The Development of foreign trade of Ukraine (стр. 2 из 4)

Preferential rates are applied to the goods occurring from the countries, using on Ukraine by a most favored nation treatment;

Full rates are applied to other goods.

Non-tariff regulation

Quantitative restrictions, other non-tariff methods, trading-political methods of stimulation of export, trading contracts and other non-tariff methods of regulation of foreign trade activities. Quantitative restrictions include quota and licensing.

Quotas are limiting volumes of the certain goods which are authorised for importing to (export) on territory of the country during certain term. Quotas are individual, limiting import (export) in one concrete country; group, establishing volume of import (export) in certain group of the countries, and also global when import (export) is limited without instructions of the countries on which this restriction extends.

Licences are permissions to import (export) of the goods during any time, given out by competent bodies (Ministry of Economy).

Licences are general which represent permissions to import (export) operations with the certain goods during all period of validity of a mode of licensing. Besides, licences are individual, resolving to one subject of enterprise activity realisation of one import (export) operation on the licensed goods. Licences establish volumes of the imported (taken out) goods in quantitative expression when it is authorised to import to (take out) certain quantity of the goods, or cost expression when under the licence it is possible to import to (take out) the goods for the certain sum.

Quotas and licenses limit independence of businessmen concerning a choice of the market and trade volume, however, these kinds of the external economic regulation have gained now the greatest distribution.

Except quantitative, non-tariff methods of the foreign trade regulation complication of customs procedures, increase in quantity of the necessary documentation, increase of requirements concern quality of packing and marks, an establishment phytosanitary, veterinary and other kinds of the sanitary and ecological control. Various taxes to import and export concern not tariff methods over the duty, the currency restrictions connected with reception of the permission to use of currency for import purchase, etc.

The state can take measures also on unfair competition suppression at foreign trade activities realisation, in particular, dumping that sales of the goods under the prices below international commodity market. The establishment of the facts of a dumping in Ukraine, for example, is done by the claim to the Ministry of Economy of Ukraine or the State committee on the prices. In case of an establishment of the fact of a dumping to the Ukrainian or foreign businessmen the antidumping duty can be applied.

Except antidumping duties can be applied as well countervailing duties which are raised in case of an establishment of that fact, that the exporter by goods manufacture used the state grants that has allowed it to underestimate the price for the goods.

Measures of stimulation of export have for an object encouragement of the national enterprises-exporters. These measures include subsidizing (grants), preferential crediting, the state insurance of export (when the exporter has an opportunity to sell the goods and the risk of non-payment by the importer of the put sum incurs the state), carrying out of a special currency policy (maintenance of the underestimated rate of national currency), tax privileges to exporters (clearing of a part of profit taxes or the income of payment of the tax to the added cost), information, consulting service, a professional training for foreign trade, diplomatic support of exporters. These measures are applied usually in a complex, therefore it is necessary for exporter to be guided in stimulation system to take advantage of possible privileges.

The inclusion ofUkraineinworld economicrelationsrequiresa majoradaptationof its structure, the entireeconomicmechanismtoextremelysevererequirements, whichdictatethe worldeconomyanditseconomic institutions. Slowingthe pace of reformsandpolicyuncertaintyputsUkrainein the face oflosingthe chanceof joining theworld community. The importantfactorforreformin Ukraineisrestructuringthe economy.

CHAPTER II. MODERN TRENDS OF FOREIGN TRADE DEVELOPMENT OF UKRAINE

2.1 Evaluation of export potential

Export is considered as took out outside the country of commodities for realization of them at the oversea market or as an amount and cost of the commodities taken out abroad. However, if to consider an export as substantial factor of influence on the economic growth, on integration of country in a world economy, then it gets trait of potential that means the hidden ability to provide achievement of the set purpose and decision of certain problem of community development. Such dualistic look at essence of export has an important value for deepening of methodological basis of directions lay-out of its development, increase of possibilities of positive influence on the economy of country. Samuelson and Northous determined an export as commodities and services which are produced inside a country and are for sale abroad. An export consists of export of goods and services.

Beginning from 2000 Ukraine is having an economic growth accompanied by unstable traces of the movement of the GDP, products of agriculture, investments, comsumers expenditure and the foreign trade indicators .

The data in Table 1 show that the rate of the change in the exports correspond to the increase of the GDP value, while the decrease of the rates of its augmentation in 2005 are very much associated with an abrupt decrease in the exports deliveries under conditions of a rising political non-stability in the country. The estimation of the investment of the foreign trade into the process of the economic growing is very contradictive, since between 2005 and 2007 the economy’s losses due to the negative balance amounted to $ 18.5 milliard, and according to a forecast for 2008 that value is expected to be at the level of $ 12.5 milliard .

A weak link in Ukraine’s foreign trade is the exports structure, in which 3/4 is the raw materials and the primary processing products. Because of delay in the restructuring of the economy, the most important exporting opportunities are still concentrated in traditional industrial and raw materials branches. The largest commodity groups in the structure of the exports of the industrial products there are the basic metals (42.8 %), minerals (10 %), chemicals (almost 9%) and other raw materials products (12%) (Table 2). The structural dynamics of Ukraine’s industrial exported products shows that the movement of its separate positions contradicts the world trends. For instance, in the exports structure there is rising of the share of the basic metals, while this in the world has a decreasing dynamics. On the contrary, the share of machines, apparatus, transportation means goes down, despite its intensive rising in the global trade.

The competitive advantages of the national producers are accounted for by the availability of specific natural resources, in particular, of the iron-ore raw materials, a developed transport infrastructure, favouring geographical location, low costs of the labour force, low level of the expenditures on the upgrading and renovation of the fixed production funds. Wearing of the fixed funds in Ukraine’s industry is over 50 %, while in the basic export-oriented branch — metallurgy — it amounts to 65 %. Moreover, in this branch almost a half of steel is melted by using the Martin process, while in the world that process is used for production of only 2.5 % of steel. It is metallurgy that the problems of Ukraine’s economy and its exports are associated with. The study shows that the external demand for the products of this industry in fact defines the prospects for the economic growth on the whole, as metallurgy makes a significant share of the commodity exports. Calculations demonstrate that during 1997 — 2005 the GDP and exports dynamics determined the variation of the multiplication coefficient by approximately 1 %, that is 1 % of the decrease or increase in the exports of the metallurgical products was associated with about 1% of a decrease or an increment of the GDP .

Аn analysis of the states of the global markets made it possible to identify the set of the products the demands for which have been rising incessantly for more than decades. The market dynamics of these goods remains even at the present time, which is proved by the indicators of their dynamics and the share in the global exports (Table 3). The global exports of the above given goods rises in average annually by almost 13 %, while their total share in 2006 amounted to 22 % of the total volume of the exports. According to some data, this share in the exports of some countries, for example, the Republic of Korea, Taiwan, is till larger. Due to our calculations, these goods made only 3.7 % in the structure of Ukraine’s exports, though their share rose by almost twice as compared to the level in 2002. The share of the exports of machines for automatic data processing, as well as that for the office equipment components, transistors and semiconductors is very insignificant. It is these kinds of products that are most characterised by the highest rate of the growth (15—16 % annually) and by their importance concerning their share (4.0—3.4 %) in the structure of the global exports, which is typical for the modern informational economy.

The performed analysis shows that Ukraine has non-prospective positions on the global market, for the raw materials oriented exports and an insignificant share of the goods being on growing demands results in losing profits and worsening of the conditions for trading. The structure of the commodities exports of the electronic industry products include computers, office equipment, television-sets, radio-sets, transistors and semiconductors, which in 2006 amounted to 3.4 % and exceeded the cost value of their exporting by 3,3 times as compared to that in 2002 (Table 5). From these tables it is evidently that the increase of export of these highly technological wares is accompanied growth of negative balance through exceeding of volume of import of the resulted positions of analogical foreign wares, that in a transformation period it is possible to consider positive. However, the absence of structural reforms of the Ukrainian economy can result in irretrievable lag from main direction in the globalizing world: wider use of high technologies able to produce scientific products with high maintenance of surplus value. Creation of the technical base for forming of high technologies in all industries of national economy requires the use of effective measures of structural and scientific and technical policy of countries, the result of which adjusting of domestic production of microelectronic components and electronic wares, which are characterized high maintenance of value-added and became the source of the economy growing of Korea, Japan and other countries. Except for industrial sector Ukraine has ponder able agrarian sector. Its potential of which, unlike the traditional participants of world markets of agrarian products (The USA, EU, Canada), yet is not outspent. According to the estimation of specialists, there is involved only third of productive forces of nature and company in Ukraine. Agrarian products of Ukraine are competitive on world markets and entering to WTO, in our view, will not entail substantial problems in this sector. At the favourable state of affairs the volume of export of basic types of agrarian products in 2006 was increased against 2005 in a value term on 315 million dollars and arrived at almost 2,5 milliards of dollars even at diminishing of his volumes in natural indexes (table. 5). However braked development of agrarian sector is through the lacks of pricing on an agricultural produce. Foreign firms which comes to the national market on the Uruguayan agreement buy in an agricultural produce on low regional prices, and difference between them and allows to appropriate not only export but also natural (absolute), rent world prices.

From above-explained it is possible to come to the conclusion, that Ukraine was not yet able to occupy the own reliable niches of supply of the prepared commodities in the world market, but not raw material and low- technological products. Overwhelming part it most point-of-sale partners on the indexes of GDPand export on one person are at considerably higher level .

For development of export potential of Ukraine it is necessary in the nearest prospect: — to promote the competitiveness of the Ukrainian producers on the basis of activation of structural reformation of economy, foremost export-oriented sector; to carry out the high-quality changes of specialization of Ukraine in the world division of labor on the basis of development and realization of complex export strategy, oriented to the increase of part in the export of the innovative and traditional Ukrainian products with the high level of valueadded, increase of grant of highly technological services: — reorient the imported strategy in direction of providing of complex decision of problems of modernization of national industry and active policy of import substitution (limitation of import of the imported commodities is during intensification of analogical production in Ukraine); — to solve the problem of disparate of purchase and imported prices on the products of agrarian sector.

2.2 Export and import flows of commodities

Ukraine foreign trade operations carried out with partners from 200 countries.

The volume of export deliveries to CIS countries amounted to - 35.1% of total exports, Asia - 27,8%, Europe - 25,8% (including the EU - 24,2%), Africa - 6,8 %, USA - 4,3%, Australia and Oceania - 0,1%.

The largest volumes of export deliveries to the Russian Federation - 24.9% of total exports from Ukraine, Turkey - 6.6%, Italy - 4,6%, Belarus - 3,5%, Poland - 3,2 %, Germany - 3,1%, India - 2,9%.

The export of goods also in all major partner countries: Italy - by 89,7%, Poland - by 71.8%, Russian Federation - on 68,2%, Turkey - by 56.8%, Belarus-40, 7%, Germany - by 37,8%, India - 25,6%.

In total exports of goods in January-May 2010, compared to January-May 2009 increased share of ferrous metals - from 27,5% to 30,9%, energy materials, petroleum refining and products - from 4,3% to 7,3%, mechanical machines - from 6,2% to 6,5%, railway or tramway locomotives, Putnam equipment - from 2,1% to 4,1%, fats and oils of animal or vegetable origin - of 4 9% to 5,1%, ores, slag and ash - from 3% to 4,2%.

Volume of exports of finished products made from imported raw materials, was $ 1.4545 billion, which is 77,5% more than in January-May 2009.

Ukrainian exports of more than 50 percent of gross national product of Ukraine.

Today the main export industries are metallurgy (metal products), agriculture (wheat), machine building and chemical industries, whose share is over 80 percent of Ukrainian exports. The feature of the development of domestic export-oriented industries is their raw nature and high level of dependence on fluctuations in world markets.