IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v24y2012i3p351-363.html
   My bibliography  Save this article

A free trade agreement between Ukraine and the European Union: potential effects on agricultural markets and farmers' revenues

Author

Listed:
  • Olexandr Nekhay
  • Thomas Fellmann
  • Stephan Hubertus Gay

Abstract

Ukraine and the EU are currently negotiating a deep and comprehensive free trade agreement (FTA). Such a FTA can be expected to comprise opportunities as well as challenges for both the EU and Ukraine and to have an impact on agricultural markets. This article provides a model-based quantitative assessment of the potential impact of a FTA on agricultural commodity markets and farmers' revenues in the EU and Ukraine. For the quantitative analysis the dynamic, partial equilibrium model AGLINK--COSIMO has been adapted and applied. The analysis focuses on the bilateral trade positions and not on the effect on other countries. The simulation of a FTA between the EU and Ukraine was done through the elimination of import tariffs for the main agricultural commodities. The results of the simulation indicate a positive change in producer revenue of EUR 393 million (+2.6%) in Ukraine and EUR 860 million (+0.4%) in the EU. So this FTA entails benefits for the agricultural sectors of both trading partners. However, gains from a FTA are not distributed homogeneously and vary significantly among commodities. Ukrainian agricultural producers should also be prepared to meet the challenges involved in the necessity to comply with the quality and sanitary standards of the EU.

Suggested Citation

  • Olexandr Nekhay & Thomas Fellmann & Stephan Hubertus Gay, 2012. "A free trade agreement between Ukraine and the European Union: potential effects on agricultural markets and farmers' revenues," Post-Communist Economies, Taylor & Francis Journals, vol. 24(3), pages 351-363, November.
    • Handle: RePEc:taf:pocoec:v:24:y:2012:i:3:p:351-363
    DOI: 10.1080/14631377.2012.705469
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2012.705469
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2012.705469?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. von Cramon-Taubadel, Stephan & Hess, Sebastian & Brummer, Bernhard, 2010. "A preliminary analysis of the impact of a Ukraine-EU free trade agreement on agriculture," Policy Research Working Paper Series 5264, The World Bank.
    2. World Bank, 2004. "Achieving Ukraine's Agricultural Potential : Stimulating Agricultural Growth and Improving Rural Life," World Bank Publications - Reports 14377, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sergio René Araujo‐Enciso & Thomas Fellmann, 2020. "Yield Variability and Harvest Failures in Russia, Ukraine and Kazakhstan and Their Possible Impact on Food Security in the Middle East and North Africa," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 493-516, June.
    2. Hans Jensen & Ignacio Pérez Domínguez & Thomas Fellmann & Paul Lirette & Jordan Hristov & George Philippidis, 2019. "Economic Impacts of a Low Carbon Economy on Global Agriculture: The Bumpy Road to Paris," Sustainability, MDPI, vol. 11(8), pages 1-17, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:zbw:iamost:207016 is not listed on IDEAS
    2. Verikios, George & Sullivan, Maura & Stojanovski, Pane & Giesecke, James & Woo, Gordon, 2011. "The Global Economic Effects of Pandemic Influenza," Conference papers 332033, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Schürenberg-Frosch, Hannah, 2011. "How to model a child in school? A dynamic macro-simulation study for Tanzania," Conference papers 332068, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Christensen, Garry & Pomfret, Richard, 2007. "Distortions to Agricultural Incentives in the Kyrgyz Republic," Agricultural Distortions Working Paper Series 48361, World Bank.
    5. Miriam Frey & Zoryana Olekseyuk, 2014. "A general equilibrium evaluation of the fiscal costs of trade liberalization in Ukraine," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 505-540, August.
    6. Independent Evaluation Group, 2016. "Growing the Rural Nonfarm Economy to Alleviate Poverty," World Bank Publications - Books, The World Bank Group, number 28971, December.
    7. Nekhay, Olexandr & Gay, Stephan Hubertus & Fellmann, Thomas, 2011. "A Free Trade between Ukraine and the European Union: Challenges and Opportunities for Agricultural Markets," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114616, European Association of Agricultural Economists.
    8. Miriam Frey & Zoryana Olekseyuk, 2011. "The EU-Ukraine trade liberalization: How much do the costs of tariff elimination matter?," Working Papers 308, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies), revised Feb 2013.
    9. Pomfret, Richard, 2007. "Distortions to Agricultural Incentives in Kazakhstan," Agricultural Distortions Working Paper Series 48360, World Bank.
    10. Vasily Astrov & Zdenek Lukas & Josef Pöschl, 2006. "The Ukrainian Economy between Russia and the Enlarged EU: Consequences for Trade and Investment," wiiw Country Profile 23, The Vienna Institute for International Economic Studies, wiiw.
    11. Kvartiuk, Vasyl, 2015. "Participatory governance in rural development: Evidence from Ukraine," Studies on the Agricultural and Food Sector in Transition Economies 207016, Institute of Agricultural Development in Transition Economies (IAMO).
    12. Levkovych, Inna, 2011. "Der ukrainische Außenhandel mit Produkten der Agrar- und Ernährungswirtschaft: Eine quantitative Analyse aus Sicht traditioneller und neuer Außenhandelstheorien," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 59, number 109520.
    13. Kvartiuk, Vasyl, 2015. "Participatory governance in rural development: Evidence from Ukraine," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 78, number 78.
    14. von Cramon-Taubadel, Stephan & Nivievskyi, Oleg & von der Malsburg, Emanuel Elsner & Movchan, Veronika, 2007. "Distortions to Agricultural Incentives in Ukraine," Agricultural Distortions Working Paper Series 48512, World Bank.
    15. Zoryana Olekseyuk, 2016. "Modeling of FDI in business services: Additional effects in case of Ukraine's European integration," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(7), pages 1010-1043, October.
    16. Anders Aslund, 2013. "Ukraine's Choice: European Association Agreement or Eurasian Union?," Policy Briefs PB13-22, Peterson Institute for International Economics.
    17. Olekseyuk, Zoryana, 2015. "The EU-Ukraine Deep and Comprehensive Free Trade Agreement and the Importance of FDI," Conference papers 332588, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Myrna van Leeuwen & Petra Salamon & Thomas Fellmann & Martin Banse & Oliver von Ledebur & Guna Salputra & Olexandr Nekhay & Robert M'barek, 2012. "The agri-food sector in Ukraine: Current situation and market outlook until 2025," JRC Research Reports JRC71776, Joint Research Centre.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:24:y:2012:i:3:p:351-363. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.