Accession of KRU to the WTO: The effect of tariff reductions on KRU and international wheat markets

Wheat trade accounts for one-third of the world grain trade, and it is expected to double by 2050. The KRU (Kazakhstan, Russia and Ukraine) countries account for approximately one-quarter of world wheat exports and are collectively considered one of the key wheat exporting regions. Ukraine became a member of the World Trade Organization (WTO) in 2008, Russia in 2012, and Kazakhstan is expected to reach accession soon. WTO accession entitles member countries to most-favoured-nation (MFN) tariffs and access to important markets largely inaccessible due to very high tariffs that can be charged on imports from WTO non-member countries. The KRU region's increased market accessibility as a result of WTO membership has the potential to foster important realignments in world wheat trade flows and prices and changes in welfare economics among the major wheat trading countries. Therefore, we examine world wheat trade liberalization effects using the global simulation model (GSIM).