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ARMENIA BENEFITS A LITTLE FROM ACCESSION TO CU, BUT LOSES TRADE SOVEREIGNTY: EXPERT
YEREVAN, October 10. /ARKA/. Public hearings on strategic challenges of
Armenia's socioeconomic development in relation to Armenia's accession
to Russia-led Customs Union were held Wednesday in Yerevan initiated
by Partnership for Open Society Initiative.
Independent experts made reports describing differences between the
association agreement and the accession to the Customs Union and
Armenia's main challenges in the context of the agreements.
"We are starting with economic discussions to reveal achievements and
losses we may encounter if we don't take the European integration
path", said Larisa Minasyan, founding director of Partnership for
Open Society Initiative.
Expert Vahagn Ghazaryan said in his speech main differences between
the two documents are on the customs duties. According to him, the
association agreement would open up for Armenia the opportunity of
free trade and harmonization of mechanisms of duty-free regulations
with EU countries.
"Armenian goods would then be exported to the European market on
duty-free basis, would comply with the technical requirements Europe
sets at its borders and hence, would freely move in the market",
the expert said. This, according to Ghazaryan, would enable Armenia
conducting its sovereign economic policy while maintaining all the
agreements made in the country's interests before.
Whereas the Customs Union (CU), according to the expert, is dictating
Armenia to harmonize foreign trade in line with the CU-approved
standards and procedures.
It means we should set, for the third countries, customs duties used
by Russia, Ghazaryan said adding that 70% of the CU customs duties are
higher than the Armenian ones. This may make it difficult for Armenia
to trade with third countries and import goods produced outside the
CU border.
The expert also said the GSP+ preference granted to Armenia by Europe
is going to expire in 2013. Europe could probably give Armenia some
other preferences as well, he said.
Ghazaryan also stressed that buying capacity of the European market
is five times as much as that of the CU market and its share in the
global economy is about 6 times higher than that of CU-countries.
The studies show no single customs union in the world has among its
members a country with no land boundary with other members of the
union. Armenia has no common border with other CU-countries, which
means it will have to carry out customs procedures via territory of
other countries while importing goods from the CU.
"Our main aim in turning from free trade area to the Customs Union is
free movement of goods, but Armenia's problem is not solved because
of our geographical situation", Ghazaryan said.
This means, according to the expert, Armenia benefits a little in
economic terms, but loses its sovereignty in economic trade policies.
According to the official statistics, Armenia's exports
to the Russian Federation amounted to $817.2 million, to
Kazakhstan - $4.3 million and to Belarus - $32.8 million, in
January-August 2013. The country's foreign trade turnover with
the EU was $1.059 billion in the same period.-0-- - See more at:
http://arka.am/en/news/economy/armenia_benefits_a_little_from_accession_to_cu_but _loses_trade_sovereignty_expert/#sthash.ncsubCVT.dpuf
YEREVAN, October 10. /ARKA/. Public hearings on strategic challenges of
Armenia's socioeconomic development in relation to Armenia's accession
to Russia-led Customs Union were held Wednesday in Yerevan initiated
by Partnership for Open Society Initiative.
Independent experts made reports describing differences between the
association agreement and the accession to the Customs Union and
Armenia's main challenges in the context of the agreements.
"We are starting with economic discussions to reveal achievements and
losses we may encounter if we don't take the European integration
path", said Larisa Minasyan, founding director of Partnership for
Open Society Initiative.
Expert Vahagn Ghazaryan said in his speech main differences between
the two documents are on the customs duties. According to him, the
association agreement would open up for Armenia the opportunity of
free trade and harmonization of mechanisms of duty-free regulations
with EU countries.
"Armenian goods would then be exported to the European market on
duty-free basis, would comply with the technical requirements Europe
sets at its borders and hence, would freely move in the market",
the expert said. This, according to Ghazaryan, would enable Armenia
conducting its sovereign economic policy while maintaining all the
agreements made in the country's interests before.
Whereas the Customs Union (CU), according to the expert, is dictating
Armenia to harmonize foreign trade in line with the CU-approved
standards and procedures.
It means we should set, for the third countries, customs duties used
by Russia, Ghazaryan said adding that 70% of the CU customs duties are
higher than the Armenian ones. This may make it difficult for Armenia
to trade with third countries and import goods produced outside the
CU border.
The expert also said the GSP+ preference granted to Armenia by Europe
is going to expire in 2013. Europe could probably give Armenia some
other preferences as well, he said.
Ghazaryan also stressed that buying capacity of the European market
is five times as much as that of the CU market and its share in the
global economy is about 6 times higher than that of CU-countries.
The studies show no single customs union in the world has among its
members a country with no land boundary with other members of the
union. Armenia has no common border with other CU-countries, which
means it will have to carry out customs procedures via territory of
other countries while importing goods from the CU.
"Our main aim in turning from free trade area to the Customs Union is
free movement of goods, but Armenia's problem is not solved because
of our geographical situation", Ghazaryan said.
This means, according to the expert, Armenia benefits a little in
economic terms, but loses its sovereignty in economic trade policies.
According to the official statistics, Armenia's exports
to the Russian Federation amounted to $817.2 million, to
Kazakhstan - $4.3 million and to Belarus - $32.8 million, in
January-August 2013. The country's foreign trade turnover with
the EU was $1.059 billion in the same period.-0-- - See more at:
http://arka.am/en/news/economy/armenia_benefits_a_little_from_accession_to_cu_but _loses_trade_sovereignty_expert/#sthash.ncsubCVT.dpuf