China Belt and Road Initiative Journal: Research Analysis and Perspectives
Legal Framework of Foreign Investments in Central and Eastern European Countries Agriculture
Volume 2, Issue 1, January 2019
Special Issue “16+1” Cooperation and Chinese Investments in Central and Eastern European Countries
According to one economic analysis, there is a very big gap in the prices of agricultural land in the
countries of the “old EU” and the countries of the “new EU” and the candidate countries for the EU.
According to this analysis, the difference in the price of agricultural land between these two groups of
countries will begin to equalize within the EU with the tendency that the price of agricultural land in the countries of Central and Eastern Europe (CEE) will almost completely reach the price of agricultural land in the Western Europe. Therefore, the monitoring of the agricultural land market in this part of Europe is exceptionally actual, especially the legal aspect of this market, since the regulations governing the sale of agricultural land in CEEC are very different, although they are under the influence of the EU regulations in this field.
Namely, after several decades of under-investment in the agricultural sector in developing countries
there was a surge in foreign direct investment (FDI) in primary agricultural production, in the late 2000s.
The reasons for this surge are diverse and complex, but the main drivers can be linked to the steep rise in commodity prices in 2007-2008 and the realization that demand for finite natural resources is set to continue increasing significantly in the next decades.
Except as a subject of trade, i.e. ownership right, agricultural land in the CEEC can also be the basis
for investing in agricultural production. Therefore, the monitoring of legislation that allow direct support to production and rural development, is of exceptional importance for reviewed trends in this area. This particularly refers to organic farming, which is increasingly finding its market in developed countries.
This type of production is particularly suitable for CEEC due to agricultural land which is not over-used by extensive production, i.e. saturated with pesticides and mineral fertilizers, as, in general, in developed countries.
2. International Legal Framework of Foreign Direct Investment (FDI) in Agriculture
4. Bosnia and Herzegovina
7. Czech Republic