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Impact of the European Enlargement and Cap Reforms on Agricultural Markets. Much Ado About Nothing? The

Author

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

Abstract

Policy reforms in the EU require careful consideration because the EU is a significant player in international agricultural markets for many commodities. We analyze the effects on world agricultural markets of the 2003 Common Agricultural Policy (CAP) reform and the accession of ten new member states (NMS) to the EU on May 1, 2004. Given past reforms, changes introduced in the 2003 CAP have only a moderate impact on the EU-15, causing small decreases in production for most commodities and raising domestic prices marginally. Beef, rice, and dairy experience the greatest changes. Accession leads to substantial increases in domestic prices of several commodities in the ten NMS because their prices were historically below EU-15 prices. Consequently, consumption of agricultural products in these countries decreases while production rises. Trade with the NMS causes EU-15 prices to decline modestly, and the two reforms combined have moderate or negligible effects on world markets.

Suggested Citation

  • Beghin, John C. & Beghin, John C. & Dong, Fengxia & Elobeid, Amani & Fuller, Frank H. & Matthey, Holger & Tokgoz, Simla & Wailes, Eric J., 2005. "Impact of the European Enlargement and Cap Reforms on Agricultural Markets. Much Ado About Nothing? The," Staff General Research Papers Archive 12731, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12731
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    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 Fuller & John C. Beghin & Jacinto Fabiosa & Samarendu Mohanty & Cheng Fang & Phillip Kaus, 2002. "Accession of the Czech Republic, Hungary and Poland to the European Union: Impacts on Agricultural Markets," The World Economy, Wiley Blackwell, vol. 25(3), pages 407-428, March.
    3. 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.
    4. 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, March.
    5. 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.
    6. 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.
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    Cited by:

    1. Yu, Tun-Hsiang (Edward) & Tokgoz, Simla & Wailes, Eric J. & Chavez, Eddie C., 2009. "A Quantitative Analysis of Trade Policy Responses to High Agricultural Commodity Prices," 2009 Conference, August 16-22, 2009, Beijing, China 51805, International Association of Agricultural Economists.
    2. Graham Brookes & Tun-Hsiang (Edward) Yu & Simla Tokgoz & Amani Elobeid, 2010. "Production and Price Impact of Biotech Crops, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 10-wp503, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Rachel Rose & Dimitrios Paparas, 2023. "Price Transmission: The Case of the UK Dairy Market," Commodities, MDPI, vol. 2(1), pages 1-21, March.
    4. Breisinger, Clemens, 2006. "Roads - A way out of poverty? A two region, general equilibrium model for Vietnam," Conference papers 331478, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Gohin, Alexandre, 2006. "Assessing the 2003 CAP Reform: Sensitivity to the Decoupling of Agenda 2000 Direct Payments," Working Papers 18868, TRADEAG - Agricultural Trade Agreements.
    6. Alexandre Gohin, 2005. "Assessing the impacts of the 2003 CAP mid term review : how sensitive are they to the assumed production responsiveness to Agenda 2000 direct payments ?," Post-Print hal-01937085, HAL.
    7. Ahmed, Wasim & Hussain, Safdar & Jafar, Rana Muhammad Sohail & Guang-Ju, Wang & Rabnawaz, Ambar & Saqib, Zulkaif Ahmed & JianZhou, Yang, 2016. "Impacts of Trade Liberalization on Dairy Industry in China," MPRA Paper 70385, University Library of Munich, Germany.
    8. Smeets Kristková, Z. & García Alvaréz 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), pages 1-16, June.

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    Keywords

    CAP reform; common agricultural policy; EU enlargement; European agriculture; new member states;
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