IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Sugar policies opportunity for change

  • Mitchell, Donald

Sugar is one of the most policy distorted of all commodities, and the European Union, Japan, and the United States are among the worst offenders. But internal changes in the E.U. and U.S. sugar and sweetener markets and international trade commitments make change unavoidable and provide the best opportunity for policy reform in several decades. The nature of reforms can have very different consequences for developing countries. If existing polices in the E.U. and the U.S. are adjusted to accommodate higher imports under international commitments, many low-cost producers, such as Brazil, will lose because they do not currently have large quotas and are not included among the preferential countries. The benefits of sugar policy reform are greatest under multilateral reform, and according to recent studies, the global welfare gains of removal of all trade protection are estimated to total as much as $4.7 billion a year. In countries with the highest protection (Indonesia, Japan, Eastern Europe, Western Europe, and the U.S.), net imports would increase by an estimated 15 million tons a year, which would create employment for nearly one million workers in developing countries. World sugar prices would increase by as much as 40 percent, while sugar prices in countries that heavily protect their markets would decline. Developing countries that have preferential access to the E.U. or U.S. sugar markets are likely to lose some of these preferences as sugar policies change. However, the value of preferential access is less than it appears because many of these producers have high production costs and would not produce at world market prices.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2004/06/01/000009486_20040601165704/Rendered/PDF/wps3222sugar.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3222.

as
in new window

Length:
Date of creation: 01 Feb 2004
Date of revision:
Handle: RePEc:wbk:wbrwps:3222
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page: http://www.worldbank.org/Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Diop, Ndiame & Beghin, John & Sewadeh, Mirvat, 2004. "Groundnut policies, global trade dynamics, and the impact of trade liberalization," Policy Research Working Paper Series 3226, The World Bank.
  2. Nancy Novack, 2002. "The rise of ethanol in rural America," Main Street Economist, Federal Reserve Bank of Kansas City, issue Mar.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3222. 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: (Roula I. Yazigi)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.