An Analysis of the Impact on International Trade of the Sugar Cane Industry in ASEAN

Abstract

The aim of this study is to analyze the productivity impact of the sugar industry for ASEAN countries. After the ASEAN Economic Community (AEC) emerged, the tariff of commodities, especially sugar, fell to zero percent using the Input-Output table. The results show that Thailand is the largest sugar exporter in ASEAN. The percentage of import ratios from Thailand to Indonesia, Lao PDR, Philippines and Vietnam is 0.69, 0.02, 0.02 and 0.05 percent, respectively, after each country increased sugar production by 10 percent. Thailand still has the largest export sugar industry in ASEAN, even though the import ratio from Thailand decreased to 0.57, 0.01, 0.00 and 0.03 percent. This study shows that the AEC’s increased export volume has had little impact on Thailand’s exports.