Armenia’s Trade Agreements

Trade Agreements are tax, tariff and trade treaties which increase economic activities, bring in investments and are signed by two or more countries. The most common trade agreements are preferential and free trade, signed in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories. They outline both what is agreed upon and the ramifications for deviating from the agreement.

Armenia has multiple trade agreements signed, of different caliber.

EAEU membership

Armenia is a member of Commonwealth of Independent States (CIS) since 1991. Free trade has been established with both CIS countries and Georgia. Furthermore, Armenia has been a member of World trade organization (WTO) since 2003. For more information about tariffs and trade, check the WTO page.

In 2015, Armenia became a member of the EAEU, providing for free movement of goods, capital, services, and labor. This means a common goods market, customs duties, tariff and non-tariff regulations. Furthermore, Armenia and the EU signed a comprehensive and expanded partnership agreement (CEPA) in 2017. This opened the door to free trade with Vietnam and economic cooperations with Cina. A free trade agreement was signed in 2018 with Iran as well, though not yet in force as of January 2019.

Membership in the EAEU has ensured Armenia applies stricter standardization, sanitary, and phytosanitary requirements in line with Russia’s. Trade barriers, however, do exist. For more information, click here.

GSP

Armenia qualifies to export to the EU under GSP, as well as enjoying beneficiary status with Canada, Japan, Norway, and Switzerland. This means Armenia has access to these markets at 0% or reduced tariff rates. The EU-Armenia bilateral trade relations are regulate by the Comprehensive and Enhances Partnership Agreement, provisionally applied since June 2018. At the moment, trade with the EU accounts for around 23.6% of the country’s total trade, standing as the second-largest source of imports. Metal and ore amount the largest trade items on the list. In 2018, the US also extended its preferential tariff system with Armenia.

EU GSP+

Armenia currently enjoys GSP+ status with EU countries, benefitting from it since 2009. Armenia’s participation is conditioned by the efficient implementation of 27 fundamental conventions. Thanks to this system, about 6200 out of 9655 of the EU products’ classification can be exported to EU with zero or reduced custom duty. Armenia began applying the system of self-certification of origin - the Registered Exporter System (“REX” system), from January 1, 2018. Just to have an understanding of the GSP+ numbers’ growth, The total value of preferential imports from Armenia into the EU increased from €42 million in 2014 to €108 million in 2016 alone. For more information about the GSP and GSP+ status with the EU, click here.