Czech Foreign Wine Trade – Comparative Advantages Distribution in Relation to the European Union

Abstract

The Czech agrarian foreign trade recorded significant changes since the Czech Republic joined the EU in 2004. This fact influenced also domestic and foreign wine trade of the Czech Republic. This article identifies the main changes in the product structure, and it specifies the level of Czech wine export comparative advantages´ distribution in relation to European Union member states. The analysis takes into account not only the trade value (in USD) but also the trade volume (in tonnes) of particular commodities. Commodity structure (HS system is applied at a six-digit level for the more detailed analyses of trade) is analysed especially in relation to the unit price value and in relation to the comparative advantages´ or disadvantages´ distribution. The main analysis of the comparative advantages´ distribution is based on Balassa index, Lafay index and the trade balance index. The results obtained from the individual analysis are presented by the modified "product mapping method". The territorial structure of the Czech agrarian trade is heavily focused on the trade with the European Union member states. The Czech Republic has comparative advantages in wine trade with the European Union in the following sub-aggregations: Wine of fresh grapes to 2 litres (HS 220421) and Grape must (HS 220430). Main destinations for Czech wine export are following: Slovakia, Poland and Germany.