Government regulations of foreign economic activity in Ukraine: current situation and ways for improvement

Abstract

Article is devoted to the assessment of the current state of government regulation of foreign economic activity in Ukrainian agriculture and the substantiation of directions for its improvement.The purpose of research is to analyze theoretical and methodological approaches to the regulation of foreign economic activity and to substantiate the effective mechanism of custom-tariff regulation in the agriculture, which will help to increase the volumes and improve the structure of export-import commodity flows.

Worldwide practice shows that over the past decades, the processes of globalization have contributed to the growth of the scale of international trade and economic relations and objectively led to the formation of appropriate systems for regulating the exchange of goods and services.ForUkraine, effective government regulation of foreign economic activity may be an important factor in increasing international competitiveness.

The components of the system of government regulation of foreign economic activity and the purpose of its implementation are determined: the use of foreign economic activity as a set of methods for the implementation of foreign economic relations to accelerate the formation of a market economy in the country; protection of the interests of domestic producers and consumers, as well as national economic interests in general, through the skillful combination of protectionist and free trade customs policies.

It is established that the foreign economic activity of Ukrainian agriculture by the level of development lags far behind the advanced countries of the world and the EU. The main problems are insufficient competitiveness of products and their non-compliance with international standards of quality and safety; a low level of investment and a growing dependence on government funding; the dominance in the structure of exports of products with a low level of processing.

The main export categories ofUkraineare sunflower oil, corn, barley, egg powder, soy, natural honey, wheat and rye. According to the analysis, it is established thatUkrainedoes not sufficiently use the potential of foreign trade with countries such asCanada,China,France,Germany,Ireland,Japan,Sweden,Switzerland, theUnited Kingdom, theUnited States, resulting in a shortage of foreign currency.

The main areas of improvement of government regulation of foreign economic activity in the agrarian sector are identified: administrative and technical regulation, regulation of markets with their respective components.

In order to accelerate the development of the European vector of export of Ukrainian agricultural products, to increase the export-import activity in agriculture at the national and regional levels, it is necessary to implement certain measures: to ensure the priority development of production, having comparative competitive advantages in the world system and modern own production potential; to improve tariff and non-tariff regulation of export-import operations, aimed at protecting the domestic market and domestic producers of agricultural and food products; to introduce quotas for the purchase of certain types of raw materials and food, in accordance with international rules and legislation; to stimulate integration and cooperative ties with foreign partners on the basis of interstate agreements on economic, scientific and technical cooperation, as well as direct links between domestic and foreign enterprises; to promote at the state level the creation of joint ventures, the development of trade and economic relations; expand export of agricultural products and develop export infrastructure.

Key words: foreign economic activity, government regulations, export, tariff and non-tariff ways of custom regulation of foreign economics activity