ECONOMIC EFFECTS OF CREATING A FREE TRADE ZONE OF UKRAINE WITH THE EU

The article examines the dynamics of changes in the volumes of trade in goods and services between Ukraine and the EU within the framework of the Association Agreement, in particular, the dynamics and static foreign trade effects of the creation of a free trade zone between Ukraine and the EU were investigated: the effects of the creation and rejection of trade, the trade opening index of Ukraine and the EU, the effect of comparative advantage is calculated. The tendencies of development of Ukrainian exports of the main groups of goods to the EU for the last five years have been explored. It is substantiated that the goods constituting the basis of export to the EU have high indices of comparative advantages. It is analyzed that Ukraine is more open to foreign trade than the European Union. The influence of the establishment of a free trade zone between Ukraine and the EU on the mutual trade in goods and services has been determined, prospects of development of the main competitive industries of Ukraine are estimated. It is proved that the signing of the Association Agreement of Ukraine with the EU affects trade specialization within the main groups of goods exports from Ukraine to the EU, and also that re-orientation of Ukraine in the mutual trade of goods is possible in such fields as electric machines and equipment.