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The Impact of the European Enlargement and Common Agricultural Policy Reforms on Agricultural Markets: Much Ado about Nothing?
| Content Provider | AgEcon Search |
|---|---|
| Author | Fabiosa, Jacinto F. Beghin, John C. Dong, Fengxia Elobeid, Amani E. Fuller, Frank H. Matthey, Holger Tokgoz, Simla Wailes, Eric J. |
| Abstract | Following a historical agreement on the EU enlargement, 10 new member states(NMS) acceded to the European Union on May 1, 2004. Although the European Union hasexpanded its membership in the past, this enlargement is unique in terms of its scope anddiversity of the countries, area, and population involved. Thus, the effects of the EUenlargement on current and future member countries and on world commodity marketsrequire careful consideration as the European Union is a major player in these markets. Weanalyze the effects of the Common Agricultural Policy (CAP) reform and enlargement onthe EU-15, the NMS, and world agricultural markets. We compare three 10-yearcomprehensive agricultural outlook scenarios. In a “pre-enlargement” scenario, all pre-enlargementpolicies of the EU-15 are held in place and the 10 NMS maintain theirindependent economic policies and older technologies as if nothing happens. The secondscenario considers the CAP reform in the EU-15. The third scenario is the 2004 Food andAgricultural Policy Research Institute (FAPRI) baseline projection, which incorporatesboth the CAP reforms and accession of the 10 NMS with the associated domestic and tradepolicy reforms and some convergence in technology within the EU-25.With prices in most commodities in the acceding countries historically below EU-15prices, accession leads to a moderate decrease in the EU-15 prices, whereas for the 10NMS, domestic prices of many commodities increase substantially. Holding incomelevels constant, consumption levels of agricultural products in these countries decrease inmost instances because of higher food prices, while production levels rise. The impact ofthe two reforms on world markets is moderate to negligible. The CAP reform has amoderate impact on the EU-15. |
| Related Links | https://ageconsearch.umn.edu/record/139726/files/2006_fabiosabeghinetal.pdf |
| Page Count | 73 |
| File Format | |
| DOI | 10.22004/ag.econ.139726 |
| Language | English |
| Publisher | Australian Agricultural and Resource Economics Society (AARES) |
| Publisher Date | 2006-01-01 |
| Access Restriction | Open |
| Subject Keyword | Applied Economics Agricultural Economics Agri-economic Open Access Database Research in Applied Economics Research in Agricultural Economics Higher Study On Agricultural Economics Higher Study On Applied Economics Agricultural Research Documents Agrarian Economy & Research Higher Study Agri-economics Research in Economics Agri-economic Open Access Repository Statistics in Agricultural Economics Cap Reform, Common Agricultural Policy, Eu Enlargement, Europeanagriculture, New Member States. Cap Reform Common Agricultural Policy Eu Enlargement European Agriculture New Member States. Agribusiness Agricultural and Food Policy |
| Content Type | Text |
| Resource Type | Article |
| Subject | Economics, Econometrics and Finance |
