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, Amani Elobeid

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)82-102
Number of pages21
JournalReview of Agricultural Economics
Volume30
Issue number1
DOIs
StatePublished - Mar 2008

All Science Journal Classification (ASJC) codes

  • Agronomy and Crop Science
  • Economics and Econometrics

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