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The article estimates the static effects of a customs union in agri-food trade of the new Member States of the European Union. It was proved that in all the countries of Central and Eastern Europe which are members of the Community the acceptance of Community acquis in trade policy resulted in both the effect of trade creation and trade diversion, where the former was stronger.
The paper presents dynamics of the CEFTA countries’ trade in foodstuffs as well as an analysis of the trade liberalisation. From statistical data analysis we can see a positive impact of this agreement on trade turnover, but the removal of customs duties on agricultural and foodstuff goods not create the same trading conditions for the member countries. Actually it caused an unsettling of the market equilibrium in particular markets and a rise or fall in the competitiveness of some products.
Some possible scenarios of development of trade, production, demand and prices in the agri-food sector of the Common Market of the South (MERCOSUR) are presented in the paper. A mathematical model of general equilibrium Global Trade Analysis Project (GTAP) was used to make trade forecasts. The results of the analysis showed that the escalation of global agri-food trade liberalization may lead to a growth in the export and import of animal products and sugar and, consequently, may result in an increase in prices and a drop in demand for these goods.
The foreign trade performance in agro-food sector in the Central European Countries for the period of 2004-2007 has been evaluated. The main exports and imports measures, comparative advantages, specialization as well as market shares and competitiveness have been analyzed. After entering into the European Union by the Central European Countries, the importance of foreign trade in agro-food sector has increased, an intra-branch trade has been intensified and its structure has changed. The comparative position of these countries in the trade has been created by rising comparative advantages of some sections and lowering of the others. The foreign trade turnover has risen and the agro-food trade has been internationalized.
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