Announcement

Collapse
No announcement yet.

EU-Armenia Deep and Comprehensive Free Trade Area

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • EU-Armenia Deep and Comprehensive Free Trade Area

    Invest in EU
    July 27 2013



    EU-Armenia Deep and Comprehensive Free Trade Area


    Scope

    The Deep and Comprehensive Free Trade Area (DCFTA) between the EU and
    Armenia is a further step in developing Armenia's economic relations
    with the EU.

    In the framework of the Eastern Partnership, the EU started
    negotiations on an Association Agreement with Armenia in July 2010 and
    on the DCFTA in May 2012. The DCFTA, which will form part of the
    Association Agreement, aims at strengthening the trade and investment
    performance of both economies, while facilitating Armenia's
    progressive integration with the EU economy of 500 million consumers.

    In accordance with the basic rules of a WTO-compatible free trade
    area, the DCFTA envisages that the vast majority of customs duties on
    goods will be removed as soon as the Agreement enters into force. As
    regards services, the DCFTA provides for a broad set of commitments
    that go beyond the EU and Armenia WTO General Agreement on Trade in
    Services (GATS) schedules. This will serve to create trade
    opportunities between EU and Armenia to the benefit of both economies.
    Intended as an ambitious upgrade of current trade relations, the DCFTA
    also covers rules that frame trade, such as intellectual property
    rights, rules of origin as well as customs and trade facilitation. It
    embraces provisions on sustainable development, making sure that
    growth in trade does not come at the expense of the environment or
    social and labour rights. A transparency chapter provides disciplines
    regarding the availability of information and minimum standards for
    consultations with stakeholders on DCFTA-related domestic legislation

    Furthermore, the DCFTA offers Armenia a framework for modernising its
    trade relations and for economic development. An extensive
    harmonisation of laws, norms and regulations in various trade-related
    sectors will create the conditions for aligning key sectors of the
    Armenian economy to EU standards. Especially sanitary and
    phytosanitary standards will be targeted, in a move to create an
    Armenian food safety environment that is similar to EU standards.
    Moreover, Armenia will adapt several laws of concern for industrial
    goods, focusing on areas that are central for domestic safety and
    consumer protection.

    Economic impact

    A Trade Sustainability Impact Assessment study, conducted by an
    independent consultant, laid out the likely impact of the DCFTA and
    the necessary flanking measures that could be required to accompany
    the reforms in Armenia. The study predicts that both Armenia and the
    EU can expect to gain from a closer bilateral trade relationship. In
    the long run the national income gains for Armenia are estimated at
    146 million. These gains imply a 2.3 per cent increase in Armenia's
    GDP. Key to reaping the positive effects is the reduction of
    non-tariff measures.

    The national income gains for the EU are estimated at 74 million.

    Looking at the trade impact of the DCFTA, the effects on trade are
    significant, with a 15.2 per cent increase in Armenian total exports
    and an 8.2 per cent increase in Armenian total imports in the long
    run. The DCFTA will thus lead to an improvement in Armenia's trade
    balance in relative terms.

    Link to the study: http://tsia.ecorys.com/armenia/

    Reform-related assistance

    The implementation of the DCFTA and related reforms will require
    adequate financial support by the EU and sharing of know-how with
    Armenia. The EU has already been assisting Armenia in this regard
    before the launch of negotiations in the framework of a special
    Comprehensive Institution Building programme (2011-2013) within the
    European Neighbourhood and Partnership Instrument. It included
    financial assistance as well as trainings and advisory activities
    (e.g. twinning, TAIEX).

    Bilateral assistance of EU Member States also takes place in
    coordination with EU efforts. Further significant assistance, devoted
    specifically to the implementation of the DCFTA, is planned in the new
    European Neighbourhood Instrument (2014-20).

    http://www.investineu.com/content/eu-armenia-deep-and-comprehensive-free-trade-area-12c3

Working...
X