| Abstract [eng] |
While the liberalization of international trade allows for joint welfare gains, concerns regarding the resurgence of protectionism have spiked in recent years. On one hand, this is due to basic collective action problems in trade liberalization. On the other, protectionism can be motivated by political reasons which trump the realization of joint gains through international cooperation. Objectives may include the protection of domestic industries, sanctions or capturing larger export market shares. Depending on final goals, protectionism can be implemented by using tariff and non-tariff measures that artificially restricts the movement of the goods or services between the countries. Russia has put in place an embargo on food imports from the European Union (EU) in the wake of the Ukraine crisis and the EU/United States of America sanctions regime. This has caused some food exports from the EU to Russia to drop significantly. However, it is not known how this embargo affected the entire food exports to Russia. Object of the research: The impact of the Russian embargo on the European Union‘s international trade in food products. Aim of the research: To investigate Russian import embargo impact to the European Union countries' food exports. Tasks of the research: To analyze the European Union’s external trade with Russia and other trading partners. Theoretically investigate the significance of foreign trade on the economy and international trade regulatory measures. Theoretically investigate the economic impact of the embargo and application of the gravity model. To apply gravity model in order to execute the investigation of the EU countries` food exports changes after Russian embargo The main results on investigation show that the Russian embargo has had the most significant effect on large food exporters: Belgium, Denmark, Germany and Poland. Meanwhile, only Luxembourg and Slovakia did not have any losses regarding to Russian embargo. The biggest food export losses of 2015 belong to Germany, Lithuania, Netherlands and Poland. The executed prognosis for the year 2016 reveals that most EU countries will have higher food export volume than in a year 2015. Nevertheless it will still be less than in 2014. Most expected increase in export is predicted to Germany, Netherlands and Poland. |
