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1. Trade policy issues in the Wider Europe – that led to war and not yet to peace

Author:
Michael Emerson
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This paper looks at the trade policy landscape of the EU and the wider Europe, with a focus on issues arising from the signature on 27 June 2014 of Deep and Comprehensive Free Trade Agreements (DCFTAs) between the EU and three East European countries (Georgia, Moldova and Ukraine), and actual or prospective issues relating to the customs union of Belarus, Russia and Kazakhstan (BRK), and the Eurasian Economic Union whose founding treaty was signed on 29 May 2014. While the contrived collision between these projects has tragically induced Russia to break all the established international security norms by waging war against Ukraine, the present paper deals essentially with trade policy issues. The huge expansion of intercontinental free trade area negotiations currently underway, in which the EU is an active participant alongside much of the Americas and Asia, stands in contrast with Russia's choice to restrict itself to the Eurasian Economic Union, which is only a marginal extension of its own economy. Alone among the major economies in the world, Russia does not seek to integrate economically with any major economic bloc, which should be a matter of serious concern for Moscow. Within the wider Europe, the EU's DCFTAs with Ukraine, Moldova and Georgia are a major new development, but Russia now threatens trade sanctions against Ukraine in particular, the economic case for which seems unfounded and whose unilateral application would also impair the customs union. The Belarus-Russia-Kazakhstan customs union itself poses several issues of compatibility with the rules of the WTO, which in turn are viewed by the EU as an impediment to discussing possible free trade scenarios with the customs union, although currently there are far more fundamental political impediments to any consideration of such ideas. Nonetheless this paper looks at various long-term scenarios, if only as a reminder that there could be much better alternatives to the present context of conflict around Ukraine.
Topic:
Economics and International Trade and Finance
Political Geography:
Russia, America, Europe, Ukraine, Kazakhstan, Asia, and Georgia

2. Russia's Punitive Trade Policy Measures towards Ukraine, Moldova and Georgia

Author:
Michael Emerson, Denis Cenusa, Tamara Kovziridse, and Veronika Movchan
Publication Date:
09-2014
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
While EU and US sanctions against Russia over its aggression in Ukraine, and Russia's counter-sanctions, are much discussed due to their evident political significance, less attention has been given to Russia's punitive sanctions against the three Eastern European states – Ukraine, Moldova and Georgia – that have signed with the EU Association Agreements (AA), which include Deep and Comprehensive Free Trade Area (DCFTA) provisions. This paper therefore documents these trade policy restrictions and embargoes imposed by Russia, and provides some first indications of their impact. The immediate impact on trade flows, especially for agri-food products, has been substantial, albeit with some leakage through Belarus. The main instrument for the Russian measures has been allegations of non-conformity with Russian technical standards, although the correlation of these allegations with movements in Russia's geopolitical postures makes it obvious that the Russian technical agencies are following political guidelines dressed up as scientific evidence. These measures also push the three states into diversifying their trade marketing efforts in favour of the EU and other world markets, with Georgia already having taken significant steps in this direction, since in its case the Russian sanctions date back to 2006. In the case of Ukraine, Russia's threat to cancel CIS free trade preferences infiltrated trilateral talks between the EU, Ukraine and Russia, leading on 12 September to their proposed postponement until the end of 2015 of the 'provisional' implementation of a large part of the AA/DCFTA. This was immediately followed on 16 September by ratification of the AA/DCFTA by both the Rada in Kyiv and the European Parliament, which will lead to its full and definitive entry into force when the 28 EU member states have also ratified it. However Putin followed the day after with a letter to Poroshenko making an abusive interpretation of the 12 September understanding.
Topic:
Economics, International Trade and Finance, Power Politics, and Sanctions
Political Geography:
Russia, Europe, Ukraine, Moldova, and Georgia

3. Post-Mortem on Europe's First War of the 21st Century

Author:
Michael Emerson
Publication Date:
08-2008
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The small war between Georgia and Russia from 8 to 22 August 2008 has shattered any remaining illusions over the frontiers of the normative map of Europe. All the primary parties have to be criticised: Russia for setting a trap for Saakashvili to fall into, the Georgian leadership for its astounding military and political blunder in falling into it, and the United States for having failed to restrain its protégé. The first consequence is that Georgia has paid the price of Saakashvili's folly, with the definitive loss of Abkhazia and South Ossetia. The second consequence is triggered by Russia's continued occupation of strategic points in Georgia-proper, which means not peacekeeping but threatened strangulation of the Georgian economy and its role in the transit of oil and gas from the Caspian to the West. It also means that business as usual has become impossible, as already announced between NATO and Russia, and with more important decisions pending in both the EU and US. The third consequence is that the EU should immediately step up its policies to integrate Ukraine, with real perspectives of membership subject to the standard criteria. The fourth unknown consequence is how far this deteriorating process between Russia and the West will go. Russia may pretend, with its petro-power and wealth, to be immune from any actions by the West, but beyond the short-term it is vulnerable. Whatever these unknowns, already Russia has crossed a red line with its strategic occupation of Georgia-proper, rather than the option just to push Georgia out of South Ossetia. This latter option would have met with widespread understanding internationally. But with its chosen option Russia has placed itself in another category, which is a throwback to earlier times, and totally incompatible with the political and moral principles of modern Europe.
Topic:
Conflict Resolution, NATO, War, and Bilateral Relations
Political Geography:
Russia, United States, Eastern Europe, and Georgia

4. The Struggle for a Civilised Wider European Order

Author:
Michael Emerson
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Europe's two crises – the Georgia-Russia war of August and the ongoing global financial and economic crisis – point to huge challenges for the organisation and policies of the European Union. The present paper concentrates on the risks that the crises represent for one of the EU's prim e objective, to achieve a civilized wider European order. At least the current episodes show that with leadership the EU can act fast in both diplomacy and finance. But the next question is how to follow through, beyond a passing moment of an effective six-month presidency of the EU. This is the subject of the present note, which advocates a comprehensive upgrading of the EU's policies in the wider European area, and contributes ideas for the revision of the European Security Strategy currently being prepared. The aim would be to strengthen EU policies towards South-East Europe, East Europe and Central Asia, and defuse the current confrontation between a normative Europe and an aggressive Russian realpolitik; better still Russia might, after reflecting on what the two crises mean for its fundamental interests, conclude that the time had come for a more genuinely cooperative understanding with the EU.
Topic:
International Political Economy
Political Geography:
Russia, Europe, Central Asia, Asia, and Georgia

5. What should the Community of Democratic Choice do?

Author:
Michael Emerson
Publication Date:
04-2006
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
In August 2005, President Saakashvili of Georgia and President Yushchenko of Ukraine met at Borjomi, Georgia, and decided to launch an initiative to promote democracy among a community of like-minded states of Central and Eastern Europe. This led to a meeting in Kyiv on 2 December 2005, of a wider group of countries of the Baltic-Black-Caspian Sea region, which adopted a declaration announcing the creation of a Community of Democratic Choice (CDC) as a governmental and non-governmental forum to promote the strengthening of democracy, human rights and civil society. The next meeting of the CDC will take place as a Baltic and Black Sea Summit in Vilnius in May 2006.
Topic:
Democratization, Politics, and Regional Cooperation
Political Geography:
Ukraine, Eastern Europe, and Georgia