Rilka Dragneva-Lewers

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An employee walks through the scrap metal area at the Zaporizhstal steel plant in Ukraine on 14 October 2013. Photo via Getty Images.

Yesterday, President Vladimir Putin ordered the abolition of Russia’s free trade regime with Ukraine. He had been threatening to do so since 2011 as a response to the harm Russia claimed it would suffer from the implementation of Deep and Comprehensive Free Trade Agreement (DCFTA) between Ukraine and the EU. To avert this scenario, last year the EU and Ukraine agreed to suspend the DCFTA until December 2015 and initiate trilateral negotiations.

In essence, Russia’s objections to Ukraine’s DCFTA are political rather than economic. The allegations of economic harm resulting from the DCFTA remain poorly justified and spurious. Trade problems lend themselves to resolution through, for example, the application of the WTO’s rules of origin requirements.…  Seguir leyendo »