Договор Россия-ЕС о партнерстве: является ли членство России в ВТО прорывом? Russia’s Accession to the WTO: is it a breakthrough Russia’s Accession to the WTO: is it a breakthrough for Strategic Partnership EU-Russia? for Strategic Partnership EU-Russia? Alexey Portanskiy, Alexey Portanskiy, Professor Professor Higher School of Economics /Moscow/, IMEMO RAS Higher School of Economics /Moscow/, IMEMO RAS

EU-Russia policy framework PCA (Partnership and Cooperation Agreement): in force since covers a wide range of policy areas (incl. political dialogue; trade in goods and services; business and investment; financial and legislative cooperation; science and technology; education and training; energy, cooperation in nuclear and space technology; environment, transport; culture; and on the prevention of illegal activities. PCA (Partnership and Cooperation Agreement): in force since covers a wide range of policy areas (incl. political dialogue; trade in goods and services; business and investment; financial and legislative cooperation; science and technology; education and training; energy, cooperation in nuclear and space technology; environment, transport; culture; and on the prevention of illegal activities. New Agreement : negotiations ongoing New Agreement : negotiations ongoing WTO : negotiations completed, December 16, 2011 WTO : negotiations completed, December 16, 2011 Partnership for Modernization, June 1, 2010 Partnership for Modernization, June 1, Common spaces (St. Petersburg Summit, May 2003): 4 Common spaces (St. Petersburg Summit, May 2003): Common Economic Space: Objective: to create an open and integrated market between the EU and Russia. Work on this space will bring down barriers to trade and investment and promote reforms and competitiveness, based on the principles of non-discrimination, transparency and good governance. New dialogues incl. regulatory policy, investment issues, competition, financial services, telecommunications, transport, energy, space, also environment, including nuclear safety and the implementation of the Kyoto Protocol.Common Economic Space: Objective: to create an open and integrated market between the EU and Russia. Work on this space will bring down barriers to trade and investment and promote reforms and competitiveness, based on the principles of non-discrimination, transparency and good governance. New dialogues incl. regulatory policy, investment issues, competition, financial services, telecommunications, transport, energy, space, also environment, including nuclear safety and the implementation of the Kyoto Protocol. Common Space on Freedom, Security and JusticeCommon Space on Freedom, Security and Justice Common Space on External SecurityCommon Space on External Security Common Space on Research, Education and CultureCommon Space on Research, Education and Culture

The role of the EU in the process of Russia’s Accession to the WTO Russia’s Accession to the WTO

PCA: significance, experience, lessons Legal base for Russia’s relations with western countries; Legal base for Russia’s relations with western countries; Non-discriminatory character; Non-discriminatory character; Wide range of cooperation areas; Wide range of cooperation areas; Advanced conditions for trade (Provisory agreement); Advanced conditions for trade (Provisory agreement); Intention to establish a Free Trade Area; Intention to establish a Free Trade Area; Encouraging of Russia’s Accession to GATT; Encouraging of Russia’s Accession to GATT; Common values Common values

New PCA or Agreement on Strategic Cooperation EU-Russia Challenges: - What scope and dimension for a new document? - What scope and dimension for a new document? - Energy Dialogue Strategy for a long term; - Energy Dialogue Strategy for a long term; - Russia and EU Relations with bordering CIS countries, especially with Ukraine, Belarus and Georgia; - Russia and EU Relations with bordering CIS countries, especially with Ukraine, Belarus and Georgia; - Democracy and market economy values: understanding and implementation; - Democracy and market economy values: understanding and implementation; - Russia’s membership to the WTO; - Russia’s membership to the WTO; - Customs Union Russia, Kazakhstan, Belarus (new reality); - Customs Union Russia, Kazakhstan, Belarus (new reality); - Expected Russia’s Accession to the OECD - Expected Russia’s Accession to the OECD

New EU-Russia Agreement The EU and the Russian Federation are currently negotiating a new agreement to provide for the contractual framework for EU-Russia relations in the years to come, replacing the 10-year old PCA. This new legally binding agreement should provide a framework for bilateral relations with stable, predictable and balanced rules for bilateral trade and investment relations.

New EU-Russia Agreement The New Agreement with Russia will build upon the WTO rules and obligations of the Parties and should strengthen bilateral trade relations by enshrining some basic principles and objectives in the area of trade. basic principles and objectives in the area of trade. The New Agreement should therefore contain substantial trade and investment related provisions.

New EU-Russia Agreement Russia WTO obligations are becoming part of the legal framework of the Customs Union Between Russia, Kazakhstan and Belarus in force since January 2010 in those areas where Russia has transferred its national regulatory competence to the CU…

Situation on the current negotiations There have been 12 rounds of negotiations Very slow progress Major differences on issues such as: trade policy, energy, investments and visas trade policy, energy, investments and visas

EU and Russia: Are there differences between two approches ? EU: seeking for a comprehensive seeking for a comprehensive package deal package deal Russia: Russia: may be, would prefer a short may be, would prefer a short framework agreement framework agreement supported by sectoral deals supported by sectoral deals