CThis study presents the author's estimates of producer and consumer subsidy equivalents (PSE's and CSE's) for Yugoslavia and Poland and uses the Static World Policy Simulation (SWOPSIM) framework developed at ERS to model the effects of trade liberalization (equated here with domestic policy reform) on agricultural production and trade in those two countriegl *PSE and CSE calculations for 1986, the base year used in the model,-show that in that year both Yugoslavia and Poland subsidized producers on a level roughly equal to that in Western Europe. On the other hand, Poland also subsidized consumers quite heavily, while Yugoslavia taxed its consumers, generally to a greater extent than in Western Europe. SWOPSIM results suggest that the ongoing economic reforms in these countries, if successful, could dramatically alter current patterns of production and trade in both countries. Poland could become a significant net agricultural exporter, mainly the result of a large increase in pork exports. Yugoslavia could shift to a net importer of grains, but increased exports of meat and other products could bring it close to selfsufficiency in agricultural trade.