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Abstract

Analysis of the impacts of the policy provisions of the Uruguay Round on the European Union's Sugar Market reveals that these policies will reinforce the effects of 1992 Common Agricultural Policy reforms by weakening the link between subsidies and production. Specifically, subsidized production of quota A and B sugar will show small decline and unsubsidized production of quota C, which receives the world price, will increase. The decline in EU's sugar exports will be less than the EU's commitment of reducing subsidized exports by 340,000 MT because increase in unsubsidized exports from quota C production is expected to compensate the decline in subsidized exports.

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