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Implications of EC Expansion for European Agricultural Policies, Trade and Welfare

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  • Anderson, Kym
  • Tyers, Rodney

Abstract

The expansion of the EC to include EFTA countries, and the greater provision of preferential access to protected EC markets for farmers in Eastern Europe's economies in transition, would have opposite effects on Europe's excess supply of food and on international food prices (assuming EC domestic prices remain unchanged). Their combined impacts on these parameters could therefore be positive or negative, as could the effects on net economic welfare in Europe and elsewhere. A multicommodity simulation model of world food markets is used to estimate the commodity and welfare effects of such integration by the year 2000. The results show that even if just the four most advanced Central European countries were to be given free access to EC food markets, that effective increase in European agricultural protection would virtually wipe out the global benefit from the lowering of EFTA's food prices to those in the EC-12. The budgetary cost to the EC of allowing Central European farmers access to EC markets would amount to one-quarter of the EC's expenditure on farm price supports, or far greater than what would accrue from EFTA countries joining the EC.

Suggested Citation

  • Anderson, Kym & Tyers, Rodney, 1993. "Implications of EC Expansion for European Agricultural Policies, Trade and Welfare," CEPR Discussion Papers 829, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:829
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    Cited by:

    1. Pokrivcak, Jan & Bartova, Lubica & Ciaian, Pavel, 2005. "Slovak Agricultural Markets Under Alternative CAP Scenarios - AG-MEMOD Modelling Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24674, European Association of Agricultural Economists.
    2. Baldwin, Richard E., 1995. "The Eastern enlargement of the European Union," European Economic Review, Elsevier, vol. 39(3-4), pages 474-481, April.
    3. Ben J Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2014. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," World Scientific Book Chapters,in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 2, pages 37-83 World Scientific Publishing Co. Pte. Ltd..
    4. Anderson, Kym, 1995. "Agricultural Competitiveness After the Uruguay Round," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 03), pages 1-12, December.
    5. Martin, Philippe, 1996. "A sequential approach to regional integration: The European Union and Central and Eastern Europe," European Journal of Political Economy, Elsevier, vol. 12(4), pages 581-598, December.
    6. Boone, Laurence & Maurel, Mathilde, 1998. "Economic Convergence of the CEECs with the EU," CEPR Discussion Papers 2018, C.E.P.R. Discussion Papers.
    7. Pavel Ciaian, 2002. "The impact of the Common Agricultural Policy on income distribution and welfare in Central and Eastern European Countries," EERI Research Paper Series EERI_RP_2002_02, Economics and Econometrics Research Institute (EERI), Brussels.
    8. Banse, Martin & Münch, Wolfgang & Tangermann, Stefan, 2000. "Eastern Enlargement of the European Union: General and Partial Equilibrium Analysis," 2000 Conference, August 13-18, 2000, Berlin, Germany 197223, International Association of Agricultural Economists.
    9. Kauppi, Heikki & Widgrén, Mika, 2005. "Voting Rules and Budget Allocation in an Enlarged EU," CEPR Discussion Papers 5134, C.E.P.R. Discussion Papers.
    10. García-Valiñas, Maria A. & Zaporozhets, Vera, 2015. "Key-drivers of EU budget allocation: Does power matter?," TSE Working Papers 15-548, Toulouse School of Economics (TSE).
    11. Ben J. Heijdra & Christian Keuschnigg, 2000. "Integration and Search Unemployment: An Analysis of Eastern EU Enlargement," CESifo Working Paper Series 341, CESifo Group Munich.
    12. Flam, Harry, 1995. "From EEA to EU: Economic consequences for the EFTA countries," European Economic Review, Elsevier, vol. 39(3-4), pages 457-466, April.
    13. Katarzyna Zawalinska, 1999. "Agriculture of the Czech Republic, Hungary and Poland in Perspective of Joining Common Agricultural Policy - with Some Fiscal Remarks," CASE Network Studies and Analyses 0178, CASE-Center for Social and Economic Research.
    14. Wilhelm Kohler & Chrisran Keuschnigg, 2001. "An Incumbent Country View on Eastern Enlargement of the EU. Part II: The Austrian Case," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(2), pages 159-185, June.
    15. Wolfgang Quaisser & John Hall, 2002. "Toward Agenda 2007 : Preparing the EU for Eastern Enlargement," Working Papers 240, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    16. Stehn, Jürgen, 1999. "Agenda 2000: Ouvertüre oder Finale der Reformen im Zuge der EU-Osterweiterung?," Kiel Discussion Papers 336, Kiel Institute for the World Economy (IfW).
    17. Orlowski, Witold M., 1996. "Price support at any price? Costs and benefits of alternative agricultural policies for Poland," Policy Research Working Paper Series 1584, The World Bank.
    18. Anderson, Kym, 1995. "Impacts of New Multilateral and Regional Integration Agreements on Agricultural Competitiveness of Advanced Economies," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183378, International Association of Agricultural Economists.
    19. de Sausa, José & Disdier, Anne-Célia, 2002. "Legal framework as a trade barrier - evidence from transition countries : Hungarian, Romanian and Slovene examples," HWWA Discussion Papers 201, Hamburg Institute of International Economics (HWWA).
    20. Kuhar, Ales & Erjavec, Emil & Borovsak, Katarina, 2012. "Restructuring Of The Slovenian Food Industry In The Pre - And Post Eu-Accession Period," 132nd Seminar, October 25-27, 2012, Skopje, Republic of Macedonia 139495, European Association of Agricultural Economists.

    More about this item

    Keywords

    Agricultural Protection; EC; EFTA; Europe's Transforming Socialist Countries; European Integration;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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