You are here

Application of custom tariff and non-tariff instruments in state regulation of foreign trade

Measures of foreign trade state regulation with specification of tariff and non-tariff restrictions have been considered. It was identified that Ukrainian producers are constantly faced inefficiency of the tools of administrative influence from the Government of Ukraine and direct and hidden techniques from partners. We determined advisability of the research related with the imperfect state policy on foreign trade regulation and the need to assess the impact of customs tariff and non-tariff measures to restrict trade relationship of Ukraine.

The objective of the research is the need to detect features of customs-tariff and non-tariff instruments application in the modern mechanism of foreign trade state regulation of Ukraine and by analyzing the measures used to find out the real state of liberalization of international trade with its positioning as the direction of public policy in the European Union and Ukraine.

Materials of the research were scientific works of famous domestic and foreign scholars covering various aspects of trade and political measures of regulators, the practice of tariff and non-tariff restrictions.

It was found that Ukraine's entry into the WTO and Association Agreement with the EU requires an assessment of effectiveness of methods of regulation of foreign trade, their adaptation to new conditions of cooperation. It is important to analyze the impact of regulatory measures specific to the application of customs tariff and non-tariff instruments to regulate foreign trade integration in the new integration conditions. Manifestation of actually existing trade restrictions in different countries is somewhat contrary promoted WTO and EU approaches aimed at the liberal model of trade relations. For Ukraine which has a weaker economic potential compared with major partners, including the EU, the liberalization of access to foreign goods on the domestic market creates some threats on the deterioration of the national economy. Under rather stringent requirements for the use of non-tariff methods, the EU countries have high protection of their producers, which creates problems for the Ukrainian goods entering their markets.

It is proved that the mechanism of protection of national economic interests of EU member states is characterized by a significant amount of non-tariff measures. Currently, the EU is one of the leaders in the use of non-tariff protectionism. Share of tariff lines covered by at least one non-tariff measures in the EU is 90%. Under the effect of these measures falls 86% of European imports and international trade per one trade unit is limited to about 4 non-tariff measures. For greater efficiency of applied measures of state regulation based on defined foreign policy priorities we conducted the estimation of the level of trade protection and studied the influence of tariff and non-tariff measures on the dynamics and the impact of international trade. It was found that the overall performance of regulation of international trade the main data are the average custom tariff rate index and frequency index of import cover ratio of non-tariff measures, which reflect the real level of trade restrictions. Indicator that more effectively and objectively reflects the level of trade protection is the tariff index of trade restriction.

The level of trade protection of the EU and Ukraine through tariff trade restriction index was calculated. The analysis lead to the conclusion that after the transition period under the Association Agreement, Ukraine will have a real level of trade protection for food products 3.5%, while in the EU this level is 15,56 %.

It was established that the actual level of liberalization of trade relations between Ukraine and the EU will be a constant predominance of trade protection on the part of European partners. The explanation for this is a balanced tariff policy of the EU aimed at protecting sensitive sectors of its economy, including the introduction of a zero rate of duty on a group of agricultural commodities that are the subject of international specialization of Ukraine only within tariff quotas.

We offer Ukrainian exporters who at the entrance to the market of the EU countries face protectionist of non-tariff measures, including requirements for technical parameters of goods, certification, sanitary and phyto-sanitary standards to direct investment potential in order to improve the quality products and ensure proper standardization. This will open broader perspective for the exporters than increase the level of tariff protection by European partners.

The issues discussed in the article are extremely important and require extensive further research, including the development of strategic principles of forming and implementing a balanced state custom tariff and non-tariff policies aimed at protecting producers in agriculture.

Key words: foreign trade, government regulation, tariff and non-tariff restrictions, tariff quotas, tariff trade restriction index.

1. Andriychuk V.H. (2014) Vplyv Uhody pro asotsiatsiyu mizh Ukrayinoyu ta YES na mytno-taryfne rehulyuvannya i zovnishnotorhovelnyy rezhym storin [Impact of the Association Agreement between Ukraine and the EU on customs tariff regulation and foreign trade regime of the parties] Zovnishnya torhivlya: ekonomika, finansy, pravo, №3 (74), рр. 4–15.

2. Mazaraki A.A.,  Melnyk T.M. (2010) Rehulyatorna polityka u sferi zovnishnoyi torhivli: monohr. [Regulatory policy in the field of foreign trade: monogr.] K., KNTEU, 469 p.

3. Ivashchuk I.O. (2012) Superechnosti zastosuvannya krayinamy instrumentiv zakhystu natsionalnykh interesiv v umovakh prykhovanoho protektsionizmu [Controversy of the use of instruments by countries to protect national interests in a context of hidden protectionism] Skhid: Analitychno-informatsiynyy zhurnal, №6 (120), рр 30–37.

4.  Burakovskoho I.,  Movchan V. (2014) Ekonomichna skladova Uhody pro asotsiatsiyu mizh Ukrayinoyu ta YES: naslidky dlya biznesu,naselennya ta derzhavnoho upravlinnya [The economic component of the Association Agreement between Ukraine and the EU: the consequences for business, population and public administration]  K., IED, 139 p.

5. Heytsya V.M. (2013) Mozhlyvosti i zasterezhennya shchodo naslidkiv uvedennya v diyu polozhen Uhody pro asotsiatsiyu mizh YES ta Ukrayinoyu [Opportunities and reservations regarding the consequences of the entry into force of the provisions of the Association Agreement between the EU and Ukraine] K., DU «In-t ekon. ta prohnozuv.» NAN Ukrayiny,  98 p.

6. Ivanov Y.E. (2014) Indeksy obmezhennya torhivli yak instrument analizu zovnishnotorhovelnoyi polityky derzhavy [Trade restriction indices as a tool for analyzing the foreign trade policy of the state]  Halytskyy ekonomichnyy visnyk.  Ternopil, TNTU,  T 46, № 3, рр 76-82.

7. Borysenko O.P. (2012) Zovnishnoekonomichna polityka derzhavy: kontseptsiya, stratehiya, mekhanizmy realizatsiyi: monohrafiya [Foreign-economic policy of the state: concept, strategy, mechanisms of implementation: monograph] Donetsk, TOV «Yuho–Vostok, Ltd»,  402 p.

8. Derzhavna sluzhba statystyky Ukrayiny [State Statistics Service of Ukraine], [Elektronnyy resurs], Rezhym dostupu: http://www.ukrstat.gov.ua.

9. World Integrated Trade Solutions [Text] / The World Bank // Mode of access: Elektronnyy resurs], Rezhym dostupu: http://wits.worldbank.org/ CountryProfile/Country/UKR/Year/2012/Summary.

10. Ostashko T.O. (2013) Rynky silskohospodarskykh tovariv pid vplyvom ochikuvanykh zmin torhovelnykh rezhymiv [Agricultural commodity markets under the influence of expected changes in trade regimes] Ekonomika i prohnozuvannya,  №3, рр 105–115.

11. Shcherbata N.Z. (2011) Zovnishnoekonomichna polityka Yevropeyskoho Soyuzu v zonakh vilnoyi torhivli: Monohrafiya [Foreign Economic Policy of the European Union in free trade areas: monograph ] Lutsk, Volyn. nats. u-nt. im. L.Ukrayinky, 199 p.

12. Nicita, Alessandro; Gourdon, Julien. A preliminary analysis on newly collected data on nontariff measures. – New York and Geneva: UNCTAD, 2013, 24 p. [Elektronnyy resurs], Rezhym dostupu: http://unctad.org/en/ PublicationsLibrary/itcdtab54_en.pdf

13. Uhoda pro asotsiatsiyu mizh Ukrayinoyu, z odniyeyi storony, ta Yevropeyskym Soyuzom, Yevropeyskym spivtovarystvom z atomnoyi enerhiyi i yikhnimy derzhavamy-chlenamy, z inshoyi storony [The Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand ]  / Yedynyy veb-portal orhaniv vykonavchoyi vlady v Ukrayini. [Elektronnyy resurs].– Rezhym dostupu: http://www.kmu.gov.ua/kmu/control/uk/publish/article? art_id=24658 1344&cat_id=223223535.

14. Analitychna dovidka Natsionalnoyi trystoronnoyi sotsialno-ekonomichnoyi rady pro zakhyst vnutrishnoho rynku ta zabezpechennya konkurentospromozhnosti vitchyznyanoho tovarovyrobnyka [Analytical note of the National Tripartite Social and Economic Council on the protection of the domestic market and ensuring the competitiveness of the domestic commodity producer.] [Elektronnyy resurs], 30.07.2014,  Rezhym dostupu: http://www.ntser.gov.ua.

15. Ofitsiynyy sayt Svitovoyi orhanizatsiyi torhivli [Official website of the World Trade Organization]. [Elektronnyy resurs], 30.07.2014,  Rezhym dostupu: http://www.wto.org.

AttachmentSize
PDF icon lobunets_malik_ekon_1-2017.pdf353.75 KB