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The impact of the EU sugar trade reform on poor households in developing countries: A general equilibrium analysis

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  • Gotor, Elisabetta
  • Tsigas, Marinos E.

Abstract

We use a modified version of the applied general equilibrium model GTAP, called GTAPMH, to evaluate the impact of a reduction in the EU's support price for sugar on income distribution of African households. For LDC countries, non-ACP but participant in the EBA initiative a +2% change is indicated in term of income generation across all ten social strata identified within GTAPMH framework, with positive percentage changes in supply prices at household level of endowment commodities, and positive percentage changes in price indices for private household expenditures. The big losers will be those countries that would no longer be able to compete at an international level as a result of the lost preferences.

Suggested Citation

  • Gotor, Elisabetta & Tsigas, Marinos E., 2011. "The impact of the EU sugar trade reform on poor households in developing countries: A general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 568-582, July.
    • Handle: RePEc:eee:jpolmo:v:33:y:2011:i:4:p:568-582
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    References listed on IDEAS

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    1. Bureau, Jean-Christophe & Guyomard, Herve & Requillart, Vincent, 2001. "On inefficiencies in the European sugar regime," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 659-667, August.
    2. 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.
    3. Stephen Devadoss & Jurgen Kropf, 1996. "Impacts of trade liberalizations under the Uruguay Round on the world sugar market," Agricultural Economics, International Association of Agricultural Economists, vol. 15(2), pages 83-96, November.
    4. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    5. 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.
    6. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
    7. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay round on the world sugar market," Agricultural Economics, Blackwell, vol. 15(2), pages 83-96, November.
    8. 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), pages 1-15.
    9. 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.
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    Cited by:

    1. 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.

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