This work presents and discusses a procedure to quantify the effects that cross subsidies provided for the EU refined sugar exports have upon Brazilian exports. This price effect was associated to cross price elasticities of sugar import demand for the EU sugar. This was followed by a simulation of an elimination of sugar subsidies by the European Union, to evaluate the effect of this change upon the import demand of Brazilian refined sugar. This import demand was restricted, however, to those importers that buy sugar from both exporters, Brazil and UE through the period taken of the analysis. The effect was disaggregated in terms of the main production region of the country, showing that the sugar import increase by Center-South Brazil would be more expressive, of about six times superior than the estimated impact upon the North- Northeastern region.
cross-subsidies; sugar; export; Brazil; EU
