The Impact of Central American Free Trade Area (CAFTA) on the United States sugar market

This paper tries to estimate the impact of establishment of CAFTA on the United States sugar market. We use the United States sugar demand elasticity and the amount of increase in the U.S. sugar import quota under CAFTA agreement to estimate the magnitude of this effect. This study shows that these increased imports will result in a decrease in the U.S. domestic sugar price of about 1.7 cents, or approximately 8.6 percent. Although it amounts to only pennies per pound, this decrease in the domestic price could result in the incursion of significant U.S. government expenditures given the current structure of the U.S. non-recourse loan program.


Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/35439
Total Pages:
17
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-25

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