This article outlines the key features of the European Union’s (EU’s) sugar policy from its inauguration in 1968 to its ‘reform’ in 2006. Although a quota mechanism was in place, limiting the quantity of EU-produced sugar that could qualify for market price support, the EU’s net export surplus was allowed to grow, particularly after EU enlargement in 1973. The EU was unable to participate effectively in a succession of International Sugar Agreements but was able to shrug off criticisms in GATT. Initially, the Uruguay Round Agreement on Agriculture had little impact on EU sugar policy; but an adverse Dispute Settlement ruling, and the opening of the EU market through the Everything but Arms initiative, changed the international policy context and led to policy reform.
Journal of World Trade