Michigan State University Extension
Extenstion International Trade Res. - 10179508
03/31/96
The United States exports over $382 million in agricultural products to the region annually. During January-April 1995, U.S.agricultural exports to the new members remained essentially unchanged from a year earlier. However, some exports, particularly beef and veal, dropped significantly. The United States exported $4,518,775 of beef and veal to Austria, Finland, and Sweden during January-April 1994, but only $634,000 in January-April 1995. Similarly, during that same period, U.S. exports of paddy and milled rice dropped 82 percent, from $5.3 million to $957,000.
Under the rules of the World Trade Organization (WTO), the United States and the European Union are negotiating permanent compensation for U.S. agricultural products adversely affected by the accession. In addition, the incorporation of the new member states' Uruguay Round export subsidy and market access commitments with the EU's commitments is an integral part of the negotiations. In practical terms, the enlargement should not increase export subsidies or internal support or restrain market access.