The preparation of Hungarian agricultural policy for the EU accession

In the enlargement process, the agriculture and food sector merits particular attention because trade and policy issues between the candidate countries and the EU are more important in this sector than in any other. In 2001, Hungarian agriculture's contribution to GDP was 4.5 percent and agriculture represented 6.2 percent of the total employment. The share of agricultural and food products in total exports was 7.5 percent. Agricultural policies in Hungary have developed in the context of a transition towards market economy and in anticipation of entry into the EU Common Agricultural Policy (CAP). Producer prices in Hungary are by up to 20 percent lower than EU domestic producer prices (with the exception of beef, maize and sugar-beet). Domestic consumer prices are, in average, closely aligned with the world market prices, and in 2001, consumers were paying the world market prices. Progress made so far by Hungary provides a good basis for implementing the acquis in the agricultural sector, however, strengthening of the administrative capacity with regard to the Common Market Organisation mechanisms and structures relating to the European Agricultural Guarantee and Guidance Fund is a priority. For Hungary, the issues of equality of treatment and no distinction between the old and new members of the EU are at least as important as the level of transfers it will receive. The revised draft common position of the European Commission does not seem particularly equitable and should be improved by the end of the accession negotiations.