An article on bloomberg.com notes that “for candy makers who use . . . sugar, high prices prompted an exodus of manufacturing to places outside the U.S., where it’s possible to buy the sweet stuff far more cheaply.” The article also states that “while estimates vary, it’s thought that consumers pay between $2.4 billion and $4 billion more a year [for sugar] than they would under a free-trade regime.”
a. Why are sugar prices high in the United States? What does the article mean by a “free-trade regime”?
b. Why doesn’t the United States have a free-trade trade regime for sugar?
c. Who gains and who loses as a result of the United States not having a free-trade regime for sugar?