IDEAS home Printed from https://ideas.repec.org/p/ags/iaae06/25618.html
   My bibliography  Save this paper

The Impact of The European Enlargement and CAP Reforms on Agricultural Markets. Much Ado about Nothing?

Author

Listed:
  • Fabiosa, Jacinto F.
  • Beghin, John C.
  • Dong, Fengxia
  • Elobeid, Amani E.
  • Fuller, Frank H.
  • Matthey, Holger
  • Tokgoz, Simla
  • Wailes, Eric J.

Abstract

We analyze the effects of the 2004 CAP reform and EU enlargement on European and world agricultural markets. We compare the results from a CAP reform only and a CAP reform plus enlargement scenarios to a no-enlargement baseline implementing Agenda 2000 CAP policies. We utilize the Food and Agricultural Policy Research Institute's policy analysis model to simulate the effects of CAP reform and EU enlargement on production, consumption, and trade for the EU, its New Member States (NMS), and major players in world agricultural markets. The model is a partial-equilibrium model of world agricultural markets including important producer and consumer countries in world livestock and products, dairy, grains, oilseeds and products, cotton and sugar markets. Each country's commodity sectors are modeled with structural equations which incorporate all important policy parameters. With prices in most commodities in the NMS historically below EU-15 prices accession leads to substantial price increases for many commodities in the NMS. Higher prices stimulate production and dampen consumption in the NMS, and trade between the new members and the EU-15 increases. Prices in the EU-15 decrease moderately. The impact of the two reforms on world markets is negligible. The CAP reforms have their greatest impact in the EU-15 markets for meats, rice, rapeseed, and dairy products. CAP reforms without enlargement generate a small increase in world and EU commodity prices.

Suggested Citation

  • Fabiosa, Jacinto F. & Beghin, John C. & Dong, Fengxia & Elobeid, Amani E. & Fuller, Frank H. & Matthey, Holger & Tokgoz, Simla & Wailes, Eric J., 2006. "The Impact of The European Enlargement and CAP Reforms on Agricultural Markets. Much Ado about Nothing?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25618, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25618
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/25618
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & Amani Elobeid & Frank H. Fuller & Holger Matthey & Simla Tokgoz & Eric Wailes, 2005. "Impact of the European Enlargement and Common Agricultural Policy Reforms on Agricultural Markets: Much Ado about Nothing? The," Center for Agricultural and Rural Development (CARD) Publications 05-wp382, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Frank H. Fuller & John C. Beghin & Samarendu Mohanty & Jacinto F. Fabiosa & Cheng Fang & Phillip Kaus, 1999. "Impact of the Berlin Accord and European Enlargement on Dairy Markets, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp231, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    3. Robert W. Ackrill, 2003. "EU Enlargement, the CAP and the Cost of Direct Payments: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 73-78.
    4. Nahuis, Richard, 2004. "One size fits all?: Accession to the internal market; an industry-level assessment of EU enlargement," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 571-586, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Smeets Kristková, Z. & GarciÌ a AlvareÌ z Coque, J. M., 2015. "Competitiveness of the EU Beef Sector – a Case Study," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(2), June.

    More about this item

    Keywords

    CAP; trade reform; policy reform; enlargement; new member states; European Union; Agricultural and Food Policy; Marketing; F1; Q17; Q18;

    JEL classification:

    • F1 - International Economics - - Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25618. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/iaaeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.