Managing in a Global Economy

MIGE Fall 2021 Lesson 8

Next assignment

US sugar policy

1

What is it about ?

• We have looked at protectionism • We have looked at free trade • We have seen that the US is in favor of freer trade

• We have seen that the US is currently negotiating major trade agreements:

• Transpacific Partnership • US + EU trade agreement

2

There are exceptions !

• There are exceptions to free trade

• There is the highly protective US sugar policy

• This is a policy which protects a specific group

• This is a policy which has burdened:

• Consumers

• Specific industries

• With high costs !

3

Is this justified ?

• Is the US sugar policy justified ? • Is the US sugar policy reconcilable with free

trade support ?

• In your view are we: • Significantly distorting free markets • Damaging emerging market sugar producers ?

4

The General Issue !

• Is the granting of exceptions to free markets

acceptable? If so why ?

• Should these be permanent ?

• Should these be temporary ?

• Is there such an industry which is in a state of permanent infancy ?

5

Structure of the Paper

• Section 1 – 70 % of paper • Start with a presentation of the US sugar policy

• Continue with a discussion of the + and – points of the US sugar policy

• Conclusion with regard to the US sugar policy • Section 2 – 30 % of paper • Discuss the general issue • Conclusion with regard to the general issue

6