Ethiopia is on the process of becoming a member of the WTO. to be accepted as a member,rnthe country has to address the supply side constraints and fulfill a number of preconditionsrnincluding the upgrading of the existing laboratory infrastructure used for regulating importsrnand exports, strengthening or creating appropriate national institution that can ensure thernimplementation of and administration of the TBT Agreement in compliance with the WTOrnTBT principles, the creation or building of local capacity to respond to a National EnquiryrnPoint for the WTO TBT Agreement and the creation of a national system certification servicernprovider for certifying ISO, HACCP, EUREPGAP, BRC and others required for foreignrnmarkets. But, fulfilling these requirements incur high costs. The Thesis tries to analyze thernimpact of implementing the WTO accession requirements on the national economy andrnevaluates its implication on poverty using a Computable General Economic Model (CGE)rnand the 2002 Ethiopian SAM CGE models can be used to analyze the impact ofrnmacroeconomic policy and external shocks on income distribution, employment and poverty.rnThe result of the analysis shows that if Ethiopia tries to implement the membershiprnrequirements for accession without farther looking for compensating measures, the mostrndisadvantaged group of the society will be adversely affected seriously, at least in the shortrnrun, as these groups are exposed to price risks. It was further shown that the increase inrngovernment consumption on goods and services induced by the need for fulfilling thernaccession requirements will have the tendency to increase the prices of goods and servicesrnconsumed by the poor and to the deterioration of the terms of trade of the sector in whichrnthey are employed. The result of the analysis has also shown that an attempt to finance therninvestment necessary for compliance by diverting resources away from the pro poorrnexpenditure sectors would end up adversely affecting the poor. Although trade liberalizationrnmay have a positive effect in the long-run for the poor by stimulation growth, increasingrndemand for unskilled and semi-skilled workers, and increasing government revenues, thernpoor may also, at the same time, be at a disadvantage in the short run. The policy implicationrnof this is therefore that the movement should {(Ike cautious measures in implementing thernrequirements for WTO accession. These measures may include implementing thernrequirements sequentially on priority basis and seeking technical and financial supports fromrnthe Standards and trade Development facility of the WTO for compensating the divertedrnresources and for injecting additional pro-poor spending. The limitation of this Thesis is thatrnfocus was given to the analysis of short-term impacts of shocks. Given the dynamic nature ofrnthe global economy and the ever changing modalities of trade relationships among countries,rnhowever, a more rigorous analysis involving dynamic CGE model and the Incorporation ofrnmore disaggregated households in the analysis would have helped to elucidate the impacts ofrnaccession on poverty and inequality.