Does WTO improve chances for grain farming in Ukraine?
Traditionally agriculture plays a strong roll for Ukraine’s economy. At the moment it is still hard to forecast which impact the WTO membership will have for which parts of the Ukrainian farming industry. The door opened now a bit wider for Ukrainian farm produce exports to the close EU markets. Surely unproductive companies will encounter harder competition. Farmers where used so far to receive direct and even more indirect subsidies, which have to be reduced after all WTO rules will be implemented. Therefore production might shrink in the first years slightly. Anyhow this might turn out to be actually a long term advantage since reforms and investments will be forced. Politics are still very reluctant on reforms since more than a forth of the workforce is employed in agricultures. As a big grain producer, Ukraine profits at the moment on the high grain market prices. Especially the most common grain sorts, sunflower seeds and rape seeds seem promising. The reform process initiated by
