Impacts of WTO restrictions on subsidized EU sugar exports

The study evaluates the impact of World Trade Organization (WTO) restrictio ns on the European Union (EU) sugar sector and the world sugar market. A sm all reduction in production quotas would be sufficient to satisfy the expor t subsidy limitations of the Uruguay Round agreement. Complete elimination of export subsidies by 2005 would require either a 10% reduction in product ion quotas or the combination of an 8% reduction in quotas and an 11% reduc tion in intervention prices. Higher world prices resulting from reduced EU exports would result in increased production of unsubsidized C-sugar, with different impacts across EU member countries explained by differences in in stitutional pricing arrangements and marginal production costs. (C) 2000 El sevier Science B.V. All rights reserved.