Relevance of the research of the topic of cross-border trade in the trans boundary region is due, above all, to a new wave of enlargement of the European Union, Ukraine's accession to the World Trade Organization, the signing and ratification of the local border traffic agreements. In this connection there is need to address the problems associated with the implementation of regulatory policy in the sphere of business, including regulations to ensure a favorable investment climate and appropriate conditions for doing cross-border trade within the border regions formed between Ukraine and the European Union. Updating of cross-border trade study is particularly important for the population, entrepreneurs and small businesses of the Transcarpathian region, which border with four EU countries, Poland, Slovakia, Romania and Hungary. At the legislative level it is necessary to determine the definitions of "border trade", "border area", "crossborder trade subjects," etc. and mechanisms of influence on a specific type of activity. The aim of article іs to determine the specificity of cross-border trade and its prospects for development in the cross-border region between the neighboring border territories of Ukraine and the European Union. Methods: method of analysis of the category of cross-border trade essence; comparing and abstracting method. Results: 1. The specifics of the new EU package of initiatives that will help eliminate barriers to cross-border trade within the EU has been highlighted. 2. The system of motivational incentives improving the concept of cross-border trade the EU Countries and Ukraine (to maximize its benefits) has been highlighted. Scientific novelty -it has been stated that liberalizing cross-border trade, the state and the institutions of the EU at the same time increase the level of consumer safety in the inner market of the Union. Factors of successful crossborder trade have been highlighted, which can be defined as: 1) the need for transparency of relations between Ukraine and the EU; 2) the availability of an open flow of information and efficient payments systems for its organization. It has been stated that cross-border trade issues require constant attention of scientists, practitioners, central and local authorities. The practical significance is to identify the role of cross-border trade in the development of the border region.