Zarytska
N.S.
postgraduate of
international accounting and audit department
Kyiv National
Economic University named after Vadym Hetman
The
peculiarities of foreign trade between Ukraine and USA
Abstract: The
article describes the current state of trade relations between Ukraine and the
United States and the potential for trade cooperation. The factors which are
formed under the influence of modern distribution trade flows between the US
and its trading partners are determined. The dynamics of export-import
operations between Ukraine and the United States were analyzed. The reasons
that affect the development of bilateral trade and economic cooperation between
Ukraine and the United States were determined.
Keywords: foreign trade flows, export and import operations, foreign
trade cooperation.
Introduction. The process of reproduction of the global social
product is now sold through an extensive and diversified system of economic
relations, forming a single, complex "web" of international economic
activities of companies and various businesses, industries and sectors of
national economies and territories, regions and individual cities . It is well
known that any trade cooperation between entities at the international level is
always based on two principles: first, it is an objective necessity; and
secondly, the mutual interest of the parties in its implementation, by reason
of the specific economic benefits. Thus, numerous economic ties and
interdependence between countries and regions, as the material basis of modern
processes of international exchange, in one way or another is always locked in
the international market and foreign trade. Last embodies all the extensive
results of the exchange of national production on the scale of the world
economy, their implementation and consumption at an international level, as
well as a set of relations of commodity and money exchange and freedom of
competition.
There are all grounds to say that the foreign
trade of countries offers their international economic cooperation permanent,
stable and sustainable nature is an important source of foreign exchange to the
economy and provides balancing of the global economic system based on the
implementation by States of their competitive advantage in the production of
goods and services to which they specialize, and the flow of goods and services
in those countries and regions where are their consumers. We should not overlook the fact that the effective activity of countries
foreign trade is an important channel for their links with the world economy,
makes it possible to ensure optimal use of traditional export and import
markets and streamlining the balance of payments and effective integration into
the global economic system. Moreover, from the scale of and structure of foreign
exchange of countries are directly dependent their position in the global model
of international division of labor, and thus - in the current national economic
development strategy the key question is increasing export potential and
commercial supplies of countries to the world markets in order to maximize the
full realization of their national economic interests in the international
sphere.
Results. Describing the current foreign trade relations between Ukraine
and the United States, it should be noted that they represent an important part
of foreign trade of the two countries. Total volume of international transactions with their foreign trade
relations forefront, including not only traditional export-import operations,
but the transactions after sales service delivered goods and operations in
international production specialization and co-production.
The
current level, and even more potential for trade cooperation between Ukraine
and the United States are sufficiently large and diversified, although Ukraine
also inherited the traditional focus on foreign trade partner countries in the
former Soviet Union.
Regarding
foreign trade of Ukraine with the EU, it is characterized by stable growth
trend: in the period from 1996 to 2014 consistently promoted as exports of
Ukrainian goods and services to the states of integration groupings and imports
them to Ukraine . As a result - the share of EU foreign trade of our country
during this period increased from 21.4 to 39.8%, in exports - from 18.8% to
32.1%, and imports - from 24.1% to 39, 8% respectively.[1] There is every reason to believe that such
an extension extent of Ukraine's foreign trade with the European Union fully
meet national economic interests of our country, since the integration unit now
determines the main vectors of economic, technological and innovative progress
and political stability in the European region for the long term.
Similar
tendencies inherent now and for foreign trade operations of Ukraine states of
Asia and Africa. So, against
nearly eightfold increase in the absolute volume of foreign trade turnover with
the countries of Asia during the 1996-2014 biennium. (From 3.7 to 28.5 billion
dollars. USA), their share increased from 9.8% to 22.6%. In turn, the cost volume of foreign trade
turnover with African countries Ukraine during this period increased of fifteen
(from 0.4 to 5.9 billion dollars. USA), and their share - from 1.0% to 4.7%
respectively .
Despite
the more than three-fold increase in the volume of foreign trade of our country
with the countries of the region, their share during this period almost
unchanged and stable was about 5.0% in exports and 5.5% in imports. Despite the establishment of the European
vector as a priority in the foreign economic strategy of Ukraine and its
signature of the Association Agreement in the EU, a special place among
economic partners of Ukraine in foreign trade operations now occupy the United
States. Objective necessity
of their growing role as a trade partner of our country can be explained by the
following factors.
First,
the necessity for Ukraine, development of new markets, reducing its dependence
on the CIS markets and maintains positive dynamics of economic growth and
material welfare.
Second,
opportunity for Ukraine is to take the support of the United States of
membership in the OECD. These capabilities arising from the status that the US
is the largest contributor of the organization, which form 25% (about 510
million dollars. USA) of the organization budget [2]. Thus,
Ukraine's membership in OECD (or associate membership in the OECD Committee on
competition), implementation of regulations and conventions in domestic
business practices, facilitate introduction in Ukraine unified, common
"rules" in terms of international cooperation, the fight against
corruption and export credit; improving the reliability of the domestic
financial, banking and insurance systems; as well as the favorable conclusion
of agreements on the movement of capital and foreign direct investment. Furthermore, even without membership in
the OECD Ukraine with the support of the US can actively cooperate within the
framework of special programs of the organization to participate in various
international events held under its auspices, to exchange experiences and make
recommendations for sustainable economic growth.
Thirdly,
by the deepening of trade cooperation with the United States there are new
prospects for Ukraine of improving energy security and reducing energy
dependence on Russia.
In
addition, in the present conditions of military operations in eastern Ukraine
and the reduction in the supply of coal to thermal power plants and is
difficult to overestimate the importance of the US supply of nuclear fuel in
Ukraine, which will diversify the sources of supply of this type of energy in
our country.
This is what was determined in the
agreement between "Energoatom" and American company
"Vestinhuaz" to increase the supply of nuclear fuel for Ukrainian
nuclear power plants for the period until 2020.
Describing
the causes of the growing role as a US trade partner of our country, we can
escape the attention and opportunities for Ukraine to take advantage of that
opening agreement between the US and the EU on Transatlantic Trade and Investment
Partnership (TTIP). The point is that
in terms of its implementation between the United States and the European Union
will create the biggest free trade area, which will ensure the convergence of
US and European standards, as well as much convergence North American and
European markets, which today are characterized by the highest level of
intra-regional trade interaction and interdependence.
However,
the economic activity in the regions of North America and Europe will stimulate
increase in effective demand in the EU and the US for products from third
countries (such as Ukraine) produced within transnational production chains
involving American and European entities. In view of this, for Ukraine, which signed
an agreement on associated membership in the EU, in terms of increasing trade
cooperation with the United States opened broad prospects for obtaining
undeniable competitive advantages of the recognition of equivalence of the EU
in entering the US market[3]. Another important advantage TTIP for Ukraine -
is the emergence of joint regulations that will reduce costs for domestic
exporters in entering the American and European markets.
Fifth,
another important factor in increasing role of the US as a trade partner of
Ukraine has prospects to obtain access to advanced American high technology and
accelerate the integration of our country in international institutions and
organizations.
US leadership position in the
international scientific and technological exchanges defined by enormous
scientific and technical potential of the country; The largest absolute
expenditure on R & D; effective integration of fundamental and applied
science; concentration of global financial, technological, human and
intellectual resources; monopolization of ownership, control and redistribution
within the world economy of intellectual property; and effective system of
state regulation standards using inventions created with the involvement of
public funds or under government orders.
Thus,
through the expansion of trade between Ukraine and the US in international
scientific and technological exchange may significantly improve the innovative
capacity and adaptability of domestic production and ensure efficient use of
the facilities inherent in intellectual property scientific and technical
knowledge.
This conclusion follows from the
features of modern trade scientific and technical knowledge, which consists in
the fact that the transfer and use of rights to innovations, inventions,
industrial designs, trademarks and other objects usually combined with the
transfer of "know-how" production secrets and technical
documentation, and technical assistance and the use of advanced technologies.
In other words, there is a decrease
the role of a pure patent licensing in the modern international scientific and
technological exchanges with a simultaneous increase in the number of
agreements on the transfer of "know-how", whose share is currently
about 65% of all technology transfer agreements [4]. Given
this, both Ukrainian and American businesses, despite a number of risks and
barriers that exist in mutual trade, interested in increasing its cost volume
and diversification of the structure. Proof of this are, in particular,
threefold increase in the number of members of the American-Ukrainian Business
Council over the past year and a half.
Discussion. The main reasons that in recent years a negative impact on
the development of bilateral trade and economic cooperation between Ukraine and
the United States should be mentioned first:
-
Reduction of production in our country the main groups of export goods by
maintaining high tax rates and bank loans, as well as military aggression from
the side of Russian Federation;
- Low
competitiveness of domestic products in the US market and weak mechanisms of
state support for domestic exports to the US market, including diversification
and increase exports of Ukrainian goods with high added value;
-
Inadequacy of the regulatory framework of Ukrainian-American cooperation,
including financial and taxation, agriculture and customs;
-
Weakness of sectoral cooperation between Ukraine and the United States
especially in the agro and biotechnology sector, and the development of
advanced innovative technological solutions;
- A
series of marketing activities of Ukrainian companies in the US market first
with the presentation of export opportunities for domestic production, investment
attractiveness of industries and sectors of the national economy, promote
mutually beneficial contacts between Ukrainian and American companies and
various businesses.
References
1. Convergence and divergence in Europe: Polish and
Ukrainian cases (2013) Ê.: ÊÍÅU.
3. Movchan V. Transatlantychna zona vilnoii torgivli.
Vyklyky I mozhlyvosti dlya Ukrainy Available at: http://www.eurointegration.com.ua /articles/2015/07/27/7036267/
4. Zymenkov R.I. SSHA na mirovom rynke tehnologii Available
at: http://www.rusus.ru/?act=read&id=401