ABSTRACT
During the 1990s, Hungary had almost completed the political transition it began in 1989. As a result of this process and of the increasing trade liberalization of the Eastern European Area, the country achieved significant results in both production and trade restructuring. This structural reorientation of production and commerce was followed by a deep change in the regional patterns of specialization within the country. The ongoing process of economic integration with the European Union (EU) common market can be considered one of the main forces that have driven the restructuring of Hungarian trade and industrial patterns. In 1989 the EU granted Hungary the General System of Preference (GSP). In 1992 the preferential trade agreement with the European Free Trade Association came into effect; in 1993 the Central European Free Agreement (CEFTA) was established; in 1997 the Pan-European Cumulation Agreement was signed. Following these achievements, Hungary has entered a wide multilateral free trade area encompassing the EU, EFTA and nine other Central and Eastern European countries. In 2001 all tariffs on manufacturing products were removed, giving Hungarian products the opportunity to access a market of 487 million consumers.
