RESTRICTED  
  
WT/TPR/G/379  
3 October 2018  
(18-6085) Page: 1/21 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
ARMENIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Armenia  is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Armenia . WT/TPR/G/379 • Armenia  
 
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  Table of Contents  
 
1   INTROD UCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC ENVIRON MENT  ................................ ................................ ..........................  3 
2.1   Macroeconomic Situation  ................................ ................................ ..............................  3 
2.2   Monetary Policy and Inflation  ................................ ................................ ........................  4 
2.3   Financial services and Stability  ................................ ................................ ......................  4 
2.4   Fiscal Policy  ................................ ................................ ................................ ................  5 
3   SECTORAL POLICY AND REFORMS  ................................ ................................ ...............  6 
3.1   Agriculture  ................................ ................................ ................................ ..................  6 
3.2   Energy  ................................ ................................ ................................ .......................  7 
3.3   Tourism  ................................ ................................ ................................ ......................  8 
3.4   Information and Communications Technology  ................................ ................................ . 8 
3.5   Transport and Communication Infrastructure  ................................ ................................ .. 9 
4   TRADE POLICY DEV ELOPMENTS  ................................ ................................ ................  10 
4.1   Trade and Investment Policy  ................................ ................................ ........................ 10 
4.1.1    Trade in goods  ................................ ................................ ................................ ........ 10 
4.1.2    Customs regulations  ................................ ................................ ................................ 11 
4.1.3    Non-tariff regulations  ................................ ................................ ............................... 12 
4.1.3.1    TBT (standardization, metrology, accreditation)  ................................ ........................ 12 
4.1.3.2    SPS measures (including food safety)  ................................ ................................ ......12 
4.1.3.3    Quotas, export/import prohibition  ................................ ................................ ........... 13 
4.1.3.4    Import/export restrictions, licences  ................................ ................................ ......... 13 
4.1.4    Investment policy  ................................ ................................ ................................ ....14 
4.2   Public Procurement  ................................ ................................ ................................ .....15 
4.3   Intellectual Property Rights  ................................ ................................ .......................... 15 
4.4   Competition and Business Environment  ................................ ................................ ......... 15 
5   BILATERAL AND REGIONAL ARRANGEMENT S ................................ ............................  17 
5.1   Bilateral trade agreements ................................ ................................ ........................... 17 
5.2   EU-Armenia  ................................ ................................ ................................ ............... 17 
5.3   EAEU -Armenia  ................................ ................................ ................................ ........... 17 
6   FREE ECONOMIC ZO NES ................................ ................................ ............................  18 
7   TECHNICAL ASSIST ANCE  ................................ ................................ ...........................  18 
ABBR EVIATIONS  ................................ ................................ ................................ ............  20 
 
 
  WT/TPR/G/379 • Armenia  
 
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  1  INTRODUCTION  
1.1.  In December 201 5 Armenia held a referendum on c onstitutional amendments, according to 
which the Republic of Armenia (hereinafter RA) moved from a semi -presidential to a parliamentary 
system. According to the Constitution , the President is the Head of the State and is responsible for 
concluding international treaties upon recommendation of the Government  and appointment and 
recall of  diplomatic representatives  upon recommendation of the Prime Minister . Domestic and 
foreign policy is developed and implemented by the Government of RA, which is composed of the 
Prime Minister, Deputy Prime Ministers and Ministers. The Prime Minister deter mines the main 
directions of the Government policy, manages the activities of the Government and coordinates 
the work of the members of the Government.  
1.2.  The objectives of trade, economic and investment policies of the country are reflected in the 
Armenian D evelopment Strategy 2014 -2025 aimed at improving business regulatory environment, 
ensuring favourable external regimes, eliminating trade obstacles, modernizing infrastructure and 
promoting foreign investment. The Government gives special importance to sma ll and medium 
entrepreneurship.  
1.3.  Boosting cooperation between science and real sector, representation of local IT products and 
services in foreign markets, introduction of new technologies in agriculture, promotion of export of 
agricultural goods, further i mprovement of tourism infrastructure of the country are amongst 
priorities in the agenda of the Government.  
1.4.  Foreign trade has significant importance for the economy of Armenia. Foreign economic 
policy of Armenia is based on the liberal principles and dire cted to the widening of its integration 
into the world economy and representation of Armenia as a favourable country for doing business. 
Armenia is making tangible efforts to promote export of local products, to reduce non -tariff 
barriers and to simplify i mport and export procedures, as well as to protect interests of foreign 
investors and trade partners in the country.  
1.5.  The guiding principles of the country 's strategy for economic development are the promotion 
of competitiveness and corporate governance as well as establishment of conditions necessary for 
development of private sector operating under an efficient, accountable and transparent 
government. Amongst important factors in securing economic competition are provision of equal 
conditions for all businesses, elimination of shadow economy and guarantee of the rule of law.  
2  ECONOMIC ENVIRONMENT  
2.1  Macroeconomic Situation  
2.1.  Since early 2000 's till the onset of the Global Financial Crisis, the Armenian economy was 
rapidly expanding: the av erage Gross Domestic Product (hereinafter GDP) growth during the 
mentioned period reached to 11.3%. The negative spill overs  of Global Financial Crisis started to 
affect the Armenian economy in late 2008 and continued through  2009. After the global financi al 
crisis, the country 's economy began to recover rapidly with an annual average of 4% of  real GDP 
growth.   
2.2.  In 2017, the real growth of GDP reached 7.5%. The economic growth in 2017 was mostly 
driven by  the growth registered in services (12.4%) and industr y (6.6%). The agriculture sector 
registered decline by 5.3%. After several years of decline, the construction sector showed modest 
growth (2.5%). The recovery of remittances, rising commodity prices and continuous improvement 
of global economic conditions are the main external factors, which affected the GDP growth 
positively.  
2.3.  During 2010 -2017, the sectoral structure of the economy has changed: the declining industry  
sector has gradually increased from 15.5% in 2010 to 17.9% of GDP in 2017, and the share of  
agriculture  decreased  from 17.0% in 2010 to 14.9% in 2017. In 2017, the largest sectors by share 
of GDP were agriculture (1 4.9%), whole and retail trade (10.8%), manufacturing (10.2%), real 
estate activities (8.3%) and construction (7.4%).  WT/TPR/G/379 • Armenia  
 
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  2.4.  External t rade turnover in Armenia over the period of 2010 -2017 increased by 3 2% reaching 
US$6321.0 million in 2017 compared to US$4790.0 million in 2010. The import hasn 't changed 
substantially (increase only by 9.3%) during this period, while exports have increased by 113.6% 
and constitute US$2,223.9 million.  
2.5.  The trade balance continues to be negative; however,  the deficit is  showing a  decreasing  
tendency. Despite the small increase in 2017, the trade balance defic it decreased from 
US$2.7 billion in 2010 to US$1.9 billion in 2017. Starting from 2010 export grew at higher pace 
than import  (with exception of 2017, when growth of imports was higher by 1 percentage point 
than growth of export). Though in 2015 there was a slight decline of export ( -4%), in 2016 export 
grew by 20.6% and in 2017 by 24.1%.  
2.6.  The RA Government adopted a foreign economic diversification policy aimed at expanding the 
geography of foreign economic relations. A n example of such policy is the agreem ent signed 
between the RA and the European Union (hereinafter EU) in 2017, as well as the creation of a free 
economic zone on the border of the Islamic Republic of Iran and the Republic of Armenia.  
2.7.  In 2017, the current account deficit constituted 2.8% of G DP equalling US $328.5 million, 
which was improved by 10.8 percentage points compared to 2010. This improvement is mainly 
conditioned by decrease of negative balance of goods and services.  
2.8.  In 2017 the net flow of foreign investments into the real sector of RA economy amounted to 
about US $154.6 million, out of which US $192.8 million were foreign direct investment flows. The 
gross flows of foreign direct investments into the real sector of RA economy in 2010 -2017 
amounted to US$3.8 billion. In 2010 -2017 the la rgest share of FDI is the Russian Federation , 
about 45% ( US$1.8 billion). Sectors that attracted the highest shares of investment in 2010 -2017 
were mining, energy, transportation, manufacturing and telecommunication.  
2.2  Monetary Policy and Inflation  
2.9.  During 20 10-2017 the monetary policy was implemented under inflation targeting regime, 
ensuring price stability in Armenia. The 12 -monthly inflation rate averaged around 3.8% in 
2010-2017, which is quite close to the 4% target rate.  
2.10.   Negative regional shocks, caused  by the volatility in global commodity markets, affected 
monetary policy and inflationary developments in Armenia, by un -anchoring inflation expectations 
at the end of 2014. After the external shock mitigation, in 2015 -2017 in low inflationary and even 
deflationary environment, the country implemente d expansionary monetary policy, which 
increased the effectiveness of transmission of policy interest rates to interest rates of securities, 
loans and deposits. This in turn created favourable conditions for dome stic demand and inflation 
recovery. As a result, the 12 -month inflation rate was 2.6% at the end of 2017, which is within +/ -
1.5% tolerance band around 4% target rate.  
2.11.   Since 1996, the Central bank of Armenia is committed to the free -floating exchange rate 
regime and to the principle of non -use of exchange rate restrictions. Episodic interventions of the 
Central bank in foreign exchange market are conducted only to smooth the drastic short -term 
volatilities of exchange rate.  
2.3  Financial services and Stability  
2.12.   Starting from 2018 financial stability is considered as a primary goal of the Central bank in 
line with price stability, according to the new Constitution of Armenia. Due to the RA Government 's 
consistent financial policies, financial sector regulatory and supervisory frameworks are compliant 
with the international best practice and standards (BCBS, IAIS, IOSCO). In 2012, the Financial 
Sector Assessment Program jointly conducted by the World Ba nk (WB) and International Monetary 
Fund (IMF) concluded that the Armenian banking sector was 93% compliant with the Basel Core 
Principles for Effective Banking Supervision. Armenian insurance system was 86% compliant to the 
Insurance core principles of Int ernational Association of Insurance Supervisors.  WT/TPR/G/379 • Armenia  
 
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  2.13.   The Central Bank of Armenia is a mega -regulator of all financial institutions and financial 
markets operating in Armenia and possesses all supervisory and macroprudential tools (in line with 
Basel 3) to cond uct effective supervision. Recent amendments to relevant legislation authorized 
the Central Bank to conduct consolidated supervision over financial groups.  
2.14.   The banking sector is well capitalized. Recent substantial increase in minimum required 
capital to 3 0 billion drams or about US$60 million initiated by the Central Bank of Armenia has 
created additional buffers for banks to stay immune during shocks. In 2010 -2017, the banking 
sector 's total assets increased annually by 16.1% with the cumulative asset gro wth reaching 
229%. In the same period, the share of non -resident investments in the banking sector 's common 
shares decreased by 12.2 percentage points and equalled 61.8%. In 2012 -2017, banking sector 
liabilities towards non -residents increased annually by 5.5% with the cumulative growth reaching 
31%.  
2.15.   The Compulsory Motor Third Party Liability Insurance (CMTPL) was introduced in Armenia in 
2011 aiming to protect the rights of injured parties caused by the use of motor vehicles. After 
CMTPL, Armenian Single W indow for Automotive Insurance (ASWA) was launched in 2017. The 
ASWA implementation purpose is to enable online conclusion of MTPL contracts and to improve the 
management of compensation and damage assessment by insurance companies through a 
common platfor m. From 2010 to 2017, insurance sector total assets increased annually by 14.3%; 
the cumulative growth equalled 192%.  
2.16.   In 2014 the mandatory funded pension pillar was launched replacing the old unfunded PAYG 
pension system by a multi -pillar system. Amundi -Acba Asset Management and C -Quadrat Ampega 
Asset management companies manage six mandatory pension funds with 208,000 active 
participants and AMD  131.7 billion total assets (EUR 233 million) as of 31  July 2 018.  
2.17.   In January 2018 Armenia signed the IOSCO Mult ilateral memorandum of understanding 
concerning consultation and cooperation and the exchange of information in securities and 
derivatives markets. In 2013, the Central Depositary of Armenia (CDA) launched a new system for 
the centralized registry, custody  and settlement of securities. In 2017, a new NASDAQ owned 
Genium Inet trading system was launched and the auctions of government bonds were transferred 
from the Central Bank to the NASDAQ OMX Armenia. Another important event was the entry of 
Clearstream i nto the Armenian market by implementing a link with the CDA. This facilitates the 
entrance of foreign investors to the Armenian Government bond and capital markets.  
2.18.   Over the past 10 years the inflow of remittances by individuals amounted to an annual 
avera ge of 15.8% of the GDP. The highest value of transfers was recorded in 2013 achieving 
around US$2.2 billion (45.5% more than in 2010). In 2015 there was a substantial decline in 
private transfers. In comparison with 2013, the inflow of the remittances decl ined by 33.8% and 
amounted to US$1.4 billion. Decrease of remittances from abroad had also been recorded in 2014 
and in 2016. Slight recovery of remittances by 12.4% have been registered in 2017 and amounted 
about US$1.5 billion. The Russia n Federation  remains the major source for remittances in 
Armenia, with a share in total being close to 80%. This is explained by the large Armenian 
diaspora and seasonal workers.  
2.4  Fiscal Policy  
2.19.   In 2010 -2013, fiscal policy had a restraining impact on the economy and in 2014-2016 it 
was characterized as stimulating. At the same time, the aim was to promote the recovery of 
economic growth and macroeconomic stability by simultaneously maintaining the government 's 
debt sustainability. In 2017, a restraining fiscal policy was  targeted and implemented to maintain 
debt sustainability.  
2.20.   In 2015 -2016 the RA state budget deficit amounted to 4.8% and 5.5%, respectively. As a 
result of the fiscal restraining policy implemented in 2017, the state budget deficit amounted to 
4.8% of GDP.  However, the deficit which presents influence on the economy, namely the deficit 
that reflects the reaction of fiscal policy to economic developments (except military loan) was 
3.2% of GDP in 2017 and 5.0% of GDP in 2016.  WT/TPR/G/379 • Armenia  
 
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  2.21.   The RA Government debt sustainabi lity analysis indicates that, despite the recent debt/GDP 
ratios, the debt is stable in the long term and is in the range of moderate risk. As of 31 December 
2017, the external debt of Armenia amounted to US$5,494.9 million, which is 66% more than in 
2010.  At the end of 2017, the external debt of Armenia constituted 47.8% of the GDP, 89.1% of 
which was the debt of the Government.  
2.22.   On 1 January 2018, the new tax code entered into force in Armenia, aimed at increasing tax 
revenues and promoting long -term econ omic growth.  
2.23.   In 2017, works have been carried out aimed at improving fiscal risk assessment 
methodologies. Risk assessment activities derived from contingent liabilities on energy and water 
management sectors have been reflected in 2018 -2020 medium -terms Expenditure Framework. A 
roadmap for improving fiscal risk assessment has been developed as well.  
3  SECTORAL POLICY AND REFORMS  
3.1  Agriculture  
3.1.  Agriculture is one of the vital sectors of the Armenian economy in terms of formation of the 
country's GDP, sustainab le rural development and, most importantly, food security of the country. 
It makes up more than 17.5% of Armenia's GDP (the average for 2010 -2017), and employs 
almost 33% of the country's population. The gross domestic product value of the sector in 
2010-2017 has fluctuated between AMD 636.7 and AMD 906.7 billion.  
3.2.  The sector development  is supported by the Government through a number of incentives and 
elimination of trade barriers, which facilitate increase in the profitability of agricultural business. I t 
is in the agenda of the Government to enhance the level of food security (the self -sufficiency level 
of the main food, assessed by energy value, will reach around 75% in 2022), to develop high 
value -added  agriculture, to introduce modern technologies, su bstitute import, as well as to 
increase export volumes and create favourable conditions for the activities of economic entities in 
the agricultural sector. Moreover, the membership of the Eurasian Economic Union (EAEU) and the 
new agreement with EU are exp ected to further boost the demand for the Armenian agricultural 
output . 
3.3.  In order to implement a coherent policy in the field of food security, "The Concept on 
Ensuring Food Security in the Republic of Armenia" was approved in 2011 by the Order of the 
President of the Republic of Armenia. The Concept aims to provide physical and economic access 
to food for the population, as well as to create prerequisites for resisting the adverse changes in 
the domestic and foreign markets and negati ng the  consequences of possible emergencies. In 
order to ensure the fulfilment of the provisions of the mentioned Concept, the RA Government 
adopted in 2016 the  relevant  Action Plan for 2017 -2021.  
3.4.  A new subsid y program me for loans to the agricultural sector was adopted by the 
Governmental Decree No.  39 of 14 September 2017. The "State Support for Implementation of the 
Pilot Program for Introduction of the Insurance System in Agricultural Sector" was incorporated 
into 2018 -2020 Medium -Term Expenditure Program of the RA. It is envi saged to complete the 
preparatory work for the project introduction in 2018, and to start the implementation of the pilot 
program on introduction of the insurance system in the sphere of agriculture in 2019 with the 
state support.  
3.5.  In 2017 , the gross agricu ltural output at current prices increased by more than 42.4% (in 
comparison with the same indicator in 2010); the increase of 1.8 times was recorded in the 
livestock sector at current prices, almost 90% of which was generated by households.  
3.6.  Cattle breeding  is the leading branch of animal husbandry in Armenia. About 90% of milk and 
almost 70% of meat in Armenia are produced due to cattle breeding. More than 170 ,000 farms are 
engaged in cattle breeding. Sheep breeding is one of the traditional animal husbandr y branches in 
Armenia. Annually about 23 ,000 tons of mutton and lamb are produced in Armenia, part of which 
is exported to Georgia, Iran, Kuwait, Lebanon and Qatar. Swine breeding is also one of the major 
branches of animal husbandry in Armenia. Annually 2 7,000 tons of pork is produced in the country 
(live weight).  WT/TPR/G/379 • Armenia  
 
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  3.7.  Poultry breeding is the most automated branch of animal husbandry in Armenia. At present 
there are more than 10 medium -size and large poultry enterprises in the country. 650 -700 million 
eggs and  14-15 thousand tons of poultry meat are produced in the country per annum.  
3.8.  Expansion of the  fishing industry in Armenia is driven by recently obtained know how  and 
efficient management skill s of the relevant business entities . At present annually 16-17 th ousand 
tons of commercial fish is produced in the country, about 20% -30% of which is exported. Frozen 
and processed fish and caviar are exported to the Unites States, Georgia, the Russian Federation, 
Ukraine, several Arabic countries etc. At present there are 150 -160 fish farms  registered in the 
country out of which around 83% are located in the RA Armavir and Ararat marzes  (regions) . 
3.9.  Apricot, grapes, cherries, peaches, plums, potatoes and tomatoes are the main exports of 
fresh fruits and vegetables, with t omato  and grapes the largest share in 2017  (27.1%  and 16.6% 
accordingly) . 
3.10.   The food processing industry is mainly focused on export s. The largest share of exports is 
made up of beverages and spirits, fresh and processed fruit and vegetables, chocolate and d airy 
products. Alcoholic beverages and spirits make up the largest share of Armenian prepared foods 
exports, accounting for around 35.9% in 2017.  
3.11.   Amongst priority activities directed to develop the agricultural sector are introduction of drip 
irrigation sy stems and anti -hail networks, establishment of the intensive orchards, development of 
pedigree breeding farms, development of local seed breeding and seed production and introduction 
of the agricultural insurance system.  
3.2  Energy  
3.12.   The Energy Policy of Armenia  is aimed at ensuring energy independence and enhancing the 
energy security of the country, ensuring regional integration and sustainable development of the 
energy sector based on further development of nuclear energy, diversification of supply of energy 
sources and full and efficient use of local (renewable) energy resources, as well as promotion and 
implementation of energy -efficiency  measures.  
3.13.   On 27 July 2017, the action -plan on liberalization of the electricity market of Armenia and 
development of inter -state trade has been adopted. The electricity market liberalization is directed 
to increase the efficiency of the whole system through increase d competition, scale up the 
cross-border  trade, maximize the efficiency of production of electricity and enable new private 
investments in the energy sector. The action plan envisages step -by-step liberalization measures 
and adoption of necessary legal act s until 2021. The process has been launched and the new 
market model will operate fully in 2019.  
3.14.   The Government is taking significant steps to increase the total share of renewable energy 
to at least 50% in electrical energy production of the country. In 2 017 the portions of electricity 
production by type was as follows 38.8% thermal power plants, 29.5% hydro -electric power plants 
and 36.7% nuclear power.  
3.15.   As of the 1  July 2018, electricity was generated by 186 Small Hydro Power Plants (SHHPs), 
with total 3 60 MW installed capacity, from which 125 was constructed in last 10 years. Thirty -three 
additional SHPPs are under construction, with about total projected 63.2 MW capacity and 
250 million kWh annual supply. Anual hydropower resource potential is  estimated  at 222.4 million 
kWh. 
3.16.   The average annual amount of solar energy flow per square meter of horizontal surface is 
about 1720 kWh (the average European is 1000 kWh). One fourth of the country 's territory is 
endowed with solar energy resources of 1850 kWh/m2/y ear. According to the first stage of the 
"Solar PV plant construction Investment Project " that was approved by the Government of the 
Republic of Armenia Protocol Decision 53 -37 dated 29 December 2016 , it is foreseen to construct a 
utility -scale Masrik -1 solar PV power plant with 50 -55 MW capacity in Gegharkunik Marz of 
Armenia. Construction of other five PV plants with about 60MW average  capacity will follow -up.  WT/TPR/G/379 • Armenia  
 
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  3.17.   The RA Government envisages to support private projects for construction of wind power 
plants b y developing new legal incentives.  Thus, it is foreseen to construct wind power plants with 
capacity of 100 -150 MW. The first grid connected wind power plant in Armenia and in Caucasus 
with total capacity of 2,6 MW was put in operation at Pushkin pass in D ecember 2005.   Electrical 
energy production license was given to other two wind power plants, with total 270 kW designed 
installed capacity.  Additional 2 wind power plants – total with 5 .3 MW capacity are under 
construction.  
3.18.   The RA Government envisages t o support private projects for construction of geothermal 
power plants by developing new legal incentives. In the result of Exploratory Drilling Grant 
Program , it is foreseen to construct a Geothermal Power Plant at Karkar site, Syuniq Region, 
Armenia. Wit hin the framework of the said Program 2 narrow wells exploratory drilling results and 
Preliminary Cost Calculations for Karkar Geothermal Power Plant have been prepared. Within this 
framework it is foreseen to find investment companies with international e xperience for the 
construction of Geothermal/Organic Rankin Cycle operating/Power Plant at Karkar Geothermal site. 
Wells test reports as well as the final cost calculation reports have been sent to more than 50 
international investors by e -mail. 
3.19.   Improving energy security and economic competitiveness of the country, and minimizing 
the negative impact on the environment is a priority. In this regard the Government makes 
tangible efforts to promote the introduction and development of energy -saving technologies . 
Implementation of clean energy projects for development of green energy in rural communities is 
planned for the nearest future.  
3.20.   Significant effort is directed at the improvement of transmission and distribution networks. 
In particular Armenia -Iran (400 k V) overhead power transmission line as well as Armenia -Georgia 
(400 kV) overhead power transmission line s are envisaged to come online by the end of 2020. 
After realization of these projects, Armenia will be positioned in the region as a regional hub of 
electric power, linking the electric energy systems of Iran, Georgia and the Russia n Federation . 
3.3  Tourism  
3.21.   Armenia recognize s tourism a s a priority. With its preserved  nature, unique religious and 
cultural heritage Armenia has the potential to offer attractive and competitive tourism products 
and high -quality services.  
3.22.   Contribution of Tourism and travel  is estim ated at around 4% of Armenia 's GDP, and 
provides over 40,000 jobs. The number of tourist s visiting the country has been  steadily growing 
reaching 1.494.779 visitors in 2017, which is 18.7% higher  than in 2016. The number of visits 
increased by 119% compare d to 2010. In January -June 2018 the number reached  685,971 visits, 
which is an increase of more than  10.2% compared to  the same period of 2017.  
3.23.   The structure of the tourist flows to the country is quite diverse, with 27.1% of the total 
share from  the CIS c ountries, 24.0% from EU and 48.9% from other countries.  
3.24.   The citi zens of the EU member S tates and the Schengen Acquis states are exempted from 
the visa requirement for travel and stay in Armenia. In general, citizens of more than 40 countries, 
including CI S region, Australia, New Zealand, Singapore and Republic of Korea, can visit Armenia 
without visa. In 2017, border crossing procedures were facilitated for the citizens of Canada, 
China, United Arab Emirates, Qatar, Japan, and India. Since 1 March  2017 cit izens of the Russian 
Federation can visit Armenia with their internal passports. During 2018 border crossing procedures 
have been facilitated for the citizens of Albania, Australia, New Zealand, Singapore and Republic of 
Korea.  
3.25.   Armenia is making significant efforts to develop and improve tourism infrastructure. The 
liberal policy in the sector has ensured representation of w orld-known hotel brands  in the country.  
3.4  Information and Communications Technology  
3.26.   Armenia has retained its great potential for technology development, and was considered a 
hub for software development, industrial computing, electronics, and semiconductor production. It WT/TPR/G/379 • Armenia  
 
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  continues to be the regional leader in IT and high -tech industry due to its highly qualified labour  
force. 
3.27.   The industry 's total revenue, which consists of the Software and Services sector and the 
Internet Service Provider sector, reached US$765.1 million in 2017 compared to US$150 million in 
2010. Number of information and communications technolog y (ICT) companies increased annually 
by 10% reaching 650 in 2017. Armenian ICT companies mainly specialize in embedded software 
development, semiconductor design, customized software, outsourcing, financial software, 
multimedia, web design, information sys tems, and system integration. Armenia has made 
significant progress  in semiconductor design and the creation of related intellectual property.  
3.28.   The number of employees  in the ICT sector has increased drastically over the past 7 years  
reaching more than 15, 000 in 2017 compared to 4,960 in  2010. 50% of the production of the 
sector is exported, mainly to the U.S ., EU and the Russia n Federation . The role of export in total 
production has registered a slight  decrease over recent 10 years thanks to  development of  the 
local market and, as a consequence,  increase d domestic  demand.  
3.29.   The sector benefits from tax incentives set by the law "On State Support to IT sector" 
adopted in 2014. These incentives foresee 10% income tax break and exemption from profit tax. 
As of January 2018, 439 IT start -up companies have been certified for these incentives.  
3.5  Transport and Communication Infrastructure  
3.30.   As a landlocked country, Armenia 's economy heavily depends on  international transit  and 
cross-border access. To ensure access to f oreign markets the Transport Sector Development 
Strategy has been developed, which defines investment priorities in transport sector. It pursues 
maximiz ation of  the transport sector 's performance by 2020, and envisages a long -term prosperity 
through establ ishment of efficient, cost effective, environmentally and socially sustainable 
transport infrastructure and services.  
3.31.   Today Armenia 's road network extends nearly 7,534 km (as of 2017), out of which 
interstate  highways constitu te – 1,759 km, republican – 1,969 km and local – 3,806 km. The 
major project for the Government of Armenia in this sector is the North -South Road Corridor 
program, which  covers  construction, upgrade and rehabilitation of over 560 km of roads. It is 
expected that North -South Road Corridor will be completed by 2025.  
3.32.   Armenia 's railway network plays a crucial role in providing mobility for people and freight. 
The network includes the metro system that serves passengers in the capital. The total length of 
railway tracks is 1328.6km, out of which 780km – the main track. Operational length is 726km. 
Armenia 's railroad network has 23.5 -ton axle loads; is wholly electrified; equipped by system of 
semi-automatic blocking and a modern technological communication system.  
3.33.   Armenia 's two principal airports are "Zvartnots" International Airport in Yerevan, and 
"Shirak" International Airport in Gyumri. Total passenger traffic was more than 2.5 million 
passengers in 2017, which is 20% more than in 2016. Total freight turnover wa s 6.9 million 
tons/km in 2017.  
3.34.   In October 2013, the Government of Armenia adopted "open sky" policy in the field of civil 
aviation. Negotiations were held with partner states in order to revise existing air services 
agreements in line with the liberalized aviation policy and to sign new agreements. On 
24 November  2017, the EU -Armenia Common Aviation Area Agreement was initialled in Brussels. 
This agreement will improve market access for airlines, providing better connectivity, more choice 
and lower fares fo r travellers.  
3.35.   Negotiations with more than 30 airlines resulted in entry of some into the Armenian market, 
also number of airlines expressed interest in servicing routes to Armenia. To improve business 
environment for airlines, software development for a n ew online system for granting permissions 
to airlines to operate flights to Armenia is in process. This will simplify procedures, reduce 
bureaucracy and create a predictable environment for all the stakeholders.  WT/TPR/G/379 • Armenia  
 
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  3.36.   The telecommunication sector is one of the l eading and dynamic sectors of Armenia and ha s 
registered  considerable growth over the  last decade. Growth in the sector started in 2007, when 
the government implemented several reforms directed to increasing competition in the sector. As a 
result, the mobi le communication segment has been considerably boosted by the introduction of 
competition into the market place.  
3.37.   Armenia 's public telecommunication networks are equipped for both fixed and mobile access 
services. The country has achieved an overall 100% ge ographic coverage for fixed access services 
in 2017. In the capital Yerevan, 100% of the incumbent 's public switched telephone network 
(PSTN) services are digital, while in regions around 86% of the PSTN services are digital.  
3.38.   Armenia has achieved an overal l 100% geographic coverage for mobile access services in 
2017 provided by three mobile network operators. In particular, 80 .2% of the localities throughout 
the territory of the republic receives a mobile access service from three mobile network operators, 
15.3% of localities ha ve coverage by two mobile network operators, while 4 .2% of localities is 
serviced by one mobile network operator only.  
3.39.   Reliable Internet access service is available throughout the country. Internet access in 
Armenia has increased, par ticularly in the past few years. The Internet penetration rate in Armenia 
was 69% in 2017 (about 2005786 users), compared with 46% in 2012 and just 6.2% in 2008. 
Internet access service providers offer the following services on the domestic market: ADSL, f iber-
optic and cable access, 450 MHz fixed broadband access, WiFi and WiMax wireless technologies, 
CDMA, GPRS, EDGE, 3G and 3G+ technologies, as well as 4G/LTE and 4G+/LTE Advanced 
technologies. There are more than 100 companies, which provide Internet acc ess services in 
Armenia.  
4  TRADE POLICY DEVELOP MENTS  
4.1  Trade and Investment Policy  
4.1.1   Trade in goods  
4.1.  In 2017 the total export of goods from Armenia amounted to US $2,242.9 million, which is 
25.2% higher  than in 2016. The total import was around US $4,182.7 million, which formed a 
deficit of foreign trade at the level of US$1.9 billion. Armenia 's foreign trade turnover showed a  
sharp increase  of 26.9% in 2017, after modest growth  of 7.4% in 2016 and a 20.6% decline in 
2015.  
4.2.  The main export articles  of Armenia are mining products, prepared food as well as  precious 
and semiprecious stones, and precious metals. Moreover, export of prepared food increased by 4 
times in 2017 compared to 2010, becoming the second largest export category after the mining 
products. Export of mining products and precious and semiprecious stones, and precious metals 
increased by 2.5 and 2 times respectively.  
4.3.  Mining production  (mostly natural gas)  occupies significant share in the import structure, 
constituting 15.5%; however,  the import of this particular article registered  a downturn of 0.5% 
compared to 2010. Among the biggest import commodities, products machinery equipment and 
mechanisms have registered a decline of 0.3%. Import of products of chemistry and related 
industries and prepared food increased by 20% and 22% respectively.  
4.4.  The Russian Federation is the top trade partner of Armenia followed by China, Switzerland, 
Germany and Bulgaria. Export to the Russia n Federation  constitute d 24.1% of exports in 2017 
compared to only 13.3% in 2010. The Russian Federation 's share in the import structure of 
Armenia is dominant as well  at 20.7%. This share has recorded a slight decline of around 
2 percentage points  compared to 2010. In the mentioned period, a 57% growth in imports from 
Georgia was registered, which constitute d 8.4% of imports  in 2017 . Next come the United Arab 
Emirates, Switzerland, China and Iran which have about a 4 -5% share in the import structure . 
4.5.  The share of EU countries in the total trade turnover of Armenia has decrease d reaching  
24.3% in 2017 compared to 32% in 2010. In 2010 -2017 the total trade with the EU countries WT/TPR/G/379 • Armenia  
 
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  increased only by 2% and amounted to US$1.6 billion, while total trade turno ver with CIS 
countries has increased by 44%.  
4.6.  The main body responsible for formulation and implementation of trade policy in Armenia is 
the Ministry of Economic Development and Investments (MoEDI), in cooperation with other line 
ministries and state bodies . The MoEDI is responsible for the WTO related issues, negotiating and 
implementing of bilateral and multilateral trade agreements, promoting investments.  
4.7.  Armenia has ratified and acceded to the WTO Trade Facilitation Agreement and notified its A, 
B and C category commitments. Moreover, the country has already implemented many of the B 
category commitments earlier than indicated in the notification.  
4.1.2   Customs regulations  
4.8.  From 2 January  2015, Armenia  has joined the Eurasian Economic Union and customs tariff 
and non -tariff regulation is being implemented on the unified base. However  there are some 
national specifics  that are being implemented at national legislation level, particularly the Law "On 
Customs Regulation" which entered into force from 2 January 2015  and secondary legislation.  
4.9.  Armenia applies the Customs Code of the Eurasian Economic Union (it has been in force since 
1 January 2018) . 
4.10.   Armenia continues to apply Most Favoured Nation (MFN) tariffs to all WTO Members. As a 
member of the Eurasian Economic  Union, Armenia applies common tariff rates based on 
Harmonized Commodity Description and Coding System, with the exception of 800 goods for which 
decreased tariff rates are applied (the longest timeline  for those  is 2021 year). Before accession to 
EAEU, A rmenia applied 0% or 10% import tariff rates. Seasonal tariffs are applied to certain 
potatoes, fresh or chilled tomatoes, fresh or chilled cucumbers, sweet peppers, fresh apples, 
certain pears, beet sugar, and certain kind of white sugar.  
4.11.   In case of impor t from non EAEU member countries customs authorities calculate and collect 
import customs duties, indirect taxes (VAT and excise tax), road tax and environmental taxes 
before release of goods except for the cases fixed in legislation.  
4.12.   According to the Trea ty on EAEU, trade between EAEU members is exempted from customs 
duties. Since there is no common border between RA and other EAEU members ' goods are moved 
according to the "Customs Transit" customs procedure, in exception of being transported by air, 
electric transmission or pipelines. So, for goods imported from EAEU countries, importers have to 
pay indirect taxes (VAT and excise tax) no later than 20th day of the month following the 
importation day and also road taxes and environmental taxes in terms fixed in the tax code of RA.  
4.13.   Before accession to EAEU Armenia applied 0% export tariff rate and currently the export 
tariff rate continues to remain at  0% according to the law on Customs Regulation.  
4.14.   Armenia made trading easier by introducing self -declarat ion desks at customs houses and 
warehouses, investing in new equipment to improve border operations and introducing a risk 
management system. For the simplification of customs procedures Single Window portal was 
introduced by www.trade.gov.am  website. It is developed according to the UNECE 
Recommendation No. 33. This allows to provide services to foreign traders by SW portal. Some 
border control agencies have already had access to the system and provide some services.  It is 
open to other agencies to join and in the nearest future the number of agencies will be increased.  
4.15.   Armenia has modernized three border crossing points linking Armenia with Georgia: 
Bagratashen, Bavra and Gogavan. The border crossing point with Iran  (Meghri border point) is in 
the process of modernization.  
4.16.   The Customs Code of the EAEU proposes implementation of several reforms, one of which is 
introduction of e -declaration system latest in 2020. Despite this timeline, currently customs 
provide  an opp ortunity for traders to do electronic declaration by SW portal ( www.trade.gov.am ). 
This leads to reduction of the time and costs for foreign traders and will allow to manage 
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  4.1.3   Non-tariff regulations  
4.1.3.1   TBT (standardization, metrology, accreditation)  
4.17.   On 16 December 2010, the Government of Armenia adopted the "2010 -2020 Quality 
Infrastructure reform strategy" which foresees implementation of around 80 activities in four 
sector o f quality infrastructure aiming to improve the legal and institutional framework according 
to international best practice. According to the strategy, about 30 legal acts were adopted during 
2011-2012 and laws "On Technical Regulation", "On Standardization" , "On Accreditation" and "On 
Uniformity of Measurements" were approximated to the EU legislation.  
4.18.   After Armenia joined the Eurasian Economic Union, technical regulations of the EAEU, which 
are worked out mostly on the basis of European Union Directives, i nternational and European 
standards, became mandatory.  
4.19.   According to the Treaty "On Eurasian Economic Union", technical regulations of the Union or 
national mandatory requirements shall only apply to products included in the common list 
approved by the Com mission. Since Armenia's membership to the EAEU, 46 national technical 
regulations have been reviewed. Currently, 38 EAEU technical regulations are enforced, 19 
technical regulations are in a drafting stage.  
4.20.   "National Accreditation Body" State non -commerci al organisation is an associated member 
of the European co -operation for Accreditation (EA) since November 2016. International 
accreditation was awarded to three testing laboratories ("Standard dialog" LLC, "FDA Laboratory" 
LLC and "Republican Veterinary -Sanitary and Phytosanitary Laboratory Services Center" SNCO). 
The last two laboratories have accreditation of the American National Standards Institute.  
4.21.   The calibration laboratory in Armenia, which is performing calibration in seven directions 
(mass, heat, pressure, radio electrical, time and frequency, linear and material quantities 
calibration) was accredited by Accreditation National Body. Accreditation of this laboratory gave an 
opportunity to our testing labs to ensure the harmonization of measurements with the 
international system of units.  
4.22.   During the last ten years, the National Institute of Standards of Armenia has developed new 
harmonized national standards (about 9000 standards) to remove trade barriers and promote 
export and import of products. The  Institute is a member of the International Organization for 
Standardization since 1997 and an affiliate member of the European Committee for 
Standardization since 1 January 2008. In 2016 the Institute signed a memorandum of 
understanding with the American  National Standards Institute and in 2017, a memorandum with 
the American Society for Testing and Materials, aiming to promote the trade and to reduce the 
technical barriers to trade with the USA. 
4.23.   Conformity assessment procedures are developed on t he base of legislation of EAEU 
member States and are approximated to standard ISO/IEC 17067:  2013 (Conformity assessment - 
Fundamentals of product certification and guidelines for product certification schemes) and 
approaches, adopted in EU Council Decision No. 768/2008/ЕС (on a common framework for the 
marketing of products).  
4.24.   The Government drafted a national strategy on metrology, which aims to determine the 
direction for the development of the effective and internationally recognized national metrology 
system in  Armenia. Currently, the National Institute of Metrology is a member of the Euro -Asian 
Cooperation of National Metrological Institutions. It is also planned to become a member of the 
International Bureau of Weights and Measures and International Organizati on of Legal Metrology.  
4.1.3.2   SPS measures (including food safety)  
4.25.   In the sanitary and phytosanitary area, a number of measures have been taken to reduce 
barriers in the field, improve and modernize the legislation for standards of food safety and the 
food safety  system  in general , increase consumers ' awareness, as well as to  promote investments  
in the field, especially in the implementation of new technologies.  WT/TPR/G/379 • Armenia  
 
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  4.26.   The State Service for Food Safety of the Ministry of Agriculture of the Republic of Armenia is 
a princ ipal governmental body in the veterinary and phytosanitary sphere. The Service has 
established an efficient partnership with international organizations, including the World 
Organization for Animal Health, International Plant Protection Convention, Food, a nd Agriculture 
Organization of the United Nations, Center for Agribusiness and Rural Development, and 
International Finance Corporation. Focused actions include legislative and regulatory 
improvements and modernization of laboratories.  
4.27.   During the reportin g period regulations and laws were aligned with international standards, 
the laboratories have been upgraded with new equipment and systems. Further, the 
phytosanitary, veterinary and food safety legislation is brought into compliance with the 
procedures d efined by International Standards for Phytosanitary Measures, and standards and 
practices of World Organization for Animal Health and Codex Alimentarius.  
4.28.   Based on the results of phytosanitary monitoring in 2010 -2017, the Plant Protection State 
Program aim ed at combating the most dangerous and quarantine plant diseases has been 
implemented. In 2010 -2017, the Farm Animals Vaccination Program funded from the state budget 
was implemented, which included preventive and diagnostic measures for human and animal 
health and common diseases, such as FMD, anthrax, tuberculosis, brucellosis, etc.  
4.29.   In 2012, the State Service for Food Safety has developed the residue monitoring plan for 
honey and aquaculture finfish in accordance with EU legislation requirements and submi tted it to 
the DG SANTE (former DG SANCO), which allowed to implement a monitoring of residues in locally 
produced honey and aquaculture finfish. It was a basis for the export permission of Armenian 
honey to EU. According to official statistics, a total of  38 tons of honey were exported in 2017, out 
of which more than one tons to the EU.  
4.30.   Improving existing slaughterhouses and expanding the slaughterhouse network, which will 
ensure the production of high quality and safe meat products is one of priorities o f the 
Government for 2018. Moreover, the State Service for Food Safety has made some arrangements 
on introduction of animal registration system, creation of a digitalized animal identification system, 
which includes animals, animal shelters, animal movemen ts and animal health interventions, 
introduction of the risk assessment model, creation of a digital import system are foreseen to be 
implemented in the sanitary and phytosanitary sector in near future as well.  
4.31.   Necessary measures have been taken to introdu ce quality control systems in the food 
industry, in particular Hazard Analysis and Critical Control Points (HACCP) aimed at preventing and 
reducing risks during the early stages of production. The Service has produced printed materials to 
assist the Food B usiness Operators in the process of introduction of the HACCP system as well as 
has carried out public awareness raising campaigns. In order to be able to carry out audit of 
HACCP system according to the RA legislation the Service has drafted a check -list and after 
incorporating all the comments and recommendations has been submitted to the Government for 
approval.  
4.1.3.3   Quotas, export/import prohibition  
4.32.   As a member of the EAEU the common external trade regime is also extended to non -tariff 
measures: import/expo rt prohibitions, quantitative restrictions, exclusive trading rights, licensing 
(permit),1 anti-dumping, countervailing and safeguard measures. The legal basis for these 
measures is the founding Treaty of the EAEU. Decision on application of these defence instruments 
is taken by the Eurasian Economic Commission following the investigation conducted in accordance 
with the Annex 8 of the Treaty, which contains Protocol on Application of Safeguards, Anti -
dumping and Countervailing Measures in Respect of Third Countries.  
4.1.3.4   Import/export restrictions, licenc es 
4.33.   According to the paragraph 3 of P art 2 of Annex 7 to the Treaty " On the Eurasian Economic 
Union " of 29 May 2014, unified measures for non -tariff regulation are applied, when implementing 
                                                
1 Certain type s of licenc es and permits  were in place b efore accession to the EAEU, in accordance with 
the RA Law " On Licensing ". WT/TPR/G/379 • Armenia  
 
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  trade with third countries in the territory of the Union. Accordingly, decision No 30 of the Board of 
the Eurasian Economic Commission "On non -tariff regulation measures" of 21.04.2015 is applied. 
At the same time, unilaterally applied measures are prescri bed by the Part 7 of the Annex 7 to the 
Treaty " On the Eurasian Economic Union ", in particular, according to the point 50, in exceptional 
cases m ember States may, in trade with third countries, unilaterally apply temporary measures. 
The list of activities subject to licensing is provided by the Law "On Licensing". Armenia has carried 
out significant reforms to simplify requirements and procedu res to obtain permits and licenc es. In 
particular, the law "On Notification of the Implementation of Activities" ado pted in 2015, replaces 
the licensing of 17 types of activities with a notification (correspondingly, the number of licensed 
activities was reduced by the same amount). According to the above law, legal entities and 
individuals, as well as individual entrep reneurs, can engage in activities subject to notification in 
five working days after the not ification is submitted. E -licenc es platform ( https://www.e -
gov.am/licenses ) launched by Armenia in 2 011 allows to appl y for a licenc e and submit necessary 
documents online.  
4.34.   Armenia has import restrictions only for several types of products: pharmaceutical products 
and medicines, phytoprotection chemicals, weapons, components used in the production of 
weapons, explosives,  nuclear materials, poison, drugs, strong psychotropic substances, devices for 
use in opium smoking, and pornographic materials.  
4.35.   As is the case for imports, export of weapons, nuclear materials, pharmaceuticals, rare 
animals and plants, rare objects or art efacts considered part of the national patrimony require 
state permission.  
4.1.4   Investment policy  
4.36.   Armenia 's investment policy is among those of the most liberal ones in the CIS region. The 
main objectives of the state policy in the investment area are the imp rovement of investment 
environment, improvement of legal framework and promotion of investments in the economy of 
the Republic of Armenia, including foreign direct investments.  
4.37.   The Republic of Armenia applies the principles of "Open Doors" policy, liberali zation of 
investment activities, reservation of national and most favourable treatment of foreign investors 
and proper protection of investors.  
4.38.   On 8 October 2015, the Government of Armenia adopted the Investment Policy Concept and 
the Timetable of Activiti es. Objectives of the Concept are to create a favourable investment and 
business environment, increase transparency of regulatory environment, reveal the country 's 
competitive advantages, increase investment sizes, develop market infrastructure, create hig h-
quality and high -paid jobs, develop human capital and provide sustainable economic growth and 
population welfare.  
4.39.   The investment sector in Armenia is regulated by the Law "On Foreign Investments", 
adopted in 1994. The Law declares national and most -favou red-nation regimes, provides 
guarantees to investors as well as key rights and a number of incentives for foreign investments: 
100% of property ownership (except land), free and unlimited repatriation of property and profits, 
unlimited currency exchange on  market rates, guarantees against changes of legislation on 
investments for 5 years, no restrictions for personal recruitment etc. There are no restrictions on 
the rights of foreign nationals to acquire, establish or dispose of business interests in Armeni a.  
4.40.   Armenia has signed bilateral treaties on investment promotion and protection with 42 
countries so far. Currently Armenia is negotiating such treaties with 24 countries. Armenia is a 
Member of the International Centre for Settlement of Investment Disput es. 
4.41.   The Government of Armenia is committed to developing a coherent, systematic approach to 
Public Private Partnerships, and a robust basis for implementing them in Armenia. In that 
perspective, Policy Statement on Public Private Partnerships was approved on 9 November 2017. 
The draft law on Public Private Partnership was approved by the Government of RA on 
6 September 2018 and sent to the National Assembly . WT/TPR/G/379 • Armenia  
 
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  4.2  Public Procurement  
4.42.   Armenia acceded to the WTO Agreement on Government Procurement (GPA 1994) on 
15 September 2011. On 5 June 2015, Armenia signed and acceded to the WTO Revised Agreement 
on Government Procurement (revised GPA). To ensure compliance with the revised GPA and the 
Treaty on the Eurasian Economic Union, to increase transparency and to ensure independence of 
the procurement appeal system, the new law "On Procurements" was adopted on 16 December 
2016.  
4.43.   E-procurement system is widely used by public bodies. As of 2017, the range of clients 
using e -procurement system includes 301 clients,2 which ca rry out all the competitive procurement 
procedures (including also purchases from one person, conditioned by urgency) provided by 
relevant legislation via the electronic system ( www.armeps.am ).  
4.44.   Since 1 October 2017, a new procurement ( www.procurement.am ) website has been 
launched. The website is integrated into the ARMEPS e -procurement system, which by one action 
gives the customers an opportunity to ensure the publication of pr ocurement announcements and 
invitations, changes made to them and clarifications regarding the invitations, making the 
procurement process more transparent and more controlled for the public and the media.  
4.3  Intellectual Property Rights  
4.45.   Armenia has made a number of amendments and changes in the Intellectual Property 
related legislation in the reporting period to be fully aligned with the international standards. In 
2011, the Government adopted the IPR Strategy, which aimed to develop more effective national  
procedures for enforcement of IPR and increase public awareness on IPR so that the IPR system 
can contribute to improvement of economic and creative environment in Armenia, the ability of 
Armenia to compete in the global economy.  
4.46.   Reforms of trademark legi slation have launched in 2010 by adopting a new Law "On 
Trademarks". Together with the newly adopted Trademark law, Armenia has also adopted a new 
Law "On Geographical Indications" (29  April 2010), which regulates issues relating to registration, 
legal pro tection and use of geographical indications, appellations of origin and guaranteed 
traditional products. The new laws are in full compliance with the EU requirements.  
4.47.   A draft law "On Copyright and Related Rights, as well as draft laws "On Patents" and "On 
Industrial Designs" are being currently drafted. These drafts are supposed to be submitted to the 
Government of the Republic of Armenia in 2018.  
4.48.   With few exceptions Armenia has ratified most of the International Treaties and Conventions 
in the field and ha s intention to accede to the Marrakesh Treaty to Facilitate Access to Published 
Works for Persons Who are Blind, Visually Impaired or Otherwise Print Disabled (MVT) and Beijing 
Treaty on Audiovisual Fixations.  
4.4  Competition and Business Environment  
4.49.   The significant improvement of competition environment has been recorded in Armenia over 
the past few years, which was due to the development of the institutional capacity and the 
consistent work carried out by the competition authority. The improvements w ere proved by high 
ratings of international organizations and the results of the studies carried out by the Commission. 
According to the World Competitiveness Report, Armenia recorded significant improvement in 
three main competitiveness directions: the ef fectiveness of antimonopoly policy, the impact of 
dominant positions on the competition and the intensity of competition in the domestic market, 
since 2010. Particularly in these directions Armenia respectively was ranked 40th, 28th and 66th in 
2017 instea d of 138th, 133rd and 136th in 2010.  
                                                
2 All public state bodies, urban communities, commercial organizations established by the state, 
foundations.  WT/TPR/G/379 • Armenia  
 
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  4.50.   Meanwhile, the Commission conducted various researches in different product markets 
involving also the representatives of business community and consumer protection NGOs to reveal 
the existing problems in the field of economic competition in the period of 2010 -2017.  
4.51.   The studies carried out by the Commission show that product markets in Armenia are open 
and there are no monopolies in those markets. The studies also showed, that the monopoly  
markets in the Republic of Arm enia were connected with natural monopolies (gas, electricity, 
water) and the spheres transferred by the state to concession managem ent (such as railway, 
airport).  
4.52.   At the same time, even in the markets, where, according to the studies, big companies 
having  dominant position operated, dozens of small and medium -sized companies also acted in 
these markets contributing to the formation and improvement of competition environment in 
them.  
4.53.   The legislation on competition has been changed in March 2018 and complied  with the 
requirements of the revised Constitution of Armenia, harmonized with the general rules and 
principles of competition set by the legislation of the Eurasian Economic Union, as well as the 
recommendations provided by the EU experts. The revised leg islation introduced new mechanisms 
for exemption from liability measures or reduction of the amount of imposed penalties etc.  
4.54.   Armenia continues implementation of reforms directed to the improvement of the business -
operating environment in the country. For this purpose, since 2008 the Government annually 
approves business environment improvement action plans. Actions defined by these plans mainly 
are focused on topics of the WB "Doing Business Report": simplification of tax and customs 
administration, improv ement of bankruptcy processes, protection of interests of small 
shareholders, simplification of company registration process, reduction of time limits in judicial 
proceedings, etc.  
4.55.   Armenia is ranked 47th out of 190 economies according to the WB Doing Busin ess report 
2018. In the reporting period Armenia substantially improved it business environment, receiving 
high scores for starting a business and property registration (15th and 13th ranks respectively by 
the WB Doing Business Report 2018). Improvements h ave been registered for other indicators of 
the WB Doing Business Report. Particularly:  
• Registration of business entities became easier thanks to established one -stop shop that 
merged the procedures for name reservation, business registration and obtaining  a tax 
identification number and creation of an online registration tool (Electronic Register 
Portal)3; 
• Armenia made registering property easier by improving the land dispute resolution 
mechanisms of the land administration system. Moreover, since 1 Januar y 2015 
registration of rights to movable prop erty can be done electronically4; 
• Armenia made getting electricity easier by imposing new deadlines for connection 
procedures and introducing a new geographic information system at the utility;  
• Armenia made regi stering property easier by improving the land dispute resolution 
mechanisms of the land administration system.  
• The customs and tax authorities have introduced a risk -based control system to reduce 
the administrative burden for the businesses;  
• To foster hig her usage rate of e -services, the Government adopted a concept paper on 
Formation of E -Society in Armenia. Currently, the functional e -services include the online 
filing of tax returns and social security contributions, e -Pension, e -Procurement systems, 
e-Cadastre, e -Registration, etc.  
                                                
3 https://www.e -register.am/en/ . 
4 https://www.registration.am/ . WT/TPR/G/379 • Armenia  
 
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  4.56.   Acknowledging the crucial role of the small and medium entrepreneurship (SME) sector in 
the country 's economic development, the RA Government is taking consistent steps towards state 
support and development of the SME sector.  Modern infrastructure and efficient SME support 
instruments have created necessary preconditions for SME prospective development in Armenia 
aimed to support to knowledge -based and innovative industries, formation of favourable 
environment for technology t ransfer and expansion of foreign economic activity of SMEs.  
5  BILATERAL AND REGION AL ARRANGEMENTS  
5.1  Bilateral trade agreements  
5.1.  In May 2015 the Republic of Armenia and the United States of America signed a Trade and 
Investment Framework Agreement (TIFA). The TI FA provides a framework and principles for 
dialogue on trade and investment issues. The agreement creates a platform to meet and discuss 
issues of mutual interest with the objective of improving cooperation and enhancing opportunities 
for trade and investm ent. 
5.2.  Armenia has eight bilateral free trade agreements in force: with Georgia, Ukraine, the 
Republic of Moldova, the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Tajikistan, 
the Republic of Belarus and Turkmenistan.  
5.3.  The country has GSP acc ess to the U.S., Japan, Norway, Switzerland and Canada. The 
country benefits also from the EU 's Generalised Scheme of Preferences plus (GSP+) arrangement.  
5.4.  Armenia has trade attachés in the EU, in the People 's Republic of China, the Republic of 
Belarus, as well as trade representatives in Austria,  Lebanon, the Switzerland, Turkmenistan and 
the Russian Federation.  
5.2  EU-Armenia  
5.5.  Current EU -Armenia relations in economic, investment, trade, legislative and other areas are 
regulated by the EU -Armenia Comprehensive a nd Enhanced Partnership Agreement (CEPA).  
5.6.  The Comprehensive and Enhanced Partnership Agreement was signed on 24 November 2017 
in the frame of the 6th Eastern Partnership Summit in Brussels. The Agreement was ratified by 
Armenia on 11 April 2018 and entered  into provisional application on 1 June 2018. The trade part 
of the CEPA aims to foster sustainable growth, improve investment and business environment and 
thus promote trade of goods and services between parties.  
5.7.  Since 2009, Armenia benefits from the EU S pecial Incentive Arrangement for Sustainable 
Development and Good Governance (GSP+). On 1 January 2018, Armenia started application of 
the EU Registered Exporter system (REX System). The REX System is the system of certification of 
origin of goods, which i s based on a principle of self -certification by economic operators. The 
producers and/or exporters registered in the REX system are entitled to make out a statement on 
origin and export to the EU countries, Switzerland and Norway without submitting a certi ficates of 
origin Form A.  
5.3  EAEU -Armenia  
5.8.  On 3 September 2013, Armenia issued a declaration of intention to join the Custom s Union. 
The Treaty on the Accession of the Republic of Armenia to the Treaty on the Eurasian Economic 
Union was signed on 10 October 20 14 and came into force on 2 January 2015, when Armenia 
became a member of the EAEU.  
5.9.  The EAEU provides for the free movement of goods, services, capital and people. The Union 
provides for unified policies in foreign trade and investment, customs and technic al regulation, the 
authority of which is transferred to the Eurasian Economic Commission (EEC), a supranational 
body responsible for development and implementation of foreign trade policy. Negotiations on 
issues that do not fall within the competence of th e EEC are held by the EAEU members 
exclusively.  WT/TPR/G/379 • Armenia  
 
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  5.10.   The decision to launch free trade negotiations with non -member countries is made by 
consensus by the Supreme Eurasian Economic Council .5 Therefore, free trade in goods between 
EAEU member S tates and a third party (after 1 January 2015) can be established exclusively on 
the basis of a Free Trade Agreement between the Eurasian Economic Union and that party. 
Armenia and its EAEU partners are negotiating free trade agreements with Egypt, India, Israel, 
Serbia and  Singapore. The FTA between the EAEU and Viet  Nam entered into force in October 
2016. Negotiations were also concluded with China on a framework agreement for economic 
cooperation and with Iran (Islamic Republic of) on an Interim Agreement leading to forma tion of a 
free trade area. Both agreements were signed in May 2018.  
6  FREE ECONOMIC ZONES  
6.1.  The law "On Free Economic Zones" and several regulations adopted on 25 May 2011  by 
National Assembly of Armenia is a basic regulatory document. Residents of free economic zones 
are completely exempted from VAT, profit tax, property tax and customs duties. Services on 
behalf of the state bodies are delivered on "one stop shop" basis.  
6.2.  There are three free economic zones currently operating in Armenia:  
• "Alliance" free economic zone  was established in 2013. "SYTRONICS ARMENIA" CJSC is 
recognized as the operator of the zone. "Alliance" free economic zone is focused on the 
production and ex ports of high and innovative technologies in the field of electronics, 
precision engineering, pharmaceutics and biotechnologies, information technologies, 
alternative energy, industrial design and telecommunications.  
• "MERIDIAN" free economic zone,  establis hed in 2015, is specialized in jewellery, stones 
cutting and watchmaking.  
• The "Meghri" free economic zone  was opened in Meghri town on the border to Iran in 
2017. The operating type of the free economic zone is defined as industrial and logistic: 
in the sp here of agriculture, manufacturing, electricity supply, trade, transportation and 
economy storage, professional and technical activity, culture, tourism, entertainment 
and recreation.  
7  TECHNICAL ASSISTANCE  
7.1.  While Armenia makes all efforts to achieve positive  outcomes in all trade related areas, there 
are many areas where the technical and financial assistance of international organizations and 
donors would be invaluable.  
7.2.  In order to increase the knowledge of diplomats on WTO and its agreements, it is desirab le to 
organize training programmes  for diplomats of the Ministry of Foreign Affairs and for students of 
the Diplomatic School of the Ministry of Foreign Affairs of Armenia  in the area of the Law of the 
World Trade Organization.  
7.3.  In order to raise awareness i n the field of intellectual property rights it would be desirable to 
organize, with the help of international organ izations, seminars and training  for the staff of the 
Armenian Intellectual Property Agency (patent examiners, trademark examiners, copyright 
experts), as well as for enforcement officials (representatives of police, customs office, judiciary) 
and for students of law department who aim to continue their activities in the field.  
7.4.  In the framework of the WTO Trade Facilitation Agreement , Armenia is  reviewing the 
international best practice for the purpose of creating a national trade facilitation committee in 
accordance with the requirements of the WTO Trade Facilitation Agreement. Armenia would 
welcome technical assistance in this area to be able t o create a national trade facilitation 
committee that would effectively function as a driving force for trade facilitation.  
                                                
5 Supreme Body of the Union, consisting of the Heads of the m ember States . WT/TPR/G/379 • Armenia  
 
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  7.5.  Armenia would also welcome technical and financial assistance of external donors to be able 
to implement its category C commitments  under the WTO Trade Facilitation Agreement in a timely 
manner.  
7.6.  A number of SPS related areas would benefit from technical and financial assistance. 
Particularly, training courses would be helpful to raise the understanding on the principles and 
provisions  of the WTO Agreement on Sanitary -Phytosanitary Measures, main challenges and issues 
related to SPS. A Quality Control System (HACCP) audit training course for state inspectors would 
also be welcome. Other specialized training events could include training  courses on Veterinary 
Risk Assessment and Methodology, Plant Protection Risks Assessment and Methodology and 
Antimicrobial resistance (AMR) and scientific -laboratory researches and approaches directions, 
with the aim of the raising of quality of specialis ts of the "Scientific Centre for Risk Assessment and 
Analysis in Food Safety Area" SNCO of State Service for Food Safety of Ministry of Agriculture of 
the RA.  
7.7.  Armenia also seeks possible international donor organizations to be able to implement the 
gradual  introduction and application of International Plant Protection Standards (ICPD), as well as 
to implement Animal identification and registration program me in the Republic of Armenia.  WT/TPR/G/379 • Armenia  
 
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  ABBREVIATIONS  
ADSL  Asymmetric digital subscriber line  
AMD Armenian Dram  
ASWA  Armenian Single Window for Automotive Insurance  
CDA Central Depositary of Armenia  
CEPA EU-Armenia Comprehensive and Enhanced Partnership Agreement  
CJSC Closed Joint -Stock Company  
CIS Commonwealth of Independent States  
CMTPL  Compulsory Motor Thi rd Party Liability Insurance  
DG SANTE  Directorate -General for Health and Food Safety  
EA European co -operation for Accreditation  
EAEU  Eurasian Economic Union  
EaP Eastern Partnership  
EEC Eurasian Economic Commission  
EU European Union  
FMD Foot-and-mouth Disease  
GDP Gross Domestic Product  
GPA WTO Agreement on Government Procurement  
GSP Generalised System of Preferences  
HPP Hydro Power Plant  
IPR Intellectual Property Rights  
IOSCO  International Organization of Securities Commissions  
ICT Information and communications technology  
kWh Kilowatt Hour  
LLC Limited liability company  
MFN Most Favoured Nation  
MoEDI  Ministry of Economic Development and Investments of the Republic of 
Armenia  
MTPL Motor Third Party Liability Insurance  
MW Megawatt  WT/TPR/G/379 • Armenia  
 
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  PAYG  Pay As You Go  
PV Photovoltaic  
REX System  The EU Registered Exporter System  
SHPP  Small Hydro Power Plant  
SME Small and Medium Entrepreneurship  
SNCO  State Non -Commercial Organisation  
SPS Sanitary and Phytosanitary  
TBT Technical Barriers  to Trade  
TIFA Armenia -USA Trade and Investment Framework Agreement  
UNECE  United Nations Economic Commission for Europe  
U.S./USA  United States of America  
USD United States Dollar  
VAT Value Added Tax  
WB World Bank Group  
WTO World Trade Organiz ation 
 
 
 
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