PRIORITY FORMATS OF TRADE INTEGRATION OF COUNTRIES

Abstract

Abstract. The study is devoted to the problem of trade integration of countries, in the context of globalization, the development of foreign trade is one of the main factors in the competitiveness of the national economy. Partnership with the EU is strategic for Ukraine. The aim of the study is to reveal the key characteristics and manifestations of the asymmetric development of trade integration of Ukraine and the EU and to identify priority areas of trade and economic cooperation. The object of the study is the process of trade integration of countries on the example of Ukraine with the EU. Methods, measures and tools of trade and economic cooperation between Ukraine and the EU in the context of integration are the subject of the study. The study is devoted to the characteristics of the partnership between Ukraine and the European Union in the context of the Deep and Comprehensive Free Trade Area (DCFTA), which came into force on September 1, 2017 and is part of the Association Agreement. The dynamics of indicators of Ukraine’s economy development and foreign trade sphere is quantitatively estimated. An analysis of relations between Ukraine and the EU was conducted and it was concluded that the EU is a priority partner of Ukraine, as on average 42% of Ukraine’s goods and services are exported to Europe in recent years. The existing asymmetries of trade and economic integration of Ukraine and the EU, which are manifested in technological disproportion, raw material exports from Ukraine and high-tech imports, a negative balance and the constant growth of the negative trade balance of Ukraine are pointed out. To assess the effectiveness of Ukraine’s trade policy measures in terms of the DCFTA, a gravity model was built, which allowed to state that bilateral trade between the EU and Ukraine is more elastic than the dynamics of economic growth of EU GDP and less elastic than the dynamics of Ukraine’s GDP. The study confirmed that the DCFTA between Ukraine and the EU has already significantly affected the growth of trade turnover between these countries. The main integration opportunities and threats of cooperation between Ukraine and the EU have been identified. The main tools of trade integration are highlighted and the priority goals of trade integration of countries are identified in our study of Ukraine and the EU. Keywords: trade integration, trade policy, DCFTA, FTA, globalization, international trade. Formulas: 2; fig.: 1; tabl.: 4; bibl.: 19.