World Market Research Center
Global Insight
June 6, 2008
EU Contemplates Free-Trade Deal with Armenia
by: Natalia Leshchenko
Deputy head of the European Commission’s Directorate-General for
External Relations, Hugues Mingarelli, said during a visit to the
Armenian capital, Yerevan, that the European Union (EU) plans to open
negotiations on a free-trade agreement with the country soon. The
issue was discussed with Armenia’s Prime Minister Tigran Sarkisian,
Finance Minister Tigran Davtian, and Foreign Minister Eduard
Nalbandian. No indication of the date was given, however, and judging
by previous experience, the process is likely to take many months, if
not years.
Significance:The introduction of such a regime would allow Armenian
goods easier access to the EU market and would be welcomed by Armenian
producers, especially given that the two large neighbouring markets,
Azerbaijan and Turkey, are closed to them over political
disputes. According to official Armenian statistics quoted by Agence
France-Presse (AFP), EU member states accounted for 39% of the
country’s external trade in the first four months of this year. The
total value of the Armenia-EU commercial exchange rose by 35% to
almost $597US million in this period. In strengthening ties with
Armenia, the EU is seeking to augment its position in the Caucasus. EU
assistance to Armenia totalled more than 400 million euro ($620US
million) from 1992 to 2006. In 2007, the EU adopted a 21-million-euro
aid package to the country, and by the time of Mingarelli’s visit had
released a first instalment of a 16-million-euro grant designed to
help fight youth unemployment through educational reform. The other
CIS countries currently preparing for free-trade regime talks with the
EU are Ukraine and Moldova.