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Russia's European Economic Integration: Escapism and Realities

  • Hamilton, Carl B
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    Both Russia and the EU are undertaking significant changes in foreign trade relations. Russia seeks WTO accession and the EU has concluded negotiations enlarging the union with ten new members. Against this background, what economic relationship can EU and Russia develop? The Paper analyses the asymmetric trade structure, the unstable and confused trade relation, as well as both form and content of EU’s and Russia’s options for the future. Conclusions are e.g. that (i) present EU trade policy vis-à-vis Russia is a disturbing flight to the future away from today’s concrete policy problems. The aim of a ‘European Economic Space’ (EES) is unrealistic for reasons of sovereignty and legality. To pursue an EES could be counter-productive for Russia from an economic perspective, since it focuses on the wrong problem. (ii) EU trade policy re-enforces Russia’s Dutch disease. (iii) With the candidate countries as EU members, Russia will meet lower tariffs but new anti-dumping measures. The asymmetry in EU-Russia trade will become more, not less, pronounced. Since Russia is hurt by the EU’s agricultural policy (CAP), Russia is likely to confront the CAP once Russia has become a member of WTO.

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    Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3840.

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    Date of creation: Mar 2003
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    Handle: RePEc:cpr:ceprdp:3840
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    1. Langhammer, Rolf J. & Lücke, Matthias, 1999. "WTO accession issues," Open Access Publications from Kiel Institute for the World Economy 2315, Kiel Institute for the World Economy (IfW).
    2. Robert M. Stern, 2002. "An Economic Perspective on Russia's Accession to the WTO," William Davidson Institute Working Papers Series 472, William Davidson Institute at the University of Michigan.
    3. Finger,J. Michael & Francis Ng & Wangchuk, Sonam, 2001. "Antidumping as safeguard policy," Policy Research Working Paper Series 2730, The World Bank.
    4. Akram Esanov & Martin Raiser & Willem Buiter, 2001. "Nature’s blessing or nature’s curse: the political economy of transition in resource-based economies," Working Papers 66, European Bank for Reconstruction and Development, Office of the Chief Economist.
    5. Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102.
    6. Paul Brenton & John Sheehy & Marc Vancauteren, 2001. "Technical Barriers to Trade in the European Union: Importance for Accession Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 39(2), pages 265-284, 06.
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