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2006

Iowa State University

CARD Working Papers

Doha

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U.S. Sugar Policy Options And Their Consequences Under Nafta And Doha, David Abler, John C. Beghin, David Blandford, Amani E. Elobeid Jun 2006

U.S. Sugar Policy Options And Their Consequences Under Nafta And Doha, David Abler, John C. Beghin, David Blandford, Amani E. Elobeid

CARD Working Papers

We analyze the potential 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 will undermine the program’s ability to operate on a “no-cost” basis to U.S. taxpayers. As the Mexican beverage industry is likely to expand considerably its highfructose corn syrup use, the sugar thereby displaced will seek a market in the United States. Under these conditions, marketing allotments could not be utilized under current legislation and prices would likely ...