The Impact of Trade Liberalization between the European Union and Mercosur on the EU Sugar Sector

Lukasz Chmielewski and Piotr Szajner

European Research Studies Journal, 2025, vol. XXVIII, issue 4, 44-62

Abstract: Purpose: The aim of this article is to examine the potential impact of this quota on the EU sugar market. To characterize the supply-demand and price situation, the study used the variability index and coefficient of variation, while price relationships were analyzed using Pearson’s r correlation and linear regression with the OLS method. Methodology: The study covers the period 2018–2024. In the case of supply–demand relations, the analysis was conducted using the marketing year (season) specific to the sugar market (October/September). The analysis of supply–demand and price relations was carried out using a volatility index. This approach enables a comparative identification of dominant tendencies and the indication of key differentiations. Results: The criteria of self-sufficiency and export propensity were also applied. The study showed that although both the EU and Mercosur generated production surpluses, the sugar sector exhibited different trends during the period under review. The EU sector experienced a decline in production, while Mercosur saw dynamic growth in production and exports. Practical significance: In trade liberalization agreements, sugar is often classified as a sensitive product, highlighting its significance. The EU–Mercosur agreement provides for a small duty-free import quota for sugar from Mercosur, which raises concerns among EU sugar producers. Originality: The relatively small import quota for Mercosur is unlikely to affect the supply-demand and price situation in the EU; however, given the EU sector’s self-sufficiency, even small quantities of imports can have a significant impact (as illustrated by the case of Ukraine).

Keywords: UE-Mercosur trade deal; sugar; trade liberalization. (search for similar items in EconPapers)
JEL-codes: F1 F14 F15 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xxviii:y:2025:i:4:p:44-62

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