EFFECT OF SPAIN'S ENTRY INTO THE EUROPEAN COMMUNITY ON THE DEMAND FOR IMPORTED CORN

The U.S. share of corn exports to Spain is likely to drop from its fourth-place rank in 1984 because of Spain's entry into the European Community in 1986. Non-EC Spanish corn imports are expected to decline rapidly between now and 1995 because of the substantial price increases associated with the EC grain policy. Uncertainty exists, however, with respect to the precise level of imports. This report examines the structure of the Spanish corn market, reviews the policy changes outlined in the accession agreement, and analyzes the demand for imported corn. A segmented demand curve is used to study the effects of price changes on the various Spanish industries which use corn