Sugar Policies: Opportunity for Change

Sugar is one of the most policy distorted of all commodities, and the European Union, Japan, and the United States are among the worst offenders. But internal changes in the E.U. and U.S. sugar and sweetener markets and international trade commitme...

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Main Author:	Mitchell, Donald
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	AGRICULTURAL PRODUCTS ANIMAL FEED ARTIFICIAL SWEETENERS AVERAGE COSTS AVERAGE VARIABLE COSTS BAKING BEET BEET SUGAR BEETS CANCER CANE SUGAR COAL COMMODITY COMPARATIVE ADVANTAGE COMPETITIVENESS CONFECTIONERY COOPERATIVES CORN CORN PRICES CROP CROPS DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMISTS EMPLOYMENT ENVIRONMENTAL REGULATIONS ETHANOL EXPORTS FAO FARM FERMENTATION FERTILIZERS FIXED COSTS FLAVOR FOODS FRUIT FRUIT JUICES FUELS GREENHOUSE GASES IMPORT QUOTAS IMPORTS INCOME INPUT USE LEGISLATION LIBERALIZATION MARGINAL COSTS MARKET PRICES MOLASSES NET IMPORTS OIL POLICY ENVIRONMENT POTATOES PRODUCE PRODUCERS PRODUCTION COSTS QUOTAS REFINING REFORMULATED GASOLINE SOFT DRINKS STARCH SUCROSE SUGAR SUGAR BEET SUGAR BEETS SUGAR CANE SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SUGARS SWEETENERS SYRUP VARIABLE COSTS WELFARE GAINS WHEAT SUGAR INDUSTRY SUGAR LEGISLATION INTERNATIONAL COMPETITION GLOBAL ENVIRONMENT TRADE PROTECTIONISM
Online Access:	http://documents.worldbank.org/curated/en/2004/02/3889369/sugar-policies-opportunity-change http://hdl.handle.net/10986/14307

id	okr-10986-14307
recordtype	oai_dc
spelling	okr-10986-143072021-04-23T14:03:20Z Sugar Policies: Opportunity for Change Mitchell, Donald AGRICULTURAL PRODUCTS ANIMAL FEED ARTIFICIAL SWEETENERS AVERAGE COSTS AVERAGE VARIABLE COSTS BAKING BEET BEET SUGAR BEETS CANCER CANE SUGAR COAL COMMODITY COMPARATIVE ADVANTAGE COMPETITIVENESS CONFECTIONERY COOPERATIVES CORN CORN PRICES CROP CROPS DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMISTS EMPLOYMENT ENVIRONMENTAL REGULATIONS ETHANOL EXPORTS FAO FARM FERMENTATION FERTILIZERS FIXED COSTS FLAVOR FOODS FRUIT FRUIT JUICES FUELS GREENHOUSE GASES IMPORT QUOTAS IMPORTS INCOME INPUT USE LEGISLATION LIBERALIZATION MARGINAL COSTS MARKET PRICES MOLASSES NET IMPORTS OIL POLICY ENVIRONMENT POTATOES PRODUCE PRODUCERS PRODUCTION COSTS QUOTAS REFINING REFORMULATED GASOLINE SOFT DRINKS STARCH SUCROSE SUGAR SUGAR SUGAR BEET SUGAR BEETS SUGAR CANE SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SUGARS SWEETENERS SYRUP VARIABLE COSTS WELFARE GAINS WHEAT SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SWEETENERS SUGAR LEGISLATION INTERNATIONAL COMPETITION GLOBAL ENVIRONMENT TRADE PROTECTIONISM Sugar is one of the most policy distorted of all commodities, and the European Union, Japan, and the United States are among the worst offenders. But internal changes in the E.U. and U.S. sugar and sweetener markets and international trade commitments make change unavoidable and provide the best opportunity for policy reform in several decades. The nature of reforms can have very different consequences for developing countries. If existing polices in the E.U. and the U.S. are adjusted to accommodate higher imports under international commitments, many low-cost producers, such as Brazil, will lose because they do not currently have large quotas and are not included among the preferential countries. The benefits of sugar policy reform are greatest under multilateral reform, and according to recent studies, the global welfare gains of removal of all trade protection are estimated to total as much as $4.7 billion a year. In countries with the highest protection (Indonesia, Japan, Eastern Europe, Western Europe, and the U.S.), net imports would increase by an estimated 15 million tons a year, which would create employment for nearly one million workers in developing countries. World sugar prices would increase by as much as 40 percent, while sugar prices in countries that heavily protect their markets would decline. Developing countries that have preferential access to the E.U. or U.S. sugar markets are likely to lose some of these preferences as sugar policies change. However, the value of preferential access is less than it appears because many of these producers have high production costs and would not produce at world market prices. 2013-07-01T17:05:53Z 2013-07-01T17:05:53Z 2004-02 http://documents.worldbank.org/curated/en/2004/02/3889369/sugar-policies-opportunity-change http://hdl.handle.net/10986/14307 English en_US Policy Research Working Paper;No. CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AGRICULTURAL PRODUCTS ANIMAL FEED ARTIFICIAL SWEETENERS AVERAGE COSTS AVERAGE VARIABLE COSTS BAKING BEET BEET SUGAR BEETS CANCER CANE SUGAR COAL COMMODITY COMPARATIVE ADVANTAGE COMPETITIVENESS CONFECTIONERY COOPERATIVES CORN CORN PRICES CROP CROPS DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMISTS EMPLOYMENT ENVIRONMENTAL REGULATIONS ETHANOL EXPORTS FAO FARM FERMENTATION FERTILIZERS FIXED COSTS FLAVOR FOODS FRUIT FRUIT JUICES FUELS GREENHOUSE GASES IMPORT QUOTAS IMPORTS INCOME INPUT USE LEGISLATION LIBERALIZATION MARGINAL COSTS MARKET PRICES MOLASSES NET IMPORTS OIL POLICY ENVIRONMENT POTATOES PRODUCE PRODUCERS PRODUCTION COSTS QUOTAS REFINING REFORMULATED GASOLINE SOFT DRINKS STARCH SUCROSE SUGAR SUGAR SUGAR BEET SUGAR BEETS SUGAR CANE SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SUGARS SWEETENERS SYRUP VARIABLE COSTS WELFARE GAINS WHEAT SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SWEETENERS SUGAR LEGISLATION INTERNATIONAL COMPETITION GLOBAL ENVIRONMENT TRADE PROTECTIONISM
spellingShingle	AGRICULTURAL PRODUCTS ANIMAL FEED ARTIFICIAL SWEETENERS AVERAGE COSTS AVERAGE VARIABLE COSTS BAKING BEET BEET SUGAR BEETS CANCER CANE SUGAR COAL COMMODITY COMPARATIVE ADVANTAGE COMPETITIVENESS CONFECTIONERY COOPERATIVES CORN CORN PRICES CROP CROPS DEVELOPED COUNTRIES ECONOMIES OF SCALE ECONOMISTS EMPLOYMENT ENVIRONMENTAL REGULATIONS ETHANOL EXPORTS FAO FARM FERMENTATION FERTILIZERS FIXED COSTS FLAVOR FOODS FRUIT FRUIT JUICES FUELS GREENHOUSE GASES IMPORT QUOTAS IMPORTS INCOME INPUT USE LEGISLATION LIBERALIZATION MARGINAL COSTS MARKET PRICES MOLASSES NET IMPORTS OIL POLICY ENVIRONMENT POTATOES PRODUCE PRODUCERS PRODUCTION COSTS QUOTAS REFINING REFORMULATED GASOLINE SOFT DRINKS STARCH SUCROSE SUGAR SUGAR SUGAR BEET SUGAR BEETS SUGAR CANE SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SUGARS SWEETENERS SYRUP VARIABLE COSTS WELFARE GAINS WHEAT SUGAR INDUSTRY SUGAR PRICES SUGAR TRADE SWEETENERS SUGAR LEGISLATION INTERNATIONAL COMPETITION GLOBAL ENVIRONMENT TRADE PROTECTIONISM Mitchell, Donald Sugar Policies: Opportunity for Change
relation	Policy Research Working Paper;No.
description	Sugar is one of the most policy distorted of all commodities, and the European Union, Japan, and the United States are among the worst offenders. But internal changes in the E.U. and U.S. sugar and sweetener markets and international trade commitments make change unavoidable and provide the best opportunity for policy reform in several decades. The nature of reforms can have very different consequences for developing countries. If existing polices in the E.U. and the U.S. are adjusted to accommodate higher imports under international commitments, many low-cost producers, such as Brazil, will lose because they do not currently have large quotas and are not included among the preferential countries. The benefits of sugar policy reform are greatest under multilateral reform, and according to recent studies, the global welfare gains of removal of all trade protection are estimated to total as much as $4.7 billion a year. In countries with the highest protection (Indonesia, Japan, Eastern Europe, Western Europe, and the U.S.), net imports would increase by an estimated 15 million tons a year, which would create employment for nearly one million workers in developing countries. World sugar prices would increase by as much as 40 percent, while sugar prices in countries that heavily protect their markets would decline. Developing countries that have preferential access to the E.U. or U.S. sugar markets are likely to lose some of these preferences as sugar policies change. However, the value of preferential access is less than it appears because many of these producers have high production costs and would not produce at world market prices.
format	Publications & Research :: Policy Research Working Paper
author	Mitchell, Donald
author_facet	Mitchell, Donald
author_sort	Mitchell, Donald
title	Sugar Policies: Opportunity for Change
title_short	Sugar Policies: Opportunity for Change
title_full	Sugar Policies: Opportunity for Change
title_fullStr	Sugar Policies: Opportunity for Change
title_full_unstemmed	Sugar Policies: Opportunity for Change
title_sort	sugar policies: opportunity for change
publisher	World Bank, Washington, D.C.
publishDate	2013
url	http://documents.worldbank.org/curated/en/2004/02/3889369/sugar-policies-opportunity-change http://hdl.handle.net/10986/14307
_version_	1764430270285479936

Sugar Policies: Opportunity for Change

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