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The EC sugar market policy and developing countries

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  • ULRICH KOESTER
  • PETER MICHAEL SCHMITZ

Abstract

Summary The purpose of this study is to investigate the impact of the sugar market policy of the European Community (EC) on developing countries. This problem is of special relevance, since on the one hand the EC's sugar market is its most protected agricultural market and, on the other hand, a special trade preference in the form of the EC sugar protocol is given to some developing countries. The study starts with a quantification of the effect of the EC sugar policy on world market prices for sugar and the implied transfer effects for selected developing countries. The analysis of the sugar protocol allows one to apply a method to calculate the maximum transfer effects due to this agreement. It is shown that the producttied transfers are completely arbitrary and do not respond to any official objective of EC development policy. Nevertheless, the agreement may allow the EC to buy a maximum of goodwill on the side of developing countries with a given cost.

Suggested Citation

  • Ulrich Koester & Peter Michael Schmitz, 1982. "The EC sugar market policy and developing countries," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 9(2), pages 183-204.
    • Handle: RePEc:oup:erevae:v:9:y:1982:i:2:p:183-204.
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    File URL: http://hdl.handle.net/10.1093/erae/9.2.183
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    Cited by:

    1. Witzke, Heinz Peter & Heckelei, Thomas, 2002. "Eu Sugar Policy Reform: Quota Reduction And Devaluation," 2002 Annual meeting, July 28-31, Long Beach, CA 19807, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Larson, Donald F. & Borrell, Brent, 2001. "Sugar policy and reform," Policy Research Working Paper Series 2602, The World Bank.
    3. Scott McDonald, 1996. "Reform of the EU's Sugar Policies and the ACP Countries," Development Policy Review, Overseas Development Institute, vol. 14(2), pages 131-150, June.
    4. Borrell, Brent & Duncan, Ronald C., 1990. "A survey of the costs of world sugar policies," Policy Research Working Paper Series 522, The World Bank.
    5. Thomas Glauben, 2021. "Ulrich Koester. Foundations of Agricultural Market Analysis and Agricultural Policy," Journal of New Economy, Ural State University of Economics, vol. 22(1), pages 131-138, April.
    6. Patricia Combette & Éric Giraud-Héraud & Vincent Réquillart, 1997. "La politique sucrière européenne après les accords du Gatt," Économie et Prévision, Programme National Persée, vol. 127(1), pages 1-13.
    7. Glauben, Thomas, 2021. "[Book Review] Ulrich Koester: Foundations of agricultural market analysis and agricultural policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 22(1), pages 131-138.

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