Welfare implications of EU enlargement under the CAP

The qualitative impacts of European Union (EU) enlargement on intervention prices, variable import levies, and export restitution payments for cereal under the Common Agricultural Policy (CAP) are analyzed using a partial equilibrium framework for EU cereal crops. The welfare implications are developed for both a net exporter and net importer. Consumer surplus, producer surplus, government revenue, and total welfare are compared and contrasted for the EU and the new entrant, both before and after enlargement.