Sugar Regulation in France: A Long History of Protection

Abstract

The European Union distinguishes itself in the world sugar market as the sole large exporter which also imports significantly. This position is a consequence of the strong protection offered to agricultural and industrial sugar sectors as well as to European ex-colonies, through agreements with the ACP countries. Such incentives and protection have their origin in the XVIIth century, having undergone many changes following historical events, as well as competition between agriculture and industry, between colonial and metropolitan interests and between consumers and producers. France pioneered such protection to its sugar industry, and has been since then at the center of international competition in the sector. This paper follows the main events of the French system of subsidies and protection until the end of the XIXth century, as a backdrop to the discussion of present-day protectionism in the European Union.

Keywords: sugar, france, european union, export subsidies, sugar bounties, drawback

JEL Classification: F13, F14, N73, F54, F59