Joining EU: Reflections on Croatian Food Foreign Trade Relations

Abstract

The aim of the paper was to analyze the impact of joining EU to the agricultural foreign trade relations and trade shifting from traditional destinations to the EU. The most important part in total Croatian agricultural value has crop production, mostly cereals production, while livestock products contribute with 40% in the total value of agricultural production. Wheat and maize area sawn stagnate with mild descending in the 2000-2015 period, while annual production oscillates a lot. The situation in livestock production is characterized by lower production capacities of agricultural family farms. A number of livestock stagnate (cattle) or decreasing (pigs) in period 2000-2015. Croatian agricultural foreign trade negative balance is increasing, although the export-import ratio improves in the period 2011- 2013, probably as an effect of EU pre-accession trade benefits. Negative indicators in agricultural production are in direct connect to enormous import and negative foreign trade balance, while coverage of import by export is 57%. Joining EU shifted the trade from CEFTA countries (mostly Bosnia and Herzegovina and Serbia) to EU because Croatian products have not got privileged free access. Croatian agricultural policy should urgently be addressed to the weak points if we want to sustain the sector and better position on the European scene. The CAP mechanisms correspond to the needs and offer solutions for solving the problems of Croatian agriculture and rural areas by implementing measures of rural development.