The study evaluates the impact of World Trade Organization (WTO) restrictions on the European Union (EU) sugar sector and the world sugar market. A small reduction in production quotas would be sufficient to satisfy the export subsidy limitations of the Uruguay Round agreement. Complete elimination of export subsidies by 2005 would require either a 10% reduction in production quotas or the combination of an 8% reduction in quotas and an 11% reduction in intervention prices. Higher world prices resulting from reduced EU exports would result in increased production of unsubsidized C-sugar, with different impacts across EU member countries explained by differences in institutional pricing arrangements and marginal production costs.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.