Economic Reform and World Agricultural Markets

Stefan Tangermann

Comparative Economic Studies, 1993, vol. 35, issue 4, 33-48

Abstract: During the process of economic transformation, market integration of agriculture in Central and Eastern Europe has quickly opened borders to international trade. Integration of agriculture into the domestic market, however, is still lacking as a result of market imperfections. This is in stark contrast to the situation in the west, where agriculture is well integrated into the domestic market, while it is protected vis-à-vis international competition. Both consumption and production of agricultural products in Central and Eastern Europe have fallen significantly since the transition began. Consumption is likely to remain lower than in the past, while production has the potential to grow beyond historical levels. The European Community has opened up its borders somewhat to agricultural exports from Central and Eastern Europe. However, the economic benefits accruing to Central and Eastern Europe under the Europe Agreements are likely to remain rather small.

Date: 1993
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