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Analysis: WTO Terms And Armenia's Eurasian Integration; New Obstacle

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  • Analysis: WTO Terms And Armenia's Eurasian Integration; New Obstacle

    ANALYSIS: WTO TERMS AND ARMENIA'S EURASIAN INTEGRATION; NEW OBSTACLES ARISE

    ANALYSIS | 25.06.14 | 11:31
    http://armenianow.com/commentary/analysis/55554/armenia_eurasian_union_accession_russia_lavrov_ana lysis

    Photo: www.president.am

    By NAIRA HAYRUMYAN
    ArmeniaNow correspondent

    RELATED NEWS

    Russian deputy PM: Armenia to compensate WTO partners for Eurasian
    integration

    Russian Foreign Minister Sergei Lavrov, who visited Yerevan on June
    22-23, did not indicate any date of Armenia's accession to the Eurasian
    Economic Union (EEU). He cited the fact that it was on June 23 that
    in Sochi consultations were held on the issue of Armenia's membership.

    "Hopefully, good news reaches us from Sochi," the top Russian diplomat
    said in Yerevan.

    Meanwhile, consultations of the Eurasian Economic Commission in the
    southern resort city in Russia were conducted with the participation
    of deputy prime ministers of Russia, Kazakhstan and Belarus. The
    main issue was the forthcoming signing by Ukraine of an Association
    Agreement with the European Union and the future relations between
    the EEU and Kyiv. In the official statement issued on the results of
    the meeting it was only said on the part of Armenia that the issue
    of Armenia's joining the EEU had been discussed.

    No representative from Armenia participated in the meeting. First
    Deputy Prime Minister of Russia Igor Shuvalov stated that Armenia's
    accession to the EEU would entail talks on compensation for its World
    Trade Organization (WTO) partners. It looks like a statement about
    the impossibility of Armenia's accession, at least for the time being.

    Armenia is a member of the WTO since 2003, Russia joined the
    organization in 2013, and Kazakhstan and Belarus are not members of
    this organization. Kazakhstan has already submitted its application,
    but has received no reply yet. The customs duties in WTO-member
    countries are significantly lower than those that exist in the Customs
    Union member states. And in the event of Armenia's entry into the
    EEU it will have to pay compensation to other WTO members.

    Most likely it was confirmed during Armenian President Serzh Sargsyan's
    visit to Tbilisi on June 20. Georgia is a member of the WTO since
    2000, and now a free privileged customs regime is being applied
    between Armenia and Georgia. But it will be canceled after the June
    27 signing by Georgia of an Association Agreement with the EU and in
    the case of Armenia's accession to the EEU.

    There are more and more obstacles arising to Armenia's accession to the
    Russian-led trade bloc. Earlier, on May 29, in Astana, Kazakhstan's
    President Nursultan Nazarbayev set a condition to Armenia citing a
    demand from Azerbaijani President Ilham Aliyev that Armenia should
    enter the EEU only within its internationally recognized borders,
    in other words, without Nagorno-Karabakh. President Sargsyan has
    already confirmed that it will be so, although some analysts and
    ordinary citizens found unacceptable the separation of Armenia and
    Karabakh even by a customs checkpoint.

    But apparently, Sargsyan knew that there were more serious obstacles,
    in particular, the position of Georgia, which today is the only transit
    country for Armenia. Georgia has no reason to help Armenia and Russia
    to strengthen their alliance, and, apparently, it was made clear to
    the Armenian leader during his recent visit to Tbilisi.

    No one knows yet what compensation Armenia will have to pay to
    WTO-member countries, but it is obvious that Yerevan will have
    neither means nor desire to pay for membership in the EEU that in
    economic terms promises only losses. The benefit from this union for
    Armenia is only in terms of security and stability that Russia uses
    to blackmail Armenia and prevent its Euro-Atlantic integration.

    But in order "not to anger" Russia, Armenia does not necessarily
    have to join the EEU, all it needs is to periodically state that
    it has chosen the path of Eurasian integration and close relations
    with Russia. The main thing is that Armenia continues to block the
    regional communications lobbied by the West and Iran and stop short
    of challenging Russia's monopoly.

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