Impact of new member accession to the European Union on food trade

Abstract

Purpose: The main focus is on the export and import of agricultural products in the EU in the years 2002-2017 outside the EU (extra-EU). Design/Methodology/Approach: This paper investigates the impact of EU (European Union) enlargement on food trade using descriptive statistics. First, EU-28 exports, imports, and trade balance of agricultural products outside the EU (extra-EU) are presented for 2002-2017. Findings: The trade balance between EU countries for food, beverages, and tobacco are also presented. Accession has led to the elimination of trade tariffs and accelerated improvements in trade. The most exported products by EU countries were alcoholic beverages (spirits and liquors, wine, and vermouth), bakery products, and wheat. Most of the export of agri-food products is directed to other EU countries, Russia, China, and various countries in South America, Africa, and Asia. Imports to EU countries comprised mostly of vegetables and fruits, coffee, tea, cocoa, and various fish products. Practical implications: The results will fill in the gap concerning the food trade of agricultural products in the EU. Originality/Value: The new information about extra EU trade of agricultural products and a GARCH (Generalized Autoregressive Conditionally Heteroscedastic) model was presented.