ABSTRACT
This chapter analyses the competitive position of the agricultural and food sectors in the Baltics and the expected development of this position following accession to the European Union (EU). The competitive potential of agriculture, as of any sector, is influenced by a whole set of determinants. Agricultural policies in Latvia and Lithuania are also relatively liberal compared to those in the EU, although to a lesser extent than in Estonia. In Lithuania, farmers and agricultural companies involved in primary farming also enjoy reduced road tax rates as well as reduced tariffs for electricity and natural gas. In the agricultural upstream sector there has been a growing trend towards specialisation of services. The much higher ratio of land to inhabitants can be seen as an advantage for agriculture in the Baltics compared to the EU. The discussion reveals that agriculture in the Baltics is faced with both opportunities and deficiencies.
