Industrial countries' protectionism with respect to Eastern Europe: the impact of the Association Agreements concluded with the EC on the exports of Poland, Czechoslovakia and Hungary

Poland, Czechoslovakia and Hungary signed Association Agreements with the EC in 1992. Simulation results show that these agreements have the potential of increasing the export revenues of the three East European countries by eight to 12 percent, thus giving them an opportunity to reduce their 1991 debt obligations by 10% to 15%. However, the EC's enactment of protectionist measures against the three countries derails the opportunities for growth provided to them by the Association Agreements.