The Price Impact Of Adopting The Common Agricultural Policy In Estonia: Estimated Versus Actual Effects
With accession to the EU, Estonia gave up its liberal trade and agricultural policies and adopted the much more protectionist regime of the EU. Prior to accession, many studies predicted that this would lead to price increases for agricultural products and processed food. This article discusses the results from the studies conducted and compares them with actual price changes that have occurred. The article concludes that prices have actually increased much less than predicted, with only a few exceptions like sugar. The reason lies in the uncertainties associated with policy modelling as well as the gradual price convergence already in motion before accession.
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