Aims of the inquiry
5. Fears have been expressed, in the media and elsewhere,
that EU markets would be flooded by cheap agricultural exports
from the NMS. We were conscious, too, of the controversy surrounding
the extension of direct CAP payments to farmers in the acceding
countries and its potential effect on the EU budget. Therefore,
in October 2003, we decided to investigate the impact of enlargement
of the EU on agriculture. Our terms of reference were:
The Committee will examine the current state of agricultural
production in the accession states; the effect of the transitional
arrangements and of CAP reform, including the Commission proposals
for reforms to specific commodity sectors; and the impact of enlargement
on the agriculture markets of Europe.[5]
6. We received written evidence from a diverse group
of organisations and individuals. In February 2004, prior to taking
oral evidence, we visited Poland and Hungary in order to explore,
at first hand, the agricultural, environmental and food issues
facing the accession states, in the run-up to membership of the
European Union.
7. In March 2004 we took oral evidence from Professors
Tarditi, Erjavec and Tangermann, eminent academics who contributed
enormously to our investigations, providing us with an introduction
to the policy background and an expert assessment of the likely
impacts of enlargement. We also heard from senior representatives
of the agricultural ministries of Slovenia and the Slovak Republic,
who offered an insight into the main issues facing two further
accession states. We subsequently took oral evidence from the
National Farmers' Union (NFU), the Country Land and Business Association,
the Food and Drink Federation (FDF), the Federation of the Food
and Drink Industries of the Czech Republic and Lord Whitty, Minister
for Farming, Food and Sustainable Energy. We are most grateful
to all of those who gave us evidence or otherwise assisted us
during the course of our inquiry.
8. The evidence we received was therefore provided
prior to accession on 1 May 2004. Given that this report is released
in the aftermath of enlargement, we have been able to consider
that evidence in the light of subsequent events. The report is
split into three sections. The first part looks at the impact
accession is likely to have on agriculture in the NMS. The second
part looks at the possible impact of EU enlargement on UK agriculture.
Other issues are explored in the final part of the report.
1 
