Reform of EU sugar policy: price cuts versus quota reductions

摘要

This article analyses alternative reforms of EU sugar policy. Particular attention is given to the modelling of the complex policy and the calibration of the global general equilibrium model at the member state level. Two reform scenarios are analysed, namely a reduction in border protection for sugar, and a reduction in sugar quotas. It is found that the two scenarios are quite different in terms of their impacts on European production and trade in sugar as well in terms of efficiency. The global impacts and consequences for developing countries also differ considerably across the two scenarios.