Implications of the EU East Enlargement for the CAP

The collapse of the central economic systems in the East has led to considerable changes in the world economic environment, inducing adjustment pressures not only in Central and Eastern Europe but also in the rest of the world. This holds for the private sector as well as for the political sphere. The European Union (EU) is aware of this new responsibility. The conclusion of Europe Agreements (EAs) with ten Central and Eastern European countries (CEECs)1 can be regarded as a first step towards opening up EU markets to the East. Beyond this, the integration of the CEECs into the EU is wanted on both sides for economic and political reasons. As one of the main obstacles to the planned East enlargement, however, agriculture has come under fire from all parties. Sensitivity with respect to agriculture is pronounced in the CEECs, as well as in the EU. Due to the relative importance of their agricultural sectors, the CEECs have great interest in open West European agricultural markets, while at the same time the EU is haunted by the fear that it might be flooded by agricultural products from the East, thus making it impossible to keep up protection for EU farmers. The design of the Europe Agreements reveals this concern. The preferences granted in these agreements are especially modest with respect to agriculture.