Putin proposes free trade zone between EU and Eurasian Union

Russian President Vladimir Putin proposed the formation of a free trade zone between the EU and the Eurasian Economic Union at the Russia-EU summit. Alexander Gusev, Head of the Center for Strategic Development and Forecasting of the RAS IE, emphasized that the Eurasian trade zone was being formed, while the EU zone had been formed 15 years ago.

The expert noted that one of the benefits of a common EU-Eurasian zone would be political advantages. Ukraine and or other Eastern Partnership members would no longer need agreements with the EU and would join a zone under the auspices of Russia.

According to Gusev, Putin’s idea has competitors: unification of free trade zones of NAFTA (US, Canada, Mexico) and EU states. The US idea had been announced earlier than that of Putin.

Alexey Kuznetsov, Head of the RAS IWEIR Center for European Studies, clarified that Putin’s idea had been discussed in the Russia-EU format long ago. With formation of the Customs Union of Russia, Belarus and Kazakhstan, it can only be discussed in the current format, in legal terms.

Kuznetsov noted that there were technical aspects, for example, Belarus which was unprepared for a whole set of reasons. On the other hand, readiness of the EU for the dialogue was unclear too. Speaking of benefits the EU would gain from forming a common free trade zone with the Eurasian Union, it is clear that the EU wants to expand its consumer markets. Free trade zones have become a tool for coping with WTO talks, according to the expert.

Russian President Vladimir Putin proposed formation of a free trade zone of the EU and the Eurasian Economic Union at the Russia-EU summit. Alexander Gusev, Head of the Center for Strategic Development and Forecasting of the RAS IE, emphasized that the Eurasian trade zone was being formed while the EU zone had been formed 15 years ago.The expert noted that one of the benefits of a common EU-Eurasian zone would be political advantages. Ukraine and or other Eastern Partnership members would no longer need agreements with the EU and would join a zone under the auspices of Russia.According to Gusev, Putin’s idea has competitors: unification of free trade zones of NAFTA (US, Canada, Mexico) and EU states. The US idea had been announced earlier than that of Putin.Alexey Kuznetsov, Head of the RAS IWEIR Center for European Studies, clarified that Putin’s idea had been discussed in the Russia-EU format long ago. With formation of the Customs Union of Russia, Belarus and Kazakhstan, it can only be discussed in the current format, in legal terms.Kuznetsov noted that there were technical aspects, for example, Belarus which was unprepared for a whole set of reasons. On the other hand, readiness of the EU for the dialogue was unclear too. Speaking of benefits the EU would gain from forming a common free trade zone with the Eurasian Union, it is clear that the EU wants to expand its consumer markets. Free trade zones have become a tool for coping with WTO talks, according to the expert