The reform, as envisaged in Agenda 2000, will create conditions for the development of multi-functional, sustainable and competitive agriculture in the EU. Furthermore, its long-term objectives will not only have an effect on the applicant countries but are also intended to benefit future generations.

PROSPECTS FOR THE FUTURE

External pressures:
With the Uruguay Round Agriculture Agreement, the EU has already done a lot to satisfy WTO commitments. Subsidies to exportation have been reduced, even more than the EU was expected to. So, in 1998, EU expenditures for export restitutions were up to 9,4% of the total value of the agricultural exportations, although it was 55% in 1992.
But, even if the EU has so far had no major problems meeting WTO commitments, with further reductions it could have more problems to do it. Moreover, the WTO commitments on export subsidies will be negotiated in future rounds, and the EU will be the primary target. Indeed, the USA and the Cairns group (small and medium sized agricultural exporting countries which championed the causes of better access to the markets of advanced nations and less market disruption from their policies during the Uruguay Round) have already committed themselves to negotiating substantial reductions, even complete elimination, of export subsidies during the next round.

Eastern Europe enlargement:
The enlargement of the union is well underway. Accession negotiations have been formally opened with 12 candidate countries. The accession of the Central and Eastern European countries is significant from an economic perspective in general. In terms of agriculture, the enlargement is expected to double the agricultural labor force as well as the arable area of the EU, and to add over 100 million food consumers to the internal market. It is important to say that the EU is already the most important trade partner in agricultural products for many of the candidate countries. Enlargement will offer considerable opportunities to the candidate countries and help them to use their potential for agriculture production efficiently. However, candidate countries have a long way to go before reaching this point. Agriculture in the applicant countries has many deficiencies and requires substantial restructuring and modernization. The EU has intensified activity to support the restructuring process in the candidate countries and, among other measures, has introduced pre-accession instruments. The agricultural instrument for pre-accession aid is SAPARD (Special Accession Programme for Agriculture and Rural Development), developed in the framework of Agenda 2000.