PROSPECTS AND OPPORTUNITIES FOR UKRAINIAN AGRO-INDUSTRIAL COMPLEX FROM SIGNING ASSOCIATION AGREEMENT BETWEEN UKRAINE AND THE EUROPEAN UNION

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PROSPECTS AND OPPORTUNITIES FOR UKRAINIAN AGRO-INDUSTRIAL COMPLEX FROM SIGNING ASSOCIATION AGREEMENT BETWEEN UKRAINE AND THE EUROPEAN UNION

Journal Title: ЕКОНОМІЧНИЙ ДИСКУРС - Year 2016, Vol 1, Issue 1

Abstract

Introduction. The signing of the Association Agreement between Ukraine and the EU, as well as the establishment of the Free Trade Area (FTA) with the European Union under this Agreement, are important factors of the development of the agricultural sector. For Ukraine it opens prospects for gradual penetration of national companies into the EU markets, improving quality, safety, environmental characteristics of Ukrainian agricultural products and the improvement of food security of State. The aim of the study is to assess the prospects and opportunities for the agro-industrial sector of Ukraine that will arise after signing the Association Agreement between Ukraine and the EU as well as the establishment of the Free Trade Area under this Agreement. In this respect the analysis of some indicators of foreign agricultural trade of Ukraine is carried out, as well as features of customs and tariff regulation for the most tradable agricultural products. The measures of state agricultural policy on improving the use of existing potential of the agricultural sector, its adaptation to the new environment are proposed, i.e. taking into account the risks that arise as a result of the liberalization of foreign trade relations with the European countries. Purpose. Assessment of the prospects and opportunities for the agri-food sector in Ukraine that will arise as a result of the Association Agreement between Ukraine and the EU, as well as the establishment under this Agreement, the Free Trade Area. Methods. In the study the methods of logic synthesis, combination of analysis and synthesis, analytical grouping and prognostics are used. Results. FTA with the EU is the first step in the integration of Ukraine’s economy into the European market. Ukraine's agricultural sector has recently demonstrated the positive foreign trade dynamics. The analysis of the conditions provided by the Association Agreement between Ukraine and the EU, and the quotas set by the parties shows the willingness of the parties to protect their internal markets. However, even under these conditions Ukrainian agri-food products can find their niche in the European market. Discussion. The conditions agreed by the parties in the framework of the Free Trade Area between Ukraine and the EU are basic and can be reviewed in the future, which is stipulated by the Association Agreement between Ukraine and the EU. In the same time, at present not all of domestic agricultural producers are able to supply products to the EU market primarily due to a mismatch of quality standards. Improving the institutional environment of agricultural production, bringing it up to the EU standards will be under the scrutiny of scientific and analytics community considering that it has a great impact on food security and the health of the nation.

Authors and Affiliations

Vitalii Rusan

Keywords

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EP ID EP182977
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