ISSN 0798 1015

Vol. 40 (Number 30) Year 2019. Page 19

Development of foreign economic communities of Ukraine in the context of globalization and euro-integration processes

Desarrollo de las relaciones económicas externas de Ucrania en el contexto de los procesos de globalización y de integración europea

TURCHINA , Svetlana G. 1; DASHUTINA, Liudmyla O. 2 & NECHYPORENKO, Valentyna V. 3

Received: 03/06/2019 • Approved: 16/08/2019 • Published 09/09/2019

Contents

1. Introduction

2. Methodology

3. Results

4. Conclusions

Bibliographic references

1. Introduction

Ukraine's aspiration for full participation in the political and economic life of Europe is due to the geopolitical location and history of our state. In addition, the definition by the European Commission of Ukraine of the state, which is a priority partner of the European Union within the framework of the European Neighborhood Policy (ENP) and the Eastern Partnership, testifies that European integration and membership in the European Union (EU) are the best a means of realizing national interests, strengthening Ukraine's positions in the world system of international relations, for the transition from cooperation to economic integration and strengthening political cooperation, building an economically developed, democratic state.

Taking into account the above, the development of foreign economic relations of Ukraine and the assessment of the possibilities of the state's economy regarding its adaptation to globalization and European integration processes are of particular importance.

The main task of the state should be to actively carry out reforms and modernize all spheres of the economy by creating favorable conditions for the successful conduct of business and entrepreneurship in accordance with European standards, a significant improvement of the institutional structures of state regulation, bringing them closer to the principles of EU law. It is important to choose an effective integration strategy, taking into account the experience of the countries that have joined the EU and have become successful. In this regard, the basis of profitable trade and favorable investment climate in Ukraine, its euro integration development is, first of all, the search for fundamentally new directions of development of the foreign economic component.

1.1. Analysis of recent research and publications

The problems of the development of foreign economic relations of Ukraine in the context of deepening of the processes of European integration are covered in the scientific works of such well-known foreign scientists, including: I. Ansoff, G. Becker, O. Williamson, B. Carlof, M. Kremer, P. Krugman, V. Northhouse, A. Strickland, A. Thompson, E. Helpman, R. Coase, J. Robinson, J. Stigler, M. Watersson and others. Among domestic scientists, it is necessary to name such L. Antonyuk, S. Bessonova, I. Burakovsky, V. Heyets, T. Kalchenko, D. Lukianenko, E. Panchenko, Y. Polyakov, A. Poruchnyk, A. Rumyantsev, V. Sidenko, Y. Stolyarchuk, A. Mazaraki, Y. Makogon, T. Melnyk, A. Filippenko, V. Chuzhikov, O. Shvydanenko, O. Shnirkov and others. However, the rapid qualitative technological and regulatory changes in the world market, the growing protectionism of countries and regions, as well as the increased sensitivity of the domestic socio-economic environment of the exporting countries to the state of global commodity markets conditional urgency and require further research.

1.2. Selection of previously unresolved issues that are part of a common problem

European integration, as a strategic direction for Ukraine's development, is not only a foreign economic vector, but also a guide for values ​​for the entire Ukrainian society. Therefore, on the way to solving this problem, the necessity of studying the patterns and peculiarities of the development of Ukraine's foreign economic relations in the context of globalization and European integration processes is updated, taking into account the experience of adopting economic policies to the institutional features of the European economic structure. At the same time, in order to ensure the innovation development declared by Ukraine, it is expedient to intensify cooperation in innovative projects with high-tech countries of the Asian foreign economic vector.

1.3. The purpose of the article

The purpose of the article is to highlight tendencies, structural changes and problems of development of foreign economic relations of Ukraine. Finding ways for more active economic cooperation with the countries of the European Union and a substantial strengthening of the Asian foreign economic vector with high-tech countries: Japan, China, South Korea, Singapore and Malaysia.

The methodological and theoretical bases are the fundamental positions of economic theory, the work of domestic and foreign economists in the field of international economic relations and integration/ During the research, dialectical and general scientific methods of cognition were used: theoretical synthesis, analysis and synthesis - to substantiate the necessity of European integration; statistical analysis and index - for analysis of trends and peculiarities of development of foreign economic relations of Ukraine; comparison - to identify the competitive advantages of the national economy; system analysis - to determine the directions and prospects for Ukraine's accession to the EU.

Globalization processes, strengthening of economic and political integration are the defining characteristic of the modern world economy. The opening of markets for goods, services, investments, innovations and other resources leads to large-scale transnationalization and defines a liberal format for interstate cooperation. Under such conditions, the multipolar system of international relations on the world stage has significantly affected the change of Ukraine's foreign policy and foreign economic priorities. Based on the principles of a multi-vector of state foreign economic policy, the main directions of its development are the following:

1) Asian vector. The indicated regional market is the most massive, since more than half of the world's population (4.3 billion people or 60.0%) lives there, rich resources of natural resources are located and about 50% of the GNP of the world is produced.

In the economic sphere, the national interests of Ukraine are reflected in the strengthening of the presence and deepening of cooperation with the leading Asian countries: Japan, the People's Republic of China, the Republic of Korea, Singapore, Indonesia, Thailand, Malaysia, Turkey, etc. In the context of cooperation with the Asian region, the following main trading partners of Ukraine should be noted: China, Turkey and India. As for the latter, we can state about 10% of the export of mineral fertilizers. In order to consolidate positions in the indicated market, Ukraine should constantly stimulate trade in high-quality products of machine building, shipbuilding, electronics, etc

2) African vector. The African continent is not yet tightly integrated into the global economy and its role in world trade is measured by several percentages, although this is a huge market that should not be ignored. Describing this direction should be noted that the vast majority of African countries recognized Ukraine as an independent state and established diplomatic relations. However, direct trade contacts are established only with a limited number of North African states. The vast majority of goods produced on the African continent Ukraine buys on international exchanges.

 If we analyze the economic aspect of Ukraine's interests, we must admit that among our trade and economic partners, Africa has not taken a leading position, but the development of African markets is an important task today. This is confirmed by the positive trade balance with Africa, which in turn encourages Ukraine to expand markets and increase domestic exports.

The basic approaches to the development of relations between Ukraine and the countries of Africa are laid down in the main tasks of the foreign policy strategy of our country, which consist in its gradual entry into the world of political, economic, humanitarian and other processes as a full participant in the new global system of international relations. Considering the potential of African countries, it is important to take into account their achievements in certain sectors and the economic interest of Ukraine.

 An example is the production of high-quality, but cheaper analogues of personal computers (Morocco), the tireless growth of the electronic industry (South Africa, Libya and Tunisia), and so on. This creates the precondition for the development of scientific and technical cooperation, which will increase the efficiency of the export of Ukrainian patents and licenses and will help to avoid traditional difficulties in the field of development of new technologies. Ukraine, in turn, can meet the needs of African countries in cartographic and geodetic surveys, geological exploration, computer software. We emphasize that our state is interested in importing many types of raw materials. This continent, whose wealth is not fully explored, is a world leader in many kinds of natural resources. According to World Bank estimates, African countries account for about 70% of world biogenetic resources. Africa remains one of the main producers of cocoa beans, which are essential for the Ukrainian confectionery industry.

At the same time, Ukraine is an important exporter to Africa for grain, both food (wheat) and feed (barley). The main consumers of Ukrainian products are: Egypt, which accounts for 33.66% of all Ukrainian exports to Africa, Algeria (19.47%), Morocco (8.44%), and Tunisia (5.08%).

3) American vector. An important issue is the establishment of strategic partnership relations between Ukraine and the United States of America. It is about developing partnerships with the most powerful state of the world, the status of which is determined by the economic and military potential, the influence on international financial organizations, leadership in the development and implementation of new technologies and many other factors.

In this regard, the opinion of the leading American scientist and one of the most influential geostrategists in the US, 3. Brzezinski is about the priority of US interests in the international arena. 3. Brzezinski emphasized that the United States occupies a dominant position in four areas of world power that are crucial: in the military sphere, they have global capabilities for deploying their armed forces; in economic terms, remain the main driving force behind world development, despite the fierce competition from Japan and Germany; in the cultural - have an unprecedented attractiveness, especially among young people around the world, despite its primitive nature; in technical terms, retain absolute leadership in leading spheres of science and technology. Therefore, it is clear that under such conditions any state and Ukraine is not an exception is interested in establishing a partnership with the USA. This is also facilitated by the friendly relations between Ukraine and the United States that have recently formed, which encourage close cooperation, given the ability of the goods to meet the needs of buyers in the Ukrainian and American markets in a wide range. In addition, Ukraine's place in the investment market is important for Ukraine. However, due to the imperfect legal basis of our state, the share of American investments in the domestic economy is not significantly increased.

4) The Eastern European vector in the structure of foreign trade of Ukraine deserves special attention. Among the determinants of the expected effectiveness of trade and economic relations with the countries of the CIS and the Baltics: the geographical proximity of countries; "Interweaving" in historical development; the proximity of language, religion, traditions, etc. When considering the multilateral aspects of international trade and economic cooperation in the context of the development of globalization and European integration processes, the foreign economic policy regarding the CIS and Baltic countries should be oriented towards the creation of common markets for goods, services, capital and labor. The Black Sea Economic Cooperation (BSEC) may take on a specific place among integration groups. Among its objectives is the multilateral cooperation of the Black Sea states in various sectors of the economy, first of all in industry, agriculture, transport, trade, tourism development, telecommunications, etc.

5) Western European vector is the most important priority of modern geopolitics. Ukraine has chosen a strategic direction for the development of integration into the European economic, political and legal space. The accession to the European Union (EU) has been identified as the key foreign policy priority and strategic goal of Ukraine at the highest state level. It is important to study the experience of the EU member states, the adaptation of economic policies to the institutional features of the European economy.

Therefore, the essential understanding of Ukraine's European choice implies the opening of new prospects for cooperation with developed countries of the continent, creation of strong opportunities for economic development, strengthening of Ukraine's position in the world system of international relations. This is the best way to realize its national interests. For Ukraine, European integration allows to modernize the economy, overcome technological backwardness, attract foreign investment and new technologies, create new jobs, increase the competitiveness of the domestic commodity producer, access to world markets, first of all, to the EU market.

Consequently, in the circumstances of the systemic transformation of the Ukrainian economy and the significant changes in foreign trade activities, the consequences of which are multi-sectoral effects on the state of the domestic economy, which is deeply integrated into the global system of international division of labor as a seller and as a buyer of goods and services, for the adoption of effective managerial decisions and An important analysis of trends and changes in the field of foreign trade is important for making state-funded adjustments to the state's economic policy.

Considering a certain problem, it should be noted that in 2018, Ukraine carried out foreign trade operations with 229 countries of different regions of the world, with different scales and efficiency. Exported domestic goods and services to 198 countries for a total of 23.0 billion US dollars of the goods for $ 20.2 billion US dollars. And accordingly, services for $ 3.9 billion. In the United States, imports have been recorded in 207 countries of the world. According to the structure, the share of exports of goods amounted to 82.9% and 17.1% respectively - services (Fig. 1). Over recent years, the volume of foreign trade turnover ranged from 100-170 billion US dollars.

Figure 1
The main trading partners of Ukraine in
the export of goods and services,% (2018)

Source: compiled according to [4]

Analyzing the data provided in the database of exporters of Ukraine [4], it should be noted that there are more than 900 exporting companies that sell goods and services in various fields of business, and unfortunately, comparing such data with the total number of registered legal entities (the number of which as of 01.01.2018 was about 1235024 units), it becomes obvious that there are few exporters in Ukraine. Taking into account the fact that the growth of volumes of foreign trade is the impetus for positive economic changes of any country in the world, we will analyze the scale of Ukraine's foreign trade in terms of exports and imports of goods and services (Fig.2).

The dynamics of export-import operations in Ukraine in recent years tends to change. As a negative fact, it should be noted that since 2013 there has been a tendency for a general drop in export volumes from Ukraine. In 2018, as in the previous year, there was an increase in the volume of foreign trade in goods and services, but the pace of such growth was much slower than in 2017. Thus, the total value of Ukrainian exports of goods and services in 2018 amounted to 57.1 billion US dollars. $ 4538.8 million (8.6%) more compared with the previous period (Fig. 2). Along with this, there is a significant increase in the volume of imports of goods and services to Ukraine. During 2018, compared to the previous year, the growth of the mentioned indicator was registered at the level of 14.3% (7.9 billion USD). The share of goods in total exports exceeds 80%, and in imports is about 90%.

Figure 2
Ukraine's foreign trade in goods and services
in the period from 2000-2018, mln. USA

Source: compiled according to [4]

As a whole, it can be stated that only in the period from 2014 to 2016 exports of goods and services from Ukraine over the past ten years exceeded imports, however, since the year 2017, there was a significant reduction in both exports and imports. The foreign trade turnover of goods and services in the year 2018 increased by 11.5% (12.4 billion USD) compared to the figures for 2017 and amounted to 120.1 billion USD. Given that the state of competitiveness of the country's economy, its position in global markets to a large extent determines the commodity structure of exports, we will consider using it in Fig. 3

Figure 3
Structure of commodity export of Ukraine, 2017 – 2018 yrs., %

According to the results of the study, more than a third in the structure of total exports accounted for agricultural products and food industry, hence, it can be concluded that it becomes dominant in domestic exports. In 2018, the share of agrarian sector products reached more than 35%; in general, 41.7 million tons of domestic grain was exported to foreign markets, which is three times higher than in 2010, and only 0.4% is less than 2017. The key products of domestic agricultural exports have traditionally been grain and oilseeds, sunflower oil and food products. In general, such a situation is positive, since Ukraine is trying to use its competitive advantages related to favorable natural conditions for agriculture. However, according to the results of the analysis, the structural parameters of the commodity export of Ukraine do not correspond to the current trends of world development, demonstrating the low competitiveness of domestic goods with high added value in foreign markets.

Considering the commodity structure of exports, it is worth noting a significant part of the output of the metallurgical complex, machine building products and mineral products exports. However, it has to be noted that in recent years, the share of the sale of ore and ferrous metals outside the state has a steady tendency to decrease. Of particular concern is the decrease in the share of products made of ferrous metals. This situation suggests a relatively weak competitive position of domestic exporters in most commodity segments of finished products. The problem here is not so much in the trends of world markets, although the current situation is evidence of their rapid decline, as in the low competitiveness of Ukrainian products due to the poor quality of products. Thus, it can be argued that the nature of the structure of Ukrainian exports remains its raw material, due to the high level of dependence on fluctuations of the world market conditions. Along with this, sharing the opinion of the author, we believe that the maintenance of positions on foreign commodity markets is usually ensured through excessive exploitation of natural resources, the use of cheap labor, as well as due to the favorable geographical location and developed transport infrastructure.

In the commodity structure of imports, both positive trends and negative ones are noticeable. The first ones include, for example, an increase in the share of machinery, equipment and machinery. A high proportion of ready-made food products can be considered as a negative phenomenon in the structure of imports. The largest share in the total volume of import accounted for machine building products - 30.5%, mineral products - 24.8%, chemical industry and agro-industrial products 18.6% and 8.8%, respectively.

Considering the problem of development of foreign economic relations of Ukraine, the authors are involved in the scientific views of a respectable national scientist, doctor of sciences, professor A.O. A mistake that suggests that the assessment of the scale of foreign trade only in terms of exports, imports or even foreign trade turnover is incorrect. Thus, given that the main indicator characterizing the economic performance of the country and reflecting the aggregate market value of final products produced by residents of Ukraine is the gross domestic product (GDP) and taking into account the scientist's stated scientific opinion, we consider it appropriate to compare the above-mentioned indicators with gross domestic product, and, since exports and imports are calculated in US dollars then GDP should be expressed in a similar currency.

Figure  4
Dynamics of foreign trade turnover and GDP of Ukraine, billion US dollars

Source: compiled according to [4]

Consequently, from the above statistics, one can conclude that the domestic economy is characterized by a close link between external economic and internal processes. However, it is not possible to emphasize attention and clearly specify the causes and their consequences, as they are periodically changing. For example, during the crisis of 2009, the reason for the economic downturn was the worsening of the conditions for foreign trade, and in the 2014-2016 period, the decline in exports and imports was mainly due to the decline of domestic production. It is also evident that the consequences of Russian military aggression negatively affected the reduction of the value of Ukrainian exports even more than the unfavorable situation for domestic exporters of the international markets.

In the context of the issues of our study, we note that the complex geopolitical situation in the world, the decrease in prices for commodities, on the one hand, and the reduction of Ukrainian exports to the Russian market, increase the role of the value of Euro-oriented exports. Currently, Ukraine is characterized by a global reorientation of domestic exporters to EU markets. At the same time, with the introduction of a free trade area within the framework of the Association Agreement between Ukraine and the EU, domestic exporters and export activities of Ukraine as a whole are not in the best of times and never need effective support from the state. It should be noted that their activity is greatly complicated by the existing restrictions of the NBU in the currency market and the imperfection of national legislation in the field of foreign economic activity.

Table 1 contains information on the volume of Ukraine's foreign trade in geographical terms and the relative weight of individual groups of countries.

Table 1
Foreign trade in goods and services of Ukraine with countries of
the world (incl. with EU countries) in 2016 -2018, mln. doll. USA

Source: compiled according to the data [State Statistics Service of Ukraine
// Official site [Electronic resource]. - http://www.ukrstat.gov.ua]

In total, by the end of 2018, Ukraine's trade with the CIS countries amounted to 24.6 billion US dollars. Export volume amounted to 10.7 billion US dollars and accordingly 13.9 billion dollars US imports.

In general, there is a significant decrease in the share of export supplies to CIS countries in the total export of Ukraine, which is not typical for similar import indicators. The result of such a dynamics of export and import indicators is the deterioration of the foreign trade balance of Ukraine with the CIS countries. The Russian Federation remained among the main trading partners of Ukraine. The share of the latter in the foreign trade turnover of goods and services of Ukraine in 2018 amounted to 12.9%.

Analyzing the indicators of foreign trade of Ukraine with the countries of the world, one can conclude that the European Union, having a steady tendency to increase its share in Ukrainian exports and imports, is a key trading partner of our state. According to the data of 2018, the share of these countries in the foreign trade turnover of Ukraine was more than 40%, and exports amounted to 23.0 billion dollars. The USA, which is 14.3% more than the previous year. At the same time, an increase in imports by $ 3.0 billion was recorded. USD or 12.7%.

Consequently, in recent years the situation has changed so much that now, both in Ukrainian exports and imports, the share of the CIS countries is only half that of the EU countries.

In the context of the problems of our research, we should note that the economy of Ukraine is 50% dependent on exports, where almost one third of it is agricultural products. This means that the agrarian market is a strategically important area of ​​the global economy and business. In general, for agricultural products and products of metallurgy in the period from 2013 to 2018, on average, Ukraine's exports to the European Union countries account for about 54%. So, in 2018, mutual trade in agricultural products between Ukraine and the EU set a record, approaching the level of $ 9.0 billion. USA, which was 11.4% more than in 2017.

More than 80% of Ukrainian agrarian exports to the EU accounted for 6 commodity items: corn (25.1%), sunflower oil (23.6%), rape (12.7%), cake and other oil waste (7.9%). , soybeans (5.5%), wheat (3.9%), poultry (2.4%) and honey (1.8%).

Ukraine carries out export-import operations with all EU countries, however, the most influential European trade partners in 2018 are: Germany, Poland, Italy, the Netherlands and others. (Fig. 5). Among the main importers of Ukrainian products during the specified period, there were recorded: Poland (14.9%), Italy (11.9%), Germany (11.3%), the Netherlands (7.8%), Hungary (7.4%), Spain (6.2%), and Great Britain (4.9%). In terms of exports to the EU, Ukraine was dominated by countries such as Germany (24.2%), Poland (14.5%), Italy (7.9%), France (6.1%), Great Britain (5.3%), Hungary (5.0%), the Czech Republic (4.1%), and the Netherlands (3.5%).

Figure 5
The main EU partner countries for Ukraine in 2018, %

Source: compiled for [6]

It should be noted separately that Ukraine, having the status of an active participant in world trade processes, testifies to an increase in the share of Asian and African countries in commodity circulation. In particular, over the past 10 years, the foreign trade turnover with China, India and Egypt, which are now among the largest trading partners of Ukraine, in literal terms grew by 15.1; 2.1 and 2.6 times. At the same time, over the past year, the share of China in Ukrainian imports has already come close to the Russian index and has every reason to expect that this country will become Ukraine's largest importer for the first time in the near future.

It is worth noting Ukraine's trade partnership with the USA, which in 2018 accounted for 4.4% of the foreign trade turnover of goods and services.

Thus, Ukraine, being in a geopolitical dimension by a European state, statistically confirms the change in the vector of foreign economic policy. In recent years, as already noted, there is an active reorientation of Ukrainian exports from traditional markets, such as the Russian market, to other world markets, where the European Union becomes a major foreign trade partner. The EU's economic attractiveness for Ukraine lies, first of all, in being able to join a high culture of effective market economy and bring its own economy to the appropriate level.

The most important component of European integration for Ukraine is real progress in implementing reforms and modernizing the economy, creating favorable environment for successful business and entrepreneurship in line with European standards. Poland, Slovenia, Slovakia and the Baltic States successfully implemented this potential, in particular in the development of small and medium-sized businesses, in the investment, finance, budget, tax, judicial and administrative sectors.

Under the conditions of today, the issue of diversification of foreign trade relations becomes of particular urgency. Proper geographical diversification of foreign trade operations is an important factor in reducing foreign trade risks.

Considering the fact that over the past decades, the Asia-Pacific region has shown the highest economic dynamics, we share the opinion of the researchers on the relevance of the issue of diversification of foreign trade relations in this direction and we believe that a balanced and consistent policy will allow Ukraine to establish relations with Asian countries on the basis of mutual trust and mutual respect. In turn, it will facilitate the intensification of trade and economic relations, production cooperation, etc.

Foreign trade cooperation of Ukraine with the countries of Asia is characterized by tendencies depicted in Fig. 6

Figure 6
Foreign trade of Ukraine with countries of Asia, billion US dollars

In 2017, Ukraine's trade with Asian countries grew somewhat in comparison with 2007, even in spite of a significant drop in this indicator in 2014-2016. In general, foreign trade turnover in 2017 grew by 20% compared to 2007, and during 2007- 2013, this indicator has increased by 62%, and in 2014-2017 - decreased by 26%.

Emphasizing the multi-vector of foreign economic relations of Ukraine, it should be noted as a positive that in 2018 Asia strengthened its position as the main importer of domestic agricultural products. The volumes of domestic exports to the countries of this region increased to 8.0 billion dollars. USA., Which is almost 4% higher than the record supply of this region at 7.7 billion dollars. The United States, established in 2017. In general, the share of Asian countries in 2018 amounted to 42.6% of the total exports of Ukrainian agricultural products.

Shifting the global economic center to Asia is primarily due to the growth and strengthening of the PRC, the presence of the industrial giant in the region, Japan, as well as the "new industrialized countries" and the emerging growth centers in Asia, which demonstrate high annual GDP growth rates, implement an effective policy of market transformation and ever-increasing have a greater influence on regional and global international processes. By 2020, the region's share may amount to one-third of the total world trade volume. Over the past few years, China and India have turned into powerful international investors, in fact overtaking Japan. These countries have also been actively involved in the struggle for control over natural resources and industrial assets in different regions of the world, which was partially felt by Ukraine itself.

In view of the above, we believe that Ukraine has a real opportunity to cooperate more actively with Asian markets, which, despite the lower purchasing power of the population, and in some cases lower standards of living, in the establishment of fruitful relationships, may represent no less attractiveness for our state, comparing them with the EU market. In addition, the traditional centers of external influence (EU, USA and Russia), which are traditional for Ukraine, actively co-operate with new Asian development centers.

Consequently, the study of modern trends in the development of foreign trade in Ukraine provides an opportunity to suggest ways in which the use of which will enable to improve the foreign trade activity of the state and increase its efficiency in the face of globalization challenges.

The main directions of change should be:

- review of the export-import policy of the state and the development of clear proposals for the gradual transition from the export of raw materials to the production of products with high added value;

- improvement of the legislative framework in order to ensure the functioning of crediting and insurance policies for the export with the participation of the authorities, as well as the provision of caretaker guarantees for export credit, which will encourage domestic producers to enter the markets of the EU, Asia, Africa and other countries more actively, based on the principles of multidirectional state foreign economic policy;

- development and implementation of complex measures aimed at: demonopolization of the economy, elimination of corruption on the terms of doing business and attracting foreign and domestic investments; enhancing the competitiveness of goods by improving their quality and technology, and constantly implementing innovative policies, namely: upgrading the technical level, introducing energy and recovery technologies, increasing the level of mechanization and automation of production, scientific and technical and technological updating of production, etc.; creation and implementation of import-substituting industries: intensification of cooperation with producers of the European Union in connection with the transfer of production (partly or completely) to Ukraine and the replacement of imported products in domestic markets with products of the national producer with mandatory incentives developed in the state program. 

Thus, the author's work on the above-mentioned problem has given an opportunity to distinguish the main problems of the development of international economic relations of Ukraine in the modern conditions, which require certain transformations and the holding in the state economy of progressive, innovative measures, which, taking into account the economic multi-vector of the state's economy, would allow a new qualitative level of development of international relations.

The analysis shows that geographical and commodity structural changes in Ukraine's foreign trade reflect the reorientation of exports and imports to the EU markets, which, while increasing foreign trade turnover, are positive but, on the other hand, relatively weak competitive positions of domestic exporters in most commodity segments finished products and intense competition in foreign markets significantly inhibit domestic exports.

The main external causes that make Ukraine an active presence on the world stage are: strengthening international competition in commodity markets, low competitiveness of Ukrainian products; consumer demands on the quality of goods, in which price factors became secondary, and the factors of the latest technologies and product quality guarantees are primary; the application by competition countries of forms of protectionism and discrimination of Ukrainian exporters, in particular, the complication of the certification procedure for products; the complexity of entering into international cooperation due to non-compliance with international standards for the protection of intellectual property rights, etc.

The research of the commodity structure of foreign trade of Ukraine makes it possible to state the existence of a high dependence of the national economy on a limited range of trading partners, which creates a number of risks and threats to the economic security of the state. In this regard, after studying the views of the researchers on the identified issues, the authors conclude that the strategic instrument for ensuring the stability of the domestic economy is the diversification of Ukrainian foreign trade flows, while simultaneously increasing the share of high value added goods in the export basket, with this orientation, first of all, required to those countries that, like Ukraine, are interested in mutual trade.

Consequently, Ukraine, being geopolitically measured by a European state, should focus its attention on the multi-vector strategy. The priority directions of Ukraine's foreign trade cooperation should be the European Union and the countries of the Asian region. It is also worthwhile as potentially important trading partners to more actively develop and develop cooperation in the region of America and the African continent. The latter is considered a particularly promising region for agrarian exports of Ukraine, where the main importing countries of Ukrainian agricultural products are Egypt, Nigeria, Algeria, Morocco and Tunisia, which consume mainly domestic crops, fats and oils of plant and animal origin, and dairy products. In addition, the most important thing in our opinion is the maximum preservation of the presence of domestic exporters in the CIS.

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1. Management of Foreign Economic Activity and European Integration Department. Sumy National Agrarian University (Ukraine). Cand. Econ. Sciences, Associate Professor. sturchina68@gmail.com

2. Management of Foreign Economic Activity and European Integration Department, Sumy National Agrarian University (Ukraine). Cand. Econ. Sciences, Associate Professor.  ljutikd@gmail.com

3. Statistics, Business Analysis and Marketing  Department., Sumy National Agrarian University (Ukraine). Cand. Agricultural Sciences, Associate Professor.  ne_va@ukr.net