THE IMPACT OF EU GUARANTEED SUGAR PRICE REDUCTION ON MAURITIUS

Mauritius - 30 May 2018

In line with global frameworks, the EU unilaterally decided to reduce the price of its imported sugar, under the ACP-EU Agreement, by 36%. This decision eventually would affect the macro-economic situation of ACP countries. At a micro level the effects would be on employment and export revenues. In this paper, we attempt to critically review the impact of such EU reform on the Mauritian sugar industry. Mauritius is expected to significantly lose revenues and employment and the restructuring plans already under way for the sugar industry may be seriously jeopardized. A CGE framework to estimate the impact of this policy on the Mauritian economy has been used. 

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