Tweet
ARMENIA AND EU AGREE TO CREATE FREE TRADE AREA
ITAR-TASS, Russia
July 24, 2013 Wednesday 08:04 PM GMT+4
YEREVAN July 24
- Armenia and the European Union have concluded their talks on Deep
and Comprehensive Free Trade Area (DCFTA), as part of the Association
Agreement between them.
The final, seventh, round of talks took place in Yerevan on Wednesday,
July 24. The sides agreed key aspects of the agreement that will
set a new framework for trade relations between Armenia and the
European Union.
The DCFTA will strengthen Armenia's economic integration with the EU
by providing better market access for European and Armenian goods and
services to each other's markets. It will offer Armenia a framework
for modernising its trade relations and for economic development
on the basis of far reaching harmonisation of laws and regulations
in various trade-related sectors. These reforms will create the
conditions for Armenia to bring key sectors of its economy in line
with EU standards. The improved trade opportunities brought about
by the DCFTA are expected to bring economic benefits to both the EU
and Armenia.
"Today's conclusion of negotiations on a Deep and Comprehensive Free
Trade Area between the EU and Armenia paves the way for Armenia to
enjoy much improved access to the EU market in more than trade in
goods, which will help the country strengthen its exports, increase
investment and sustain growth," EU Trade Commissioner Karel De Gucht
said. "In the end, it will contribute to the overall stability and
prosperity of the region, and contribute to citizen's well-being. I
congratulate and thank the negotiators on both sides for their
successful work. I look forward to a political confirmation of this
week's achievement at the Vilnius Summit in November this year. We
will need to actively prepare for implementation."
An independent study suggests that in the long run the Armenian
economy could gain an extra 146 million euros a year, representing a
2.3 percent increase in GDP. Removing non-tariff measures is key to
realising these benefits. For its part, the EU is expected to gain
by some 74 million euros.
The DCFTA will have significant impacts on Armenia's trade. The
forecast 15.2 percent increase in Armenian exports and 8.2 percent
increase in its imports in the long run will lead improve Armenia's
trade balance in relative terms.
The EU began negotiating an Association Agreement with Armenia in
July 2010. The aim was to replace the old Partnership and Cooperation
Agreement with a more advanced relationship. The negotiations on
the trade part of this agreement - the Deep and Comprehensive Free
Trade Area (DCFTA) - were launched in May 2012. After seven rounds
of negotiations, final agreement was reached on 24 July 2013. The
Commission will now report to the EU Member States on the negotiated
DCFTA text. After that, the EU and Armenia will carry out the next
steps to formally mark the finalisation of the DCFTA as part of the
Association Agreement.
The EU is Armenia's biggest trading partner, covering some 32 percent
of its trade. Bilateral trade in goods amounted to 951million euros
in 2012.
The country already benefits from preferential access to the EU market
through the EU Generalised System of Preferences with additional
incentives for sustainable development and good governance ("GSP+").
This means that existing import duties are already very low, so the
benefits of the DCFTA, although they also include tariff reductions,
will lie predominantly behind the border. Regulatory reform will focus
on areas such as sanitary and phytosanitary issues, aiming to bring
food safety standards in Armenia up to a par with those in the EU.
Armenia will also adapt various laws relating to industrial goods,
with an emphasis on domestic safety and consumer protection.
ITAR-TASS, Russia
July 24, 2013 Wednesday 08:04 PM GMT+4
YEREVAN July 24
- Armenia and the European Union have concluded their talks on Deep
and Comprehensive Free Trade Area (DCFTA), as part of the Association
Agreement between them.
The final, seventh, round of talks took place in Yerevan on Wednesday,
July 24. The sides agreed key aspects of the agreement that will
set a new framework for trade relations between Armenia and the
European Union.
The DCFTA will strengthen Armenia's economic integration with the EU
by providing better market access for European and Armenian goods and
services to each other's markets. It will offer Armenia a framework
for modernising its trade relations and for economic development
on the basis of far reaching harmonisation of laws and regulations
in various trade-related sectors. These reforms will create the
conditions for Armenia to bring key sectors of its economy in line
with EU standards. The improved trade opportunities brought about
by the DCFTA are expected to bring economic benefits to both the EU
and Armenia.
"Today's conclusion of negotiations on a Deep and Comprehensive Free
Trade Area between the EU and Armenia paves the way for Armenia to
enjoy much improved access to the EU market in more than trade in
goods, which will help the country strengthen its exports, increase
investment and sustain growth," EU Trade Commissioner Karel De Gucht
said. "In the end, it will contribute to the overall stability and
prosperity of the region, and contribute to citizen's well-being. I
congratulate and thank the negotiators on both sides for their
successful work. I look forward to a political confirmation of this
week's achievement at the Vilnius Summit in November this year. We
will need to actively prepare for implementation."
An independent study suggests that in the long run the Armenian
economy could gain an extra 146 million euros a year, representing a
2.3 percent increase in GDP. Removing non-tariff measures is key to
realising these benefits. For its part, the EU is expected to gain
by some 74 million euros.
The DCFTA will have significant impacts on Armenia's trade. The
forecast 15.2 percent increase in Armenian exports and 8.2 percent
increase in its imports in the long run will lead improve Armenia's
trade balance in relative terms.
The EU began negotiating an Association Agreement with Armenia in
July 2010. The aim was to replace the old Partnership and Cooperation
Agreement with a more advanced relationship. The negotiations on
the trade part of this agreement - the Deep and Comprehensive Free
Trade Area (DCFTA) - were launched in May 2012. After seven rounds
of negotiations, final agreement was reached on 24 July 2013. The
Commission will now report to the EU Member States on the negotiated
DCFTA text. After that, the EU and Armenia will carry out the next
steps to formally mark the finalisation of the DCFTA as part of the
Association Agreement.
The EU is Armenia's biggest trading partner, covering some 32 percent
of its trade. Bilateral trade in goods amounted to 951million euros
in 2012.
The country already benefits from preferential access to the EU market
through the EU Generalised System of Preferences with additional
incentives for sustainable development and good governance ("GSP+").
This means that existing import duties are already very low, so the
benefits of the DCFTA, although they also include tariff reductions,
will lie predominantly behind the border. Regulatory reform will focus
on areas such as sanitary and phytosanitary issues, aiming to bring
food safety standards in Armenia up to a par with those in the EU.
Armenia will also adapt various laws relating to industrial goods,
with an emphasis on domestic safety and consumer protection.