A Preliminary Analysis of the Impact of a Ukraine-EU Free Trade Agreement on Agriculture

von Cramon-Taubadel, Stephan; Hess, Sebastian; Brummer, Bernhard

dc.creator	von Cramon-Taubadel, Stephan
dc.creator	Hess, Sebastian
dc.creator	Brummer, Bernhard
dc.date	2012-03-19T18:39:09Z
dc.date	2012-03-19T18:39:09Z
dc.date	2010-04-01
dc.date.accessioned	2023-02-17T21:02:52Z
dc.date.available	2023-02-17T21:02:52Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100406083430
dc.identifier	http://hdl.handle.net/10986/3750
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244714
dc.description	Agriculture 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.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5264
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	AD VALOREM
dc.subject	AGREEMENT ON AGRICULTURE
dc.subject	AGRICULTURAL MARKETS
dc.subject	AGRICULTURAL PRODUCTION
dc.subject	AGRICULTURAL PRODUCTS
dc.subject	AGRICULTURAL SECTOR
dc.subject	AGRICULTURAL TRADE
dc.subject	AGRICULTURAL TRADE LIBERALIZATION
dc.subject	AGRICULTURE
dc.subject	APPAREL
dc.subject	APPLIED TRADE POLICY ANALYSIS
dc.subject	AVERAGE PRODUCTION COSTS
dc.subject	AVERAGE TARIFFS
dc.subject	BARRIERS TO TRADE
dc.subject	BASE YEAR
dc.subject	BENCHMARK
dc.subject	BILATERAL AGREEMENTS
dc.subject	BILATERAL RELATIONSHIPS
dc.subject	BILATERAL TARIFF
dc.subject	BILATERAL TARIFF CUTS
dc.subject	BILATERAL TARIFF REDUCTION
dc.subject	BILATERAL TARIFFS
dc.subject	BILATERAL TRADE
dc.subject	BORDER PROTECTION
dc.subject	CAPITAL ACCUMULATION
dc.subject	CHANGES IN TRADE
dc.subject	CIVIL SOCIETY
dc.subject	COMMON MARKET
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPARATIVE ADVANTAGES
dc.subject	COMPETITIVE INDUSTRIES
dc.subject	CONSTANT ELASTICITY OF SUBSTITUTION
dc.subject	CONSTANT RETURNS TO SCALE
dc.subject	CONSUMERS
dc.subject	COUNTRY OF ORIGIN
dc.subject	CURRENCY
dc.subject	CUSTOMS
dc.subject	CUSTOMS UNION
dc.subject	DECISION MAKING
dc.subject	DEMAND CURVES
dc.subject	DEMOCRATIC REFORMS
dc.subject	DEVELOPED COUNTRIES
dc.subject	DEVELOPMENT ASSISTANCE
dc.subject	DIFFERENTIAL TREATMENT
dc.subject	DISPUTE SETTLEMENT
dc.subject	DISPUTE SETTLEMENT PROCEDURE
dc.subject	DOMESTIC INDUSTRIES
dc.subject	DOMESTIC MARKET
dc.subject	DOMESTIC PRICE
dc.subject	DOMESTIC PRODUCTION
dc.subject	ECONOMIC COOPERATION
dc.subject	ECONOMIC INTEGRATION
dc.subject	ECONOMIC SITUATION
dc.subject	ECONOMIC STRUCTURE
dc.subject	ECONOMIC WELFARE
dc.subject	ELASTICITY
dc.subject	EQUILIBRIUM
dc.subject	EUROPEAN UNION
dc.subject	EXPANSION OF TRADE
dc.subject	EXPORT SECTOR
dc.subject	EXPORT STRUCTURE
dc.subject	EXPORT TAX
dc.subject	EXPORT VALUE
dc.subject	EXPORTERS
dc.subject	EXPORTS
dc.subject	EXTERNAL PROTECTION
dc.subject	FACTORS OF PRODUCTION
dc.subject	FINAL GOODS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN DIRECT INVESTORS
dc.subject	FOREIGN FIRMS
dc.subject	FOREIGN INVESTMENT
dc.subject	FREE ENTRY
dc.subject	FREE TRADE
dc.subject	FREE TRADE AGREEMENT
dc.subject	FREE TRADE AGREEMENTS
dc.subject	FULL LIBERALIZATION
dc.subject	GDP
dc.subject	GENERAL EQUILIBRIUM
dc.subject	GENERAL EQUILIBRIUM MODEL
dc.subject	GENERAL EQUILIBRIUM MODELING
dc.subject	GENERAL EQUILIBRIUM TRADE
dc.subject	GENERAL EQUILIBRIUM TRADE MODEL
dc.subject	GENERALIZED SYSTEM OF PREFERENCES
dc.subject	GLOBAL NETWORK
dc.subject	GLOBAL TRADE
dc.subject	GLOBAL TRADE ANALYSIS
dc.subject	GLOBAL WELFARE
dc.subject	GROWTH RATE
dc.subject	HUMAN CAPITAL
dc.subject	IMPACT OF TRADE
dc.subject	IMPACT OF TRADE LIBERALIZATION
dc.subject	IMPORT BARRIERS
dc.subject	IMPORT RESTRICTIONS
dc.subject	IMPORT TARIFFS
dc.subject	IMPORTED GOODS
dc.subject	IMPORTS
dc.subject	INCREASING RETURNS
dc.subject	INCREASING RETURNS TO SCALE
dc.subject	INDUSTRIALIZED COUNTRIES
dc.subject	INFORMATION SYSTEMS
dc.subject	INTEGRATION AGREEMENTS
dc.subject	INTERMEDIATE INPUTS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL COMPETITION
dc.subject	INTERNATIONAL TRADE
dc.subject	LIBERALIZATION OF TRADE
dc.subject	LOBBYING
dc.subject	MARKET ACCESS
dc.subject	MARKET INFORMATION
dc.subject	MONETARY POLICY
dc.subject	MONOPOLY
dc.subject	MOST FAVORED NATION
dc.subject	MULTILATERAL AGREEMENTS
dc.subject	MULTILATERAL TRADE
dc.subject	MULTILATERAL TRADE AGREEMENTS
dc.subject	MULTILATERAL TRADE LIBERALIZATION
dc.subject	NEGATIVE TERMS OF TRADE EFFECTS
dc.subject	NON-TARIFF BARRIERS
dc.subject	NON-TRADE CONCERNS
dc.subject	NON-TRADE ISSUES
dc.subject	PERFECT COMPETITION
dc.subject	POLICY MAKERS
dc.subject	POLICY RESEARCH
dc.subject	PREFERENTIAL ACCESS
dc.subject	PREFERENTIAL STATUS
dc.subject	PREFERENTIAL TRADE
dc.subject	PREFERENTIAL TRADE AGREEMENTS
dc.subject	PREFERENTIAL TREATMENT
dc.subject	PRODUCT MARKETS
dc.subject	PRODUCTION EFFICIENCY
dc.subject	PRODUCTION INCREASES
dc.subject	PRODUCTIVITY
dc.subject	QUANTITATIVE RESTRICTIONS
dc.subject	QUOTA RENTS
dc.subject	QUOTA SYSTEM
dc.subject	QUOTAS
dc.subject	RED TAPE
dc.subject	REGIONAL AGREEMENTS
dc.subject	REGIONAL TRADE
dc.subject	REGIONAL TRADE AGREEMENTS
dc.subject	REGIONALISM
dc.subject	SAFETY ISSUES
dc.subject	SAFETY STANDARDS
dc.subject	SHALLOW INTEGRATION
dc.subject	SPECIAL TREATMENT
dc.subject	TARIFF BARRIERS
dc.subject	TARIFF BORDER
dc.subject	TARIFF CONCESSIONS
dc.subject	TARIFF DATA
dc.subject	TARIFF DISTORTIONS
dc.subject	TARIFF LEVELS
dc.subject	TARIFF LINES
dc.subject	TARIFF POLICY
dc.subject	TARIFF RATE
dc.subject	TARIFF RATE QUOTA
dc.subject	TARIFF RATE QUOTAS
dc.subject	TARIFF RATES
dc.subject	TARIFF REDUCTION
dc.subject	TARIFF REDUCTIONS
dc.subject	TARIFF SCHEDULES
dc.subject	TERMS OF TRADE
dc.subject	TRADE AGREEMENT
dc.subject	TRADE AGREEMENT NEGOTIATIONS
dc.subject	TRADE BALANCE
dc.subject	TRADE BARRIERS
dc.subject	TRADE CONCESSIONS
dc.subject	TRADE COSTS
dc.subject	TRADE CREATION
dc.subject	TRADE DATA
dc.subject	TRADE DIVERSION
dc.subject	TRADE FACILITATION
dc.subject	TRADE FLOWS
dc.subject	TRADE IN GOODS
dc.subject	TRADE ISSUES
dc.subject	TRADE LIBERALIZATION
dc.subject	TRADE LOSSES
dc.subject	TRADE MODELS
dc.subject	TRADE NEGOTIATIONS
dc.subject	TRADE PARTNERS
dc.subject	TRADE POLICY
dc.subject	TRADE POLICY SIMULATION
dc.subject	TRADE PREFERENCES
dc.subject	TRADE RELATIONS
dc.subject	TRADE RELATIONSHIP
dc.subject	TRADE VOLUMES
dc.subject	TRADING BLOCS
dc.subject	TRADING SYSTEM
dc.subject	TRANSPARENCY
dc.subject	UNSKILLED LABOR
dc.subject	URUGUAY ROUND
dc.subject	VALUE OF OUTPUT
dc.subject	VOLUME OF TRADE
dc.subject	WAGES
dc.subject	WELFARE IMPACTS
dc.subject	WORLD MARKET
dc.subject	WORLD MARKETS
dc.subject	WORLD TRADE
dc.subject	WORLD TRADE ORGANIZATION
dc.subject	WTO
dc.subject	ZERO TARIFFS
dc.title	A Preliminary Analysis of the Impact of a Ukraine-EU Free Trade Agreement on Agriculture
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Europe and Central Asia
dc.coverage	Europe
dc.coverage	Eastern Europe
dc.coverage	Commonwealth of Independent States
dc.coverage	Ukraine