Peculiarities of Trade and Economic Cooperation Between Ukraine and Israel in the Context of the Free Trade Agreement and the Production of Agri-Food Products

Abstract

Сountries try to increase their benefits and in the long term, so they develop their trade and cooperation. The international economic integration, conclusion of regional trade agreements help to achieve it. The elimination of trade barriers and other measures allow for deeper cooperation between countries. Therefore, Ukraine has concluded dozens of such agreements, among them with Israel. The article examines trade and economic relations between Ukraine and Israel, taking into account the Free Trade Agreement, agricultural production in Ukraine, provides a definition of the complementarity of their trade structures, and develops proposals. The work utilizes scientific research methods, among them analysis and synthesis, , statistical, abstraction generalized, graphical, and other methods. Ukraine is increasing its exports to Israel, although there have been declines in some years. The Israel’s share of Ukraine ‘s exports is low, and a similar situation applies to Ukraine’s share of Israel’s exports. Ukraine’s trade balance with Israel has been predominantly positive, with a consistent positive balance for agricultural products. Their share in Ukraine’s exports to Israel has increased significantly, processed food products are among the most exported goods. These countries economies are complementary. Ukraine is among Israel’s largest importers of those products for which it is among the world’s largest producers and which are the largest share of exports to Israel. The trade complementarity index and the Free Trade Agreement between the two countries provide evidence of export prospects. Ukraine needs to diversify its exports to Israel, improve product quality, and stimulate the production and export of kosher products, processed foods, and other goods already in demand, but whose exports are negligible or nonexistent. In future studies, it is advisable to investigate the development of trade and economic cooperation taking into account the regional trade agreements concluded by them.