A European Parliament international trade committee has approved an initiative to exempt nearly 80% of Armenian exports to the EU from customs duties.
The legislative proposal on “temporary trade liberalization measures applicable to Armenian goods” was considered and adopted by the committee without objections, Factor.am reports.
In early July, the European Commission formally proposed that the European Parliament and Council liberalize access to the EU market for a substantial share of Armenian goods for two years. The move reaffirmed the European Union’s commitment to supporting Armenia’s economy following restrictions on Armenian products in the Russian market.
“These measures will provide Armenia with temporary tariff liberalization for a broad range of products, largely aligned with the GSP+ (Generalised Scheme of Preferences Plus) regime, as well as duty-free tariff quotas for certain agricultural goods. This will liberalize nearly 80% of Armenian exports to the EU,” European Commission representative Eva Krausa said during a meeting of the Committee on International Trade.
Unlike the previous GSP+ arrangement, the new rules remove seasonal restrictions. Tomatoes, apples, cucumbers, grapes, pears, apricots, cherries, peaches, plums and strawberries can now be exported without customs duties or restrictions.
However, some companies and product categories will not qualify for the proposed preferences.
“Armenal, an aluminium foil exporter based in Armenia and a subsidiary of Russia’s Rusal, has been excluded from the scheme. Consequently, imports of aluminium foil, which account for about 13% of total EU imports from Armenia, have also been excluded. Finally, we have certain systemic sensitivities concerning modified starch, rum, ethyl alcohol, sweet corn and sugar derivatives, which have likewise been left out of the proposal. Together, they represent about 1% of imports from Armenia,” Krausa stressed.
Armenian goods exported to the European Union will have to comply strictly with food safety and phytosanitary requirements.
“Armenian goods entering the single market must meet the same European standards on food safety, sanitary and phytosanitary rules, quality and consumer protection as any other product sold within the EU. In other words, we are liberalizing market access, not lowering our standards,” said European Parliament member and International Trade Committee member Stefan Musoiu.
Armenia will be required to cooperate closely with the European Union on verifying the origin of goods to prevent Russian products from entering the EU market through Armenia. The preferences may be suspended if rules are breached or there is a risk of fraud.
A dedicated working group is also envisaged to help Armenia overcome logistical challenges and improve its quality infrastructure to meet EU standards.
According to Krausa, this support for Armenia is exceptional because similar preferences have previously been granted only to countries seeking European Union membership.
The deadline for submitting amendments has been set for July 30. The legislative proposal on “temporary trade liberalization measures applicable to Armenian goods” could therefore be placed on the European Parliament’s agenda as early as September.
Russia has imposed restrictions on imports of Armenian products. In particular, imports from Armenia of Jermuk mineral water, flowers and certain alcoholic beverages have been banned. Restrictions have also affected several agricultural products, including tomatoes, cucumbers and strawberries. Since June 2, Russia has restricted imports from Armenia of cherries, apricots, peaches, plums, grapes and other stone fruits, as well as their transit to other Eurasian Economic Union countries. From June 3, Russia also restricted imports of Armenian-origin and Armenian-exported eggplants, potatoes and dried fruits.
