This paper aims to study the joint effects of Russia’s entry into the WTO and of the impending EU Enlargement in a small open Eastern European Economy, the Republic of Belarus. The paper is organized as follows. It starts with the brief description of Belarus trade prior independence in Section I. Changes in commodity and geographical structure of Belarus trade since independence are analyzed in Section II. In Section III trade regime and trade-related policies are described. Section IV is dealt with the discussion of the rationale of the movement towards closer integration with Russia. In Section V, a small CGE model is used to present very preliminary estimations the effects of the developments above. This paper was done as an input to the USAID/IRIS Project n° 220/001.0-03-337.