GAIN Report - Foreign Agricultural Service
GAIN Report - Foreign Agricultural Service GAIN Report - Foreign Agricultural Service
GAIN Report #EZ3007 Page 1 of 24 Executive Summary The Czech Republic will join the European Union (EU) on May 1, 2004. At that time the Czech Republic will have adopted not only EU legislation, but also accept the EU tariff system and the Common Agricultural Policy (CAP). The affects on U.S. exports are mixed and driven mostly by tariff changes (see Appendix I). Section I. - General Description of the Accession Process 1991 Accession Agreement signed between the Czech Republic and the EU 1994 Formal application for the EU membership 1998 Negotiations on enlargement starts between the EU and 10 accession countries 1999 Position Paper the Czech Republic specified its requirement on transition periods, quotas and other mechanisms for supply regulation 2000 Double Zero Agreement, reducing tariffs and other trade barriers between the Czech Republic and the EU 2002 Double Profit Agreement, elimination of some tariffs and no export subsidies on some commodities - comes into force in May 2003 January 2002 An EU Issue Paper announced proposed direct payments and quota for candidate countries (Germany, the Netherlands, Great Britain and Sweden thought the proposal was too generous - financial conditions from March 1999 did not include any direct payments) April 2002 The Common Position of the EU was presented in an updated proposal for the accession countries (agreement on agriculture reached in June; the EU agreed that even though direct payments were not in the financial plan for 2000-2006, they are still part of acquis communitaire and valid) June 2002 Sub-chapter closed - the Czech’s preliminarily closed veterinary and phytosanitary sub-chapter (two transition periods: till the end of 2006 for 52 processing plants to fully meet hygienic requirements and till the end of 2009 for laying hens cages) August 2002 Additional Information to the Position Paper - the Czech Republic presented 22 additional pieces of information to the Position Paper July 2002 Mid-term review - the EU’s proposal of the reform of the Common UNCLASSIFIED Foreign Agricultural Service/USDA
GAIN Report #EZ3007 Page 2 of 24 Agricultural Policy (CAP) - includes: transfer of funds from pillar 1 to pillar 2 (direct payment to support of rural areas) - the main theme of the reform is to separate direct subsidies from production (the new proposal would pay farmers a sum of money based on arable land) December 2002 Copenhagen Summit final decision on production quotas and subsidies June 2003 Referendum on Czech’s EU membership Section II. - Effects of the CAP on Producers and Production Patterns The Copenhagen summit in December 2002 laid out the conditions (production quotas, level of direct payments and volume of structural subsidies) for Czech agriculture after the accession to the EU. Production quotas Quotas, limits Agreement with the EU Current Situation Base Area (ha) 2 253 598 2 381 749 Referential yield (MT/ha) 4.20 4.33 Milk (MT) 2 682 143 (after 2006: 2 737 931) 2 655 587 Suckler cows (heads) 90 300 100 333 Slaughter premium (heads) Special beef premium (heads) 483 382 27 380 358 412 12 046 244 349 191 109 Ewes (heads) 66 733 56 000 Potato starch (MT) 33 660 38 000 (estimate 2002) Sugar (A+B) (MT) 454 862 474 571 Dried fodder (MT) 27 942 29 663 Flax - long fibre (MT) 1 923 1 600 Flax and hemp - short fiber (MT) 2 866 3 141 UNCLASSIFIED Foreign Agricultural Service/USDA
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<strong>GAIN</strong> <strong>Report</strong> #EZ3007 Page 1 of 24<br />
Executive Summary<br />
The Czech Republic will join the European Union (EU) on May 1, 2004. At that time the Czech<br />
Republic will have adopted not only EU legislation, but also accept the EU tariff system and the<br />
Common <strong>Agricultural</strong> Policy (CAP). The affects on U.S. exports are mixed and driven mostly by<br />
tariff changes (see Appendix I).<br />
Section I. - General Description of the Accession Process<br />
1991 Accession Agreement signed between the Czech Republic and the EU<br />
1994 Formal application for the EU membership<br />
1998 Negotiations on enlargement starts between the EU and 10 accession<br />
countries<br />
1999 Position Paper the Czech Republic specified its requirement on<br />
transition periods, quotas and other mechanisms for<br />
supply regulation<br />
2000 Double Zero Agreement, reducing tariffs and other trade barriers between<br />
the Czech Republic and the EU<br />
2002 Double Profit Agreement, elimination of some tariffs and no export<br />
subsidies on some commodities - comes into force in May 2003<br />
January 2002 An EU Issue Paper announced proposed direct payments and quota for<br />
candidate countries (Germany, the Netherlands, Great Britain and Sweden<br />
thought the proposal was too generous - financial conditions from March<br />
1999 did not include any direct payments)<br />
April 2002 The Common Position of the EU was presented in an updated proposal for<br />
the accession countries (agreement on agriculture reached in June; the EU<br />
agreed that even though direct payments were not in the financial plan for<br />
2000-2006, they are still part of acquis communitaire and valid)<br />
June 2002 Sub-chapter closed - the Czech’s preliminarily closed veterinary and<br />
phytosanitary sub-chapter (two transition periods: till the end of 2006 for<br />
52 processing plants to fully meet hygienic requirements and till the end of<br />
2009 for laying hens cages)<br />
August 2002 Additional Information to the Position Paper - the Czech Republic<br />
presented 22 additional pieces of information to the Position Paper<br />
July 2002 Mid-term review - the EU’s proposal of the reform of the Common<br />
UNCLASSIFIED <strong>Foreign</strong> <strong>Agricultural</strong> <strong>Service</strong>/USDA
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