POSITIVE AND NEGATIVE CONSEQUENCES OF RATIFICATION OF THE FREE TRADE ZONE AGREEMENT FOR UKRAINE'S AGRICULTURE IN THE EUROPEAN INTEGRATION

Abstract

The article reviews the current state of agriculture in Ukraine and the European Union. The process of ratification of a free trade zone between Ukraine and the European Union. Overview positive and negative effects of a free trade area for agricultural Ukraine separately for the state, for agricultural producers focused on foreign and domestic market. The types of Ukrainian agricultural products exported to EU and imports. Considered agricultural products, which could increase in export duty rates and introducing to them. In this regard, special attention is paid to the conformity assessment quality of Ukrainian agricultural products, compliance of national legislation with technical regulations and the EU standardization system. Grounded short and long term, increase competitiveness of national agricultural production and consolidate the position of domestic products in the domestic market and increasing exports to the world food markets that contribute to the development of agriculture Ukraine in terms of European integration. Adapting to the new trade standards and rules, which inevitably has to do with deepening relations with the EU within the Free Trade Area, will require Ukrainian farmers to increase costs in the short term. The negative factors that will be most felt during the adaptation period are the risks of timely implementation of the legislative adaptation measures. Another negative factor for FTA is the liberalization of trade between Ukraine and the EU, which is not happening at the best time for the European Union. The slow exit from the crisis of a number of EU countries is forcing them to pursue austerity policies. This reduces the demand for goods, including for Ukrainian goods. In addition, world prices for Ukraine's major export commodities remain low. It is this fact that caused the fall of Ukrainian exports to the EU in 2015. Another problem limiting access to European markets for Ukrainian goods is the inconsistency of product standards, differences in the customs system and procedures for assessing the quality of agricultural products. However, all these difficulties do not diminish the opportunities that have opened up for Ukraine.