Cuba and origins of the US sugar quota
DOI:
https://doi.org/10.3989/revindias.2005.i233.381Keywords:
Cuba, United States, 19th Century, sugar, crisis of 1930, market, protectionism, tariffs, companiesAbstract
In the history of Cuban sugar industry, the most significant institutional factor after 1930 was the export quota gained in the 1934 United States market, which has been regarded in a positive perspective. This is here re-examined in the light of later events which prove that the quota system was detrimental to the island economy, particularly in the fifties. The analysis is based on the examination of sugar companies’ stock prices which are a useful indicator of investment expectations. Finally, it is concluded that the 1934 North American quota system issued from the conviction that the tariff system applied until then was not enough to protect the domestic sugar beet production.
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