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

Author

Listed:
  • Fuller, Frank H.
  • Beghin, John C.
  • Fabiosa, Jacinto F.
  • Mohanty, Samarendu
  • Fang, Cheng
  • Kaus, Phillip J.

Abstract

Using a world agricultural multimarket model, we analyze the consequences of enlargement of the European Union (EU) to include the Czech Republic, Hungary, and Poland for agricultural markets. We produce a market outlook through the year 2010 for two enlargement scenarios, which 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.

Suggested Citation

  • Fuller, Frank H. & Beghin, John C. & Fabiosa, Jacinto F. & Mohanty, Samarendu & Fang, Cheng & Kaus, Phillip J., 2000. "Accession of the Czech Republic, Hungary, and Poland to the European Union: Impacts on Agricultural Markets," Hebrew University of Jerusalem Archive 18388, Hebrew University of Jerusalem.
  • Handle: RePEc:ags:hebarc:18388
    DOI: 10.22004/ag.econ.18388
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    References listed on IDEAS

    as
    1. Frank Fuller & John Beghin & Samarendu Mohanty & Jay Fabiosa & Cheng Fang & Phil Kaus, 1999. "The Impact of the Berlin Accord and European Enlargement on Dairy Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 117-130, December.
    2. 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, vol. 23(3), pages 309-329, March.
    3. Albiac, Jose & Garcia, Philip, 1992. "The Effects of Spain's Entry into the European Community on the Spanish Hog Market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(4), pages 455-471.
    4. 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, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 359-386.
    5. Fuller, Frank H. & Beghin, John C. & Mohanty, Samarendu & Fabiosa, Jacinto F. & Fang, Cheng & Kaus, Phillip J., 1999. "The Impact Of The Berlin Accord And European Enlargement On Dairy Markets," Hebrew University of Jerusalem Archive 18332, Hebrew University of Jerusalem.
    6. Baldwin,Richard & Haapararanta,Pertti & Kiander,Jaakko (ed.), 1995. "Expanding Membership of the European Union," Cambridge Books, Cambridge University Press, number 9780521481342, January.
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