Austrian Agriculture Facing Access to the EC Internal Market

An EC membership of Austria constitutes a major challenge for this country's agriculture. Agricultural prices are higher than those in the Community and, on present circumstances, would have to be reduced by about 15 percent. Only part of the domestic production and distribution of food products is ready to face international competition in an open European market. Profitability of agricultural production would fall considerably in most sub-sectors due to the price declines and agricultural incomes would come under pressure. This would, on the other hand, speed up the process of structural adjustment. The crucial advantage of integration would be free access to the promising markets of the Community. However, the agricultural and food processing sector would have to become more competitive in order to benefit from this advantage.