Olha Yatsenko

Kyiv National Economic University named after Vadym Hetman,
Kyiv, Ukraine
Email: yacenko_olga@ukr.net

Realization of the potential of the Ukraine–EU free trade area in agriculture

Vitalii Nitsenko

Odessa I.I.Mechnikov National University,
Odessa, Ukraine
Email: vitaliinitsenko@gmail.com

Nataliia Karasova

National Scientific Center "Institute of Agricultural Economics",
Kyiv, Ukraine
Email: nkarasyova.natasha@gmail.com

Harvey S. James, Jr.

University of Missouri,
Columbia, Missouri, USA
Email: HJames@missouri.edu

Joe L. Parcell

University of Missouri,
Columbia, Missouri, USA
Email: parcellj@missouri.edu

Abstract. The Deep and Comprehensive Free Trade Area (DCFTA) Agreement between Ukraine and the EU has led to the following question: What new opportunities are unveiled for the agricultural sector? The aim of this article is to determine the promising trends in Ukrainian agriculture’s export potential considering the potential adverse effects from highly competitive markets. The authors’ gravity model is based on the research of the Ukraine–EU free trade area operating conditions. The paper provides a forecast on the volumes of trade flows of agricultural food products between the participants of the Agreement and determines advantages and disadvantages of trade and overall economic relationship liberalization. Finally, the ways to improve bilateral relations for Ukraine are proposed.

Received: December, 2016

1st Revision: May, 2017

Accepted: May, 2017

DOI: 10.14254/2071-8330.2017/10-2/18

JEL Classification:  Q17, F15

Keywords: free trade area, Ukraine, agricultural sector, export-oriented production