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European Review of Agricultural Economics Advance Access originally published online on May 16, 2006
European Review of Agricultural Economics 2006 33(2):223-247; doi:10.1093/erae/jbl006
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2006; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

Modelling the EU sugar supply to assess sectoral policy reforms

Alexandre Gohin

Institut National de la Recherche Agronomique, Rennes and Centre d'Etudes Prospectives et d'Informations Internationales, Paris, France

Jean-Christophe Bureau

Institut National Agronomique Paris-Grignon, France and Centre d'Etudes Prospectives et d'Informations Internationales, Paris, France

Corresponding author: Jean-Christophe Bureau, UMR Economie Publique, INAPG, 16 rue Claude Bernard 75231 Paris Cedex 05, France. E-mail bureau{at}grignon.inra.fr

Received May 2005; final version received March 2006

We investigate the possible linkages between the EU sugar production under quota and the supply of C sugar. We calibrate the implicit cross-subsidy between in-quota sugar and out-of-quota sugar. The resulting supply specification is included in a computable general equilibrium model of the EU economy detailing the agricultural sector. We simulate the effects of the 2006 reform of the EU sugar regime and the effects of a ban on sugar export subsidies. Results suggest that the reform makes it possible to fill the requirements of the 2005 World Trade Organisation panel but that further adjustment will be needed to eliminate all export subsidies as is scheduled for 2013.

Keywords: common agricultural policy, sugar, export subsidies, general equilibrium model, WTO


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