the EU supply of "C" sugar," Post-Print hal-01937090, HAL.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:isu:genres:12419. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.