PROSPECTS OF THE TRADE DEVELOPME PROSPECTS OF THE TRADE DEVELOPMENT IN UKRAINE AS A COUNTRY CANDIDATE FOR THE EU MEMBERSHIP

Abstract

Introduction. As domestic trade and external one has an extraordinarily important value for the economy of every country. Taking into account, Ukraine is a candidate for EU membership starting from 23 June 2022, the diagnostics of the situation in the Ukrainian trade plays a significant role in determining the prospects for its trade development. At this stage, it is important to identify trends that can significantly affect the development of trade in Ukraine and outline the prospects of its development. Materials and methods. The theoretical and methodological basis of this study is formed by the scientific works of both foreign and domestic scholars. The scientific problem has been investigated using the critical and scientific analysis, methods of scientific generalisation and systematisation, induction and deduction. The research results, conclusions and recommendations are substantiated on the integrated approach. Results and discussion. To find out the prospects of trade with the EU, in the article it is analysed the trade of the goods with the main partner countries as Poland, Germany and Italy. In 2021 the trade of goods with the largest EU partner countries had a raw material nature of exports, and high-tech imports prevailed. In the conditions of war situation, the import of goods related to the country’s defence capabilities remains promising. Of particular importance there are military goods, energy resources, goods to ensure the functioning of the infrastructure. To restore the national economy and further integration into the EU, it is necessary to develop the appropriate conceptual frameworks and take effective measures to restore the export potential of industrial enterprises, which should be based on the effective cooperation between local governments and the business environment, optimal use of the comparative advantages of Ukraine’s unique resource, scientific and technical potential, modern mechanisms and tools to stimulate export activities of the domestic enterprises and integration into the global economy. The post-war recovery of Ukraine’s economy will require a new economic policy forming that requires a more balanced scientific basis, the creating an effective system of monitoring and risk assessment, the anticipation of possible problems and threats to exporters, and the development of a set of effective measures to restore industrial production and develop export potential. A priority area may be to stimulate the development of innovation-oriented industrial enterprises, as well as to involve enterprises in global value chains, increasing investment and transfer of innovations. Conclusions. For the further European integration and the recovery of the national economy, it is necessary to support the production and export of high-tech products, which will facilitate integration into global value chains. The prospects of the trade between Ukraine and the EU will primarily depend on the military operations and the operation of critical infrastructure in Ukraine. A significant number of enterprises need to solve the logistical problems. Exports of domestic industrial goods are hampered by the administrative barriers, customs clearance, and fierce price competition on the foreign markets. At present, a sufficient number of domestic enterprises do not export their products due to the lack of certificates of compliance with international standards of production and the quality of the finished products, and out-dated material and technical production facilities. The integration into the global value chains of European countries requires further development of the technical regulation system and quality infrastructure, which will help ensure the signing of the Agreement on Conformity Assessment and Acceptance of Industrial Products in the EU.