EU Enlargement: Implications for the New Member Countries, the Enlarged EU, and World Trade


By Nancy Cochrane and Ralph Seeley

Ten countries- Poland, Hungary, Czech Republic, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Malta, and Cyprus- are on track to join the European Union (EU) in May 2004. At the December 2002 Copenhagen Summit, the EU closed negotiations with the ten candidate countries and issued invitations to join in 2004. Accession could bring some significant changes in the structure of agricultural production and trade in the countries of Central and Eastern Europe (CEE).

The authors suggest short-term commodity impacts are not large. Recent ERS model results are used to suggest large increases in output of feedgrains and beef, but almost no change in CEE output of wheat, oilseed, pork or poultry output. The analysis focused on three countries Poland, Hungry, and the Czech Republic. Trade impacts are also likely to be small in the short-term. There could be increases in rye and barley, and an enlarged EU could become a small net exporter of corn. But in the longer term, however, both supply and demand side impacts could be significant.

The paper presents careful analysis and EU enlargements predictions for six main commodities; beef, wheat, course grains, pork, poultry, and oilseeds. The authors suggest on the supply side, enlargement will increase pressure for restructuring. On the demand side, EU membership could bring higher income to CEE consumers and thus higher demand. The authors concludes by restating their assumption on aggregate short term impacts of EU enlargement on EU commodity output and world agricultural trade will not be nearly as large as once feared. In addition the author also suggests that even though accession could be great for consumers as many are aware, it could bring hardship to many small farmers and processors in the CEEs. It is for this reason that while a majority of the population favor accession, a sizable segment of the farming community are bitterly opposed.

Click here for Full Article


3 terms were found starting with the letter z.

Zero Profit
A situation in which economic profits in an industry are zero.
Zero Sum Game
A situation in which the gains to some individuals are exactly offset by losses to other individuals.
Rules restricting the rights to use land for specified purposes. For example, land may be zoned as industrial, commercial, residential, or agricultural.


8 terms were found starting with the letter w.

When a child has a very low weight compared to other children of the same height. (The technical definition is two standard deviations or more below the median weight for height of the reference population.) Wasting is an indicator of short-term or acute malnutrition.
Workable Competition
A set of market performance criteria that represent a compromise between perfect competition and the real world of competitive imperfections.
Working Stocks
The stock levels necessary for the marketing system to function efficiently at full capacity and without supply disruptions. Also referred to as pipeline stocks.
World Bank
An international financial institution owned by its 184 member countries that began operations in 1946. It provides loans and technical assistance to developing countries with the goals of reducing poverty, raising living standards, fostering sustainable development, and investing in people.
World Health Organization (WHO)
An international organization established in 1948 with the goal of improving human health. WHO assists countries in strengthening their health services, provides technical assistance in health emergencies, promotes disease prevention and control, and promulgates international food safety and medical standards. Currently has 192 member countries.
World Market
The world supply and demand of a good that is bought and sold internationally.
World Price
The price at which internationally traded goods are purchased and sold on world markets.
World Trade Organization (WTO)
An organization based in Geneva set up in 1995 to implement and enforce the Uruguay Round Agreement. Replaces the General Agreement on Tariffs and Trade (GATT). WTO establishes the legal and institutional foundations of the international trading system. It determines government obligations in trade legislation and regulation, and specifies trade dispute resolution mechanisms. Currently has 148 member countries.