EUROPEAN INTEGRATION: ADVANTAGES AND THREATS TO UKRAINE’S FOREIGN TRADE

Abstract

Background. In terms of unfavorable external conditions and a significant deterioration of the socio-economic situation, the Ukrainian market has stagnated. Russia’s actions, including its unilateral suspension of the Free Trade Agreement, have led to a reduction in Ukraine's bilateral foreign trade operations. The processes of globalization and integration issue new challenges to the economy of any country, in particular, the questions of evaluation and stimulation of foreign trade of enterprises emerge in the conditions of constant transformation. Therefore, the aim of this study is to identifytrends and features of Ukraine’s foreign trade in the context of globalization and integration. Materials and methods. The article is based on a synthesis of research results of domestic and foreign scientists to determine the main influencing factors of cooperation with the EU on the state of development of Ukraine’s foreign trade. Research on this issue was conducted using the methods of theoretical generalization, analysis and synthesis. Results. Ukraine’s position in world trade is determined by the main factors: the dynamics of GDP, rating and index of economic freedom. The peculiarities of Ukraine's foreign trade over the last decade have been studied, the main partner countries; the main challenges that arise in our foreign trade as a result of European integration processes have been identified. It is proved that in the analysis of GDP it is expedient to use the indicator of GDP calculated on purchasing power parity. It is established that in the conditions of the world crisis, the war in the east caused the greatest damage to the economy of Ukraine. It was clarified that Ukraine needs to expand the geography of foreign trade relations, at the same time there is a significant unrealized potential for the development of bilateral relations with EU countries. Conclusion. Ukraine must follow the chosen course of European integration, but at the same must also develop other partnerships with countries on other continents. Unfortunately, Ukraine exports more raw materials and goods with low added value. Therefore, there is a need: to change the content of exports, to introduce tax and customs instruments to support exports, to amend the Association Agreement in terms of international trade. The structure of foreign trade does not stimulate Ukraine's economy to innovative development, so there is an urgent need for domestic policy reforms and changes in external priorities.