The economic impact of European expansion

Ten new countries are about to join the EU. These countries will bring an extra 130 million consumers to the market but also an extra 38.5 million hectares of farmland. These new members will receive transitional support packages when they join in May 2004, leading to complete equality with existing members by 2013. The large agricultural areas of these new members will create competition for existing export markets and their cost base is lower but their continental climate is more prone to weather extremes, making their yields less certain. All these changes coupled with the WTO negotiations will put more pressure on the EU intervention scheme and arable restructuring will become even more necessary in the UK.