ABSTRACT
This chapter analyses the state of competitiveness of Czech agricultural products in relation to the European Union (EU), examining one possible accession scenario, and drawing implications for policy design under the assumption of fixed technology with no substitution between factors. Factor market development will definitely affect the competitiveness of agricultural products. The preaccession agricultural policy will format the choice of technology and allocation of resources, and hence, competitiveness at the moment of EU accession. Concerning agriculture, who will benefit from the enlarged custom union depends mainly on whether lower protection of the Central and Eastern European countries or higher price support of the current EU members is adopted. In the former case it would be Western consumers who benefit, while in the latter case it would be Eastern agricultural producers. The chapter explains a concept for assessing competitiveness and examines the experience with the Association Agreement with the EU.
