The impacts of currency fluctuations on agricultural trade

摘要

With a further plunge in the value of the euro in the wake of French and Greek elections, it is inevitable that this will affect the terms of trade of the EU with its major export markets. Fluctuations are likely to be particularly important for the agricultural sector. Currently, the EU is competing with the US, Brazil and Australasia to sell its cereals, dairy products and meat in the new Asian markets, Russia and central America. An important supplementary question is: will a new value of the euro have any long term effect on the EU's terms of agricultural trade?