Trends in EU-Russia trade, aid and cooperation
Pautola, Niina (10.07.1996)
Numero
4/1996Julkaisija
Suomen PankkiBank of Finland
1996
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408113155Tiivistelmä
While the European Union and Russia are actively working to strengthen their relations, the challenge of effective cooperation can only be called problematic given the pressures faced by an expanding EU and the dynamics of present-day Russia.Nevertheless, the arguments for improving relations for both parties are overwhelming as closer ties ultimately promote the economic prosperity and political stability of the entire region. EU-Russian cooperation is presently based on the Partnership and Cooperation Agreement (PCA).The EU and Russia have also agreed to start discussions on creation of a free trade area. While the framework of cooperation is already in place, implementation of the PCA will demand greater resources than current capacity allows.Russia will bear the heaviest burden as it will have to develop functions longestablished in the EU.To ease this transition, the EU provides technical assistance to Russia through its Tacis programme and similar programmes.These constitute a good-faith commitment on the part of the EU to a functioning market economy, political democracy as well as a working system of education and social welfare in Russia. Both parties acknowledge the other's importance as a trading partner currently, trade mainly consits of oil, natural gas and refined metals exported by Russia and machinery and vechiles exported by the EU.The asymmetry of this relationship complicates competition and trade policy.Russia's competitive weaknesses in certain sectors make it very tempting to revert to protectionist pressures which will hinder liberalization of trade and potentially jeopardize the implementation of the PCA. Although critics have called attention to the excessive optimism and impracticalities of the PCA and Tacis, they nevertheless concede that their spirit embodies a willingness by both parties to promote better relations.And despite obvious areas of contention between the EU and Russia (especially in trade policies), there has been a consistent willingness to discuss positions and seek mutually acceptable solutions.Given the general complexity of EU-Russia relations, this willingness to sort things out will be fundamental to all future progress. Keywords: Russia, EU, integration, foreign trade, partnership and cooperation agreement
Julkaisuhuomautus
Uudelleenjulkaistu pdf-muodossa 2002 (Idäntalouksien yksikön sarja)Reprint in PDF format 2002 (Unit for Eastern European Economies series)