The Effect of the Sugar Program on the U.S. Economy: A General Equilibrium Analysis

This study examines the effect of the sugar tariff-rate import quota program on the U.S. economy. Based on a computable general equilibrium model, the analysis suggests that a complete elimination of the sugar program will reduce output for all producing sectors by about $2.85 billion. For producing sectors in addition to the agriculture-program crops, crude oil and petroleum refining sectors, output will increase by about $2.98 billion. Additionally, there will be an increase of about $197 million on $121 million in the consumption of goods and services and in welfare, respectively. The government sector realizes a reduction in revenue of about $15 million.