¿Estabiliza el FEPA los precios locales del azúcar?

Does FEPA isolate the Colombian local sugar price from international shocks? Abstract Since January 2001, local sugar prices in Colombia are subject to a stabilization scheme called FEPA ( Fondo de Estabilización de Precios del Azúcar ). The Colombian government designed FEPA as a part of a mechanism to protect local producers from fluctuations in international sugar prices. Our objective is to determine whether the FEPA succeeded in isolating the local price from the international price’s fluctuations. In other words, the aim of this document is to determine whether or not a long - term relationship exists between international sugar prices and their counterparts in the three main Colombian cities.