Increasing the United States Tariff-Rate Sugar Quota for Cuba and Mexico: A Partial-Equilibrium Simulation

Increases in the United States tariff-rate quota for sugar are simulated to determine the impact of Cuban market access and an increased Mexican allotment. The effects on both domestic and international sugar markets, including production, consumption, prices and trade, are determined and welfare effects identified. This analysis is carried out using a partial-equilibrium simplified world trade model, Modele International Simplifie de Simulation (MISS), which simulates, in a comparative-static framework, the effects of various policy actions.