Foreign trade and regulatory policy in agriculture: national and international experience
Economic Annals-ХХI: Volume 150, Issue 3-4(2), Pages: 12-16
Citation information:
Melnyk, T., & Golovachova, O. (2015). Foreign trade and regulatory policy in agriculture: national and international experience. Economic Annals-XXI, 3-4(2), 12-16. https://ea21journal.world/index.php/ea-v150-03/
Tetiana Melnyk
D.Sc. (Economics),
Professor,
Kyiv National University of Trade and Economics
19 Kyoto Str., Kyiv, 02156, Ukraine
melnik@knteu.kiev.ua
Olga Golovachova
PhD (Economics),
Lecturer,
Kyiv National University of Trade and Economics
19 Kyoto Str., Kyiv, 02156, Ukraine
osgolovachova@gmail.com
Foreign trade and regulatory policy in agriculture: national and international experience
Abstract. Introduction. Being in the regulatory field of WTO and implementing the Deep and Comprehensive Free Trade Agreement with the EU, Ukraine defines foreign trade in agricultural products among the priorities of national economic development, which is fully justified due to the existing potential, and the possibility of its realization. In this context, the problem of adequate business and informational environment creating to ensure free access to foreign markets and stable trade flows of competitive products is actualized.
Purpose of the article: comprehensive analysis of measures regulating foreign trade in agriculture, evaluation of state support for agriculture effectiveness in some countries of the world and suggesting directions of Ukraine’s regulatory policy improving in this area.
Results. Modern regulatory policy in the sphere of foreign trade in agri-food products is defined as a set of actions of the governments aimed to create preconditions for the effective implementation of business activities taking into account the factors that influence flexibility, legality, equality, transparency and balance between the interests of the state and society. It should effectively combine the task of the agrarian sector development at the national scale with the requirements of international institutions, major trends of international trade, the current state and prospects for changes in the world’s food market expected conditions. Regulatory policy should include measures to ensure food security and protect the domestic market, promote export and improve its structure, as well as support domestic agricultural producers.
Comparative analysis of tariff and non-tariff measures of agricultural foreign trade regulation in the US, EU, Russia and Ukraine has shown significantly higher rates of duty for agricultural products compared to non-agricultural products. Significantly lower levels of tariff protection for agri-food products in Ukraine compared to many trade partners were identified. Extensive use of non-tariff measures by developed countries under conditions of their limited use by Ukraine is taking place. Bearing in mind the issue of limited funding opportunities of Ukraine, the aforementioned fact complicates implementation of policies aimed to improve competitiveness of the national economy within the framework of full membership in the WTO.
Analyzing the impact of the state support on agriculture by OECD methodology in the US, EU, Russia and Ukraine, it was concluded that Ukrainian agricultural support policy is characterized by the lack of stability and ineffective implementation of budget support programs.
Export stimulation and improvement of Ukrainian products’ quality and competitiveness in foreign markets can be realized through measures of foreign trade regulatory policy targeted to facilitation of access to foreign markets and improvement of producer’s support, which, inter alia, includes informational, financial, institutional support and the internal market protection measures.
Conclusion. The generalization of the world experience in the regulatory policy’s formation and implementation followed by evaluation of its state support for agriculture, allowed developing strategic directions of Ukraine’s regulatory foreign trade policy in agriculture improving, which are combined with the international treaties and national regulatory institutions and based on access to foreign markets improving, financial, institutional and informational support, protection of the agricultural domestic market, export stimulation and optimization of its sectoral and regional structure. Implementation of the proposed measures will improve regulatory policy in foreign trade and quality competitiveness of domestic agricultural products in the world markets.
Keywords: Regulatory Policy; Foreign Trade; Agri-Food Products; Products of Agriculture; Government Support for Agriculture; Tariff Regulation Methods; Non-Tariff Regulation Methods
JEL Classіfіcatіon: Q17; Q18
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Received 27.03.2015