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GTAP Resources: Frequently Asked Question Details

Subject: FAQ

Question: For some simulations of the WTO we are currently looking a bit closer at the EU sugar market. We are wondering why there is such a heavy duty (251) on sugar beets which are not traded. Wouldn't it make much more sense to have the tariffs on sugar? Why is milk handled differently in this regard (tariffs on raw milk are zero, while milk products have higher tariffs).


Good point. This is somewhat arbitrary, but if sugar beets aren't traded, then I guess the tariff won't matter. Raw milk in GTAP is a pure invention -- we don't even have trade data for that. But for raw sugar there is some trade data. A similar situation exists for rice.


Date Added: 3/4/2003