Journal of International Commercial Law and Technology Vol. 4, Issue 1 (2009) EU Relations with China and Russia: How to Approach New Superpowers in Trade Matters Dr Rafael Leal-Arcas∗ Senior Lecturer in Law & Deputy Director of Graduate Studies, Queen Mary, University of London, 67-69 Lincoln’s Inn Fields, London WC2A 3JB, United Kingdom; 2008-2009 Tillar House Resident Fellow, American Society of International Law; 2008-2009 Fellow, Georgetown University Law Center (Institute of International Economic Law). Contact:
[email protected] Abstract: 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-à-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. 1. Introduction This paper aims at understanding the potential of partnerships of the European Union (EU) with China and Russia (two major new leading powers (NLP)), focusing on international trade law and policy.