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Sugar and Spice and all things nice? Assessing the Impact of the 2006 EU sugar regime reforms

Alan Renwick, Cesar Revoredo-Giha, George Philippidis, Michael Bourne, Mark Reader and Ben Lang

No 134706, 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK from Agricultural Economics Society

Abstract: This paper investigates the economic impacts of the reforms both on the EU sugar sector but also more globally and examines the intended and unintended consequences of the reforms. This provides insights into the likely impacts of the further reforms proposed for 2015 – namely the removal of sugar beet quotas within the EU. We find, in line with other studies that whilst the reforms have improved the economic efficiency of the EU sugar sector the nature of the reform process has meant that these gains have not been maximised. This is due to the fact that production was cut in some of the more efficient regions of Europe as well as the least efficient. Our modelling highlights that the reforms have led to alternative trade patterns emerging both internally within the EU as well as externally. Internally, cessation of production in a number of countries provides opportunities for those remaining in production. Externally the significant decline in EU sugar on the world market has provided opportunities for other countries. It would appear that Brazil and Thailand have been amongst the main beneficiaries of the disappearance of EU sugar from the world market.

Keywords: Agricultural and Food Policy; Crop Production/Industries (search for similar items in EconPapers)
Pages: 31
Date: 2012-04
New Economics Papers: this item is included in nep-agr and nep-sea
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DOI: 10.22004/ag.econ.134706

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