European economic integration and the consequences for US agriculture

Abstract

The economics of agriculture favors acceptance by the European Community (EC) of members of the European Free Trade Association (EFTA) before former members of the East Bloc. Analysis indicates the considerable agricultural production bread basket potential of Central and East Europe will be unleased first by market‐directed economies and later by integration with the EC—if the latter occurs. US consumers gain more than producers lose so economic welfare of Americans is raised modestly. US producers of most commodities lose from East European adjustments to a market orientation and merger with the EC. An EFTA merger mitigates these losses to US producers. © 1993 John Wiley & Sons, Inc.

East–West European Integration: A General‐Equilibrium Analysis of Alternative Agricultural Policies

“…Such changes will yield a larger supply and-assuming stagnant food consumption-larger net exports or smaller net imports of food. CEPR (1990), Collins and Rodrik (1991), Gleckler et al (1993), and Tangermann and Josling (1994) concluded that Eastern Europe may emerge as a sizable net exporter of agricultural products.…”

The impact of agricultural productivity increases in the former Soviet Union and Eastern Europe on world agricultural markets

“…Further policy reform or EU membership of Eastern European countries including their adoption of the EUs Common Agricultural Policy may accelerate the production increase. Many studies conclude that Eastern Europe will be a net exporter of agricultural commodities (CEPR, 1990;Collins and Rodrik, 1991;Gleckler et al, 1993;Tangermann and Josling, 1994). But there is no consensus regarding the former Soviet Union's agricultural potential.…”