AGRICULTURE INDUSTRY

Agriculture Industry And Enlargement Of The EU

Agriculture Industry And Enlargement Of The EU

Introduction

The current enlargement process constitutes one of the most important evolutionary steps for the European Union and it will continue to do so in the years ahead. In May 2004, 10 countries will formally enter the Union and another 4 countries have applied for membership1. Since the mid 1990s a vast number of studies have attempted to evaluate the economic impact of the enlargement process on the EU-15 and on candidate countries. Research mainly concentrated on macro-economic effects, the labour market (especially the migration potential), on foreign trade and investment, or on particular regions. However, thorough investigations into the effects on SMEs have been relatively infrequent, although their position in the context of enlargement is different from larger enterprises, due to a lower direct involvement in international activities and a different strategic potential.( Arnold, 2001 238)

Ten new Member States will formally enter the EU in May 2004 and full accession of other candidates is foreseen in the years ahead3. However, the accession of the new Members cannot be understood as a single event happening at a particular moment in time. In fact, entry into the Union is a complex process of gradual integration in many different domains, starting years before the day of the new Member's formal accession and, due to transition periods, still not completed by that day. It may therefore appear more appropriate to refer to an enlargement

Process.

Discussion

In principle this process is of a legal nature and comprises various integration steps, changing the regulatory framework under which (micro, small and medium-sized) enterprises in current as well as future Member States are operating, especially with respect to the regulation of business relations between the old and new Members.

For various reasons, however, the definition of integration measures occurring under the umbrella of 'enlargement' leaves room for arbitrariness and debate:

- The necessary integration and adaptation measures to be implemented depend on the starting position of each candidate country, in particular as far as the external relations with the Union and the alignment of the legal and administrative systems are concerned.

- Some integration steps may be the result of other agreements or treaties (e.g. the WTO) and are therefore independent from the enlargement process.

- There is a number of treaties/agreements already in the 'run-up' of enlargement (e.g. Europe Agreements).

This report considers the steps and adaptations described below as relevant elements of the enlargement process with current candidate countries5. An important part of these changes result from the inclusion of the (potential) new Members into the 'Single Market'. Generally speaking, this means the removal of barriers to facilitate the flow of goods, services, capital, and persons between the two 'integration blocs'.( Arnold, 2001 241)

Removal of barriers to trade in goods Tariff and non-tariff barriers to trade in goods between Member States of the European Union (and the European Economic Area) are widely reduced. Hence, the integration into the Union requires the lifting of such barriers between the present EU ...