EU Relations with China and Russia : How to Approach New Superpowers in Trade Matters

This paper analyzes the potential of partnerships of the European Union (EU) with China and Russia. The scope of analysis will be the EU vis-a-vis these two countries, using three types of trade liberalization: unilateralism, bilateralism/regionalism, and multilateralism. The paper argues that the EU's objective of engaging with China and Russia on trade matters is to establish peace, security, and prosperity in the XXI century. Trade creates economic ties and generates more welfare; thus it contributes to peace and security. The paper concludes that, although the EU does want cooperation with both countries, using trade policy as a carrot in a policy centered approach does not have much scope beyond current existing efforts. The European Commission's Directorate-General for external trade is already very active. Few new initiatives seem possible. Moreover, a free-trade agreement between the European Community and Russia/China does not seem to be a suitable trade instrument at the moment