Effects of agricultural protection on food manufacturing: The U.S. sugar program

Abstract

The relationship between U.S. and world sugar prices, and import market shares for four categories of sugar-containing processed products is examined. The U.S. world sugar price differential has contributed to rising import market shares, but increased real disposable income has played a larger role. U.S. imports of sugar-containing products from developed countries have benefitted proportionately more from introduction of the U.S. sugar program than imports of these products from the developing countries. Thus, as U.S. imports of raw sugar from the developing countries have declined, these countries have also faced increased competition in processed product trade. Copyright 1989 by Oxford University Press.