INTRODUCTION

Foreign trade holds an outstanding place in economy of Ukraine. Particularly, export supplies contribute almost 40% to gross domestic product of the country. When combined with the first convincing evidences of economic stabilization in Ukraine, which is traced in 2000 and shows up in growing GDP and advancing industrial production, hopes appear for wider application of export capabilities of enterprises and organizations as well as for facilitation of their foreign economic relations. These grounds are fixed in the project of the Program of stimulating export of domestic products, as well as other important documents, which are to be completed in 2001.

When paying particular attention to fulfillment of the strategy for economic and social development of the regions, which was declared by the President of Ukraine, and orientation of Ukraine at integration in the WTO and the EU, it is estimated that stimulation of foreign economic activities, in particular, growing exports of competitive domestic products, will expand access to foreign markets, assist in more competent use of Ukraine's economic capacities, and contribute to appealing of investment environment.

Speaking about outlooks for 2001, it is important that Ukraine will proceed negotiations with representatives of the European Commission and other interested parties in regard to expanded access of Ukrainian commodities to the European markets via increasing quotas for certain commodity groups and removal of trade restrictions.

State regulation of foreign economic activities will be oriented towards maturing of mechanisms of Ukraine's trade relations in compliance with requirements of multilateral system GATT/WTO.

Ukraine will make further steps to enter the World Trade Organization. The country's legislation will be adjusted to requirements of this organization.

Liberalization of trade is to be exercised on bilateral basis through concluding agreements on free trade zones. Important stage of the process is creation of a free trade area with the EU. This direction will smooth transition of the economy towards marketing relations and re-orient trade flows towards more promising markets of member-countries of the EU.

To bring the aforementioned to reality, presently, the State program for stimulating export of products, including high-tech products, is in process of elaboration. The program is drafted pursuant to the relevant orders of the President of Ukraine and the Cabinet of Ministers of Ukraine and defines export strategy of Ukraine as an integral part of the policy of economic restructuring.

The Program implies increasing turnover and efficiency of export. Execution foresees development and implementation of mechanisms to drive and accumulate investment equity. The latter would serve as a ground for alterations in the national economy and contribute to raising competitiveness of domestic products to meet demand of the interior market and boost export potential.

The program targets to define particular measures within the system of state support of exporters, improve mechanism and system of foreign trade management and support of national producers, and introduce the most efficient types of cooperation with foreign partners based on gradual increase of mobility of goods, services, capitals, and labor force.

Export strategy of Ukraine is oriented towards economic restructuring; maturing of industrial and regional production patterns; increasing turnover of products with high rate of processing, especially knowledge intensive one; reducing export of raw materials; and diminishing production, which is environmentally dangerous or resource-intensive and, thus, raises dependence on supplies of energy resources, raw materials, and semi-products. As a result, the main objective is growing income of the state and business entities.

The Program will be implemented in three stages within 10 years. It embraces specific projects in certain sectors and will ascertain executors, backing sources, and anticipated outcomes.

As regards short-term prospects, they are to be defined by the government program. Hence, strategic guidelines in foreign economic relations for 2001 will remain unchanged. They will involve further liberalization of foreign trade and creation of conditions for legal protection of the domestic market in order to support domestic producers of goods.

Priority importance in development of foreign economic policy will fall for:

• integration of Ukraine into world trading system, expansion and diversification of markets for Ukraine-made products on account of improving quality and competitiveness;

• ease of present dependence on certain markets for energy carriers and raw materials;

• accretion of export potential;

• acceleration in implementing new assembly lines to manufacture competitive products for Ukrainian producers of goods to enter international markets;

• prevention of new anti-dumping investigations, which concern Ukrainian commodities, and prevention of closure or restrictions of important export markets;

• creation of proper conditions to drive foreign investments in Ukraine, foremost, as the latest technologies, equipment, etc.

The favorable trend of steady development of foreign trade, which began in 2000, remains in 2001.

According to the estimates, foreign trade turnover of goods and services in 2001 will total USD 34.7 bln., which will outrun the scheduled figure of 2000 by 18.3%. Export revenues will yield USD 18.7 bln. (by 18.2% above the figure of 2000) and import will account for USD 15.9 bln. (by 18.5% above the figure of 2000). Foreign trade balance will make positive USD 2.8 bln.

[12.12.2000]

Official date the site was started

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