Reforming the EU Sugar Policy
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This article presents and analyses the impacts of the EU sugar policy. Particular attention is given to the modelling of the quite complex policy and the calibration of the global general equilibrium model at the member state level. Two scenarios are analysed, namely a reduction in the intervention price of sugar and the sugar quota. It is found that the economic impacts of the two scenarios are quite different in terms of the effects on European production and trade in sugar as well in terms of efficiency. The impacts for developing countries also differ considerably across the two scenarios.