Delhi Business Review X Vol. 10, No. 1 (January - June 2009) 43 THE POSITIO THE POSITIO THE POSITIO THE POSITIO THE POSITION OF CZECH AND SLO N OF CZECH AND SLO N OF CZECH AND SLO N OF CZECH AND SLO N OF CZECH AND SLOVAK AGRO AK AGRO AK AGRO AK AGRO AK AGRO- FOOD FOOD FOOD FOOD FOOD TRADE IN THE EUROPEAN MARKETS TRADE IN THE EUROPEAN MARKETS TRADE IN THE EUROPEAN MARKETS TRADE IN THE EUROPEAN MARKETS TRADE IN THE EUROPEAN MARKETS Peter Bielik* Peter Bielik* Peter Bielik* Peter Bielik* Peter Bielik* Artan Qineti** Artan Qineti** Artan Qineti** Artan Qineti** Artan Qineti** LOVAKIA and Czech Republic went through a long-term process of transformation since they split from the common federation state. Trade flaws regarding the agro- food commodities were until before accession into the EU limited because of existing different tariff and non-tariff barriers. The position of agro-food trade of a given country can be judged in different ways. In this article we analyze the competitiveness of agricultural sector in the respective countries using Balassa indexes in an approach developed and applied by Bojnec and Fertö (2006). The objective of our analysis is the bilateral Slovak and Czech agro-food trade, respectively with main European partners (EU 25, EU 15 and V-4 & Austria). Key Words: Czech Republic, Slovakia, agro-food trade, European Union. Introduction Slovakia and Czech Republic went through a long-term process of transformation since they split from the common federation state. Both countries are characteristic for the small size of their economies, focused mainly on their internal markets. Trade flaws regarding the agro- food commodities were until before accession into the EU limited because of existing different tariff and non-tariff barriers. Accession meant for both countries increasing opportunities for agro- trade in the framework of common market, but also increasing competition for domestic producers. Many authors consider the ability of successful adaptation in the foreign markets as a sign of competitiveness (Pokrivcak and Ciaian, 2004; Ciaian and Swinnen, 2006). For all the above mentioned reasons, the analysis of the trends in export competitiveness is useful because it might help to find potential problems for different branches of agro- food sector and propose suitable solutions for the future (Ciaian and Pokrivcak, 2007; Bojnec and Ferto, 2006; EU- Commission, 1999). Concepts and Methodology The position of agro-food trade of a given country can be judged in different ways. One way is to analyze the indicator of competitiveness. Competitiveness can be analyzed at three different levels: (i) competitiveness of nations (macroeconomic level); (ii) competitiveness of industries (mesoeconomic level); and (iii) competitiveness of firms (microeconomic level). Another aspect of competitiveness exists with regards to the spatial dimension of the investigation. Competitiveness of enterprises can be compared within a region of a particular country, or between countries. (Bojnec and Ferto, 2006). S * Dean, Department of Economics, Faculty of Economics and Management, Slovak University of Agriculture, Tr.A. Hlinku 2, Nitra 94976, Slovak Republic. ** Professor, Department of Economics, Faculty of Economics and Management, Slovak University of Agriculture, Tr.A. Hlinku 2, Nitra 94976, Slovak Republic.