PROF DR JAAP W. DE ZWAAN EM. PROF EUROPEAN UNION LAW ERASMUS UNIVERSITY ROTTERDAM AND

1. EU – RUSSIA RELATIONS AND WTOHAMBURG 4 DECEMBER 2017EUROPEAN UNION AND EURASIAN ECONOMIC UNIONCOMPARISON AND OPPORTUNITIES FOR COOPERATION PROF DR JAAP W. DE ZWAAN EM. PROF EUROPEAN UNION LAW ERASMUS UNIVERSITY ROTTERDAM AND FORMER LECTOR EUROPEAN INTEGRATION THE HAGUE UNIVERSITY OF APPLIED SCIENCES

3. EU NEIGHBOURHOOD POLICY

4. Contents • International cooperation • European Union • EU-Russia relations • Eurasian Economic Union • EU and EEU, a comparison • Restrictions and Opportunities for future cooperation

5. International cooperation • Intergovernmental • Sovereign States • Consensus • Approval by national parliaments • Supranational • Transfer of competences • Institutions • Decision making procedures • Legal instruments • Own financial resources • Legal personality

6. European Union • Peace project • After the Second World War • Peace, stability and prosperity • From 6 to 28 Member States • Enlargement: candidate-Member States • Shrinking: withdrawal United Kingdom (‘Brexit’)? • Agenda • Economic cooperation including EMU • Justice and Home Affairs • Foreign policy and Defence

7. Policies European Union 1 • Internal market • Area without frontiers: free movement of goods, persons, services and capital • Internal market ‘plus’(selection) • Transport • Agriculture • Environment, Research • Social and regional • Energy • Economic and Monetary Union • Coordination national economic policies • Euro as single currency

8. Policies European Union 2 • Justice and Home Affairs • Free movement of persons • Visa, Asylum and Immigration • Criminal law cooperation • Police cooperation • Common Foreign and Security Policy • Foreign policy • Defence

9. EU Institutions 1 • European Council • Political guidelines • European Commission • Initiator and Executive • Council of Ministers • Decision making power • European Parliament • Co-legislative and co-budgetary powers

10. EU Institutions 2 • Court of Justice • Control application and interpretation EU law • European Central Bank • Conducts monetary policy of the Union • Court of Auditors • Carries out the Union’s audit

11. Decision making • Joint decision making (co-decision: the ordinary legislative procedure) • Initiative Commision • (Provisional) Position Council of Ministers • Qualified majority voting • Amendments European Parliament • Common agreement Council and European Parliament • Special legislative procedures

12. EU Policies:Internal Market: Article 26(2) TFEU The internal market shall comprise an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured in accordance with the provisions of the Treaties.

13. EU Policies:Customs Union: Article 28(1) TFEU The Union shall comprise a customs union which shall cover all trade in goods and which shall involve the prohibition between Member States of customs duties on imports and exports and of all charges having equivalent effect, and the adoption of a common customs tariff in their relations with third countries.

14. EU Common Commercial Policy: Article 206 TFEU By establishing a customs union …, the Union shall contribute, in the common interest, to the harmonious development of world trade, the progressive abolition of restrictions on international trade and on foreign direct investment, and the lowering of customs and other barriers.

15. EU Common Commercial Policy: Article 207(1) TFEU The common commercial policy shallbebased on uniform principles, particularlywithregardto changes in tariffrates, theconclusion of tariff and tradeagreementsrelatingtotrade in goods and services, and the commercial aspects of intellectual property, foreign direct investment, theachievement of uniformity in measures of liberalisation, export policy and measurestoprotecttradesuch as thosetobe taken in the event of dumping or subsidies.

16. EU-Russia relations • Partnership and Cooperation Agreement (PCA) 1997 • Four common spaces • Economy and Environment • Freedom, Security and Justice • External Security • Research and Education, including Culture • ESI in Moscow (MGIMO) • 2010: Partnership for Modernization Facility

17. RUSSIA AND WTO • RUSSIA IS A MEMBER SINCE AUGUST 2012 • FIRST TRADE POLICY REVIEW 2016, PROBLEMS • IMPORT SUBSTITUTION POLICY: COMPLIANCE WITH WTO RULES • LACK OF TRANSPARENCY IN THE FUNCTIONING OF THE EURASIAN ECONOMIC UNION • SUBSIDISING OF THE ENERGY SECTOR • DOMINANT ROLE OF STATE OWNED COMPANIES ON THE MARKET

18. EU-RUSSIA COOPERATION • OBJECTIVE AFTER 2012 WTO ACCESSION • (COMPREHENSIVE) FREE TRADE AGREEMENT

19. Eurasian Economic Union • Founded 1 January 2015 • 5 Member States • Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russian Federation • Belarus is not a WTO member • Objectives • Economic Union • Internal market • Customs Union • Cooperation in specific sectors • Legal personality

20. Eurasian Economic Union Article 1 1. The Parties establish the Eurasian Economic Union ensuring free movement of goods, services, capital and labour within its borders, as well as coordinated, agreed or common policy in the economic sectors determined under this Treaty and international treaties within the Union. 2. The Union shall be an international organisation of regional economic integration and shall have international legal personality.

21. EEU Treaty Article 4Main Objectives The main objectives of the Union shall be as follows: • to create proper conditions for sustainable economic development of the Member States in order to improve the living standards of their population; • to seek the creation of a common market for goods, services, capital and labour within the Union; • to ensure comprehensive modernisation, cooperation and competitiveness of national economies within the global economy.

22. EEU Treaty Article 2 (Definitions) ‘Single (common) market’ means a set of economic relations within the Union ensuring the freedom of movement of goods, services, capital and labour.

23. EEU Treaty Article 2 (Definitions) ‘Common economic space’ means the space consisting of the territories of the Member States implementing similar (comparable) and uniform economy regulation mechanisms based on market principles and the application of harmonised or unified legal norms, and having a common infrastructure.

24. EEU Treaty Article 2 (Definitions) ‘Customs Union’ means a form of trade and economic integration of the Member States envisaging a common customs territory, within which no customs duties (other duties, taxes and fees having equivalent effect), non-tariff regulatory measures, safeguard, anti-dumping and countervailing measures shall be applied to the mutual trade, while applying the Common Customs Tariff of the EEU and common measures regulating foreign trade with a third party.

25. Foreign Trade Policy of the EEU Article 33 EEU Treaty Foreign trade policy of the Union shall promote sustainable economic development of the Member States, economic diversification, innovative development, increase in the volume and improvement in the structure of trade and investment, acceleration of the integration process, as well as the further development of the Union as an efficient and competitive organisationin the global economy.

26. Institutions (EEU Treaty Article 8) • Supreme Economic Council • Heads of Member States • Determine the strategy (consensus) • Intergovernmental Council • Heads of Government • Ensure implementation of the EEU Treaty (consensus) • Economic Commission • Council of the Commission • Board of the Commission • Court

27. Eurasian Economic Commission • Economic Commission • Council of the Commission • Vice Prime Ministers • Overall management (consensus) • Board of the Commission • EEU Ministers • Initiator and executive (majority voting or consensus)

28. ACHIEVEMENTS/DEFICIENCIES EAEU • PARTICIPANTS • 3 FOUNDING MEMBER STATES • AT PRESENT 5 MEMBER STATES • ENLARGEMENT? • INSTITUTIONAL FRAMEWORK • SUPRANATIONAL VS. INTERGOVERNMENTAL • EFFECTIVENESS AND TRANSPARENCY • ESSENTIALLY ECONOMIC COOPERATION • FREE TRADE AREA • CUSTOMS UNION • INTERNAL MARKET • COOPERATION IN SPECIFIC SECTORS

29. EU and EEU, A Comparison 1 • Framework of cooperation • In both cases: International Organisation • In both cases: Regional cooperation • Nature of cooperation • Integration (EU) versus Cooperation (EAEU) • Impact jurisprudence EU Court of Justice: general principles of EU law • Objectives and ambitions • Comprehensive cooperation (EU) versus essentially Economic cooperation (EAEU)

30. EU and EEU, A Comparison 2 • Stage of cooperation • Advanced (EU) versus recent (EAEU) • Size of economy • Big (EU) versus relatively small (EAEU)

31. EU and EEU, A Comparison 3 • Characteristics and institutions • Supranational (EU) versus Intergovernmental (EAEU) • Impact jurisprudence EU Court of Justice: general principles of EU law • Scope of competences • Transfer of competences (EU) versus Member States competences (EAEU) • Impact jurisprudence EU Court of Justice • Decision-making • Qualified majority voting (EU) versus Consensus (EAEU)

32. Perspectives for EU-EEU cooperation • Long term Objective • (Comprehensive) Free Trade Agreement • However, gradual process and need for preparatory stages • Obstacles • Geopolitical situation, notably • Ukraine (Crimea and Eastern Ukraine) • Technical complexities • Political will

33. Short term opportunities • Gradual approach • Dialogue/technical discussions • Regular talks/negotiations • Cooperation regarding individual sectors

34. EU – EAEU: FINAL REMARKS • COMPARISON: SIMILAR BUT DIFFERENT • SUPRANATIONAL VERSUS INTERGOVERNMENTAL • ACHIEVEMENTS AND TRANSPARENCY • COOPERATION: DIFFICULT BUT NOT EXCLUDED • LONG TERM PERSPECTIVE: FREE TRADE AREA • GEOPOLITICS (UKRAINE/MINSK 2) • TECHNICAL COMPLEXITIES • POLITICAL WILL • BILATERAL COOPERATION • INDIVIDUAL SECTORS • EU ESSENTIALLY AS A UNITY/ENTITY • EAEU AS A UNITY/ENTITY OR THROUGH INDIVIDUAL MEMBER STATES? • IMPACT FOR EU EASTERN PARTNERSHIP • POSITIVE OR NEGATIVE? • THE INTEREST OF PEACE AND STABILITY IN EUROPE