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U.S. Sugar Policy: A Welfare Analysis Of Policy Options Under Pending Caribbean Basin Expansion Act Legislation

Author

Listed:
  • Messina, William A., Jr.
  • Seale, James L., Jr.

Abstract

Since 1987 the U.S. Congress has considered two pieces of legislation designed to address some of the inequities in the original Caribbean Basin Economic Recovery Act (part of the Caribbean Basin Initiative or CBI). Both pieces of legislation included modifications for the sugar import quota program. In 1987 House Resolution (H.R.) 3101 proposed relaxing CBI sugar import quotas back to the 1983/84 level of 1,123,782 short tons raw value (s.t.r.v.); the Congressional session ended, however, before action was taken on this bill. In 1989 a modified version of the bill, known as the CBI-II legislation, was introduced under H.R. 1233. The modifications focused largely on the textile and sugar provisions of the original bill in response to concerns expressed by domestic textile and sugar industry organizations; instead of providing any increase in sugar import quotas for the region, the legislation proposed a "quota floor" of 409,448 s.t.r.v. for Caribbean Basin sugar imports while allowing a quota of 429,151 s.t.r.v. to remain in effect for 1989. A welfare analysis of these two sugar import quota policy options was conducted based on the corn and sweetener model developed by the U.S. Department of Agriculture. Results indicate that relaxing U.S. sugar import quotas to Caribbean Basin sugar exporting countries back to 1983/84 levels would generate net domestic gains and net overall program gains as well as gains to the beneficiary countries potentially in excess of those provided by the entire CBI program.

Suggested Citation

  • Messina, William A., Jr. & Seale, James L., Jr., 1990. "U.S. Sugar Policy: A Welfare Analysis Of Policy Options Under Pending Caribbean Basin Expansion Act Legislation," 1990 Annual meeting, August 5-8, Vancouver, Canada 270878, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:270878
    DOI: 10.22004/ag.econ.270878
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    References listed on IDEAS

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    1. U.S. Department of Agriculture, 1988. "Foreign Agricultural Trade of the United States May/June 1988," Foreign Agricultural Trade of the United States (FATUS) 283519, United States Department of Agriculture, Economic Research Service.
    2. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-597, September.
    3. Gwo-Jiun M. Leu & Andrew Schmitz & Ronald D. Knutson, 1987. "Gains and Losses of Sugar Program Policy Options," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 591-602.
    4. U.S. Department of Agriculture, 1988. "Foreign Agricultural Trade of the United States September/October 1988," Foreign Agricultural Trade of the United States (FATUS) 283521, United States Department of Agriculture, Economic Research Service.
    5. Pelzman, Joseph & Schoepfle, Gregory K, 1988. "The Impact of the Caribbean Basin Economic Recovery Act on Caribbean Nations' Exports and Development," Economic Development and Cultural Change, University of Chicago Press, vol. 36(4), pages 753-796, July.
    6. Unknown, 1981. "Foreign Agricultural Trade of the United States May/June 1981," Foreign Agricultural Trade of the United States (FATUS) 164317, United States Department of Agriculture, Economic Research Service.
    7. Jesse, Edward V. & Zepp, Glenn A., 1977. "Sugar Policy Options for the United States," Agricultural Economic Reports 307625, United States Department of Agriculture, Economic Research Service.
    8. U.S. Department of Agriculture, 1988. "Foreign Agricultural Trade of the United States November/December 1988," Foreign Agricultural Trade of the United States (FATUS) 283522, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Runge, C. Ford, 1992. "Environmental Effects Of Trade In The Agricultural Sector: A Case Study," Working Papers 14449, University of Minnesota, Center for International Food and Agricultural Policy.

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