Commodity Structure Of Exports Research Articles

Analysis of the situation and trends in foreign trade of Dnipropetrovsk region: challenges and opportunities for the sustainable regional growth

The article assesses the situation and analyzes the current trends in the development of domestic foreign trade through the case of Dnipropetrovsk region. The analysis is conducted through the lens of identifying challenges and opportunities for the region that are opened up by foreign trade. The impact of the region's foreign trade on its international economic relations in the context of Ukraine's European integration and the deployment of globalization processes is significant. Dnipropetrovsk region is one of the leading exporters and, according to the results of 2018, ranks second place among the regions of Ukraine by the export of goods. Therefore, choosing the region for the study is determined by the importance of the development of international trade in its territories to strengthen the position of Ukraine's international competitiveness. The article identifies and analyzes the indicators of foreign trade of the Dnepropetrovsk region with the world countries, as well as the economic result and effect of it’s influence. The focus is put on assessing and analyzing the dynamics of changes in the structure of export and import of goods. In particular, the tendency of decrease in export of services of Dnepropetrovsk region to the EU countries during 2014-2017 is analyzed as a negative trend. Positive trend visualizes through increasing of this indicator in 2018. Overall, the increase of the number of regional enterprises engaged in the foreign trade of goods was shown. Emphasis is placed on the commodity structure of export. It is composed of ferrous metals (46.3%) and ores, slag and ash (23.2%). The basis of the commodity structure of import is mineral fuels; oil and its distillation products (30.3%), machinery, equipment and mechanisms; electrical equipment (14.4%), chemical products and related industries (11.3%), and precious metals (11%). The dynamics of the change in the export structure indicates a certain slowdown in the process of transition to a ‘new type economy’, which should be based not on direct consumption of resources, but on innovation, knowledge and technology, their application in products and services production. The article is a summary of the situation in the field of foreign trade of the region, which is carried out in the framework of the task of drafting the Strategy of development of Dnipropetrovsk region for the period until 2027.

Foreign Trade Cooperation Technologies: Prospects and Opportunities (With China and Russia as Examples)

The article has analyzed the benefits and barriers of creating the Sino-Russian free trade based on the legal documents governing the formation of the Silk Road taking into account features of the economies’ development at the current stage. The main trading partners of the Russian Federation among the far-abroad countries have been identified. The structure of exports-imports of the Russian Federation with the foreign trade partners among the APEC countries has been analyzed, including the structure of the trade between China and Russia, and the volume of bilateral trade between countries. The article has analyzed the state of trade cooperation between Russia and China by industries, and also assessed the competitiveness of the trading environment of the Silk Road countries. The authors have compared the parametric characteristics of Russia and China, and also forecasted the changes in the commodity structure of imports and exports for the Russian-Chinese foreign trade relations.

Current State and Main Trends of Foreign Trade Development in Far Eastern Federal District

The article examines the current specificity of foreign trade ties of the Far Eastern Federal District. It presents a brief analysis of dynamics of the volumes and commodity structure of the export-import operations of the Far Eastern Federal District. At present, of specific significance for the regions of the Far East and Siberia is search for tolls of modernizing the economy with purpose of transition to innovative development. Foreign trade can be a perspective direction of socio-economic development of Russia’s Far East. Far Eastern Federal District is export-oriented, but in the export commodity structure the mineral raw groups of commodities prevail, which decreases its positive effect. Expansion of trade-economic and investment cooperation with the countries of the Asian-Pacific region in the field of developing processing industries and machine building oriented at increasing the depth of mineral resources processing and growth of the ready-made products export can become the basis of sustainable development of the Far East.

АНАЛІЗ ТОВАРНОЇ СТРУКТУРИ ЕКСПОРТУ УКРАЇНСЬКОГО ПРИЧОРНОМОР’Я

Introduction. The foreign economic activity of the regions to date is a factor contributing to improving the well-being of the population, improving its quality of life, as well as the socio-economic development of the territory and increasing its competitiveness. The purpose of the article is to analyze the commodity structure of exports of the Ukrainian Black Sea region. Results. The export of Mykolaiv, Kherson, Odesa and Black Sea regions by individual product groups is investigated and the export structure is determined. The export of the Mykolaiv region in 2009-2018 by separate product groups and its structure is investigated. Compared to 2014, the region's exports increased by 10,3 % to $ 2,3 billion with an average annual increase of 7,5 % over the last three years. The largest is the proportion of crop products – about 90 %. Within 5 years, the share of machinery products in the structure of export of goods in the region decreased, the share of which consistently decreased from 14,1 % in 2014 to 2,3 % in 2018, which is explained by the loss of traditional eastern markets. The commodity structure of Kherson region export is investigated, where the largest is the share of crop products – their share in export is about 60 %. Exports of live animals and animal products increased from $ 7982,9 thousand in 2009 to $ 14525,7 thousand in 2018, correspondingly from 3,13 % to 8,34 % of the share. The commodity structure of export of Odessa region is investigated. The largest is the share of crop products, that increased from 43,49 to 64,98 % in exports. The share of fats and animal oils or vegetable origin decreased: from 33,27 % to 20,34 %. The commodity structure of the Black Sea region exports as a whole is investigated. The highest is the share of crop products, that increased from 70,77 to 76,81 % in exports. The volume of finished foods and fats and vegetable oils decreased from 14 % to 10,3 % and 11 % respectively. Conclusions. In general, the indicators of foreign trade activity of the agricultural enterprises of the Black Sea region increased significantly in 2009-2018. In recent years (2014-2018) import volumes have fallen substantially. The most productive in terms of foreign trade balance are the enterprises of the agro-industrial complex of Mykolaiv region. Key words: foreign economic activity of the region, export, import, dynamics, regional foreign economic relations, foreign economic relations of the region.

To the question of the transformation of the structure of foreign trade of Russia

The article examines the peculiarities of the foreign trade relations of the Russian Federation: the predominance of raw materials in exports and high-tech products in imports. The analysis of the dynamics of the commodity structure of exports from 1995 to 2018 was carried out with the selection of the commodity group “Mineral products” as raw materials, and the group “Machines, equipment and vehicles” as high-tech products. The dynamics of export export value has been investigated, based on data from the input-output tables of the Federal State Statistics Service, quantitative changes in economic sectors have been calculated. As a result, changes in the share of imports in the structure of the formation of resources of products and the share of exports in the structure of their use were revealed. The position of Russia in the world in terms of economic indicators has been studied and conclusions have been made about the possibility of the country becoming one of the five largest economies in the world in accordance with the goal set as a national goal. Information sources of the research were materials of the Federal State Statistics Service, the Federal Customs Service, and the World Bank.

Comparative analysis of the prerequisites and priorities of import substitution at various stages of development of the Russian economy

Import substitution is an integral part of the strategy to improve the competitiveness of the national agri-food complex. It should be a stimulus that will accelerate the economy and will contribute to the formation of a self-replicating mechanism of economic growth. The study analyzed the development of import substitution during the introduction of economic sanctions by Western countries and the United States. The study showed that the need for import substitution was brewing for a long time, however, the sanctions served as the impetus for its acceleration. The introduction by the President of the Russian Federation of special economic measures did not contradict the existing legislation and was aimed at restricting the importation of many types of products from abroad for the development of domestic production. The commodity structure of domestic exports and imports was also analyzed: the export of hydrocarbons has been prevailing for many years, but over the past two years their share in the total export structure has decreased. Most of the country imports machinery, equipment, vehicles, food and agricultural products, chemical products. For most indicators, there is a negative trend, due to which domestic imports decreased over the period of the sanctions by more than 100 billion US dollars. Despite economic sanctions, the European Union remains the main trading partner of Russia. Over the past 25 years, Russia has been a passive participant in international trade and, despite its high potential in the development of agriculture, was perceived by the world community as a country focused on the export of raw materials and hydrocarbons to a foreign market, rather than on the development of its own production, including agricultural production.

Аналіз стану торгівлі агропродовольчими товарами України з країнами Африки

Дана стаття присвячена дослідженню сучасного стану торгівлі України і країн Африки агропро-довольчими товарами. З цією метою пропонується використання в аналізі товарної та територіальної(по субрегіонах Африки) структур експорту, що дає можливість встановити особливості напрямів екс-портних потоків. Виявлено, що основні обсяги агропродовольчої продукції направляються в шість кра-їн Північної Африки. В інші 48 країн, а саме в Субсахарську Африку, де проживає більше 80,0% насе-лення континенту, що є потенційно величезним ринком для українських підприємств, приходитьсяблизько 18,0% імпорту з України. Торгівля з цими країнами знаходиться на початковому етапі розвит-ку. Встановлено, що для всіх субрегіонів, основними товарами імпорту з України є продукти рослинно-го походження і жири та олії тваринного та рослинного походження. Але їх частка в загальному про-довольчому імпорті поступово скорочується з 96,4% в 2013 р. до 84,3% в 2017 р. Також аналіз експор-ту в розрізі товарних груп показує чітку тенденцію до зростання абсолютно і відносно продажу з Украї-ни продуктів тваринного походження і готових харчових продуктів. Виконаний аналіз показує, що Укра-їна недостатньо використовує можливості розширення своєї присутності на африканському ринку аг-ропродовольчої продукції. Зроблено висновки про високу ефективність торгівлі з країнами Африки,про що свідчить коефіцієнт покриття експортом імпорту – самий високий у порівнянні з іншими напря-мами – СНД, ЕС, Азії. Доведено необхідність для розширення експорту в Африку різних заходів дер-жавної підтримки, в т.ч. дипломатичної. У висновках представлено рекомендації стосовно збільшенняпродаж агропродовольчої продукції на ринках країн Африки, а також напрям подальших наукових до-сліджень.

FDI and Export Commodity Structure Change: Evidence from China

FDI and Export Commodity Structure Change: Evidence from China

The Evolution of Russia’s Specialisation in Mutual Trade with the Countries of the EAEU

The subject of our research was the analysis of changes in the specialisation of Russia in mutual trade with the countries of the Customs Union — the Common Economic Space — the Eurasian Economic Union since the beginning of the functioning of the single customs territory. The work aims to characterise the impact of the integration process within the CU-SES-EAEU on the commodity structure of Russian exports to the grouping countries and the possibilities for realising Russia’s export potential in the markets of the partner countries. The author examines the most important trends and factors in the evolution of the commodity structure of mutual trade within the EAEU and Russia’s exports to these countries, assesses the importance of the EAEU countries for the realisation of the export potential of Russia. The study concluded that the integration process had a positive effect on the commodity structure of Russia’s exports to the EAEU countries: during the unification, the share of mineral products in total exports decreased by one third, while the share of machinery and chemical products, food products and agricultural raw materials rose. The author substantiated that the EAEU states are the most important market for Russian goods with a high share of value added and their importance is increasing. Nevertheless, the prospect for further realisation of the export potential of Russia in the markets of the EAEU countries is very ambiguous and will be determined by two factors: the growth rate of the Russian economy and the real achievements in the field of shaping long-term integration effects.

Influence of sanctions on foreign trade of Russia

After the countries of the EU and the USA introduced sanctions against the Russian Federation in 2014, the topic of influence on the state by other states or international organizations became the focus of attention of both Russian and foreign researchers. For Russian scientists, the topic of sanctions has acquired particular relevance, since they are at the epicenter of both the sanctions and the response measures that followed. The article presents the history of the development of measures of influence on the state by international organizations or other states, the history of studies of the effectiveness of sanctions measures in the entire history of their application is considered. Currently, theRussian Federationis under the sanctions imposed by theUnited Statesand the EU, which, in response to these measures, responded by introducing an import substitution policy. Considering the entire history of the gradual increase in the sanctions list, the state in the field of foreign trade should also detect increasing signs of pressure that would be reflected in indicators of incorporation into world trade. The author makes a hypothesis about the weak impact of sanctions on the state as a whole, and, in particular, on foreign trade. To confirm this hypothesis, the dynamics of the main indicators of foreign trade activity during 2013–2017 is considered. and a change in the commodity structure of exports and imports. The study is based on data from the Federal State Statistics Service, using methods of economic and statistical analysis and comparison of indicators, which allowed to show the degree of impact of sanctions on the main indicators of foreign economic activity. Following the consideration of official statistics, expert opinions on the implementation of planned indicators of the import substitution policy, it is possible to confirm the hypothesis of the weak effect of sanctions on foreign trade.

An Empirical Study on the Development of China’s Chemical Trade

Based on the trade data from 2008 to 2017, this paper empirically analyzes the development of China’s chemical trade. The scale of China’s chemical trade has expanded year by year, trade has been in a state of deficit, and the concentration of import and export commodity structure is high. The overall performance of chemical trade is trade competition disadvantage and comparative disadvantage. More than half of the classified products are characterized by trade competition disadvantages and comparative disadvantages. Products with export advantages have weak competition. Therefore, China should actively promote enterprises to go global and expand export channels, cultivate emerging products and pay attention to innovation, to improve the competitive advantage of products and promote the sustainable and healthy development of chemical trade. With the continuous adjustment of the world industrial structure, the chemical industry has become the economic growth point of modern industry. Chemical trade is an important part of world trade. In 2017, the world trade volume reached 483.9 billion US dollars. The chemical industry is the foundation and pillar industry of China. It has always occupied an important position in China’s foreign trade. The scale of trade has been increasing year by year. It sorts out the development of China’s chemical trade and proposes countermeasures in a targeted manner, which is conducive to the sustainable and healthy development of China’s chemical trade

A tool for the promotion of Ukrainian products in the international market

In the context of the globalization of the world economy, rigid competition, saturation of markets, excess of supply of goods over demand, the constant growth of demanding consumers substantially complicate the sales activities of enterprises. The above- mentioned needs to form an effective mechanism for the promotion of Ukrainian products in international markets. The purpose of this article is to analyze the commodity structure of Ukraine's exports, identify the main importers of Ukrainian products, research tools for promoting domestic products in international market, as well as distinguish key trends in the development and features of the promotion of Ukrainian goods. The research of the commodity structure of exports of Ukraine and key partner countries allowed to determine mainly the raw material component of the export of goods and the actual trends of export flows. The authors emphasize the need to use modern tools to promote products in the international market. The most common are traditional promotion tools, which include advertising, sales promotion, public relations, direct marketing, personal sales. The advantages and disadvantages of the strategy of adaptation and standardization in international marketing have been systematized. It has been established that the most common is the combined approach, which is a mix of adaptation and standardization. In order to increase the efficiency of promotion of Ukrainian products in the international market, it has been recommended to develop and implement a clear strategy and the integrated use of all elements of the system of promotion have been encouraged as well, in particular, domestic enterprises should pay attention to the activation of marketing communications over the Internet, which is the most promising in terms of the efficiency. Ukrainian enterprises need to rely on the experience of developed countries: to manage the advancement systematically, to use non-standard and up-to-date methods, taking into account the peculiarities of the international environment. Prospects for further research are a detailed study of the foreign experience of product promotion on international markets and possible ways of its adaptation to Ukrainian reality.

Application of Index Models in Assessing the Foreign Economic Activity of Ukraine

The importance of statistical assessment of foreign economic activities in Ukraine, considering the structure and geographical re-orientation of the Ukrainian foreign trade and new challenges of the globalized and highly competitive market of goods and services, gives rise to the modeling of patterns underlying future tendencies in the development of the Ukrainian foreign trade. The article contains a description of approaches to the analysis of foreign economic activities in Ukraine by use of index models. Several index models are constructed and used for assessing the debt burden of Ukraine, the impact of selected sub-factors on it are determined, and the dynamics of the export quota in 2016–2017 are highlighted
 By use of the chain substitutions method it is found that the debt burden of Ukraine decreased in 2017, compared to 2016, by 21.0% due to the reduced import dependence of Ukraine, by 12.0% due to the partial debt burden, but increased by 4.1% due to the export losses. The results show that the strongest impact on the dynamics of debt burden of Ukraine came from the import dependence (56.6%), which means that the strict import quota remains the main factor of the increasing foreign debt of Ukraine, which caused 5.9% loss of export earnings in 2016, and 2.3% in 2017.
 The analysis of the export quota dynamics based on the index model showed that the impact of the international intraspecific specialization of the country on it was 43.2%, and the impact of the exports’ share in the foreign trade balance made 44.7%. That is, the main factors of change are the commodity and geographical specialization of Ukraine, as well as the imbalance in the foreign trade.
 Results of the analysis of the indices of averages show that due to the growth in export quotas of products of vegetable origin, fats and oils by 12.7%, and under the influence of the commodity structure of exports (–8.4%), the export quota increased by 3.2% in 2017 compared to 2012. The import quota of goods decreased by 17%, including by 7.6% due to the reduced import dependence of the country, and by 10.1% due to the changed structure of imports.
 Results of the analysis indicate significant change in the trend of export and import quotas of Ukraine on account of geographical reorientation: due to changes in the geographical structure of exports and imports of Ukraine, the export and import quotas decreased by 41.5%, and 32.2%, respectively.
 The analysis of the commodity structure of the Ukrainian foreign trade in 2012–2017 shows that the largest export positions were non-precious metals (ferrous metals and products made thereof), grain crops, fats and oils, electric machinery; in the exports of services, the largest share was accounted for by transport services, telecommunication services, computer and information services, processing of material resources, and business services. In the commodity structure of imports, mineral products had the largest share, which, however, decreased by 7.36 percentage points in 2017 compared to 2012. Imports of services are dominated by transport services and government services.
 The Russian Federation remains to be main partner in export-import operations of Ukraine: 9.1% of the Ukraine’s exports of goods in 2017, which is 16.53 percentage points less than in 2012; and 14.5% of the imports of goods in 2017, which is 17.86 percentage points less than in 2012. The main partner of Ukraine in the imports of services is the U.S., with 11.78% of the total imports of services in 2017, which is 6.7 percentage points more than in 2012.

СТАН ТА РЕЗУЛЬТАТИ ТОРГІВЛІ АГРОПРОДОВОЛЬЧИМИ ТОВАРАМИ МІЖ УКРАЇНОЮ І ЄВРОПЕЙСЬКИМ СОЮЗОМ

В статті розглянуто сучасній стан торгівлі агропродовольчими товарами України та ЄС. Вста-новлено, що в останні роки країни ЄС стають одними із важливих імпортерів продукції сільського гос-подарства та харчової промисловості, що пов’язується з дією зони вільної торгівлі. В товарній структу-рі експорту переважає сільськогосподарська продукція, проте її частка скорочується. Натомість зрос-тає частка продукції харчової промисловості. Виконано порівняльний аналіз обсягів експорту та імпор-ту по товарах чотирьох розділів продукції відповідно до УКТЗЕД. Встановлено, що по товарах першогоі четвертого розділів імпорт значно перевищує експорт. Натомість по товарах другого та третього роз-ділів експорт перевищує імпорт формуючи значне додатне сальдо. В цілому результатом торгівлі аг-ропродовольчими товарами з країнами ЄС є стійке позитивне сальдо, яке за період 201 3-201 7 рр.зросло в 2,6 рази.Досліджено основні причини формування від’ємного сальдо по певним товарним групам. Встатті підкреслюється, що основним шляхом отримання додатнього сальдо є зростання експорту, а нетільки зменшення імпорту. У висновках представлено рекомендації стосовно перспектив зростаннявиробництва та продажу агропродовольчої продукції на ринках ЄС.

DETERMINANTS OF FINANCIAL RESOURCE CONDITION OF SMALL AGRARIAN ENTERPRISES

DETERMINANTS OF FINANCIAL RESOURCE CONDITION OF SMALL AGRARIAN ENTERPRISES

ORGANIZATIONAL AND LEGAL REGULATION OF THE FINANCIAL SECTOR OF THE ECONOMY AMID EUROPEAN INTEGRATION

Financial sector development depends on the efficiency of its regulatory mechanisms that should correspond to the directions of implementation of state financial policy, which is aimed at the support for economic stability, protection of interests of participants in financial markets, and provision of rational use of growing financial market potential. Introduction of the mechanism of organisational and legal regulation is able to implement a complex approach to the application of various methods, means, other regulators on processes of effective formation and use of state financial resources in order to ensure their coordination and correspondence to strategic development priorities of the state. The purpose of the article is to substantiate features of organisational and legal regulation of the financial sector of the economy of EU countries and Ukraine, identify the main directions for reformation and recommendations for its improvement in the context of European integration trends and the possibility of securing competitive positions of Ukraine in the international market. The most widespread in the world are two models for regulating the financial sector’s activity – sectoral model and mega-regulator model. In the sectoral model, functions of public authorities are distributed according to three financial sectors (banking, insurance, stock). The model of mega-regulator determines the peculiarities of establishing a single authority endowed with functions of supervision and regulation of the financial sector. At the modern state of countries’ development, the main methods and forms of state regulation of the financial sector are determined by direct (development and adoption of laws and regulations, licensing of the activities, supervisory activities and implementation of measures of supervision of financial institutions) and indirect (changes in the volume of cash resources, securities issue, interest policy, provision of guarantees on fulfilment of obligations for securities of separate issuers, encouragement of foreign relations with international financial organisations) influence. Financial sector regulation in the EU and Ukraine is carried out according to the sectoral model where banking activities are subject to the Central Bank; activities in the market for securities are regulated by the National Securities and Stock Market Commission; activities of other financial intermediaries and financial companies are regulated by the National Commission for State Regulation of Financial Services Markets. Results of the research conducted allow determining the features of state regulation of the financial sector of the economy of Ukraine: the lack of legislative environment for regulating the financial status at the macrolevel and microlevel; provisions of the existing regulatory framework are aimed at the regulation of economic security; the absence of strategic benchmarks fixed in long-term documents for ensuring financial development of the country and the economic development of financial institutions; the presence of several regulators of the state of the financial system that duplicates functions and causes inefficient work; information closeness of regulators of financial market and financial system regarding the results of their work on ensuring the financial stability of the state. In order to improve rating positions and competitive advantages of Ukraine in global markets, it is necessary to develop additive legal framework and state support program for export-oriented enterprises for the promotion of export of finished products with high added value; start the policy of expansion on the basis of expansion of both geographical and commodity structure of exports.

Review on Volumes of Foreign Economic Operations with Agricultural Products

One of the main tasks for the state is approximation of the Ukrainian legislation to the EU Member States’ legislation in the area of trade and economic relations. For Ukraine, as an independent state, which today faces serious economic problems, the important task is to decide how to take the path of sustainable development of the economy, tax and financial system in the context of the European integration. Ukrainian agriculture and food industry are not sufficiently integrated into the international trading system, as evidenced by the low percentage of exports and imports of agricultural and food products in gross agricultural production. In recent years, in Ukraine, the percentage of exports of agricultural and food products was 16%, compared to 25% in Poland and 53% in France and Germany. Therefore, it is very important for Ukraine to improve the level of competitiveness for domestic products. The article describes the dynamics of agri-food exports and imports into countries, and it has been found a negative trade balance. The commodity structure of exports and imports of Ukrainian agricultural products is discussed. The reasons for the steady growth of imports are substantiated. Measures to improve the trade balance have been proposed.

HIGHLY MARGINAL GOODS AS SOURCE OF EXPORT EFFICIENC RISE IN AGRARIAN SECTOR

Having high export potential, Ukrainian agrarian sector continues to be in the agricultural commodity market periphery. One of the key problems is low export efficiency determined by raw materials domination in the structure. The study aim was to ascertain a reorientation possibility of export commodity structure in order to reduce the raw materials part and increase the highly marginal goods part. The methodology consisted in studying the character of reciprocal influence comparison of different commodity groups volumes of agricultural produce using Verhulst’s function. As a result, parameters of optimal goods correlation were designed, and a number of highly marginal goods and conceptual basis able to improve export efficiency were established.

Малый бизнес и несырьевой экспорт в Кузбассе

<span>В статье представлены результаты исследования динамики, товарной и географической структуры экспорта Кемеровской области в свете общероссийских сравнений за последние пять лет. Отдельное внимание уделено анализу экспорта несырьевых товаров как фактора качественного улучшения структуры внешней торговли и укрепления позиций региона на внешних рынках. Полученные выводы свидетельствуют о том, что динамика несырьевого экспорта Кузбасса не только совпадает с общероссийской тенденцией к росту, но и опережает ее по некоторым группам товаров на фоне сохранения сырьевой ориентации. Доказан тезис о необходимости расширения несырьевого неэнергетического экспорта как фактора снижения «экологоемкости» региональной экономики, развития малого и среднего предпринимательства и снижения бизнес-миграции из Кемеровской области. Обоснована необходимость создания в Кемеровской области Регионального центра поддержки экспорта.</span>

Czech Agrarian Foreign Trade According to the Degree of Processing

Added value of Czech agrarian trade is a frequently discussed topic. The goal of the New Strategy of the Ministry of Agriculture with the outlook until 2030 and of the Export Strategy of the Czech Republic for 2012-2020 is to improve the commodity structure of Czech agrarian exports and to increase the proportion of exported processed products and food with high added value. One of the key aspects to understanding the current state of the development of agrarian trade added value is methodology used for trade performance analysis. In fact, there are several methodologies related to attempts to estimate the real state of added value distribution in relation to foreign trade performance. None of the methods seems flawless, each is suitable for a different purpose in understanding the commodity structure specifics. Czech authorities apply methodology originally proposed by Regmi (2005) which, however, does not truly reflect the real state of the current commodity structure. The Research Institute of Agricultural Economics and Informatics is interested in developing its own method suitable for better understanding of the Czech agrarian foreign trade specifics. The objective of this paper is to specify the basic idea of the proposed methodology, to compare it with the already applied methodology and to present basic differences between the old and the new approaches. Presumably, the new classification can serve as a suitable tool for Czech agrarian trade analysis and provides a more precise overview of the degree of processing of traded commodities than other types of categorisation. Its advantages prevail over the disadvantages, which are less important. The new classification of unprocessed and processed products requires regular inspection and more frequent updates, as the 8-digit codes of the customs nomenclature continually change. At the end of the paper the agricultural trade performance is calculated according to the currently applied methodology and also according to the new proposed methodology. The results between both applied approaches are significant especially in mutual relation between processed and unprocessed items share in total trade. There are significant differences both in relation to EU countries and also non-EU countries.