The purpose of this paper is to assess the progress of the transformation process and to analyse which policy measures are necessary for further economic integration into world markets. In this study we concentrate on the Ukrainian agri-food sector. The development of foreign trade may serve as indicator of success of market reforms. Thus we analyse the changes in the trade structure of agri-food sector and compute indicators of inter- (RTA Index) and intra-industrial (Grubel-Lloyd Index, Brülhart A-Index, characterising the marginal intra-industry trade) trade for the period 1996-2005. We discuss also which policy measures are necessary for further economic integration of Ukraine into world markets.