Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Esta publicación cientíca en formato digital es continuidad de la revista impresa
ISSN-Versión Impresa 0798-1406 / ISSN-Versión on line 2542-3185Depósito legal pp
197402ZU34
ppi 201502ZU4645
Vol.39 N° 70
2021
Recibido: 24/06/2021 Aceptado: 20/09/2021
ISSN 0798- 1406 ~ De pó si to le gal pp 198502ZU132
Cues tio nes Po lí ti cas
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Vol. 39, Nº 70 (2021), 179-194
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Prospects of Ukraine’s foreign economic
policy concerning Latin America
DOI: https://doi.org/10.46398/cuestpol.3970.11
Poklonskyi Andrii *
Poklonska Olena **
Klymchuk Mykhailo ***
Slobodianiuk Borys ****
Torlo Olena *****
Abstract
The objective of the research was to analyze the perspectives
of Ukraine’s foreign economic policy with respect to Latin
America. An overview of the economic and political situation in
Latin America is characterized by intensication of ination in
the region, reduction of exports and foreign investment, erosion
of the level of business and consumer condence. She used the
following research methods: methods of analysis and synthesis,
systematic approach, methods of induction and deduction, generalization,
and systematization, economic, etc. Dened strategic orientations have
been identied to improve foreign economic cooperation between Ukraine
and Latin America to seek new foreign markets and increase foreign trade,
such as: opening representative oces of Ukrainian companies in Latin
America; active participation of Ukrainian companies in trade fair and
exhibition events taking place in the countries of the region; establishment
of bilateral industrial cooperation in the territory of MERCOSUR member
countries. It concludes on the need to develop a long-term strategy to activate
trade and economic cooperation between Ukraine and the countries of the
Latin American region with the identication and justication of sectoral
priorities.
* Candidate of legal sciences, Assistant Professor, Professor of the Department of Private Law at the University of
Modern Knowledge, Kyiv, Ukraine. ORСIDID:https://orcid.org/0000-0001-6721-655X.Email:subop@mail.ru
** Candidate of legal sciences, Assistant Professor, Professor of the Department of Public Law at the University of
ModernKnowledge,Kyiv,Ukraine.ORСIDID:https://orcid.org/0000-0002-2079-1044.Email:Lenmok@mail.
ru
*** Candidate of legal sciences, Assistant Professor,SeniorInvestigatorintheInternalAairsBodiesoftheSixth
Division(OrganizationofInvestigationofCrimesCommittedintheTemporarilyOccupiedTerritoriesofUkraine)
OceoftheOrganizationofPre-trialInvestigationoftheMainInvestigationDepartmentoftheNationalPolice
ofUkraine,Kyiv,Ukraine.ORСIDID:https://orcid.org/0000-0002-0488-5470.Email:klymchuk_mykhaylo@i.
ua
**** Candidate of legal sciences, Judge of the Sarny District Court of Rivne Region, Rivne, Ukraine. ORСIDID:https://
orcid.org/0000-0002-0143-4295.Email:borazz@bigmir.net
***** CandidateofSciencesinPhysicalEducationandSports,AssociateProfessor,HeadoftheDepartmentofSpecial
PhysicalTraining,LvivStateUniversity of InternalAairs,Lviv Ukraine.ORСIDID:https://orcid.org/0000-
0001-7828-6975.Email:tyorlo@ukr.net
180
Poklonskyi Andrii, Poklonska Olena, Klymchuk Mykhailo, Slobodianiuk Borys y Torlo Olena
Prospects of Ukraine’s foreign economic policy concerning Latin America
Keywords: foreign economic policy; exports; imports; Ukraine and Latin
America; international cooperation.
Perspectivas de la política económica exterior de
Ucrania con respecto a América Latina
Resumen
El objetivo de la investigación fue analizar las perspectivas de la
política económica exterior de Ucrania con respecto a América Latina.
Un panorama de la situación económica y política de América Latina se
caracteriza por: intensicación de la inación en la región, reducción de
las exportaciones y la inversión extranjera, erosión del nivel de conanza
empresarial y del consumidor. Se utilizaron los siguientes métodos de
investigación: métodos de análisis y síntesis, enfoque sistemático, métodos
de inducción y deducción, generalización y sistematización, económicos,
etc. Se han identicado orientaciones estratégicas denidas para mejorar la
cooperación económica exterior entre Ucrania y América Latina para buscar
nuevos mercados exteriores e incrementar el comercio exterior, tales como:
apertura de ocinas de representación de empresas ucranianas en América
Latina; participación activa de empresas ucranianas en eventos feriales y
de exhibición que tienen lugar en los países de la región; establecimiento
de cooperación industrial bilateral en el territorio de los países miembros
del MERCOSUR. Se llega a la conclusión sobre la necesidad de desarrollar
de una estrategia a largo plazo para activar la cooperación comercial y
económica entre Ucrania y los países de la región latinoamericana con la
identicación y justicación de las prioridades sectoriales.
Palabras clave: política económica exterior; exportaciones;
importaciones; Ucrania y Latinoamérica; cooperación
internacional.
Introduction
Prospects for economic development of the country are determined by
its investment potential and ability to use the opportunities of globalization
of the economy and technology. In the medium term, technological
advances that will ensure a rapid transition to a digital platform of economic
relations will strengthen the integration of countries into the global space
and the quality of their development. This creates both opportunities and
threats at the national level for countries in achieving their economic
development goals. The ability to realize the economic and national
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Vol. 39 Nº 70 (2021): 179-194
interests of the country requires an eective economic strategy and political
stability. Political risks, both external (in neighboring countries or trading
partners) and internal (in the country itself) are increasingly determining
the investment attractiveness of the country and the decision of investors to
implement their projects in the country (Prikhodko, 2016). The correctness
of the choice of economic strategy is ensured by the adequacy of the applied
incentives and motivations to the level of development of its economic and
institutional space.
Dependence and interaction of economic and political risks is becoming
increasingly important for entrepreneurs in choosing the scale and intensity
of investment. According to experts, if economic risk reects the ability to
return capital, then political risk is the willingness of political power to
return it (Managing Risk in An Unstable World, Ian Bremmer, 2005). The
main concept proposed by other authors (Acemoglu and Robinson, 2002)
is a direct relationship between the level of political competition and the
level of economic development (or backwardness) of the country. That is,
the higher the level of competition, the better the government stimulates
investment, innovation, and hence the quality development of the country.
Since 2014, there have been signicant changes in Ukraine’s foreign
trade relations with some countries, in particular with traditional foreign
trade and economic partners, which was caused by the aggravation of
problems in political and trade and economic relations with Russia. In
addition, the development of foreign trade was signicantly aected by
unfavorable conditions in key world markets for Ukraine, uctuations in
world currencies and commodity prices, instability of the national currency,
irrational structure of domestic exports, dominated by raw materials and
products with low processing, low competitiveness of Ukrainian goods
and services, etc., (Foreign Economic Cooperation of Ukraine: State,
Development Prospects, Threats and Risks, 2014).
The spread of technology and the deepening of economic cooperation
through trade, investment and labor migration create both opportunities
and risks for Ukraine’s sustainable development. An important task is
to ensure the real, not illusory competitiveness of the national economy
(Sustainable Development Goals, Ukraine, 2017). In particular, the country
has a high level of trade openness and investment, but low growth rates and
gross domestic product per capita.
The general cataclysm in society caused by the crisis of the coronavirus
pandemic has become a favorable scenario for the reinforcement or
strengthening, depending on the situation, of public policy (Finol, 2021).
The success of Ukraine’s European transit directly depends on the state’s
ability to acquire historical subjectivity at this time of crisis, as well as on
strategic certainty on priority foreign policy issues (Holonič et al., 2018).
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Poklonskyi Andrii, Poklonska Olena, Klymchuk Mykhailo, Slobodianiuk Borys y Torlo Olena
Prospects of Ukraine’s foreign economic policy concerning Latin America
The current crisis of the European Union and the Pacic Trade
Partnership has revealed a number of certain political and economic
patterns that require scientic understanding and give an idea of the
general logic of global transformations in the modern world. These are,
in particular, models of interaction that characterize relations outside the
traditional division of countries into center and periphery, superpowers
and dwarf states.
Based on the forecast trends in Ukraine’s foreign trade policy,
diversication of its geopolitical and regional priorities, it is important to
address the reorientation of exports and search for new foreign markets
in accordance with the requirements and existing niches of the world
market (Romanyuk, 2015). One such potential foreign market is Latin
America, which is projected by the International Monetary Fund to be a
fast-growing market (Review of Emerging Markets, 2015). Latin America is
a large economic region, accounting for about 9% of world gross domestic
product. Brazil accounts for about a third of the region’s gross domestic
product, followed by Mexico, followed by Argentina, Colombia, Chile, and
Venezuela.
Due to the loss of markets, Ukraine is more interested than ever in
diversifying economic ties and is in dire need of new trading platforms. In
this sense, it is worth paying attention to Latin American countries, as due
to the weak political, trade, economic and diplomatic activities of Ukraine,
this geopolitical direction remains understudied. Thus, we consider it
important to determine the prospects of Ukraine’s foreign economic policy
towards Latin America.
1. Methodology of the study
The theoretical and methodological basis of the scientic article were
the works of scientists on the problems of foreign economic policy, as well
as on improving the eciency of marketing activities. To achieve the goal
and solve the problems in the work used the following general and special
techniques and research methods: methods of analysis and synthesis – to
diagnose the market of Latin America and assess its prospects for Ukraine;
systematic approach – to systematize scientic and methodological
approaches to assessing the prospects of Ukraine’s foreign economic policy
towards Latin America; methods of induction and deduction, generalization
and systematization – to streamline economic opportunities, foreign policy
of the studied countries; method of sample observations – to determine
the assessment of the eciency and prospects of the market in Latin
America; methods of coecient and comparative analysis – to assess the
foreign economic and marketing activities of the Latin American region;
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CUESTIONES POLÍTICAS
Vol. 39 Nº 70 (2021): 179-194
methods of hypotheses – to justify measures to improve Ukraine’s foreign
economic policy towards Latin America; economic – to determine the level
of market development of the study region; method of system analysis and
modeling – to assess the eectiveness of individual industries of Ukraine
in the international arena, to determine the relevant vectors of strategic
foreign economic nature.
2. Analysis of recent research
Implementation of reforms is key in most strategies and programs of
socio-economic development of Ukraine, and investment policy always
occupies one of the main positions in them. Therefore, the study of ways to
ensure its eectiveness today is critical. It is extremely important to dene
approaches to the formation of priorities for stimulating investment in
Ukraine to ensure quality economic development in the medium and long
term. The issue of choosing eective strategies for the development of the
state is widely studied in the expert community and is the subject of public
debate.
In scientic circles, these works are devoted to fundamental works on
management and international economic relations M. Meskon (Meskon,
1992), D. Acemoglu, J. Robinson (Acemoglu and Robinson, 2002),
G. Kindratskaya (Kindratskaya, 2006), Y. Sytnyk (Sytnyk, 2008), M. Nebava
and O. Ratushnyak (Nebava M. and Ratushnyak O., 2012), I. Romanyuk
(Romanyuk, 2015), O. Malinovskaya (Malinovskaya, 2016), Gutorova
(Gutorova, 2017). The scientic achievements of these scientists, as well as
empirical and statistical data contributed to the disclosure of problematic
issues and develop ways to solve them.
3. Results and discussion
After World War II, the United States began active economic expansion
on the American continent. Huge sums have been invested in the three
largest countries in Latin America - Brazil, Argentina, and Mexico. For half
a century, these countries have become industrial giants, and after them
began to actively develop other countries in the region, including Chile.
The economic policy of these countries was aimed at eradicating their
dependence on imported goods, replacing them with their own products.
Export orientation was secondary, in contrast to similar countries in Asia
(Holonič et al., 2018).
At present, the countries of Latin America, having passed the path
from colonial dependence to political and economic independence, occupy
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Poklonskyi Andrii, Poklonska Olena, Klymchuk Mykhailo, Slobodianiuk Borys y Torlo Olena
Prospects of Ukraine’s foreign economic policy concerning Latin America
an intermediate position between the highly developed countries of the
developing world (NEWLY INDUSTRIALIZED COUNTRIES OF LATIN
AMERICA, 2021). We consider a brief overview of the economies of these
countries, priorities in trade, as well as in the formation of foreign policy
important in view of the selected issues of the scientic article - determining
the prospects of Ukraine’s foreign economic policy towards Latin America.
Mexico is an industrial and agricultural country. The main sectors of
the economy: food, tobacco, chemical, steel, oil, mining, textile and light
industry, engine building, tourism. Mexico’s fuel and energy balance
is characterized by a predominance of oil and gas. Mexico has a highly
developed oil and gas industry. When commercial oil production began in
the early twentieth century, it began to play an important role in Mexico’s
economy and foreign economic relations (Holonič et al., 2018).
Mexico is an export-oriented economy. Mexico’s main exports are
nished goods (83% of total supplies), oil and petroleum products (13%).
Among nished products, cars account for about 26% of total deliveries
(Holonič et al., 2018).
Mexico’s imports consist of metal products, machinery and equipment
(50% of total imports), mining products (13%), chemical products (6.3%),
plastic and rubber products (6%). The main import partners are the United
States (51% of total imports), China and Japan (21%). Mexico’s imports
amounted to 38.97 billion dollars. Imports increased due to the purchase
of consumer goods (18%), namely petroleum products (40%); intermediate
goods (17%) and xed assets (9.2%). Imports to Mexico averaged $ 13,574.67
million (Mexico Imports by Country, 2021).
At present, Mexico has eectively renounced its leadership in regional
integration processes and is looking for an eective format for cooperation
in the process of promoting common interests in the international arena
with roughly equal players. Ukraine must take these circumstances into
account in order to invent and develop new vectors for mutually benecial
cooperation between countries.
Brazil’s economy is currently emerging from a severe and protracted
recession. The reasons for the country’s economic downturn were political
uncertainty, consumer and business distrust of government action, and low
levels of investment. The Brazilian market has grown as more investors
enter the market, hoping to prot from low stocks over the past few years.
Positive economic indicators, such as improved gross domestic product and
trade balance, also provide support for the recovery of the Brazilian market.
The main risks to Ukraine’s foreign economic cooperation with Brazil
are that the country’s leadership is currently focusing on transforming the
country into a global player not by expanding its role in regional integration
processes, but primarily by providing its own economic and military
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Vol. 39 Nº 70 (2021): 179-194
leadership. Given this, as well as the current state of trade and economic
cooperation with Brazil, Ukraine’s ability to use the strategic partnership
format to promote domestic products with the Brazilian side to other
markets in the region will be limited.
The Argentine Republic is considered one of the major developing
economies. Argentina is an industrial and agricultural country that benets
from rich natural resources, skilled personnel, export-oriented agricultural
sector, and a diverse industrial base. For most of the 20th century, the
country suered from periodic economic crises, persistent nancial and
current account decits, and high ination, which led to an increase in the
country’s external debt and capital outows (The Economy of Argentina,
2021).
Currently, Argentina’s economy is developing due to a large supply
of minerals, high literacy and has a large sector focused on the export of
agricultural products. In addition, it has a diversied industrial base. Gross
domestic product per capita at the purchasing power parity of currencies is
14.2 thousand dollars (The Economy of Argentina, 2021).
Food production is traditionally one of the main sectors of the economy
(8-9% of gross domestic product), with a relatively high level of which
Argentina stands out among Latin American countries. Argentina’s
agriculture almost completely meets its own food needs, while being one
of its leading exporters. Especially developed production of grain (grain
and oilseeds), which leads the country’s exports. In particular, soybean
production (together with beans, potatoes, oil, our and biofuels) is (like
gasoline production) the main export activity (Holonič et al., 2018). The
main export goods in Argentina’s relations with Ukraine are fertilizers,
ferrous metals, and machinery. The main imports are sh and crustaceans,
edible fruits and nuts, seeds and fruits of oilseeds, tobacco and industrial
tobacco substitutes (Honorary Consulate of Ukraine in Seattle, 2021).
The basis of Ukrainian exports in relations with another representative
of the region - Colombia are: structural carbon steel, ferrous metal products,
equipment, machinery, mineral and nitrogen fertilizers. The basis of
Ukrainian imports are: coking coal and rened products, wood, coee, tea,
cocoa, food (Honorary Consulate of Ukraine in Seattle, 2021).
Modern Venezuela remains heavily dependent on oil revenues, which
account for almost all export earnings and almost half of government
revenues. At the end of 2017, Venezuela also made a selective default on
some of its sovereign and state oil companies, Petroleos de Venezuela, SA,
(PDVSA). Domestic production and industry continue to fall sharply, and
the Venezuelan government continues to rely on imports to meet basic food
and consumer goods needs (World Book of Facts, 2021).
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Prospects of Ukraine’s foreign economic policy concerning Latin America
Despite Venezuela’s accession to Mercosur, the prospect of turning the
country into a full member of the union is linked to a lengthy process of
bringing its country into line with the bloc`s requirements. It should be
noted that Mercosur is a trade union of South American countries, which
unites 250 million people. and more than 75% of the total gross domestic
product of the Latin American continent. In terms of size and economic
potential, MERCOSUR is the second customs union after the European
Union and the third free trade zone after the European Union and the
North Atlantic Treaty Organization. Permanent member countries of
MERCOSUR: Argentina, Brazil, Venezuela, Uruguay. Associated member
countries of MERCOSUR: Bolivia, Ecuador, Colombia, Peru, Chile
(Samoilov, 2016). The recent escalation of Argentina’s trade disputes
with Brazil and Chile has made it virtually impossible to develop common
approaches to Mercosur`s strategy for further development. Against this
background, the permanent internal conict of the leaders of this union
(Argentina and Brazil) with other members has a destructive eect on the
prospects for the development of this integration union.
At the same time, there are positive changes in Ukraine’s foreign economic
relations with some Latin American countries. In particular, since 2018, the
trade turnover between Ukraine and Chile has grown to $ 51.4 million. But,
as experts note, Ukraine has every chance to increase this gure. Ukrainian
business, which has modern technologies, has the opportunity to start joint
ventures without attracting signicant nancial resources and make a prot
in the fast-growing market of Chile. The implementation of infrastructure
projects may also be of potential interest to Ukrainian enterprises.
Promising cooperation with Chile is seen in attracting Chilean investment
in the reconstruction of reneries, exploration, production and rening,
in the eld of informatics, food industry, energy, ferrous and nonferrous
metallurgy, in the modernization and construction of railways, seaports
and irrigation projects. Ukraine, in turn, is interested in implementing
investment projects in Chile, establishing joint ventures, including on
a compensatory basis, production cooperation in energy, ferrous and
nonferrous metallurgy, mechanical engineering, transport construction,
irrigation, urban transport, agriculture and sheries (The Chamber of
Commerce and Industry of Ukraine and the Ukrainian-Chile Chamber on
Trade and Tourism Signed a Memorandum of Cooperation, 2019).
It should be noted that at the present stage Ukraine’s relations with
Chile in the trade and economic sphere have not yet reached the desired
dynamics of development given the geographical remoteness of countries
and the lack of long-term bilateral political contacts at high and highest
levels. However, there is every chance to intensify bilateral cooperation.
The rst shifts in this direction are already there. In particular, in 2018, the
Chamber of Commerce and Industry of Ukraine and the Ukrainian-Chilean
Chamber of Commerce and Tourism signed a memorandum of cooperation
between Ukraine and Chile.
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Recently, there has been a decrease in world prices for raw materials,
which will have a negative impact on the largest economies of MERCOSUR.
The main risks for the economies of the Pacic Alliance will be the
possibility of growing domestic political instability in Colombia, as well
as too high social orientation of the ideological foundations of economic
policy of Chilean President M. Bachelet. The main eorts of the leadership
of the Latin American region will be aimed at counteracting external threats
and challenges in the economic and nancial spheres by diversifying and
deepening trade and economic relations with developed countries (Foreign
Economic Cooperation of Ukraine, 2014).
Summing up the interim results of the review of the economic and
political situation in Latin America, we note that its characteristics are
the intensication of ination in the region, reducing exports and foreign
investment, the level of business and consumer condence. Today, the
development of trade and economic relations between Ukraine and
the Latin American region is hampered by the slow formation of close
commercial ties, weak cooperation between Ukrainian and Latin American
rms, the dominance of traditional trade in economic relations with a clear
lag in investment and production cooperation.
According to statistics, the Latin American region is not yet one of
Ukraine’s main trading partners. Thus, according to 2014, its share in the
total foreign trade of Ukraine was 1.3%, in particular in Ukrainian exports -
1.0%, and in imports - 1.6%. The top ve foreign trade partners of Ukraine
in the Latin American region include Brazil, which accounts for 27.2% of
Ukrainian-Latin American trade, Mexico (18.2%), Argentina (6.7%), Cuba
(6.3%) and Colombia (5.1%) (STATE STATISTICS SERVICE OF UKRAINE,
2021). During 2016-2021, the main commodity groups of domestic exports
to these countries were: cereals, fertilizers, mineral fuels, pharmaceuticals,
rubber and rubber, tanning extracts, ferrous metals, nuclear reactors,
boilers, machinery and electrical machinery, ground transport, except rail,
aircraft (Romanyuk, 2015).
It should be noted that in the foreign policy of Ukraine the resource
and human potential of the Latin American region is underestimated.
Meanwhile, these countries have large markets. Exports to the countries
of the region of aircraft and machine-building products, agricultural and
heavy automobile equipment, cooperation in the space industry can be
attractive for Ukraine. In addition to the economic interest that was crucial
for Ukraine in the region until 2014, the political component of cooperation
is now intensifying - Ukraine’s international support in countering Russian
aggression (Ukraine`s foreign policy outside the European Union and the
North Atlantic Treaty Organization).
It is important to emphasize that modern Latin America is a country
that is not only homogeneous in terms of geo-economics’ factors, but also
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Poklonskyi Andrii, Poklonska Olena, Klymchuk Mykhailo, Slobodianiuk Borys y Torlo Olena
Prospects of Ukraine’s foreign economic policy concerning Latin America
has dierent geopolitical interests. It is important to note the existence
in Latin America of a strong tradition of respect for international law
and governance based on the principle of territorial integrity. Factors of
geographical distance, the absence of Ukraine’s voice in the information
space of Latin America, as well as the active (especially recently) spread
of Russia’s interests to the continent are working. At the same time, the
inuence of the United States of America on the countries south of the
Rio Grande, as well as the growing inuence of China, which pursues an
independent international policy by strengthening its economic position in
the Latin American region.
We should agree with I. Samoilov’s point of view that today Ukraine
can and should make the most of the dierent and ambiguous political and
diplomatic positions of Latin American countries regarding world events
and start working seriously in this direction. Then Ukraine, sensitive to
the mood of Latin American countries, could not only diversify its exports,
but also through adequate explanation of its position on the annexation of
Crimea and the military conict in Donbas could attract new like-minded
people and enlist the support of Latin American countries. For example, this
is critical when voting in international organizations on Ukraine (Samoilov,
2016). It is worth noting that in poor countries the political inuence is
much greater, as it is well known that governments here have limited
resources and, in many cases, do not even have eective control over the
entire territory occupied by their country (Arbeláez-Campillo et al., 2019).
Some experts note that today there is not only a low level of penetration
of Ukraine into the Latin American region, but also an extremely low level
of awareness of both Russian aggression and Ukrainian potential. Frequent
cases of representation of Ukrainian industry through the Russian
Federation (aircraft, military-industrial complex). Today in Central and
Latin America there are six diplomatic missions of Ukraine (Argentina,
Brazil, Cuba, Mexico, Peru, Chile). Instead, there are four Latin American
embassies in Ukraine (Argentina, Brazil, Cuba, and Mexico). Until 2014,
most Latin American countries were represented through their embassies
in Moscow, which limited communication and had an impact on Ukraine’s
perception (Ukraine’s Foreign Policy Outside the European Union and the
North Atlantic Treaty Organization, 2019).
The region as a whole and none of its countries were included in the
Export Strategy of Ukraine for 2017-2021 developed by the Ministry
of Economic Development and Trade of Ukraine. Since 2014, there
has been a sharp decline in Ukrainian trade exports to countries in the
region. Its peak came in 2015-2016, and in 2017-2021 there is a positive
trend of export growth. At the same time, in recent years none of the 6
joint intergovernmental commissions on trade and economic cooperation
(Ukrainian-Argentinean, Ukrainian-Brazilian, Ukrainian-Paraguayan,
Ukrainian-Peruvian, Ukrainian-Mexican and Ukrainian-Chilean) has met.
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We also have direct nancial losses: due to Brazil’s unilateral
denunciation of the agreement on long-term use of the Ukrainian Cyclone-4
launch vehicle at the Alcantara cosmodrome in 2015, Ukraine’s nancial
losses could reach $ 800 million (loans under state guarantees amounted
to $400 million). Ukraine did not even sue the Brazilian side. At the same
time, lawsuits were led by international investors against Ukraine due to
their lack of prots (Ukraine’s Foreign Policy Outside the European Union
and the North Atlantic Treaty Organization, 2019).
In order to develop trade and economic cooperation between Ukraine and
Latin America, the work of the government, diplomatic missions, chambers
of commerce and industry to establish a favorable trade regime between
Ukraine and the countries of the Latin American region is important today;
purposeful study and development of the most promising commodity
markets for Ukrainian exporters and consolidation of their positions on
them; political, nancial, informational and legal support of the state for
the process of promoting Ukrainian goods on Latin American markets; a
signicant increase in the structure of Ukrainian exports of the share of
goods with a high degree of added value, especially mechanical engineering
products and high-tech production; formation of eective systems for the
protection of Ukraine’s economic interests in Latin America.
There are some changes in this direction. In particular, in 2015 the
Agreement on Friendly Relations and Cooperation between Ukraine and
the Republic of Paraguay was ratied (dated April 26, 2012); in 2016,
an agreement was ratied with Argentina on mutual assistance in the
investigation of customs oenses, and in 2018, three intergovernmental
agreements in the eld of criminal justice were signed with Argentina. In
the same year, the First Vice Speaker of the Verkhovna Rada of Ukraine I.
Gerashchenko paid a signicant visit to Colombia, during which she got
acquainted with the experience of reintegration of the territories destroyed
by the long internal conict and the peculiarities of post-conict dialogue.
In 2017, for the rst time, representatives of the youth of the Ukrainian
diaspora from Argentina and Brazil took part in an internship program in
the Parliament of Ukraine (Ukraine’s Foreign Policy Outside the European
Union and the North Atlantic Treaty Organization, 2019).
In our opinion, it is important to establish ocial contacts between
Ukraine and MERCOSUR. In order to advance Ukraine’s interests and
strengthen its position in Latin America, it is very important to have
relations with such countries as Argentina, Brazil, and Mexico, which are
members of the G20 and are interested in further expanding their regional
and international inuence. Today, the Ukrainian issue is on the agenda of
world politics, and Ukraine must use the current trend to make it important
and promising for the global world. Therefore, against the background of
prolonging or freezing the conict in Donbass, Ukraine should intensify
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Poklonskyi Andrii, Poklonska Olena, Klymchuk Mykhailo, Slobodianiuk Borys y Torlo Olena
Prospects of Ukraine’s foreign economic policy concerning Latin America
its eorts to revive and bring a new fresh impetus to relations with Latin
America.
At the rst stage it is important to address a range of issues: the
establishment of bilateral industrial cooperation in the member countries,
including through the creation of joint ventures, whose products would
be in demand throughout MERCOSUR (in particular, tractor and
aircraft construction, production of energy equipment, cooperation in
space, production of mineral fertilizers, supply of steel, agro-industrial,
pharmaceutical products, maintenance of military transport aircraft «AN»,
etc.); granting preferential treatment to Ukrainian exporters in the markets
of MERCOSUR countries by concluding relevant agreements; promoting
the expansion of Ukrainian technologies.
Ukraine’s future prospects in the international arena will depend on its
ability to eectively use the stabilization funds of international funds, as a
result of which the measures of the anti-crisis program on public nance
management and the real ght against corruption must be implemented.
Ukraine’s prospects in relations with Latin American countries will also
depend on activity in the search for new foreign markets and an increase
in foreign trade.
For greater eectiveness of such steps for Ukraine, some scholars
recommend: to hold a series of round tables on the topic of this area of
work on the basis of the Ministry of the Armed Forces of Ukraine with the
involvement of the public, to determine the strategy and tactics. Assess the
quality of work and, if necessary, rotate sta at the level of embassies in
Latin America. Involve representatives of public diplomacy in the work.
Raise the role of ambassadors as sales agents of national business. To
actualize the issues of eciency / ineciency of the Chamber of Commerce
and Industry of Ukraine (taking into account the presence of state functions
in this public organization) in terms of its impact on the country’s economy,
export potential, and improving Ukraine’s image in the world (Samoilov,
2016).
At present, the Latin American region retains the features of internal
political instability, oppositional sentiments of the population, which are
turning into military confrontation (for example, Ecuador, Peru, Chile, and
others), frequent changes of government, and others. A prerequisite for
mutually benecial economic partnerships is the presence in Latin America
of huge reserves of minerals, which can be the basis for the development
of heavy industry. These are primarily copper (Chile, Peru, Mexico), tin
(Bolivia), oil (Venezuela, Mexico), coal and iron ore (Brazil), aluminum raw
materials - bauxite (Jamaica, Republic of Suriname).
Given the new, more favorable political situation in Latin America,
Ukraine faces the task of making the most of all available opportunities to
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promote Ukrainian exports and implement joint projects. The market of
this region in the future can be considered as a space for the promotion of
Ukrainian competitive goods and services. In our opinion, only a systematic
approach to the formation of incentives for entrepreneurial activity will
have the eect of increasing productivity, and the coherence of regional and
national economic policy will determine the prospects of the country as a
whole.
Conclusions
We believe that in modern conditions Ukraine has a real opportunity
and need to cooperate with the markets of Latin American countries, which
are no less attractive than the markets of the European Union and Asian
countries and should take their rightful place in bilateral and multilateral
cooperation on mutually benecial terms. The strategic development of
economic partnerships between Ukraine and Latin America in the recent
period should be based on the following basic principles:
• intensifying and strengthening the dialogue on deepening trade and
economic cooperation through a system of trade policy instruments,
primarily reducing tari and non-tari protection of the Latin
American market.
• optimization of trade, economic and investment cooperation to gain
leverage over the development of global and European economic
infrastructure.
• development of a long-term strategy for the development of trade
and economic cooperation between Ukraine and individual countries
of the Latin American region with the identication and justication
of sectorial priorities.
In order to implement the outlined areas of optimizing cooperation
between Ukraine and Latin America, we consider it expedient for the
Committee on Foreign Aairs of the Parliament of Ukraine with the
participation of representatives of the Ministry of Foreign Aairs, the
Ministry of Economic Development and Trade of Ukraine, the Chamber
of Commerce and Industry. working in Ukraine, economic and political
problems in bilateral relations, including legislation that hinders the
intensication of cooperation.
Prior to the Coalition Agreement, the list of promising markets should
include both the Latin American region and state support for national
exporters in this region. We also consider it useful to intensify the work of
the relevant parliamentary groups on interparliamentary relations of the
Verkhovna Rada of Ukraine with the parliaments of the Latin American
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Poklonskyi Andrii, Poklonska Olena, Klymchuk Mykhailo, Slobodianiuk Borys y Torlo Olena
Prospects of Ukraine’s foreign economic policy concerning Latin America
region and to promote the work of «friendship groups» with Ukraine there.
Measures such as: opening of representative oces of Ukrainian
enterprises in Latin American countries will contribute to the growth of
exports of Ukrainian enterprises in the markets of Latin America; active
participation of Ukrainian enterprises in exhibition and fair events taking
place in the countries of the region; initiating contacts between delegations
of industry experts, as well as initiating business representatives to conclude
agreements between the Chamber of Commerce and Industry of Ukraine
with the relevant Latin American business associations. Contacts with
Latin America could help Ukraine diversify its national exports, which in
turn would boost the industrial development of the Latin American region.
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