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Sweet and Sour Changes in Trade Regimes

Sugar is an important export for a number of developing countries, especially in the African, Caribbean and Pacific regions. In many of these countries, preferential access to the EU market has been a key factor to develop their sugar sectors. The recent and proposed changes to the international sug...

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Bibliographic Details
Published in:World economy 2013-06, Vol.36 (6), p.786-806
Main Authors: Calì, Massimiliano, Nolte, Stephan, Cantore, Nicola
Format: Article
Language:English
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Summary:Sugar is an important export for a number of developing countries, especially in the African, Caribbean and Pacific regions. In many of these countries, preferential access to the EU market has been a key factor to develop their sugar sectors. The recent and proposed changes to the international sugar trade regimes, particularly in the EU, are threatening this preferential access. We study the possible implications of such changes on ACP countries’ sugar production and exports by using a spatial price equilibrium model specifically developed for the sugar market. The results suggest that the effects of these changes are likely to vary according to the prevailing level of world sugar market price and according to whether ACP countries are current exporters to the EU.
ISSN:0378-5920
1467-9701
DOI:10.1111/twec.12007