WTO COMMITMENTS AND CAP ADOPTION IN CENTRAL AND EAST EUROPEAN COUNTRIES: THE CASE OF ROMANIA

Abstract

This paper examines Romania’s accession to the EU in relation to WTO commitments and adoption of the CAP. Projections are generated for 2006, assumed as a notional year for accession. Romania will not create a problem for the EU in relation to harmonisation of tariff bindings. Requests for compensation for decreased market access will be only for a few products and the amounts are insignificant. However, domestic support and export subsidy commitments might create problems for several main agricultural products. Consequently, Romania must employ policy measures that do not affect farmers’ prices and do not rely on high tariff protection.