von Cramon-Taubadel, StephanHess, SebastianBrummer, Bernhard2012-03-192012-03-192010-04-01https://hdl.handle.net/10986/3750Agriculture including food products is of particular interest for Ukraine. However, in free trade agreements involving the European Union, agriculture is always given special treatment and subject to less and slower liberalization than other sectors. This paper employs the standard Global Trade Analysis Project model in order to assess how World Trade Organization accession affects agriculture in Ukraine, and how potential bilateral tariff cuts may interact with potential productivity gains within Ukrainian agriculture. The results indicate that, due to trade liberalization, Ukraine can expect gains from a more efficient allocation of its resources in line with comparative advantage, leading to an increase of production and exports of wheat, other grains, and oilseeds, but also of several processed food products that benefit from less expensive intermediate inputs. However, Ukraine's exports are concentrated on a small number of destinations, especially Russia and some other Former Soviet Union countries because they fail to meet quality standards elsewhere. When Ukrainian production of these products increases due to increased allocative efficiency, exports to Russia increase further and prices there fall, generating negative terms of trade effects that largely offset the allocative gains. Ukrainian imports of agricultural products increase as well, partly because Ukrainian consumers switch to higher quality imported goods even though domestic production increases. Regarding free trade agreement negotiations with the European Union, these results highlight for Ukraine the fact that improved agricultural productivity will help to get most out of improved market access. However, the results also highlight for Ukraine the great importance of adopting internationally accepted quality standards in order to diversify its export structure.CC BY 3.0 IGOAD VALOREMAGREEMENT ON AGRICULTUREAGRICULTURAL MARKETSAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTSAGRICULTURAL SECTORAGRICULTURAL TRADEAGRICULTURAL TRADE LIBERALIZATIONAGRICULTUREAPPARELAPPLIED TRADE POLICY ANALYSISAVERAGE PRODUCTION COSTSAVERAGE TARIFFSBARRIERS TO TRADEBASE YEARBENCHMARKBILATERAL AGREEMENTSBILATERAL RELATIONSHIPSBILATERAL TARIFFBILATERAL TARIFF CUTSBILATERAL TARIFF REDUCTIONBILATERAL TARIFFSBILATERAL TRADEBORDER PROTECTIONCAPITAL ACCUMULATIONCHANGES IN TRADECIVIL SOCIETYCOMMON MARKETCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE INDUSTRIESCONSTANT ELASTICITY OF SUBSTITUTIONCONSTANT RETURNS TO SCALECONSUMERSCOUNTRY OF ORIGINCURRENCYCUSTOMSCUSTOMS UNIONDECISION MAKINGDEMAND CURVESDEMOCRATIC REFORMSDEVELOPED COUNTRIESDEVELOPMENT ASSISTANCEDIFFERENTIAL TREATMENTDISPUTE SETTLEMENTDISPUTE SETTLEMENT PROCEDUREDOMESTIC INDUSTRIESDOMESTIC MARKETDOMESTIC PRICEDOMESTIC PRODUCTIONECONOMIC COOPERATIONECONOMIC INTEGRATIONECONOMIC SITUATIONECONOMIC STRUCTUREECONOMIC WELFAREELASTICITYEQUILIBRIUMEUROPEAN UNIONEXPANSION OF TRADEEXPORT SECTOREXPORT STRUCTUREEXPORT TAXEXPORT VALUEEXPORTERSEXPORTSEXTERNAL PROTECTIONFACTORS OF PRODUCTIONFINAL GOODSFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTORSFOREIGN FIRMSFOREIGN INVESTMENTFREE ENTRYFREE TRADEFREE TRADE AGREEMENTFREE TRADE AGREEMENTSFULL LIBERALIZATIONGDPGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELGENERAL EQUILIBRIUM MODELINGGENERAL EQUILIBRIUM TRADEGENERAL EQUILIBRIUM TRADE MODELGENERALIZED SYSTEM OF PREFERENCESGLOBAL NETWORKGLOBAL TRADEGLOBAL TRADE ANALYSISGLOBAL WELFAREGROWTH RATEHUMAN CAPITALIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPORT BARRIERSIMPORT RESTRICTIONSIMPORT TARIFFSIMPORTED GOODSIMPORTSINCREASING RETURNSINCREASING RETURNS TO SCALEINDUSTRIALIZED COUNTRIESINFORMATION SYSTEMSINTEGRATION AGREEMENTSINTERMEDIATE INPUTSINTERNATIONAL BANKINTERNATIONAL COMPETITIONINTERNATIONAL TRADELIBERALIZATION OF TRADELOBBYINGMARKET ACCESSMARKET INFORMATIONMONETARY POLICYMONOPOLYMOST FAVORED NATIONMULTILATERAL AGREEMENTSMULTILATERAL TRADEMULTILATERAL TRADE AGREEMENTSMULTILATERAL TRADE LIBERALIZATIONNEGATIVE TERMS OF TRADE EFFECTSNON-TARIFF BARRIERSNON-TRADE CONCERNSNON-TRADE ISSUESPERFECT COMPETITIONPOLICY MAKERSPOLICY RESEARCHPREFERENTIAL ACCESSPREFERENTIAL STATUSPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPREFERENTIAL TREATMENTPRODUCT MARKETSPRODUCTION EFFICIENCYPRODUCTION INCREASESPRODUCTIVITYQUANTITATIVE RESTRICTIONSQUOTA RENTSQUOTA SYSTEMQUOTASRED TAPEREGIONAL AGREEMENTSREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGIONALISMSAFETY ISSUESSAFETY STANDARDSSHALLOW INTEGRATIONSPECIAL TREATMENTTARIFF BARRIERSTARIFF BORDERTARIFF CONCESSIONSTARIFF DATATARIFF DISTORTIONSTARIFF LEVELSTARIFF LINESTARIFF POLICYTARIFF RATETARIFF RATE QUOTATARIFF RATE QUOTASTARIFF RATESTARIFF REDUCTIONTARIFF REDUCTIONSTARIFF SCHEDULESTERMS OF TRADETRADE AGREEMENTTRADE AGREEMENT NEGOTIATIONSTRADE BALANCETRADE BARRIERSTRADE CONCESSIONSTRADE COSTSTRADE CREATIONTRADE DATATRADE DIVERSIONTRADE FACILITATIONTRADE FLOWSTRADE IN GOODSTRADE ISSUESTRADE LIBERALIZATIONTRADE LOSSESTRADE MODELSTRADE NEGOTIATIONSTRADE PARTNERSTRADE POLICYTRADE POLICY SIMULATIONTRADE PREFERENCESTRADE RELATIONSTRADE RELATIONSHIPTRADE VOLUMESTRADING BLOCSTRADING SYSTEMTRANSPARENCYUNSKILLED LABORURUGUAY ROUNDVALUE OF OUTPUTVOLUME OF TRADEWAGESWELFARE IMPACTSWORLD MARKETWORLD MARKETSWORLD TRADEWORLD TRADE ORGANIZATIONWTOZERO TARIFFSWorld Bank10.1596/1813-9450-5264