COMMON AGRICULTURAL POLICY AND THE EU MARKET: THE UKRAINIAN ASPECT

Abstract

The aim of the article is to study the modern mechanisms for implementing the Common Agricultural Policy (CAP) of the European Union, analyze their impact on the functioning of the European agricultural market, and substantiate directions for adapting Ukraine’s agricultural sector to the requirements and standards of the European Union. The essence and main principles of the EU Common Agricultural Policy are defined. The main CAP instruments are identified: direct payments to farmers; support for rural development; regulation of agricultural markets; environmental and climate programs; financing of innovation and digitalization of the agricultural sector. The peculiarities of the functioning of the agricultural market of Ukraine and the agricultural market of the EU are characterized. The main challenges are identified, including the need to adapt Ukrainian legislation to EU norms; modernization of production in accordance with European standards; increased competition with European producers; ensuring environmental sustainability of agricultural production; and implementation of modern quality control systems for agricultural products. An analysis of the impact of the Common Agricultural Policy (CAP) on the European Union market was carried out according to the following aspects: direction of impact, characteristics of the CAP impact, and results for the EU market. A comparative analysis of the functioning of the agricultural market of the European Union and Ukraine was conducted according to various criteria: state policy, financial support, quality standards, environmental requirements, farm structure, technological level, market access, main export products, competitiveness, and main challenges. The problems and prospects of Ukraine’s integration into the EU agricultural policy are summarized. The main problems include the need for legislative harmonization; adaptation of production to European standards; modernization of enterprises; significant financial costs for certification; increased environmental requirements; and competition with producers from EU countries. The main prospects include increasing exports of Ukrainian products; attracting European investments; modernization of agricultural production; implementation of modern technologies; participation in European agricultural development programs; and enhancing the competitiveness of Ukrainian products.