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

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  • Fuller, Frank
  • Beghin, John
  • Fabiosa, Jacinto F.
  • Mohanty, Samarendu
  • Fang, Cheng
  • Kaus, Phillip

Abstract

We analyse the consequences on agricultural markets of enlargement of the European Union (EU) to include the Czech Republic, Hungary, and Poland. We produce a market outlook up to 2010 for two enlargement scenarios assuming different policy restrictions on grain and dairy production in the acceding countries. Accession of the three Central and Eastern European countries (CEECs) leads to a permanent but moderate decrease in EU prices for most commodities. In the three acceding CEECs, domestic prices increase drastically, final consumption of agricultural products decreases in most instances, while production increases. 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. Supply management mechanisms in the dairy and grain sectors would reduce the build-up of surpluses in the new member states, but limit their ability to take advantage of the expanded market. Accession of the three CEECs would increase the CAP budget over its proposed maximum if area payments are extended to incoming crop producers.

Suggested Citation

  • Fuller, Frank & Beghin, John & Fabiosa, Jacinto F. & Mohanty, Samarendu & Fang, Cheng & Kaus, Phillip, 2002. "Accession of the Czech Republic, Hungary and Poland to the European Union: Impacts on Agricultural Markets," ISU General Staff Papers 200201010800001284, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200201010800001284
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    Cited by:

    1. Maksym W. Sitnicki & Dmytro Kurinskyi & Olena Pimenowa & Mirosław Wasilewski & Natalia Wasilewska, 2024. "Strategic Formation of Agricultural Market Clusters in Ukraine: Emerging as a Global Player," Sustainability, MDPI, vol. 16(21), pages 1-21, October.
    2. Ovidiu Stoica & Monica Damian, 2013. "Evaluation of the Common Agricultural Policy's Impact upon Inflation Rate in Central, Eastern and Southern Europe Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 229-236.
    3. Luboš Smutka & Mansoor Maitah & Miroslav Svatoš, 2019. "The Czech Agrarian Trade Comparative Advantages Distribution Based on Value and Volume Approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(6), pages 1613-1625.
    4. Lee, Hiro & van der Mensbrugghe, Dominique, 2004. "EU enlargement and its impacts on East Asia," Journal of Asian Economics, Elsevier, vol. 14(6), pages 843-860, January.
    5. Lee, Hiro & van der Mensbrugghe, Dominique, 2006. "Deep integration and its impacts on non-members: EU enlargement and East Asia," MPRA Paper 82286, University Library of Munich, Germany.
    6. Pelkmans, J., 2003. "Economic implications of the enlargement of the EU," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 38.
    7. Scrieciu, Silviu Serban & Blake, Adam, 2003. "General Equilibrium Modelling Applied to Romania (GEMAR): Focusing on the Agricultural and Food Sectors," Development Economics and Public Policy Working Papers 30544, University of Manchester, Institute for Development Policy and Management (IDPM).
    8. 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.
    9. Feher, Istvan & Papp, Zsolt, 2002. "Analysing Competitiveness of the Hungarian Agro-Food Chains," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24848, European Association of Agricultural Economists.
    10. Lubos SMUTKA & Mansoor MAITAH & Miroslav SVATOS, 2018. "Changes in the Czech agrarian foreign trade competitiveness - different groups of partners' specifics," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(9), pages 399-411.
    11. Richard Pomfret & Patricia Sourdin, 2017. "Where Will Your Next Holden Come From? The 2004 EU Enlargement and Trade with Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 50(2), pages 181-194, June.
    12. Fernandez, Javier, 2002. "The Common Agricultural Policy and EU Enlargement: Implications for Agricultural Production in the Central and Eastern European Countries," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24945, European Association of Agricultural Economists.

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