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

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. 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.
  2. Josling, Tim & Kelch, David R. & Liapis, Peter S. & Tangermann, Stefan, 1998. "Agriculture and European Union Enlargement," Technical Bulletins 156810, United States Department of Agriculture, Economic Research Service.
  3. 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 7319, Food and Agricultural Policy Research Institute (FAPRI).
  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 32052, Food and Agricultural Policy Research Institute (FAPRI).
  5. Josling, Tim & Kelch, David R. & Liapis, Peter S. & Tangerman, Stefan, 1998. "Agriculture and European Union Enlargement," Technical Bulletins 184380, United States Department of Agriculture, Economic Research Service.
  6. Josling, Timothy E. & Kelch, David R. & Liapis, Peter S. & Tangermann, Stefan, 1998. "Agriculture and European Union Enlargement," Technical Bulletins 33571, United States Department of Agriculture, Economic Research Service.
  7. 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, vol. 24(3-4), pages 359-86.
  8. 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, 03.
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