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Impacts of Sugar Free Trade Agreements on the U.S. Sugar Industry

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  • Zhuang, Renan
  • Koo, Won W.

Abstract

We use a multi-region GTAP model to study the implications of a global sugar free trade agreement on the U.S. sugar industry. In general, the sugar net importing countries such as the former Soviet Union, Japan, and the United States would reduce sugar production and increase their net imports from the world market. By contrast, the sugar net exporting countries such as Australia, Brazil, and Thailand would increase their sugar production and increase their net exports. Under a scenario where import tariffs and export subsidies are completely eliminated, U.S. sugar production would decrease by 2.8%. This is in contrast to some of the previous studies, which argued that the U.S. sugar production would increase slightly annually. U.S. import prices would decrease by 21.9% and U.S. domestic sugar prices would decrease slightly by 0.8%. U.S. net imports of sugar of sugar would increase 478.1 million US dollars.

Suggested Citation

  • Zhuang, Renan & Koo, Won W., 2006. "Impacts of Sugar Free Trade Agreements on the U.S. Sugar Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21486, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21486
    DOI: 10.22004/ag.econ.21486
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    References listed on IDEAS

    as
    1. Amani Elobeid & John Beghin, 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 23-48, March.
    2. Dominique van der Mensbrugghe & John C. Beghin & Don Mitchell, 2003. "Modeling Tariff Rate Quotas in a Global Context: The Case of Sugar Markets in OECD Countries," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 03-wp343, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Benirschka, Martin & Koo, Won W. & Lou, Jianqiang, 1996. "World Sugar Policy Simulation Model: Description And Computer Program Documentation," Agricultural Economics Reports 23432, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Elobeid, Amani & Beghin, John C., 2005. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets (Revised)," Staff General Research Papers Archive 12419, Iowa State University, Department of Economics.
    5. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
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    7. Koo, Won W. & Taylor, Richard D., 2005. "2005 Outlook Of The U.S. And World Sugar Markets, 2004-2013," Agribusiness & Applied Economics Report 23646, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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