Trade agreements are tax, tariff, and trade treaties agreed by two or more countries to boost economic activity and attract investments. Preferential and free trade agreements are the most prevalent trade agreements, which are negotiated to decrease (or remove) tariffs, quotas, and other trade restrictions on goods traded between signatories. They spill forth what has been agreed upon as well as the consequences of breaking it.

Armenia has some trade agreements in place, all of varying quality.

EAEU membership

Since 1991, Armenia has been a member of the Commonwealth of Independent States (CIS). Both the CIS and Georgia have developed free trade zones. Since 2003, Armenia has also been a member of the World Trade Organization (WTO). Check out the WTO page for more information on tariffs and trade.

Armenia joined the EAEU in 2015, allowing for the free movement of commodities, capital, services, and labor.

A unified goods market, customs duties, tariffs, and non-tariff regulations are all part of this. In addition, in 2017, Armenia and the European Union inked a comprehensive and expanded partnership agreement (CEPA). This paved the way for free trade agreements with Vietnam and economic partnerships with China. A free trade agreement with Iran was also reached in 2018, albeit it was not yet in effect as of January 2019.

Armenia’s membership in the EAEU has assured that it follows Russia’s tighter standards, sanitary, and phytosanitary criteria.

GSP

Armenia is eligible to export to the EU under the GSP program, as well as to Canada, Japan, Norway, and Switzerland. This indicates Armenia has 0 percent or reduced tariff rates on these markets. The Comprehensive and Enhancing Partnership Agreement, which has been in effect since June 2018, governs bilateral commercial ties between the EU and Armenia. Currently, commerce with the EU amounts to roughly 23.6 percent of total trade and is the country’s second-largest source of imports. The largest trading products on the list are metal and ore. The United States likewise extended its favorable tariff system to Armenia in 2018. 

EU GSP+

Armenia has had GSP+ status with EU countries since 2009 and has benefited from it. The participation of Armenia is contingent on the effective implementation of 27 fundamental conventions. Approximately 6200 of the 9655 EU product classifications can be exported to the EU with zero or reduced customs tax thanks to this approach. Armenia began using the Registered Exporter System (“REX”) system for self-certification of origin on January 1, 2018.

Just to get a sense of how the GSP+ figures are changing, The overall value of Armenia’s preferential imports into the EU climbed by €108 million in 2016 alone, up from €42 million in 2014.

Armenia – USA

Armenia’s GDP was expected to be $13.4 billion in 2019 (current market exchange rates); real GDP increased by 7.6%, and the population was estimated to be 3 million. (Source: International Monetary Fund)

With $108 million in total (two-way) goods commerce in 2019, Armenia is our 166th largest goods trading partner. Exports of products totaled $53 million, while imports of goods reached $55 million. In 2019, the United States goods trade deficit with Armenia was $2 million.

Exports

• Armenia was the 170th largest goods export market for the United States in 2019.

• Goods exports from the United States to Armenia totaled $53 million in 2019, up 15.7 percent ($7 million) from 2018, but down 31.4 percent from 2009.

• Electrical machinery ($11 million), automobiles ($11 million), precious metal and stone (diamonds) ($7 million), meat (poultry) ($6 million), and art and antiquities ($4 million) were the top export categories (2-digit HS) in 2019.

• In 2019, total agricultural exports from the United States to Armenia totaled $7 million. Poultry meat and goods (excluding eggs) ($6 million), tree nuts ($283 thousand), prepared meals ($63 thousand), planting seeds ($51 thousand), and chocolate & cocoa products ($40 thousand) are the top domestic export categories.

Imports

• In 2019, Armenia was the 138th largest importer of commodities to the United States.

• In 2019, the United States imported $55 million in goods from Armenia, up 2.1 percent ($1 million) from 2018, but down 29 percent from 2009.
• Aluminum ($22 million), precious metal and stone (diamonds) ($10 million), woven clothes ($9 million), drinks (ethyl alcohol) ($6 million), and preserved food (jam, jelly) ($3 million) were the top import categories (2-digit HS) in 2019.
• In 2019, the United States imported $6 million worth of agricultural products from Armenia. Processed fruits and vegetables ($2 million), wine and beer ($1 million), cheese ($654 thousand), fruit and vegetable juices ($170 thousand), and other dairy goods ($163 thousand) are the most popular categories.