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The challenge of integrating EU and Turkish agricultural markets and policies

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  • Harald Grethe

Abstract

This paper addresses the potential consequences of a political and economic integration of EU and Turkish agriculture and evaluates the resulting challenges. Simulation models reveal declining agricultural prices for Turkey in the case of market integration with the EU. This would lead to less production, more consumption and Turkey becoming a net importer of agricultural products. Resulting comparative static net welfare gains may amount €0.5 billion. More important, however, are the productivity effects which may be generated by the prospect of EU membership. A realistic range of outlays for implementing the CAP in Turkey is between €3.5 and 6.3 billion. The main challenge for Turkey in the years to come is to increase agricultural productivity. In order to channel EU funds into productivity-enhancing policies, the second pillar of the CAP is a more suitable instrument than direct payments which are based on area endowment and tend to capitalise into land prices.

Suggested Citation

  • Harald Grethe, 2007. "The challenge of integrating EU and Turkish agricultural markets and policies," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(4/5), pages 440-459.
    • Handle: RePEc:ids:ijarge:v:6:y:2007:i:4/5:p:440-459
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    Cited by:

    1. Brosig, Stephan & Glauben, Thomas & Götz, Linde & Weitzel, Enno-Burghard & Bayaner, Ahmet, 2011. "The Turkish wheat market: spatial price transmission and the impact of transaction costs," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(2), pages 147-161.
    2. Nazlioglu, Saban & Erdem, Ekrem, 2011. "Impacts of Turkey’s Integration into the European Union on Agricultural Markets and Income Distribution," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-11, January.
    3. Aerni, Philipp & Rae, Allan & Lehmann, Bernard, 2009. "Nostalgia versus Pragmatism? How attitudes and interests shape the term sustainable agriculture in Switzerland and New Zealand," Food Policy, Elsevier, vol. 34(2), pages 227-235, April.

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