CEECSCertified Electronic Evidence Collection Specialist
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Presenting a series of reports on the agricultural situation in the CEECs he said that they would be easily absorbed into the EU food market.
First, agricultural trade between the EU and ten CEECs (associated countries) is regulated by their respective Europe Agreements (EA).
The CEECs have chosen different methods and techniques to privatise and restructure their enterprises.
Rene Steichen, the previous Commissioner for Agriculture - and now one of those responsible for preparing the would-be reform plan - believes radical reform is unnecessary and that what is needed is the extension of the type of support and protection measures currently employed in the EU15 to the CEECs.
As a consequence, the present gap between TE and EU agricultural prices, which is still significant,(1) would shrink and entail less costs if the renewed CAP was to be extended to the CEECs.
He told a conference on the future of the food and agriculture industries in the CEECs that the basic CAP system of market support and direct subsidies to farmers could be adapted to fit an EC of 21 states including the six CEECs.
Along with a move toward more flexible exchange rates, CEECs monetary authorities faced the task of finding an appropriate monetary policy framework conducive to achieving price stability.
In the light of the CEECs trade developments and given that Russia is natural-resource abundant, one might expect that the former Soviet Union's trade dynamics have also been changing due to the country's intensified trade relationships with Europe, Asia and the US (despite the fact that the country is not yet a WTO member), and the increasing level of inward FDI (UNCTAD, 2006).
Brainerd (2000) argues that different labour market institutions partly explain the lower degree of wage inequality experienced in CEECs compared to CIS countries: in fact, the minimum wage was more effectively implemented in the former group of countries.
In view of the enlargement of the EU, there has been a growing interest in the competitiveness, productivity and profitability of farming in the CEECs.
Farmers in the CEECs are likely to demand they receive the same subsidies -- something which neither the Commission nor most EU states are likely to allow.