Contradictions of tariff liberalization in the conditions of neo-protectionism

Abstract

Background. The excessive openness of domestic markets, as required by the World Trade Organization, poses additional threats to countries with weak economies. It causes the necessity to improve the mechanisms of liberalization of the conditions of foreign trade of the states, taking into account the tendencies of transformation of the world system of foreign trade relations.
Analysis of recent research and publications. In the scientific community, the recognition of neo-protectionism as the main tendency of formation of foreign trade relations of states in the modern geo-economic space is widespread. In such circumstances, the problem of ensuring a reasoned level of customs protection of national markets becomes particularly important.
The aim of the article is to improve the methodological tools for assessing the level of tariff liberalization of foreign trade of the state and its testing on the example of Ukraine’s foreign trade activity.
Materials and methods. In the process of research the methods of analysis and synthesis, the index method and the graphical modeling method are used. The research is based on scientific publications and materials of the World Trade Organization.
Results. The methodical approach to the estimation of the level of openness of foreign trade of the state based on calculation of absolute and relative coefficients of tariff liberalization by commodity sections of the foreign trade nomenclature is offered. The calculation of the proposed coefficients makes it possible to estimate the level of openness of the state's foreign trade by separate commodity sections of the foreign trade nomenclature, both in the context of compliance with the WTO requirements on related tariffs (absolute liberalization ratio) and in the dynamics compared with the previous period.
In order to assess the level of tariff liberalization of Ukraine’s foreign trade in accordance with the proposed approach, the calculation of absolute and relative coefficients of trade liberalization by commodity sections of UCGFEA in dynamics was calculated.
Conclusion. Overall, the level of tariff liberalization of Ukraine's foreign trade should be considered to be WTO-compliant and have the prospects of further simplification. Considering the spread of neo-protectionist tendencies in the foreign trade relations of the states, the necessity of the development of mechanisms of moderate and selective tariff liberalization of Ukraine's foreign trade is grounded.