Impacts of WTO restrictions on subsidized EU sugar exports |
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| Authors: | Daneswar Poonyth Patrick Westhoff Abner Womack Gary Adams |
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| Institution: | Department of Agricultural Economics, Extension and Rural Development, University of Pretoria, Pretoria, South Africa;Food and Agricultural Policy Research Institute, University of Missouri, 101 South Fifth Street, Columbia, MO 65201, USA |
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| Abstract: | The study evaluates the impact of World Trade Organization (WTO) restrictions on the European Union (EU) sugar sector and the world sugar market. A small reduction in production quotas would be sufficient to satisfy the export subsidy limitations of the Uruguay Round agreement. Complete elimination of export subsidies by 2005 would require either a 10% reduction in production quotas or the combination of an 8% reduction in quotas and an 11% reduction in intervention prices. Higher world prices resulting from reduced EU exports would result in increased production of unsubsidized C‐sugar, with different impacts across EU member countries explained by differences in institutional pricing arrangements and marginal production costs. |
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| Keywords: | Sugar European Union World Trade Organization Econometric model |
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