Factors Determining EU-Competitiveness of the Hungarian Agriculture: Trade policy approach

As regards EU accession of Hungary one of the most important questions is how the adaptation of the Common Agricultural Policy (CAP) will affect the competitiveness of the Hungarian agriculture. Competitive effects of CAP can be revealed in several ways (quantitative, comparative analysis, simulations etc.) but the results may differ significantly. That is why it is interesting to compare the results of different methods. This paper concentrates on the competitive effects of changing trade policy by comparing the results of comparative analyses (producer prices, export subsidy systems and import protection) and simulations. The results of the simulation confirm the conclusion that the CAP adaptation will favour basically the cereal production. CAP adaptation will intensify the already existing (competitive) differences between the two large sectors of agriculture (plant and animal products). All of the analyses came to the conclusion that the prospects of arable crops are favourable. Less reassuring are the prospects of animal products. There are apparent efficiency problems, and rising feed costs (due to accession) may further weaken the position of this sector. Without basic structural reforms the sustainability of the sector's competitiveness is questionable.EU accession, trade policy, competitiveness, International Relations/Trade,

Declining "Common" Agricultural Policy? CAP Reform of 2003 and Its National Implementation in the Member States

This paper focuses on the basic element of the 2003 CAP reform process: on the single farm payment and its national implementation models. We examine possible economic impacts (production distorting effects, redistribution, restructuring, resource allocation and effects on land market) of the basic SFP models. In sum, we can say that the 2003 CAP reform and the new support provide an opportunity to overcome some of the difficulties the CAP faces with. However, the wide range of national diversities threatens the principle of the single market, and transparency and operation of the common market organizations. As there is a wide range of possible constructions member states can decide for, the common nature of the CAP gets more and more questionable.CAP reform, decoupling, single farm payment, Agricultural and Food Policy, Q17, Q18, F13, F15,

CAP UNDER FIRE: THE BUDGETARY REVIEW AND THE CAP

During the process of the budgetary review the CAP faces its greatest challenge of its history: not only the (common) financing of the CAP, but the future of the CAP itself is at stake. It is obvious that the reform steps implemented so far – even though they have several forward-looking elements – do not result in a CAP sustainable on the long run. Further changes are inevitable. Basing our analysis on the theories of fiscal federalism and other political economy approaches, we try to answer the following questions. Is common financing of a reformed CAP justified? Can national co-financing be extended? Is it justified to keep the system of commonly financed direct payments?European Union, Common Agricultural Policy, fiscal federalism, budget review, Agricultural and Food Policy, F15, F36, H41, H50, Q18,

CAP Reform in the Light of the WTO Doha Round Negotiations

Our paper focuses on the question: how the measures of June 2003 agreement can help the EU to meet the new WTO commitments. As decoupling of direct payments and WTO classification of the new payments seem to be one of the most important questions from the point of view of WTO negotiations, our analysis focuses mainly on the Single Farm Payment (SFP). We assesses the decoupled nature of the single farm payment (SFP) based on WTO and OECD criteria. We conclude that the SFP meets not only the current WTO (design based) criteria of decoupling, but can also be qualified as effective fully decoupled system using the OECD terminology.CAP reform, WTO, decoupling, International Relations/Trade, Q17, Q18, F13, F15,

Világgazdasági krízis – kereskedelmi, kereskedelempolitikai válaszok (kézirat)

A 2008–2009. évi gazdasági válság egyik meghatározó eleme volt a nemzektözi kereskedelem összeomlása. Komolyabb pénzügyi válság esetén a világpiaci output csökkenése miatt egyértelműnek tűnik a nemzetközi kereskedelem visszaesése. Ezúttal azonban a visszaesés nagyon gyors és nagyon szinkronizált volt (a világ szinte minden országát érintette). Példa nélküli a visszaesés mértéke is, hiszen a globális GDP sokkal kisebb mértékben csökkent. Fentiekkel összefüggésben a cikk a következő kérdésekre keresi a választ. Vajon mi okozta a nemzetközi kereskedelem eddig példa nélküli, hirtelen és szinkronizált összeomlását? Hogyan reagált a válságra a nemzetközi kereskedelem és a kereskedelempolitka? Milyen szerepe lehet a nemzetközi kereskedelemnek és a kereskedelempolitikának a kilábalásban

COMMON FINANCING FOR AGRICULTURAL POLICY BUDGETARY QUESTIONS

Can we agree fully with the statement, that “agricultural spending is a major distorting factor in the EU economy and a distinct obstacle to the Lisbon agenda’s implementation”? (Gros, 2008) Is it without question that Europe’s agriculture is in position to become sustainable and competitive without certain kind of common policy with no Community financing? Is it unambiguous in every respect, that the challenges facing the sector – globalization, trade liberalization, climate change, water management, Lisbon process, enlargement, changing preferences – could be answered at national level utilizing exclusively national financial sources? The answers to these questions are complex. So the purpose of the paper is multiple: - Exploration of factors justifying community level intervention. – Could be applied the bottom line of the “decentralization theorem” to budgetary questions and needs of the agricultural policy? According to our hypothesis the answer is considered yes. - Assessing present CAP - taking into account its ability to provide EU wide public goods (multifunctional elements serve in deed significant cross-border externalities) and to create EU value added. - Making an attempt to redefine EU’s agricultural policy through exploring objectives having a greater impact by being implemented at the supranational level and not at other secondary decision levels. – Making an attempt to outline a Common Rural Policy, a policy promoting the provision of public goods required by the society by means of targeted and decoupled economic policy measures. In order to attain the objectives of the paper we apply the theory of fiscal federalism, make analysis on EU public finances in a broader context.public goods, fiscal federalism, a new agricultural policy, Agricultural and Food Policy, Public Economics, Q14, Q18, H41,

How Decoupled Is the European Union's Single Farm Payment?

Our paper focuses on the key element of the 2003 CAP reform: on the single farm payment (SFP). The basic aim was to decouple direct payment from production decisions. Because of the widespread agricultural policy reforms (support producers with the least possible distortions) and of the on-going WTO negotiations, this is an issue attracting significant attention on behalf of agricultural economists. Different tools and different methodologies have been employed in the effort to better understand and rank policy measures in terms of their production and trade effects. Most of the literature classifies measures based on implementation criteria. Our paper assesses the decoupled nature of the single farm payment (SFP) based on WTO and OECD criteria. The EU argues that the payments do not distort trade and therefore should be placed in the WTO green box as a decoupled income support. Based on our analysis, this seems to be possible, as the SFP meets not only the current WTO (design based) criteria of decoupling, but can also be qualified as effective fully decoupled system using the OECD terminology.CAP reform, WTO, decoupling, Agricultural and Food Policy, Q17, Q18, F13, F15,

Az új tagállamok növekedési modellje : Kihívások és kilátások :(kézirat)

Az Európai Unió új tagállamai magas növekedési ütemet, és annak eredményeként erős reálkonvergenciát értek el több mint egy évtizeden keresztül. Mindennek alapja a vizsgált időszakban működő sajátos növekedési modell. A cikk azt vizsgálja, hogy mely jellemzők különböztették meg az EU-10 krízis előtti növekedési modelljét más régiók növekedési teljesítményétől, valamint azt, hogy megvalósulhat-e a helyreállás és a kilábalást követő növekedés a korábbi modell alapján. Elemzéseink azt mutatják, hogy a régiónak új növekedési modellre van szüksége, olyanra, amelyben a hazai megtakarítások növelése, a strukturális reformok, valamint az exportorientált szektorokra koncentráló növekedés kiemelt jelentőségű

Growth model of the new member states: Challenges and prospects

This paper reviews the strong pre-crisis economic growth in the new EU member states and assesses whether the growth model can continue to be successful after the crisis. The analysis shows that a new growth model for the region will be needed, ideally one that focuses on raising domestic savings, implementing structural reforms to increase potential growth and rebalancing growth towards tradable sectors