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Accession of the Czech Republic, Hungary, and Poland to the European Union: Impacts on Agricultural Markets

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Abstract

Using a world agricultural multimarket model, the authors analyze the consequences of enlargement of the European Union (EU) to include the Czech Republic, Hungary, and Poland for agricultural markets and produce a market outlook through the year 2010 for two enlargement scenarios. These two scenarios are based on different assumptions regarding the restrictions on grain and dairy production in the acceding countries. In both scenarios, accession of the three Central and Eastern European countries (CEECs) leads to a permanent but moderate decrease in EU prices for virtually all commodities. For the three acceding CEECs, domestic prices increase dramatically. Their final consumption of agricultural products decreases in most instances, while production rises. Higher domestic prices in the CEECs reduce exports of most commodities to non-union countries. Consequently, excess supplies are placed in stocks or exported to the original 15 member countries. The imposition of supply management mechanisms in the dairy and grain sectors reduces the buildup of surpluses in the new member states. However, supply constraints limit the ability of the new members to take advantage of the expanded market.

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Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 00-wp259.

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Date of creation: Dec 2000
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Handle: RePEc:ias:cpaper:00-wp259

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  1. Beghin, John C. & Dong, Fengxia & Elobeid, Amani E. & Fabiosa, Jacinto F. & Fuller, Frank H. & Hart, Chad E. & Kovarik, Karen & Tokgoz, Simla & Yu, Tun-Hsiang (Edward) & Wailes, Eric J. & Chavez, Eddi, 2006. "FAPRI 2006 U.S. and World Agricultural Outlook," Staff Reports, Food and Agricultural Policy Research Institute (FAPRI) 7319, Food and Agricultural Policy Research Institute (FAPRI).
  2. Josling, Timothy E. & Kelch, David R. & Liapis, Peter S. & Tangermann, Stefan, 1998. "Agriculture and European Union Enlargement," Technical Bulletins, United States Department of Agriculture, Economic Research Service 33571, United States Department of Agriculture, Economic Research Service.
  3. Fuller, Frank H. & Beghin, John C. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Fang, Cheng & Kaus, Phillip J., 1999. "Impact of the Berlin Accord and European Enlargement on Dairy Markets, The," Staff General Research Papers, Iowa State University, Department of Economics 1696, Iowa State University, Department of Economics.
  4. Babcock, Bruce A. & Beghin, John C. & Fuller, Frank H. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Kaus, Phillip J. & Fang, Cheng & Hart, Chad E. & Matthey, Holger & de Cara, Stephane & Kovarik, Kare, 2001. "FAPRI 2001 U.S. and World Agricultural Outlook," Staff Reports, Food and Agricultural Policy Research Institute (FAPRI) 32052, Food and Agricultural Policy Research Institute (FAPRI).
  5. S. E. Frandsen & H. G. Jensen & D. M. Vanzetti, 2000. "Expanding 'Fortress Europe': Agricultural Trade and Welfare Implications of European Enlargement for Non-member Regions," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 23(3), pages 309-329, 03.
  6. Hertel, Thomas W & Brockmeier, Martina & Swaminathan, Padma V, 1997. "Sectoral and Economy-Wide Analysis of Integrating Central and Eastern Europe Countries into the EU: Implications of Alternative Strategies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(3-4), pages 359-86.
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Cited by:
  1. Scrieciu, Silviu Serban & Blake, Adam, 2005. "General Equilibrium Modelling Applied to Romania (GEMAR): Focusing on the Agricultural and Food Sectors," Impact Assessment Research Centre (IARC) Working Papers, University of Manchester, Institute for Development Policy and Management (IDPM) 30585, University of Manchester, Institute for Development Policy and Management (IDPM).
  2. Lee, Hiro & van der Mensbrugghe, Dominique, 2004. "EU enlargement and its impacts on East Asia," Journal of Asian Economics, Elsevier, Elsevier, vol. 14(6), pages 843-860, January.
  3. Hiro Lee & Dominique van der Mensbrugghe, 2006. "Deep Integration and Its Impacts on Nonmembers: EU Enlargement and East Asia," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University 184, Research Institute for Economics & Business Administration, Kobe University.
  4. Ovidiu Stoica & Monica Damian, 2013. "Evaluation of the Common Agricultural Policy’s Impact upon Inflation Rate in Central, Eastern and Southern Europe Countries," International Journal of Economics and Financial Issues, Econjournals, Econjournals, vol. 3(1), pages 229-236.
  5. Feher, Istvan & Papp, Zsolt, 2002. "Analysing Competitiveness of the Hungarian Agro-Food Chains," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain, European Association of Agricultural Economists 24848, European Association of Agricultural Economists.
  6. Fernandez, Javier, 2002. "The Common Agricultural Policy and EU Enlargement: Implications for Agricultural Production in the Central and Eastern European Countries," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain, European Association of Agricultural Economists 24945, European Association of Agricultural Economists.

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