Journal Article

Changing the U.S. Sugar Program into a Standard Crop Program: Consequences under the North American Free Trade Agreement and Doha

David Abler, John C. Beghin, David Blandford and Amani Elobeid

in Applied Economic Perspectives and Policy

Published on behalf of Agricultural and Applied Economics Association

Volume 30, issue 1, pages 82-102
Published in print January 2008 | ISSN: 2040-5790
Published online January 2008 | e-ISSN: 2040-5804 | DOI: https://dx.doi.org/10.1111/j.1467-9353.2007.00393.x
Changing the U.S. Sugar Program into a Standard Crop Program: Consequences under the North American Free Trade Agreement and Doha

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We analyze the impact of continuing the existing U.S. sugar program, replacing it with a standard program, and implementing the standard program with multilateral trade liberalization. Under the North American Free Trade Agreement (NAFTA), duty-free sugar imports from Mexico could undermine the program's ability to operate on a “no-cost” basis to taxpayers as large public stocks of sugar could accumulate. The replacement of the current sugar program by one similar to other major U.S. crop programs would solve the problem of potential stock accumulation, accommodate further trade liberalization under a new WTO and future bilateral trade agreements, but would induce significant fiscal outlays through direct payments.

Keywords: F130; F150; O130; O190; Q170; Q180

Journal Article.  9021 words. 

Subjects: International Trade ; Agricultural Economics ; Economic Development

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