Countries and regions
EU-Armenia bilateral trade relations are currently regulated by a Partnership and Cooperation Agreement in force since 1999. But negotiations were launched in July 2010 to update this agreement by a future Association Agreements.
The EU has also started in May 2012 negotiations with Armenia for a Deep and Comprehensive Free Trade Agreement that will be part of the Association Agreement.
- The EU is Armenia's main trading partner, accounting for around 30% of Armenia's total trade.
- EU imports from Armenia chiefly consist of manufactured goods, crude materials, miscellaneous manufactured articles, and machinery and transport equipment.
- EU exports to Armenia are dominated by machinery and transport equipment, miscellaneous manufactured articles, chemicals, and foodstuffs.
- The total value of preferential Generalised Scheme of Preferences (GSP) imports from Armenia into the EU is steadily increasing, from € 61 million in 2009 to € 109 million in 2011. Armenia's GSP utilisation rate is high: around 90%. The main EU imports Armenia under GSP preferences are: base metals (80%), textiles (15%) and foodstuffs (2%).
EU-Armenia "trade in goods" statistics
|Year||EU imports||EU exports||Balance|
EU and Armenia
Trade negotiations with Armenia
A Deep and Comprehensive Free Trade Agreement will be a comprehensive agreement on trade and economic relations covering:
- improved market access opportunities and a clear perspective of progressive economic integration for Armenia into the EU single market;
- a full range of regulatory areas of mutual interest, such as trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, public procurement and competition policy;
- issues related to trade and sustainable development;
- the different economic development and regulatory priorities of Armenia will be taken into account during the negotiations.
Armenia is included in the European Neighbourhood Policy and is negotiating a new Association Agreementwith the EU replacing the current Partnership and Cooperation Agreement.
The new Association Agreement will significantly deepen Armenia’s political association and economic integration with the EU. It aims to establish a Deep and Comprehensive Free Trade Area underpinned by regulatory approximation leading to convergence with EU laws and standards. The future Agreement is expected to improve economic governance as well as Armenia's ability to attract investment.
The current Partnership and Cooperation Agreement – in force since July 1999 – does not include tariff preferences, but prohibits quantitative restrictions in bilateral trade and also envisages progressive regulatory approximation of Armenia's legislation and procedures to the most important EU and international trade related laws and standards which aims at facilitating access of Armenian products to the EU market.
Under the EU Generalised Scheme of Preferences Armenia has been benefiting from the special incentive arrangement for sustainable development and good governance, the so-called Generalised Scheme of Preferences Plus (GSP+), since July 2005. This arrangement offers Armenian exports advantageous access to the EU market since it provides for a zero duty rate for about 6400 tariff lines.
Trading with Armenia
- Rules and requirements for trading with Armenia
- The EU is present on the ground in Armenia
- Trade relations are part of the EU's overall political and economic relations with Armenia
- Armenia is a member of the World Trade Organisation
- Armenia is part of the South Caucuses region