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) withChina and Russia. The scope of analysis will be the EU vis-à -vis these two countries, using threetypes of trade liberalization: unilateralism, bilateralism/regionalism, and multilateralism. The paperargues that the EU’s objective of engaging with China and Russia on trade matters is to establishpeace, security, and prosperity in the XXI century. Trade creates economic ties and generates morewelfare; thus it contributes to peace and security. The paper concludes that, although the EU doeswant cooperation with both countries, using trade policy as a “carrot†in a policy centered approachdoes 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, afree-trade agreement between the European Community and Russia/China does not seem to be asuitable trade instrument at the moment