Groups of products with improved market access & improved exports

Abstract

Introduction. The results of Ukraine’s activi­ties within the framework of the Association Agreement between the EU and Ukraine, inclu­ding provisions on the Deep and Comprehensive Free Trade Area (DCFTA), improving market access means not only the reduction of tariffs, but also the reduction of non-tariff measures through alignment with EU rules. Problem. Competition between rules leads to convergence of standards in practice. However, the issue of continuation of national diversities is empirical. The aim of the study is to identify the rela­tionship between product groups with improved access and exports within the study of Euro­pean perspectives for the further development of Ukraine. Methods. The study uses general and special research methods. Results. It is substantiated that Ukrainian business can increase the productivity and effi­ciency of its activities by adopting EU standards by 13–30 %. It is established that a smaller share of imports in a particular country’s total imports would imply greater trade costs in that country for the exporting country, and vice versa. All products with HS4 codes which market share in EU is less than market share in the world are identified. Ineffective products within the scope of the DCFTA have been identified. In order to identify these products a special formula is pro­posed. An economic-mathematical approach for evaluating export growth in conditions of con­flict-free trade is proposed. Conclusions. Tariffs are not the only barrier to market entry in the EU. Some of the largest trade transaction costs have been seen to be a major barrier to export development which was addressed within the DCFTA. Further inves­tigation could be focus on assessing the compe­titiveness of products with improved access.