EU-enlargement and Common Agricultural Policy - policy options and consequences.

The methodological approach: An important part of the project is to evaluate relevant literature on the enlargement of the EU and on the further development of the CAP. Trade developments are analysed. In addition to that a simple simulation model is to be developed. First of all this model serves as a consistent picture of agricultural commodity and factor markets. It takes account of the most important trends and policy instruments. It covers several commodities and countries. Factors and commodities can be subsituted. Bilateral trade relations are not considered. For a series of years the model calculates partial market equilibria. Base run calculations are to be compared with alternative policy simulations.