The gravity model for trade is analogous to Newton's gravity law in mechanics: the gravitational pull between two physical bodies (in Newtons) is proportional to the product of each body's mass (in kilograms) divided by the square of the distance between their respective center of gravity (in metres).The gravity equation is a popular formulation for statistical analyses of bilateral flows between different geographical entities. In 1962 Jan Tinbergen proposed that roughly the same functional form could be applied to international trade flows. Gravity models have been used extensively in recent years to try to quantify potential trade levels, particularly with transition countries. This paper focuses the discussion on the variables of the model, with a specific emphasis on agriculture trade flows with non-trade barriers and the agriculture market potential in European Union. The purpose of this study is to find the enter EU market strategies by research the EU15 Economic Freedom of the world?EFW?index.We consistently estimate the yearly GDP, international trade tax revenues, hidden import barriers, costs of importing, and risk of the credit market regulation efforts of these EU15 governments for the late 8 years. We further examine the factors that affect the level of agriculture trade efforts by employing a Panel data model using the data from 1995 to 2003.
