WT/TPR/S/379/Rev.1  
 
30 January 2019  
(19-0494) Page: 1/119 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
ARMENIA  
Revision  
This report, prepared for the second Trade Policy Review of Armenia, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Armenia on its trade policies 
and practices.  
 
Any technical questions arising from this report may be a ddressed to Mr John Finn ( Tel: 022 739 
5081) , Mr Mario Kakabadse (Tel: 022 739 5172) , Mr Samer Seif El Yazal  (Tel: 022 739 5459) , and 
Ms Fatima Chaudhri  (Tel: 022 739 6384) . 
 
Document WT/TPR/G/379 contains the policy statement submitted by Armenia.  
 
 
 
 
 
Note: This report was drafted in English.  
  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  CONTENTS  
SUMMARY  ........................................................................................................................ 7 
1   ECONOMIC ENVIRON MENT  ........................................................................................ 11 
1.1   Recent Economic Developments  ...................................................................................11  
1.2   Main Macroeconomic Policy Developments  .....................................................................13  
 Monetary and exchange rate policies  ..........................................................................13  
 Fiscal policy  ............................................................................................................14  
1.3   Main Structural Policy Developments and Challenges  ......................................................14  
 Business environment  ..............................................................................................15  
 Tax reform ..............................................................................................................16  
 Financial sector reform  .............................................................................................16  
 Energy sector reform ...............................................................................................16  
1.4   Balance of Payments  ...................................................................................................16  
1.5   Developments in Trade and Investment  ........................................................................18  
 Trends and patterns in merchandise trade  ..................................................................18  
 Services trade  .........................................................................................................20  
 Trends and patterns in foreign investment  ..................................................................21  
2   TRADE AND INVEST MENT REGIMES........................................................................... 22 
2.1   Background  ...............................................................................................................22  
2.2   General Framework  ....................................................................................................22  
2.3   Policy Objectives  ........................................................................................................2 5 
2.4   Trade Agreements and Arrangements  ...........................................................................26  
 WTO ......................................................................................................................26  
 Regional trade agreements  .......................................................................................28  
2.4.2.1    Eurasian Economic Union (EAEU)  ............................................................................28  
2.4.2.2    Bilateral agreements  .............................................................................................29  
2.4.2.3    Commonwealth of Independent States (CIS)  ............................................................29  
 Other arrangements  ................................................................................................. 30 
2.4.3.1    European Union ....................................................................................................30  
2.4.3.2   Generalised System of Preferences (GSP)  ................................................................30  
2.5   Investment Regime  ....................................................................................................30  
3   TRADE POLICIES AND PRACTICES BY MEASURE  ........................................................ 34 
3.1   Measures Directly Affecting Imports  ..............................................................................34  
 Customs procedures under the new EAEU Customs Code  ..............................................34  
 Customs valuation  ...................................................................................................35  
 Rules of origin  .........................................................................................................36  
 Tariffs  ....................................................................................................................37  
3.1.4.1    MFN applied tariff  ..................................................................................................38  
3.1.4.2    Tariff concessions ................................................................................................. 41 
 Other charges affecting imports  .................................................................................41  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.1.5.1    Charges exclusively applied to imports  ....................................................................41  
3.1.5.2    Indirect taxes  .......................................................................................................42  
3.1.5.2.1    VAT ..................................................................................................................42  
3.1.5.2.2    Excise tax  .........................................................................................................42  
 Import prohibitions, restrictions, and licensing  ............................................................44  
3.1.6.1    Legal framework  ...................................................................................................44  
3.1.6.2    Institutional framework ..........................................................................................45  
 Anti-dumping, countervailing and safeguard measures  .................................................46  
3.2   Measures Directly Affecting Exports  ..............................................................................47  
 Customs procedures and requirements  .......................................................................47  
 Export taxes  ...........................................................................................................47  
 Export prohibitions, restrictions, and licensing  .............................................................47  
 Export finance, insurance and promotion  ....................................................................48  
 Duty and tax concessions .........................................................................................49  
3.3   Measures Affecting Production and Trade  .......................................................................49  
 Business environment  ..............................................................................................49  
 Standards and other technical requirements  ...............................................................50  
 Sanitary and phytosanitary (SPS) requirements  ...........................................................53  
 Competition policy and price controls  .........................................................................56  
 Consumer protection policy  .......................................................................................61  
 State trading, state -owned enterpr ises (SOEs), and privatization  ...................................62  
 Government procurement  .........................................................................................63  
3.3.7.1    Public procurement rules coverage of state -owned firms over the review period  ...........66  
 Intellectual property rights  ........................................................................................70  
3.3.8.1    Overview and institutional framework  ......................................................................70  
3.3.8.2    IP regime .............................................................................................................71  
3.3.8.3    IP framework at the EAEU level ..............................................................................72  
3.3.8.3.1    Trademarks  .......................................................................................................73  
3.3.8.3.2    Copyright and related rights  ................................................................................73  
3.3.8.3.3    Geographical indications  .....................................................................................73  
3.3.8.3.4    Patent rights  ......................................................................................................74  
3.3.8.3.5    Topographies of integrated circuits  .......................................................................74  
3.3.8.3.6    Trade secrets  .....................................................................................................74  
3.3.8.3.7    Enforcement  ......................................................................................................74  
4   TRADE POLICIES B Y SECTOR  ..................................................................................... 75 
4.1   Agriculture, Forestry, and Fisheries  ...............................................................................75  
 Features .................................................................................................................75  
 Policy and institutional developments  .........................................................................78  
4.1.2.1    Border measures  ..................................................................................................78  
4.1.2.2    Domestic support measures ...................................................................................79  WT/TPR/S/379 /Rev.1  • Armenia  
 
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 Selected agriculture and livestock  ..............................................................................81  
4.1.3.1    Livestock breeding ................................................................................................81  
4.1.3.2    Food processing  ....................................................................................................81  
4.1.3.3    Fresh fruit and vegetables  ......................................................................................82  
4.1.3.4    Cigarettes  ............................................................................................................82  
 Fisheries .................................................................................................................82  
 Crops  .....................................................................................................................83  
4.2   Mining and Energy  ......................................................................................................83  
 Mining  ....................................................................................................................83  
4.2.1.1    Features ..............................................................................................................83  
4.2.1.2    Trade  ..................................................................................................................85  
4.2.1.3    Policy and institutional developments  ......................................................................85  
4.2.1.4    Border and domestic support measures  ...................................................................86  
 Energy  ...................................................................................................................87  
4.2.2.1    Electricity  .............................................................................................................89  
4.3   Services  ....................................................................................................................92  
 Telecommunications and Information Technology  ........................................................92  
4.3.1.1    Sector features  .....................................................................................................92  
4.3.1.2    Telecoms market structure  .....................................................................................93  
4.3.1.3    Regulatory framework  ...........................................................................................93  
4.3.1.4    IT trends  ..............................................................................................................95  
 Financial Services  ....................................................................................................96  
4.3.2.1    Features ..............................................................................................................96  
4.3.2.2    Banking sector  ......................................................................................................97  
4.3.2.2.1    Policy, institutions and regulatory framework  .........................................................98  
4.3.2.3    Insurance  .......................................................................................................... 101 
4.3.2.3.1    Policy, institutions and regulatory framework  ....................................................... 101 
4.3.2.4    Securities  ........................................................................................................... 103 
4.3.2.4.1    Policy, institutions and regulatory framework  ....................................................... 103 
4.4   Transport  ................................................................................................................ 104 
 Features ............................................................................................................... 104 
 Roads  ................................................................................................................... 105 
 Rail ...................................................................................................................... 106 
 Air transport  ......................................................................................................... 107 
4.5   Tourism  ................................................................................................................... 108 
 Features ............................................................................................................... 108 
 Policy, institutions and regulatory framework  ............................................................ 109 
5   APPENDIX TABLES .................................................................................................. 112  
 
 WT/TPR/S/379 /Rev.1  • Armenia  
 
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  CHARTS  
 
Chart 1.1 Product composition of merchandise trade, 2010 and 2017  .......................................19  
Chart 1.2 Direction of merchandise trade, 2010 and 2017  .......................................................20  
Chart 3.1 Average applied MFN tariff rates by HS section  ........................................................40  
Chart 4.1 Exports and imports of agricultural products, 2013- 17 ..............................................77  
Chart 4.2 Green and Amber Box su pport, 2008- 16 ................................................................. 80 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2010- 17 ..........................................................12  
Table 1.2 GDP by economic activity and employment, 2010- 17 ...............................................13  
Table 1.3 Balance of Payments, 2010- 17 ..............................................................................17  
Table 1.4 Composition of trade in services, 2010- 17 ..............................................................21  
Table 2.1 Notifications to the WTO, 2013- 17 .........................................................................26  
Table 2.2 WTO dispute settlement cases  ...............................................................................28  
Table 2.3 Countries having bilateral investment treaties for the promotion and protection 
of foreign investments with Armenia  ....................................................................................32  
Table 2.4 List of countries having double taxation treaties with Armenia, signed, and in 
force  ...............................................................................................................................33  
Table 3.1 Transitional import tariffs for Armenia in the EAEU  ...................................................38  
Table 3.2 Structure of the MFN tariff schedule 2009 and 2018  .................................................39  
Table 3.3 Summary analysis of Arme nia's MFN tariff, 2018  .....................................................40  
Table 3.4 Excise tax rates 2018- 2021 ...................................................................................42  
Table 3.5 Armenia in the WEF Global Competitiveness Report  ..................................................50  
Table 3.6 Revenues of the Competition Commission in 2016 and 2017  .....................................60  
Table 3.7 Competition enforcement  ......................................................................................61  
Table 3.8 Total number of contracts and value .......................................................................63  
Table 3.9 Total number and value of procedures under/above the GPA thresholds  .....................64  
Table 3.10 Total number and value of procedures above the GPA thresholds by type of 
procuring entity  .................................................................................................................64  
Table 3.11 Types of procedures used for procurement above the GPA thresholds  .......................68  
Table 4.1 GDP by economic activity and employment, 2010- 17 ...............................................75  
Table 4.2 Production selected crops 2000- 2016 .....................................................................76  
Table 4.3 GDP by economic activity and employment, 2010- 17 ...............................................83  
Table 4.4 Exports of selected minera ls and mineral products , 2013- 17 .....................................85  
Table 4.5 Mineral extraction licences issued, 2015- 17 .............................................................86  
Table 4.6 Primary energy supply and final consumption, 2012- 16 ............................................87  
Table 4.7 Imports of petroleum products, and trade in electricity, 2013- 17 ...............................88  
Table 4.8 Electricit y generation, 2018  ...................................................................................89  
Table 4.9 Feed- in tariffs for electricity from renewable sources  ................................................91  
Table 4.10 Retail tariffs for electricity  ...................................................................................91  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 4.11 Basic data on telecommunications and information technology , 2010-17 ...................92  
Table 4.12 GDP by economic activity and employment, 2010 -17 ..............................................96  
Table 4.13 Financial soundness indicators for the banking sector, 2013– 17 ...............................98  
Table 4.14 Overland transport, 2012- 17 ............................................................................. 104 
Table 4.15 Air transport numbers, 2011- 17 ......................................................................... 107 
Table 4.16 Tourism arrivals and receipts , 2010- 17 ............................................................... 109 
 
BOXES  
 
Box 3.1 Standards  .............................................................................................................52  
Box 3.2 Main IP and IP -related laws enacted by the legislature  ................................................71  
 
APPENDIX TABLES  
 
Table A1.1 Merchandise total exports by group of products, 2010- 17 ..................................... 112 
Table A1.2 Merchandise total imports by group of products, 2010- 17 ..................................... 114 
Table A1.3 Merchandise total exports by destination, 2010- 17 ............................................... 116 
Table A1.4 Merchandise total imports by origin, 2010 -17 ...................................................... 117 
Table A1.5 Fiscal account of the general Government, 2010- 17 ............................................. 118 
 
Table A3.1 Transitional import tariffs for Armenia in the EAEU , 2018- 22 .................................  119 
 
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  SUMMARY  
1. Since the last Trade Policy Review of Armenia in 2010 the economy has grown by an 
average of 4% each year although growth has varied considerably: from 0.2% in 2013 to over 7% 
in 2017. To some extent, the growth can be attributed to sound macroeconomic management and 
sectoral reforms, while the fluctuations in growth are due mainly to changing commodity prices 
and external factors. With a narrow export base in both goods and services and a high level of 
remittances from Armenians working abroad, the country is exposed to external shocks 
particularly as most exports go to the EU and th e Russian Federation and most remittances come 
from the Russian Federation.  
2. Trade is very important to the economy with trade in goods and services equivalent to about 
87% of GDP, and with expatriate remittances equal to 13% of GDP. In the period 2010 to 2017, 
exports of goods more than doubled in value to over US$2 billion. Although the principal exports 
are still mining products, particularly copper ores and concentrates, exports of non -monetary gold 
and agricultural products increased even more quickly. The increase in agricultural exports was 
mainly due to exports of cigarettes which rose from less than 1% of total exports of goods to over 
11% over this period. Imports of goods increased as well but in a more erratic manner  and in 
2017 were valued at US$ 3.9 billion, only slightly higher than in 2010. In terms of trading partners, 
the Russian Federation has replaced the EU as the biggest source of imports and it is also the 
second biggest destination for exports, after the EU.  
3. Armenia acceded to the Eurasi an Economic Union (EAEU) in 2015 and the Eurasian 
Economic Commission (EEC) is responsible for external trade policy and regulation for the member 
States of the EAEU, including in tariffs, transit trade, contingency measures, technical regulations, 
and SPS  measures. Accession to the EAEU required Armenia to harmonize tariffs with the common 
external tariff, although there are temporary exemptions for nearly 1,000 tariff lines with 
harmonization to be completed in 2022. Under the Treaty of Accession of Armen ia to the EAEU, 
these goods may be imported into Armenia but cannot be re- exported to other member States 
without paying the difference between the Armenian tariff and the CET of the EAEU.  
4. Accession to the EAEU has resulted in increases in tariffs on many tariff lines, and Armenia is 
currently engaged with other WTO Members in negotiations under Article XXIV and XXVIII of the 
GATT with over 6,500 tariff lines to be renegotiated. Compared to 2009, the applied average tariff 
has increased from 2.7% to 7.5%, a nd the percentage of non -ad valorem  tariffs has increased 
from 0.5% to 13%. The average tariff on agricultural products, at 12%, is double the average on 
non-agricultural products while within agriculture animals and products thereof (26%), and sugars 
and confectionary (15%) are particularly highly protected.  
5. Through the EAEU, Armenia is a party to a free trade agreement with Viet Nam, which came 
into force in October 2016. The EAEU has also concluded negotiations with China on a framework 
agreement for tr ade-economic cooperation, and with Iran on a temporary agreement leading to an 
FTA. Both agreements were signed in Kazakhstan on 17 May 2018, with entry into force foreseen 
by the end of the year . The EAEU is negotiating FTAs with several other countries. In addition, 
Armenia has eight bilateral FTAs in force with some other countries of the former Soviet Union and 
is signatory to the treaty on trade with other members of the Commonwealth of Independent 
States and, in November 2017, signed a Comprehensive a nd Enhanced Economic Partnership 
Agreement with the European Union.  
6. The Customs Code of Armenia was replaced by the Customs Code of the Customs Union in 
2015 and then by the EAEU Customs Code in 2018. Under the EAEU Customs Code, practically all 
customs de clarations and clearance procedures are to be done electronically using a single window 
system, with provisions for prior -to-arrival submission of customs declaration and automatic 
release of goods, normally within four hours of registration. The electronic declaration system is to 
be completed by 2020 with a pilot project in operation since April 2018.  
7. In addition to tariffs, importers must also pay fees for customs formalities and other 
charges, although the Customs Code of the EAEU states that customs fe es should not exceed the 
estimated cost to the customs authorities. With few exceptions, all imports are subject to VAT, and 
alcoholic beverages, tobacco products and fuels are also subject to excise duties. According to 
estimates for 2016, the latest year  available, VAT collected represented 33% of total tax revenue, WT/TPR/S/379 /Rev.1  • Armenia  
 
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  or the equivalent of 6.7% of GDP, with VAT collected from imports representing about 60% of total 
VAT collection.  
8. While most imports are free of prohibitions, quotas or licensing requirements , there are 
restrictions for health, security or environmental reasons. These restrictions include requiring 
authorization for imports of some products such as pharmaceutical products and medicines, 
phyto -protection chemicals, weapons, and components used in the production of weapons.  
9. The principal legal basis for trade defence instruments (anti -dumping, countervailing, and 
safeguards) is Annex 8 of the EAEU Treaty and the EEC is responsible for trade defence 
investigations with final decisions made by the Board of the EEC which consists of ministers 
representing member States.  Since 2012,  the EEC  has completed 27 trade defence investigations , 
19 of which were anti -dumping investigations . The countries most affected are China (nine 
investigations) and Ukrai ne (eight).  
10. All goods exported from Armenia outside the EAEU are subject to customs declarations. 
Since there is no border with the other EAEU member States, land and sea transportation between 
Armenia and other EAEU member States is carried out through cu stoms transit procedures. Goods 
can be declared at the customs offices where the goods are located.   
11. The EAEU member States have concluded separate accords concerning export duties, 
according to which each member State of the EAEU establishes its own list  of goods to which 
export duties may apply. For Armenia, the applied rate of exports duties for all goods was zero 
during the review period. Exported goods and ancillary services are zero -rated for VAT purposes. 
Exported goods are also exempt from excise t ax. According to the authorities, Armenia does not 
provide subsidies contingent on export performance.  
12. In June 2011, Armenia adopted the Law on Free Economic Zones (FEZs) and, by the end of 
that year, had developed several regulations to attract foreign in vestment into FEZs through 
various incentives (e.g. tax -free profit for legal entities;  no income tax for sole proprietors who 
are residents of FEZs; no property tax on public and industrial buildings and structures owned or 
leased by residents within FEZ s; no customs charges or non -tariff measures applied on goods 
released under the "Free Customs Zone" procedure). Three FEZs are currently operational.  
13. The legal framework for standards, technical regulations, and conformity assessment is the 
EAEU Treaty a nd national legislation.  To date, about 46 technical regulations have been adopted 
in the EAEU. To meet the requirements of technical regulations, interstate standards are used, 
which are developed and adopted by the Eurasian Standards Committee; also used are national 
standards of the member countries of the EAEU. There are about 5,000 standards currently listed 
by the EEC as supporting the technical regulations in force in the EAEU. According to the 
authorities, about 60% of them are harmonized with inte rnational standards. Up to end -May 2018, 
Armenia had made 92 notifications to the WTO on TBT measures. No specific trade concerns have 
been raised by other WTO Members about TBT measures taken by Armenia.  
14. The EAEU Treaty established a coordinated SPS polic y for EAEU member States, which also 
retain their right to introduce temporary SPS measures, e.g. in cases of justified risk of specific 
imported goods. After Armenia joined the EAEU, SPS standardization requirements appear to have 
become more stringent in  order to match EAEU requirements. At end -May 2018, Armenia had 
made 27 notifications to the WTO on SPS measures.  
15. Several reforms have been introduced in competition policy over the review period. The Law 
on Protection of Economic Competition (2000) was a mended in 2011, 2013, 2017 and 2018. The 
amendments from March 2018 modernized the Law in line with the requirements of the new 
Constitution of the Republic of Armenia, and international standards, including the rules and 
principles of the EAEU and the CEP A with the EU.  
16. According to the competition authority, most product markets in Armenia have been 
liberalized. Remaining natural monopolies exist in the gas, electricity, and water sectors, and in 
some cases where special rights have been transferred by th e State in the form of concessions. At 
the same time, even in markets where big companies operated in a dominant position, dozens of WT/TPR/S/379 /Rev.1  • Armenia  
 
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  small and medium -sized companies also participated in these markets, thus contributing to 
enhancing competition.  
17. The privat ization process was more active in the 1996 to 2005 period due to Armenia's 
transition to a market economy and the fact that, at that time, there were far more SOEs active in 
many sectors of the economy. The current law on privatization (the fifth) is the Law on the 
2017- 2020 Program for State Property Privatization, which lists 47 entities for privatization, of 
which 24 are new additions and 23 were in earlier laws but were not privatized. As of 
1 January  2018, there were 156 commercial entities with more than 50% state ownership (not 
including those on the list for privatization), of which 92 were healthcare companies. According to 
the authorities, there are no tax privileges for SOEs, and tax legislation applies to them as it does 
to all enterprises regar dless of their status.  
18. Government procurement constitutes about 4 -7% of GDP and around 30% of government 
spending in recent years. Armenia became a Member of the WTO Plurilateral Agreement on 
Government Procurement (GPA) in September 2011. Subsequent to th e renegotiation of the GPA, 
Armenia submitted its instrument of acceptance of the Protocol Amending the Agreement on 
Government Procurement in May 2015, and the revised Agreement entered into force in Armenia 
that year. Armenia has integrated both the GPA and the EAEU Treaty, and its legislation seeks to 
satisfy the requirements of both treaties and other relevant international standards, such as those 
established by the CEPA with the EU.  
19. Although it has been reported that Armenia has a strong framework for  the protection of 
intellectual property rights (IPR), the concept of IPR remains unrecognized by parts of the local 
population, and the onus for IPR complaints remains with the offended party. The majority of 
cases appear to be settled through out -of-court proceedings. While the Government has made 
some progress on IPR issues, strengthening enforcement mechanisms remains necessary. 
According to the legislation, customs authorities only suspend the importation of counterfeit goods, 
but do not seize them. Wh ile EAEU member States are allowed to maintain their domestic 
legislation on IPRs, the EAEU Treaty aims to create a common system for protecting IPRs, 
including preventing breaches of IPRs in the Union and to provide for cooperation towards their 
harmoniza tion. 
20. Agriculture continues to play an important role in supporting economic growth, accounting 
for a large portion of employment and rural incomes, and as a source for the expansion of exports.  
However, climate, topography, and the small size of many farm s create significant challenges. 
Although exports of agricultural products (WTO definition) have increased considerably, this is 
mainly due to increased exports of cigarettes. Agriculture policy is set out in several documents 
including the Armenia Development Strategy 2014- 2025 and the Rural and Agricultural 
Sustainable Development Strategy 2010- 2020 which emphasise the importance and potential of 
agriculture. While there are several Government programmes to support agriculture, the value of 
support is qui te low relative to the value of production at 1% for Green Box support and 0.5% for 
Amber Box support.  
21. Although mining and quarrying represented only 3.5% of GDP, the sector is very important 
to the economy as it provided 47% of exports in 2017 (including  exports of non -monetary gold). A 
new Mining Code was introduced in 2012 and several other legislative acts or amendments were 
also introduced during the review period and a development strategy is to be adopted by the end 
of 2019. C ompanies mining metal ores and producers of metal ore concentrates and smelting 
products are required to pay royalties and make payments into the nature and environment 
preservation fund. For ore concentrates, the royalty base is total revenue calculated as total 
production quantity and price in the purchase agreement. For smelting products, the royalty is 
based on production quantity and price s on the London Metal Exchange.  
22. Armenia depends on imports for most of its primary energy needs, most of which are in the 
form of natural gas from the Russian Federation under a government -to-government agreement. 
Gas is also imported from Iran under a gas -for-electricity exchange agreement. Gasprom Armenia 
owns and operates the gas transmission and distribution network. Energy from biofuels  and waste 
has increased considerably, from minimal levels in 2012 to nearly 5% of total primary energy 
supply in 2016. At present, Armenia has a single buyer model with electricity generation from a 
mix of private and publicly -owned power plants, a privat ely-owned single operator of the 
distribution and retail systems, a state -owned single transmission system, and other state -owned WT/TPR/S/379 /Rev.1  • Armenia  
 
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  companies responsible for systems operations.  The Public Services Regulatory Commission (PSRC) 
is the regulator with wide -ranging responsibilities including setting tariffs, issuing licences, setting 
standards, etc. Under ongoing reforms, including amendments to the Law on Energy, Armenia will 
move from the single -buyer model to a more liberal system with independent suppliers, t raders, 
and large users of electricity having better opportunities to access the electricity market.  
23. Banking dominates the financial services sector. It underwent some consolidation since 
2010, as the Central Bank of Armenia (CBA) increased minimum capital  requirements from 
AMD 5 billion to AMD 30 billion at the beginning of 2017. As a result, the sector's capital adequacy 
ratio increased to 18.6% by the end of that year. In addition, non -performing loans decreased 
from nearly 10% of gross loans at end -2016 to about 5.5% at the end of 2017, where loans are 
classed as non -performing one day after becoming overdue. However, the banking system still 
faces several challenges including high levels of dollarization, with 63% of deposits and 64% of 
loans denominate d in U.S. dollars. The CBA is responsible for the regulation and supervision of the 
financial sector. In October 2017, the National Assembly amended the law on Banks and Banking 
giving the CBA greater authority in regulating systemically important banks, a nd in December 
2017, the CBA adopted a risk -based supervision manual. There are no restrictions on foreign 
participation, investment or ownership of banks.  
24. As a landlocked country, most exports of goods must be transported overland to foreign 
markets with over 84% of total cargo by weight being transported by road. the Ministry of 
Transport, Communications and Information Technologies is responsible for legislation and public 
policy which is currently focused on improv ing regional interconnectivity, road sa fety, and capacity 
development . Zvartnots Airport is the main air gateway for passengers and freight both of which 
have increased significantly and, in 2017, nearly 2.5 million passengers and over 22,000 tonnes of 
freight passed through the Airport. Foreign investment in air transport services is limited to 49%. 
Following the bankruptcy of Armavia in 2013, Armenia introduced an open sky policy which 
envisages the complete revision of the institutional, legal and regulatory bases to develop a 
competitive and sustainable air transportation system.  Armenia is a party to 40 bilateral air service 
agreements, and, in November 2017, initialled the EU -Armenia Common Aviation Agreement 
which is expected to improve market access for airlines, improve connectivity, and  reduce fares for 
passengers.  
25. In 2017, tourism was estimated to have contributed nearly 16% to GDP, accounted for 14% 
of total employment, and represented 29% of total exports. Tourist arrivals had more than 
doubled to 1.5 million in that year compared to 2010. A draft Law on Tourism has been submitted 
to the National Assembly which is intended, inter alia , to introduce qualification standards to 
tourism -related services, protect consumer rights, and ensure the quality of services. There are no 
restrictions  on foreign investment and Armenia has tourism agreements with 18 countries.  
26. Since the last Review of Armenia's trade policies in 2010, the economy has grown from 
US$9,260 million to US$ 11,536 million and the goods, services, and current account deficits  have 
declined as exports grew faster than imports. Over the same period, inward FDI was consistently 
greater than outward FDI suggesting that Armenia is an attractive destination for investment. 
However, several challenges remain, such as the reliance on a narrow range of exports going to a 
limited number of destinations, particularly if expatriate remittances are added to exports. In 
addition, while Armenia's accession to the EAEU has meant it has duty free access to the other 
member States  and stimulated  improvements in customs procedures, it has also resulted in an 
overall increase in tariffs and a more complex tariff structure for other countries.  
 
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  1  ECONOMIC ENVIRONMENT  
1.1.  Since the last TPR of Armenia in 2010, economic growth recovered from the  severe downturn 
resulting from the 2009 global financial crises, with GDP increasing to about US$11,537 million in 
2017. Growth has been concentrated in industry  and services, with construction activity continuing 
to decline as a share of GDP. The services sector was the largest contributor to GDP, accounting 
for 57.2% of value added in 2017 , followed by : agriculture, fisheries and forestry ( 16.7%); 
manufacturing (11.4%); construction ( 8.2%); and mining and quarrying ( 3.5%) (Table 1. 2). 
1.2.  With a per capita GDP of just under US$3,872 in 2017, a population of  about 3 million, and 
limited natural resources, trade and investment are very important to Armenia with, accord ing to 
the authorities, a trade (imports and exports of goods and services) to GDP ratio of about 87% 
(Table  1.3). 
1.3.  As the economy recovers, the Government 's goal is to create favourable conditions for a 
sustainable pattern of economic growth and poverty re duction . According to the IMF, Armenia 's 
near-term growth outlook is broadly favourable.1 
1.1  Recent E conomic Developments  
1.4.  Since its last R eview, Armenia has made significant strides in enhancing macroeconomic 
stability. During 2010- 17, growth has remained positive and averaged 4.0%,  inflation has 
remained under control, and foreign exchange reserves have increased .2 In 2010, GDP grew by 
2.2% and accelerated to 7.2% in 2012 (Table 1.1) , led by services, agriculture, agro -processing, 
and mining. Construction,  a pre -crisis growth driver, also stabilized. Credit continued to expand, 
and the financial sector remained well capitalized . However , private investment remained weak.  
1.5.  GDP growth slowed to 3.3% in 2013,  reflecting the decline in the price of copper (Armen ia's 
main export), and a softening in the construction, agriculture, and services sectors. The decrease 
in growth in these sectors offset positive developments in manufacturing, which has prove d to be a 
stable sector,  accounting for about 11% of GDP in each year in the 2010- 17 period, aided by an 
expansion in processed food and beverages , tobacco, and base metals.  
1.6.  In 2016, GDP growth declined further to 0.2%, as domestic consumption and investment  
decreased. In addition, the agriculture sector contracted to 16.4% of GDP in 2016 from 17% in 
2010. I nflows of remittances also decreased to 13.1 % of GDP from 18.0% in 2013.  Data for 2017 
shows signs of a strong recovery , with GDP growth of 7.5% attributed to a n increase in 
remittances,  which led to an increase in domestic consumption , and to expansionary monetary 
policy . Exports increased , supported by higher global copper prices and economic improvements 
among major trading partners. In addition, the construction sector expanded by 2.5 % in 2017, 
after declining fo r the previous four years.  Tourism  also increased in 2017,  with 18. 7% growth in 
the number of tourists  compared to the previous year . According to the World Travel and Tourism 
Council, travel and tourism  contributed 15.7% to GDP in 2017.3 
1.7.  Despite positive developments , Armenia continues to face significant challenges. Although 
the share of remittances in GDP has followed a declining trend since 2013, fluctuations during the 
review period left  the economy vulnerable to external shocks , particularly as Armeni a is one of the 
three leading countries in Europe and Central Asia in terms of remittance s sent home by labour 
migrants.4 In 2017 , remittances contributed 13.3% to GDP (about US$1.5 billion ) (Table 1.1), 
mainly in US dollars from the Russian Federation .  
                                                
1 IMF (2017), Republic of Armenia – 2017 Article IV consultation and Fifth and Final Review Under the 
Extended Arrangement, IMF Country Report No. 17/226.  
2 IMF (2017), Republic of Armenia – 2017 Article IV consultation and Fifth and Final Review Under the 
Extended Arrangement, IMF Country Report No. 17/226.  
3 World Travel and Tourism Council  (2018) , Travel and Tourism Economic Impact Armenia, 2018 , March. 
Viewed at: https://www.wttc.org/- /media/files/reports/economic -impact- research/countries -
2018/armenia2018.pdf . 
4 World Bank  (2017), Armenia Country Update Fall/Winter 2017 -18, Washing ton. Viewed at: 
https://elibrary.worldbank.org/doi/pdf/10.1596/29268 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 1.1 Selected macroeconomic indicators, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
National accounts (% change)  
Real GDP  2.2 4.7 7.2 3.3 3.6 3.2 0.2 7.5 
   Consumption  3.9 2.6 7.7 1.6 0.7 -6.2 -1.2 9.5 
     Private consumptiona 3.8 2.4 9.1 0.9 1.0 -7.8 -1.1 9.0 
     Public consumption  3.9 1.9 -1.4 7.6 -1.2 4.7 -2.4 13.1 
  Gross capital formation  0.5 -5.2 0.5 -9.1 -3.0 -1.2 -8.7 13.9 
Gross fixed capital 
formation  -2.9 -11.7 -1.9 -7.0 -2.2 2.5 -11.4 7.7 
Inflation and interest rates (%)  
Inflation (CPI)  8.2 7.7 2.6 5.8 3.0 3.7 -1.4 1.0 
Deposit rate  8.95 9.25 9.55 10.16  10.43  14.15  11.62  9.01 
Lending rate  19.20  17.76  17.23  15.99  16.41  17.59  17.36  14.41  
Exchange rate  
AMD/US$ (annual 
average)  373.66  372.50  401.76  409.63  415.92  477.92  480.49  482.72  
Real effective exchange 
rate (% change) [IMF]  2.2 0.1 -3.2 1.2 3.9 3.1 -1.2 -1.7 
General Government (% of GDP)  
Fiscal balance  -5.0 -2.8 -1.4 -1.5 -1.9 -4.8 -5.5 -4.8 
Revenue including 
grants  23.2 24.0 22.9 24.2 24.4 23.8 23.8 22.9 
   Tax revenue  20.8 21.1 21.1 22.4 22.5 21.6 21.8 .. 
Expenditure  28.2 26.8 24.3 25.7 26.3 28.6 29.3 27.7 
General government 
debt 34.1 35.9 35.7 36.3 39.4 44.1 51.9 53.7 
  General government's 
external debt  27.0 28.3 29.7 30.2 32.9 36.8 41.1 42.5 
Saving and investment (% of GDP)  
Gross national savings  14.7 16.0 14.8 14.5 13.4 18.4 .. .. 
Gross domestic 
investments  32.9 27.3 25.3 22.3 20.9 20.7 18.0 19.0 
Saving -investment gap  -18.2 -11.3 -10.5 -7.8 -7.5 -2.3 .. .. 
External sector (% of GDP, unless otherwise indicated)  
Current account balance  -13.6 -10.4 -10.0 -7.3 -7.6 -2.6 -2.3 -3.5 
Remittances received  18.0 17.7 18.0 19.7 17.9 14.1 13.1 13.3 
Capital account  1.1 0.9 1.0 0.8 0.6 0.6 0.3 0.4 
Financial  account  -14.2 -9.9 -7.1 -9.2 -7.3 -3.4 -4.1 -4.0 
   Direct investment  -5.6 -4.3 -4.5 -2.9 -3.3 -1.5 -2.5 -1.9 
International reserves  
(US$ million)  1,865.8  1,932.4  1,799.3  2,251.6  1,489.4  1,775.3  2,204.1  2,313.9  
   in months of imports 
of goods and services  4.9 4.7 4.2 4.9 3.3 4.8 5.9 4.8 
External debt  68.1 73.1 72.3 78.5 73.6 84.5 94.1 91.1 
External debt  
(US$ million)  6,306.6  7,417.7  7,673.9  8,732.8  8,540.5  8,918.8  9,953.1  10,528.7  
Memorandum:  
Current GDP at market 
price (AMD billion)  3,460.2  3,777.9  4,266.5  4,555.6  4,828.6  5,043.6  5,067.3  5,568.9  
Current GDP at market 
price (US$ million)  9,260.3  10,142.1  10,619.3  11,121.5  11,609.5  10,553.3  10,546.1  11,536.5  
GDP per capita (US$)  3,041.3  3,349.6  3,511.6  3,680.2  3,852.1  3,512.4  3,524.4  3,872.1  
Unemployment rate (%)  19.0 18.4 17.3 16.2 17.6 18.5 18.0 17.8 
a Not including consumption of non- profit institutions serving households.  
.. Not available.  
Source:  Statistical Committee of the Republic of Armenia; Central Bank of Armenia (CBA); World Bank  and 
IMF. 
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  Table 1.2 GDP by e conomic activit y and employment, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
GDP by economic activity, share in value added (%)  
Agriculture, hunting, 
forestry and fishing  19.2 22.8 20.1 20.7 20.4 19.3 18.2 16.7 
Mining and quarrying  2.9 3.1 3.0 2.5 2.4 2.4 2.9 3.5 
Manufacturing  10.9 11.9 10.6 10.9 10.9 10.3 11.4 11.4 
Electricity, gas, steam 
and air conditioning 
supply  3.2 3.9 4.1 4.5 4.4 5.1 5.0 4.5 
Construction  19.5 14.6 13.2 11.8 10.5 10.5 8.6 8.2 
Services  45.9 46.2 51.2 51.5 53.5 53.9 55.5 57.2 
of which          
Wholesale and retail 
trade; repair of 
motor vehicles, 
motorcycles  14.5 14.2 13.5 13.5 13.3 12.2 10.9 12.0 
Information and 
communication  4.3 4.0 3.8 3.7 3.8 3.8 3.9 3.8 
Financial and 
insurance activities  4.1 4.5 4.5 4.5 4.8 4.4 4.9 5.4 
Real estate activities  2.4 3.0 9.2 9.2 9.4 9.7 9.5 9.3 
Professional, 
scientific and 
technical activities  1.5 1.3 1.1 1.1 1.3 1.3 1.3 1.3 
Public administration  4.2 4.2 4.2 4.5 4.9 5.4 5.5 5.4 
Education  3.9 3.6 3.3 3.2 3.2 3.3 3.4 2.9 
Human health and 
social work activities  3.6 4.1 3.9 4.3 4.3 4.4 4.5 4.6 
Arts, entertainment 
and recreation  1.0 1.1 1.5 1.5 2.1 3.6 5.1 5.9 
Employment by sector (%)a 
Agriculture, forestry 
and fishing  38.6 38.9 37.3 36.3 34.8 35.3 33.6 31.3 
Industry  10.2 11.0 11.8 11.3 11.6 11.3 12.1 13.1 
Construction  7.2 5.7 5.9 5.7 5.2 4.7 3.7 3.7 
Services  44.0 44.4 45.0 46.7 48.4 48.8 50.6 51.9 
Trade, repair 
accommodation and 
food service 
activities  10.8 10.5 11.1 11.6 12.7 12.6 13.8 13.4 
Transportation and 
storage, information 
and communication  6.0 5.6 6.3 6.2 5.8 5.5 5.2 5.8 
Financial, real 
estate, professional, 
scientific, technical, 
administrative and 
support activities  3.7 3.5 2.9 3.8 3.8 3.6 3.4 3.9 
Public 
administration, 
education, health 
and social work  19.8 20.7 20.3 20.4 21.7 23.3 24.1 24.3 
     Other services  3.7 4.1 4.4 4.6 4.5 3.7 4.1 4.5 
a Employment data for 2017 are preliminary.  
Source:  Statistical Committee of the Republic of Armenia online information. 
1.2  Main Macroeconomic Policy Developments  
Monetary and exchange rate policies  
1.8.  The 2015 amendments to the Constitution added financial stability to price stability as the 
main objective of the Central Bank of Armenia (CBA) while maintaining the Bank's independence in 
performing its functions (Article 200).  
1.9.  Inflation, as measured by the consumer price index (CPI), peaked to 8.2% in 2010 and 
declin ed to 3.0% in 2014 after a tightening of monetary policy to ensur e that in flation remained WT/TPR/S/379 /Rev.1  • Armenia  
 
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  under control ( Table 1.1). In 2016, inflation turned negative,  and the CBA eased monetary polic y 
with lower interest rates which supported a recovery in private sector credit. The CBA remained 
focused on returning inflation to the 4% target and , in 2017,  consumer prices started to increase 
with inflation at 1%, mainly driven by increases in food prices. A statement from the CBA suggests 
that there is a need to neutraliz e loose monetary conditions in the mid-term,  as they assess the 
recovery  of domestic demand will continue.5 
1.10.   Since 1996, the CBA has been follow ing a freely floating exchange rate regime,  which is 
consistent with the principles of liberalized capital account operations and the implementation of 
an independent monetary policy. A ccording to the authorities, the CBA 's interventions in the 
foreign exchange market are carried out only to smooth fluctuations or to offset transitory 
pressure during periods of excessive volatility , while it also views exchange rate flexibility as a 
mean s to maintain competitiveness.6  
1.11.   Following the monetary policy tightening in 2014, which helped contain inflation and  anchor 
inflation expectations , the foreign exchange market has been more stable and the CBA has 
reduced foreign exchange interventions.    
Fiscal p olicy  
1.12.   The Ministry of Finance implements the policies of the Government in the areas of fiscal 
revenue collection and public finance administration.7 After pursuing fiscal expansion during the 
crisis, the Government  focused on consolidating its fis cal accounts through expenditure 
compression of 4. 0% of GDP during 2010- 12, by reducing spending on capital ; priority social 
spending was largely protected.8 (Table A1.5).  However, the decline in remittances, the price of 
copper , receipts from the EAEU cus toms pool,  and deflation in 2016 adversely affected the fiscal 
position . The budget deficit  was gradually increased to 5.5 % of GDP in 2016 due to expansionary 
fiscal policy aimed at increasing demand in the economy  (Table  1.1). The budget deficit declined to 
4.8% of GDP in 2017. However, according to the authorities, the budget deficits in 2016 and 2017 
included a " military loan ", which accounted for 0.5 and 1.5 percentage points of GDP in 2016 and 
2017, respectively. Therefore, the underlying deficit decli ned from 5% of GDP in 2016 to 3.2% of 
GDP in 2017.   
1.13.   As a result of the countercyclical fiscal policy, public debt  increased . Against this 
background, the authorities consider debt sustainability a top priority , and are strengthening 
revenue mobilization th rough a new tax code and improvements in tax administration. These 
reforms have permitted some relief in capital expenditure. Supported by strengthened tax 
administration efforts, stronger economic activity, and an increase in collections from the EAEU 's 
customs pool, tax revenues performed better in 2017 while expenditures remained in line with the 
budget.9 
1.3  Main Structural Policy Developments and Challenges  
1.14.   The Government's programme aims to attract investment and improve the business climate, 
with the goal of raising economic growth and making it more inclusive.10 A large and diverse set of 
initiatives are underway in the business environment; public administration; financial sector; and 
energy sector.  
                                                
5 CBA press release 13 February 2018. Viewed at: 
https://www.cba.am/EN/pmessagesannouncements/press%20release%20February%202018.pdf . 
6 IMF (2017), Republic of Armenia – 2017 Article IV Consultation and Fifth and Final Review under the 
Extended Arrangement, Country Report No  17/226 , July. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2017/07/19/Republic -of-Armenia -2017- Article -IV-
Consultation- and-Fifth- and-Final-Review -Under -the-45107 . 
7 Government online information. Viewed at: http://www.gov.am/en/structure/12/ . 
8 World Bank  (2013) , Country Partnership Strategy for the Republic of Armenia, FY 2014 -FY2017, 
Report Number 81647 -AM, pg. 4. Viewed at: 
http://documents.wo rldbank.org/curated/en/386701468206966299/pdf/816470CAS0AM0C00Box379845B00P
UBLIC0.pdf . 
9 World Bank  (2017), Armenia Country Update Fall/Winter 2017 -18, Washington. Viewed at: 
https://elib rary.worldbank.org/doi/pdf/10.1596/29268 . 
10 World Bank  (2017), Armenia Country Update Fall/Winter 2017 -18, Washington. Viewed at: 
https://elibrary.worldbank.org/doi/pdf/10.1596/29268 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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Business e nvironment  
1.15.   Several initiatives have been launched to improve the business environment , with the aim 
of channelling domestic and foreign private funds to promote, inter alia , energy, tourism, 
infrastructure, mining, and the food and light industr ies. These initiatives include:  
• The review of the La w on Foreign Investments ; 
• The review of the  Law on Free Economic Zones ; 
• The review of the public  private partnership (PPP) regime and policy ; the draft ing of a 
new law on PPPs is underway ; 
• The introduction of the Centre for Strategic Initiatives in 2017 and the structural 
reorganization of the Development Foundation of Armenia to Business Armenia,  to 
support reforms in PPPs , and attract FDI ; and 
• The establishment of new investment fund s and the Armenia Investors Club, 
supported by the diaspora.  
 
1.16.   According to the Eurasian Economic Commission (EEC), Armenia' s accession to the Eurasian 
Economic Union (EAEU) has enhanced opportunities for trade -based growth and investment 
flows.11 It has also been stated that  Armenia could capitalize on its status as the only EAEU 
member State bordering Iran12, and on the implementation of the temporary  free trade agreement 
(FTA) between the EAEU and Iran  (Section 2.4.2.1).  Trade and investments between the two 
countries are also expected to increase following the construction of a  new power transmission line 
connecting the two countries (Section 4. 2.2). The US$120m facility,  scheduled for  completion in 
2018, will allow an increase in exports to Iran of Armenian electricity gener ated with Iranian 
natural gas. The investment should give a further boost to bilateral investments.13  
1.17.   In addition, the E uropean Union and Armenia signed a Comprehensive and Enhanced 
Partnership Agreement (CEPA) in 2017,  which broadens the scope of economic  and sectoral 
cooperation, creating a framework for new opportunities in trade and investment, as well as 
bringing Armenian economic laws and regulations closer to those of the E uropean Union. 
Harmonization of regulations will cover the business environmen t, agriculture, transport, 
environment, consumer protection and the energy sector.14 In 2017,  the authorities signed the 
Open Sky Agreement with the E uropean Union to upgrade transportation infrastructure, and 
improve connectivity and international integration to improve the business environment. 
Negotiations on the EU -Armenia Common Aviation Area Agreement and the Single Support 
Framework for Armenia 2017- 20 are ongoing.  
1.18.   According to the World Bank 's Ease of Doing Business report, Armenia ranked 47th out of 
190 economies in the ease of doing business in 2018.15 In the reporting period, Armenia improved 
its business environment, improving its rank for starting a business and property registration 
(15th and 13th, respectively). It also ranked 73rd in 2017 (up from 79th in 2016) in the Global 
Competi tiveness  Report of the World Economic Forum.16 The improvements in ranking were due to 
the regulatory reforms adopted in 2016 and 2017. There has also been progress on the investment 
policy , and revisions have b een made to the Law on Domestic Competition which impose higher 
penalties for anti- competitive behaviour, puts in place the possibility of penalties for public and 
private sector officials, and clarifies definitions of the law such as abuse of dominance an d unfair 
competition. In addition, proposed changes to the Law on Foreign Investments , which aims to 
protect investors and investment incentives, are with the National Assembly for consideration . The 
                                                
11 EEC (2018), Republic of Armenia Two Years in the Eurasian Economic Union, first results , Moscow. 
Viewed at: 
http://www.eurasiancommission.org/ru/act/integr_i_makroec/dep_razv_integr/Pages/%D0%9D%D0%BE%D0
%B2%D1%8B%D0%B5%20%D1%81%D1%82%D1%80%D0%B0%D0%BD%D0%B8%D1%86%D1%8B/%D
0%94%D0%BE%D0%BA%D0%BB%D0%B0%D0%B4%20%D0%A0%D0%90%2014.05.2018.pdf  (Russian). 
12 Economist Intelligence Unit (2016), Country Report – Armenia , London.  
13 Economist Intelligence Unit (2016), Country Report – Armenia , London.  
14 World Bank  (2017), Armenia  Country Update Fall/Winter 2017 -18, Washington. Viewed at: 
https://elibrary.worldbank.org/doi/pdf/10.1596/29268 . 
15 World Bank, Ease of Doing Business, Armenia online information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/armenia . 
16 World Economic Forum (2017), The Global Competitiveness Report 2017 -2018, Geneva.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Government is also in the process of drafting a new PPP law to facilitate private sector involvement 
in public investment.    
Tax r eform  
1.19.   With a  view to ensuring debt sustainability , an amended tax code was approved in 2018. 
The principal goals of the legislation are to address structural limitations  in the curre nt tax system 
by decreasing exemptions , increasing  coverage, and generating additional revenue in the medium 
term.  The regulation intends to shift the balance fr om direct to indirect taxation by increasing 
excise tax rate s on alcohol, tobacco, and fuel,  and to improve equity by broadening the base, 
including taxation of div idends received by individuals an d revising the rate schedule for personal 
income tax.  
1.20.   Through these reforms, the authorities also intend to increase the transparency of the tax 
system  by closing loopholes , and to improve tax administration to increase the tax -to-GDP ratio . 
At the same time, the Government intends to improve revenue administration by developing 
better compliance by speeding up the payment of VAT refunds , clarifying rule s for tax audits , and 
reducing the size of the informal economy.  The Government estimate s the new tax code will 
increase the tax -to-GDP ratio by 2 percentage points by 2021.17 
Financial sector r eform  
1.21.   According to the authorities, improving resilience to sh ocks remains at the core of financial 
sector policies. Therefore, the CBA implemented measures to consolidate and strengthen the 
banking sector's resilience and efficiency. In 2017, a new minimum capital requirement 
(AMD 30 billion) became effective in order to increase capital buffers and enhance banking 
services through greater economies of scale. Most banks achieved this requirement by increasing 
their capital levels or through mergers, and are well capitalized and financial soundness indicators 
are impr oving (Section  4.3.2).18 
Energy sector r eform  
1.22.   The authorities are focused on improving  the electricity distribution system , thereby 
improving supply reliability  and increasing the affordability of energy provision  by reducing costs . 
Specifically, they have strengthen ed the electricity sector by encoura ging private sector  
participation and modernizing the nuclear power plant , and are exploring options for building new 
renewable and thermal power plants .19 
1.23.   According to the authorities, the implementation of the four main pillars of the Energy 
Sector Development Strategy continues. These pillars are: the development of nuclear energy; the 
realization of an economically viable renewable energy potential; the d iversification by types and 
source of primary energy supplies; and regional integration. The objectives are: the improvement 
of energy efficiency and energy savings in all sectors of the economy; the safe operation of the 
nuclear power plant; and the const ruction of new nuclear capacities (Section  4.2.2).  
1.4  Balance of Payments  
1.24.   During the period under review, Armenia's current account deficit decreased substantially 
from US$1,261.4 million in 2010 to US$ 238.1 million in 2016, before rising again to 
                                                
17 IMF (2017), Republic of Armenia  – 2017 Article IV Consultation and Fifth and Final Review under the 
Extended Arrangement, Country Report No 17/226, July. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2017/07/19/Republic -of-Armenia -2017- Article -IV-
Consultation- and-Fifth- and-Final-Review -Under -the-45107 . 
18 IMF (2017), Republic of Armenia – 2017 Article IV Consultatio n and Fifth and Final Review under the 
Extended Arrangement, Country Report No 17/226 , July. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2017/07/19/Republic -of-Armenia -2017- Article -IV-
Consultation- and-Fifth- and-Final-Review -Under -the-45107 . 
19 IMF (2017), Republic of Armenia – 2017 Article IV Consultation and Fifth and Final Review under the 
Extended Arrangement, Country Report No 17/226, July. Viewed at: 
https://www.imf.o rg/en/Publications/CR/Issues/2017/07/19/Republic -of-Armenia -2017- Article -IV-
Consultation- and-Fifth- and-Final-Review -Under -the-45107 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  US$399.9 million in 2017. The reduction was driven by fiscal consolidation between 2009 and 
2011, then by rising remittances in 2013, and then by an increase in exports, largely due to the 
openi ng of a new copper mine in 2015. In addition, broader  industrial development and export 
diversification policies led to faster growth in exports . Furthermore, growth in exports was 
support ed by a more flexible dram, a rebound  in the Russian Federation market, greater air 
connectivity, and infrastructure improvements.  Armenia 's recent entry into the E AEU may also 
represent  an important structural change that ma y have had some impact on trade. The increase 
in the current account deficit in 2017 was largely due to an increase in imports of goods and 
services (Table 1.3).  
Table 1.3 Balance of Payments, 2010 -17 
US$ million 
  2010  2011  2012  2013  2014  2015  2016  2017  
Current account  -1,261.4  -1,058.9  -1,057.9  -813.0  -882.9  -272.4  -238.1  -399.9  
Goods and services 
balance  -2,326.5  -2,175.6  -2,214.0  -2,321.1  -2,168.9  -1,281.8  -1,015.8  -1,544.7  
Goods balance  -2,065.7  -2,109.8  -2,111.9  -2,196.2  -2,055.4  -1,186.4  -944.4  -1,482.1  
Exports  1,197.5  1,431.6  1,515.7  1,635.9  1,698.1  1,623.9  1,890.7  2,378.3  
Imports  3,263.2  3,541.4  3,627.6  3,832.0  3,753.6  2,810.3  2,835.1  3,860.4  
Service s balance  -260.8  -65.8 -102.1  -125.0  -113.5  -95.4 -71.4 -62.5 
Exports  1,013.2  1,310.6  1,401.7  1,519.4  1,620.2  1,512.4  1,609.7  1,895.0  
Imports  1,274.0  1,376.4  1,503.8  1,644.4  1,733.7  1,607.9  1,681.1  1,957.6  
Income  458.3  360.1  423.0  682.5  541.1  442.9  224.2  497.7  
Credit 1,049.1  1,065.5  1,115.2  1,259.1  1,212.9  885.9  851.0  1,063.8  
Compensation  of 
employees  1,008.2  1,008.6  1,071.2  1,228.3  1,168.9  842.4  773.7  858.1  
Investment income  40.9 57.0 44.0 30.8 44.0 43.6 77.3 205.6  
Debit 590.8  705.5  692.2  576.6  671.8  443.0  626.8  566.1  
Compensation  of 
employeesa 98.9 152.7  156.1  177.3  193.5  180.6  176.4  175.4  
Investment income  491.9  552.8  536.0  399.3  478.2  262.4  450.3  390.7  
Current transfers  606.8  756.7  733.1  825.6  744.9  566.5  553.4  647.1  
Credit  813.5  997.9  990.8  1,118.9  1,057.2  904.1  882.9  1,017.8  
Personal transfersb 661.1  790.0  843.8  963.9  909.7  649.1  608.7  680.9  
Debit 206.7  241.2  257.7  293.4  312.3  337.6  329.5  370.7  
Personal transfers  128.5  147.7  158.6  178.0  197.1  183.2  181.6  192.2  
Capital account  98.9 94.6 108.4  84.4 70.4 65.3 34.9 46.3 
Financial account  -1,318.5  -1,001.0  -759.0  -1,027.8  -848.9  -356.5  -435.4  -465.6  
Direct investment  -521.4  -437.3  -480.8  -319.5  -387.9  -161.5  -271.9  -223.5  
Armenia 's direct 
investment abroad  7.9 215.9  15.8 26.6 16.0 16.8 66.2 22.3 
Direct investment 
into Armenia  529.3  653.2  496.6  346.1  403.9  178.3  338.1  245.7  
Portfolio investment  -18.3 8.4 -0.8 -689.4  38.4 -235.0  -33.9 86.8 
Assets  0.9 0.0 1.1 5.4 6.0 19.9 23.1 30.0 
Liabilities  19.2 -8.4 2.0 694.8  -32.3 254.8  56.9 -56.8 
Financial derivat ives 
(other than reserves) 
and employee stock 
options  0.0 0.0 0.0 -0.6 1.2 -1.7 1.3 -1.0 
Other investment  -650.0  -704.9  -229.0  -488.9  158.9  -291.2  -581.7  -424.7  
Assets  133.2  120.8  151.9  -73.5 407.9  78.0 239.7  -209.4  
Currency and 
deposits  38.5 104.1  190.9  -88.8 179.0  13.0 -249.0  -25.2 
Loans  72.3 -16.2 -48.0 20.0 153.5  82.0 454.8  -168.3  
Trade credits and 
advances  12.7 17.0 1.2 -0.3 58.0 -17.8 37.8 -26.9 
Other assets  9.7 15.9 7.8 -4.4 17.4 0.9 -3.8 11.0 
Liabilities  783.2  825.7  380.9  415.4  249.0  369.2  821.4  215.3  
Currency and 
deposits  54.4 213.9  -14.8 440.7  -256.9  53.4 285.6  -218.8  
Loans  689.7  563.9  299.1  -41.8 492.4  303.4  518.7  418.8  
Trade credits and 
advances  14.1 27.2 62.0 8.6 7.6 20.8 23.7 10.0 
Other liabilities  25.1 20.9 34.5 7.8 5.9 -8.4 -6.7 5.2 
Reserve assets  -128.7  132.9  -48.3 470.6  -659.6  332.9  450.8  96.8 WT/TPR/S/379 /Rev.1  • Armenia  
 
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    2010  2011  2012  2013  2014  2015  2016  2017  
Net errors and 
omissions  -155.9  -36.8 190.5  -299.2  -36.5 -149.3  -232.1  -112.0  
a Compensation of employees refers to the income of border, seasonal, and other short- term workers 
who are employed in an economy where they are not resident, and of residents employed by 
non-resident entities. 
b Personal transfers consist of all current transfers in cash or in kind made or received by resident 
households to or from non- resident households.  
Source:  CBA online information.  
1.5  Developments in Trade and Investment  
1.25.   During the 2010- 17 period, exports of goods more than doubled to US$2,145 million. 
Imports, on the other hand, fell by 15% to 2016 before increasing in 2017 to US$3,893.5 million 
(Chart 1.1) and Tables A1.1 and A1.2. I n addition, both imports and exports of services in creased 
during the same period.  
Trends and patterns in merchandise trade  
1.26.   Armenia's  exports continu e to be concentrated in the mining sector; however, its 
concentration decreased from 47.8% of total merchandise exports in 2010 to 40.2% in 2017. This 
was largely due to a decline in the share of exports of non -ferrous metals as exports of copper ore 
and c oncentrates increased (Chart 1.1.).  
1.27.   In 2010, the manufacturing sector was the second largest contributor to merchandise trade 
exports. However, in 2017, the sector was overtaken by agriculture. This was a result of a 
decrease in exports of diamonds, and ir on and steel. However, exports of gold increased from 
2.8% in 2010 to 6.8% in 2017. This was a result of an increase in gold mining projects.  
1.28.   The large increase in exports of agricultural goods was driven by exports of cigarettes  
containing tobacco (11.1%  of total exports), followed by spirits and liqueurs (9.7%) 
(Section  4.1.3.4).  
1.29.   There was no major change in the structure of merchandise imports. The largest single 
category continued to be manufactures, within which chemicals, semi -manufactured goods, an d 
non-electrical and electrical machines were the larges sub -categories.  
1.30.   Although the European Union remains the main destination for exports of goods, its share of 
declined from nearly 50% in 2010 to just over 28% in 2017, ahead of the Russian Federation 
(25%). On the import side, the Russian Federation is now the main source of imports, accounting 
for nearly 30%, while the European Union's share decreased from nearly 26% to 21% (Chart 1.2).  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Chart 1.1 Product composition of merchandise trade, 2010  and 20 17 
 
* Diamonds (other than sorted industrial diamonds), whether or not worked, but not mounted or set.  
Source:  WTO calculations, based on UNSD Comtrade database (SITC Rev.3). 
WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Chart 1.2 Direction of merchandise trade, 2010  and 20 17 
 
Note:  Georgia is not a member of the CIS, but is included in this group for reasons of geography. 
Source:  WTO calculations, based on UNSD Comtrade database (SITC Rev.3). 
Servic es trade  
1.31.   Trade in services increased considerably over the 2010- 17 period, driven primarily by 
increasing personal travel on the debit side, which rose to over half of the total debit. On the credit 
side, personal transport remained dominant throughout the  period representing about half of all 
credit. Tourism -related services for travel and passenger transport was well over half for both 
credits and debits (Table 1.4).  
 
WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 1.4 Composition of t rade in s ervices, 2010-17  
  2010  2011  2012  2013  2014  2015  2016  2017  
Total credit (US$ million)  1,013  1,311  1,402  1,519  1,620  1,512  1,610  1,895  
  (% of total credit)  
Manufacturing services  1.4  0.7  0.3  0.4  0.3  0.2  0.4  0.5  
Maintenance and repair services  0.2  0.2  0.2  0.2  0.1  0.1  0.1  0.1  
Transport   15.3  13.5  12.4  11.3  11.2  10.8  11.7  12.2  
  Passenger  4.8  3.1  2.6  1.7  1.7  1.3  1.2  1.0  
  Freight  9.0  9.1  8.7  8.5  8.4  8.4  9.5  10.1  
Travel   63.7  55.1  58.3  57.9  59.6  61.9  60.1  59.1  
  Business   11.9  9.7  9.6  8.2  8.3  8.1  7.4  6.7  
  Personal   51.8  45.5  48.7  49.8  51.4  53.8  52.8  52.4  
Postal and courier services  0.1  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Construction  0.8  14.3  14.1  14.6  13.0  10.8  9.3  9.6  
Insurance and pension s 1.3  1.4  1.3  1.2  1.2  1.2  1.3  1.4  
Finance  0.7  0.6  0.3  0.6  0.6  0.4  0.4  0.3  
Telecommunication s, computer and 
information   12.6  7.8  7.0  7.3  8.0  8.6  10.8  11.1  
Other business services  0.9  3.0  3.0  3.5  3.1  2.8  2.8  2.5  
Personal, cultural and recreational  1.9  1.5  1.4  1.2  1.2  1.2  1.2  1.0  
Government  1.2  1.9  1.9  1.8  1.6  1.9  2.0  2.2  
Total debit (US$ million)  1,274  1,376  1,504  1,644  1,734  1,608  1,681  1,958  
  (% of total debit)  
Maintenance and repair services  0.2  0.2  0.7  0.4  0.2  0.2  0.2  0.2  
Transport   35.0  33.5  31.5  29.1  26.9  22.5  21.9  22.5  
  Passenger  4.9  5.0  4.7  4.7  4.5  3.8  3.1  2.8  
  Freight   25.9  25.1  24.0  23.2  21.2  17.6  17.8  18.6  
Travel   45.4  49.9  53.4  56.5  59.1  61.9  63.5  64.9  
  Business   16.0  17.1  17.0  16.9  16.1  14.5  13.5  13.0  
  Personal   29.5  32.8  36.4  39.6  43.0  47.4  50.0  51.9  
Postal and courier services  0.1  0.0  0.0  0.0  0.0  0.0  0.0  0.0  
Construction  1.1  0.8  1.1  0.5  0.8  1.5  1.2  0.1  
Insurance and pension s 4.3  4.0  3.7  3.5  3.0  2.8  2.6  2.8  
Finance  0.9  0.8  0.7  0.6  0.8  0.8  1.0  0.8  
Telecommunication s, computer and 
information  2.0  1.4  1.7  2.6  2.6  2.1  1.4  1.4  
Other business services  8.5  6.8  5.1  4.5  4.6  5.9  5.8  5.4  
Personal, cultural and recreational  0.9  0.8  0.6  0.6  0.6  0.6  0.5  0.5  
Government  1.7  1.8  1.7  1.6  1.6  1.7  1.9  1.5  
Memorandum:          
Tourism -related services in travel 
and passenger transport          
  %age of total credit   67.2  57.0  59.7  58.8  60.1  61.9  60.2  59.2  
  %age of total debit   41.7  45.4  48.8  51.5  54.8  58.9  60.6  62.0  
Source:  CBA online information.  
Trends and patterns in foreign investment  
1.32.   Despite a decrease in FDI during the review period (US$529.3 million in 2010 to 
US$338.1 million  in 2016), within the period, there has been a substantial increase since 2015 
when FDI had fallen to US$178.3 million. To some extent, this may be attributed to the step s 
taken to improve th e investment climate by amending the Law on Foreign Investments  to improve 
investor protection in line with international best practice s. FDI inflows have been concentrated in 
the mining, communications, financial services,  and softwar e and IT services sectors. In addition, 
Armenian multinational enterprises (MNEs) invested heavily abroad in 2016, caus ing FDI outflows 
to grow from US$7.9 million in 2010 to US$66.2 million in 2016 (Table 1.3).  
1.33.   As of 2017, The Russia n Federation  (46.5%), France (12.0%), Germany (5.1%) and 
Argentina (4.2%) were the largest sources of FDI in Armenia. The energy sector (37%) is the 
largest recipient of FDI, and other sectors included telecommunications, mining, transportation 
and manufacturing.20 Significant investments are also made by the members of the Armenian 
diaspora. The Centre for Strategic Initiatives , introduced in 2017,  and the structural reorganization 
of the Development Foundation of Armenia to Business Armenia aim to support reforms in P PPs, 
attract FDI in tradable sectors,  and promote exports . In addition, it is hoped  that Armenia will 
attract FDI from investors seeking markets in the E AEU, due to its attractive investment climate.  
                                                
20 Statistical Committee of Republic of Armenia, 2017, Viewed at:  
 http://www.armstat.am/file/article/sv_02_18r_420.pdf .  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  2  TRADE AND INVESTMENT  REGIMES 
2.1  Background  
2.1.  On 21 September 1991, Armenia declared its independence from the Soviet Union. The first 
President of the new Republic of Armenia was elected on 16 October 1991. Like other states of the 
former Soviet Union, Armenia faced difficult and contracted economic conditions right after its 
independence. At that time, the country had still not recovered from the 1988 earthquake that hit 
the cities of Gyumri and Vanadzor, the second and the third cities in Armenia respectively. This 
resulted in industrial decline in these areas, and in the country as a whole. The Nagorno- Karabakh 
conflict and the closure of the borders w ith Turkey and Azerbaijan (currently still in place) 
contributed to the worsening of economic conditions, and created economic difficulties for Armenia 
in its transition to a market- based economy.  
2.2.  With the help of the World Bank (WB) and the International Monetary Fund (IMF), Armenia's 
path toward economic stability started in 1994. The country  also started to implement serious 
reform programmes to boost economic growth. This included its application to accede to the GATT 
in 1993 and to the WTO in 1995. Mor eover, following the collapse of the rouble due to rampant 
hyperinflation, the November 1993 introduction of the new currency –  the dram -  marked the start 
of a return to economic stability.  
2.3.  Armenia signed several cooperation agreements and assistance programmes with the 
European Union, including the Partnership and Cooperation Agreement between Armenia and the 
European Union (signed in 1996), the European Neighbourhood Action Plan (adopted in 
November  2006), the Country Strategy Paper 2007- 2013 and the Nat ional Indicative Programme. 
In this respect, Armenia has undertaken a comprehensive reform of much of its legislation, 
institutions and policy implementation , to bring them into line with those of the E uropean Union. 
The objective of much of the reform has  been to improve trade and economic ties with the 
European Union. On 24  November 2017, the Comprehensive and Enhanced Partnership Agreement 
(CEPA) between the Republic of Armenia and the European Union was signed.  
2.4.  On 10 April 2013, Armenia signed a memoran dum of mutual cooperation with the Eurasian 
Economic Commission (EEC) to review issues of mutual interest. On 3 September 2013, Armenia 
issued a declaration of intention to join the Customs Union (CU) and then to participate in the 
formation of the Eurasia n Economic Union (EAEU). The Treaty on the Accession of Armenia to the 
EAEU was signed on 10 October 2014 and came into force on 2 January 2015.  
2.2  General Framework  
2.5.  The Constitution of the independent Republic of Armenia was adopted on 5 July 1995, since 
then it has been amended twice: once on 27  November 2005; and on 6 December 2015. The 2015 
amendments, except for several provisions in Article 209 of the Constitution, entered into force on 
22 December of the same year1 and resulted in the transition from a semi-presidential form of 
governance to a parliamentary model.  
2.6.  According to the last constitutional amendments, the P resident of Armenia is the head of 
State , and is elected by the National Assembly  for a term of seven years . The same person may be 
elected as President only once. The last Presidential election was held in accordance with the new 
Constitution on 2 March 2018. The President may not hold other positions or perform other paid 
work, and may not hold membership in any political party.  
2.7.  In the are a of foreign policy, the powers of the President include:  
- To conclude international treaties, upon recommendation of the Government;  
- To appoint diplomatic representatives  and send them  to foreign states and international 
organizations, upon the recommendat ion of the Prime Minister;  
                                                
1 Amendments to the Constitution of the Republic of Armenia; Armenian Legal Information System 
(ARLIS) , online information. Viewed at: http://www.arlis.am/DocumentView.aspx?docid=108723 .  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  - To receive letters of credence and letters of recall of diplomatic representatives to 
foreign states and international organizations;  
 
- Upon recommendation of the Government, in the cases and under the procedure 
prescribed by law,  approve, suspend or revoke international treaties not requiring 
ratification; and  
- Upon recommendation of the Prime Minister, in the cases and under the procedure 
prescribed by law, confer the highest diplomatic ranks.  
2.8.  In the area of the armed forces, the powers of the President include appointing and 
dismissing the supreme command of the armed forces and of other troops, and conferring the 
highest military ranks upon recommendation of the Prime Minister and in the cases and under the 
procedure prescribed by law.2 
2.9.  The National Assembly is the representative body of the people, and implements the 
legislative power. It consists of at least 101 deputies who are elected for a term of five years 
through a proportional electoral system. The last election was held  on 2 April 2017. The Assembly 
is required to  establish standing committees for the preliminary discussion of draft laws and other 
issues falling under its competence , and for submission of opinions thereon to the National 
Assembly, as well as for the exer cise of parliamentary supervision. It  exercises supervision over 
the executive power and adopts the state budget. It elects the President and the judges of the 
Constitutional Court. It  ratifies, suspends and revokes international treaties (Article 116).3 
2.10.   The court system in Armenia is based on the Judicial Code. A new Constitutional Law on 
Judicial Code was adopted on 7 February 2018 and entered into force on 9  April 2018. Courts 
operating in Armenia are the Constitutional Court, the Court of Cassation, cou rts of appeal, courts 
of first instance of general jurisdiction, and the Administrative Court (Article 163 of the 
Constitution). Other specialized courts may be established in the cases provided for by law4 and 
the new Judicial Code envisages the establishment of a b ankruptcy court.5 In accordance with 
Article 169 .20 of the Judicial Code , the Court of Bankruptcy is to come into operat ion on 
1 January  2019, and its  judges, including the Chairperson of the Court of Bank ruptcy, who are to 
be appointed prior to that, shall be deemed to have assumed office from that date . 
2.11.   The courts of first instance of general jurisdiction are responsible for settling all cases, 
except those  under the jurisdiction of specialized courts.  The specialized courts are the 
Administrative Court, which has  jurisdiction to examine the cases provided for by the 
Administrative Procedure Code,  and the Court  of Bankruptcy, which will examine all the cases 
envisaged by the laws regulating bankruptcy -related relations. Th courts of appeal will, within the 
scope of their powers, review the final (conclusive) judicial acts of the courts of first instance  of 
general jurisdiction . There are three types of c ourts of appeal: Civil;  Administrative ; and Criminal. 
They review judicial acts, according to their specialization. The Court of Cassation is the highest 
judicial body in Armenia, except for constitutional justice issues. It reviews the judicial acts of the 
courts of appeal, in cases prescribed by the law.6 
2.12.   The Law on Constitutional Court was adopted on 17 January 2018 and entered into force on 
9 April 2018. The Constitutional Court administrates constitutional justice and ensures the 
supremacy of the Constitution , including determining the constitutionality of domestic legislation 
and the conformity of international treaties with the Constitution before they are sent to the 
National Assembly for ratification.  
2.13.   The Constitution envisages the establishment of the Supreme Judicial Council, which will be 
an indep endent state body that guarantees the independence of the courts and the judges. The 
                                                
2 Amendments to the Constitution of the Republic of Armenia, 6  December 2015, Chapter (5) , on 
President of the Republic.  
3 Amendments t o the Constitution of the Republic of Armenia, 6  December 2015, Chapter (4) , on 
National Assembly.  
4 Amendments to the Constitution of the Republic of Armenia, 6  December 2015, Chapter (7) , on Courts 
and the Supreme Judicial Council.  
5 Judicial Code, 7 February 2018, Article 2.  
6 Judicial Code, 7 February 2018, Chapter 3 -6. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Supreme Judicial Council is to be composed of 10  members : 5 to be elected by the General 
Assembly of Judges ; and 5 by the National Assembly. In March 2018,  the Council was  formed 
under the procedure established by the Constitution and the Law o n Judicial Code , and 
commenced  operation on 9 April 2018. The powers of the Supreme Judicial Council include 
drawing up and approving the lists of candidates for the posts of judge, i ncluding candidates 
subject to promotion ; proposing to the President candidates for the post of judge subject to the 
President's appointment ; giving consent for the initiation of a  criminal prosecution against a judge 
or for  depriving him /her of liberty w ith respect to the exercise of his /her powers; subjecting a 
judge to disciplinary liability ; and terminating the powers of  a judge.  
2.14.   The Government is the supreme executive body. Its responsibilities include the development 
and implementation of domestic an d foreign policies. It is composed of the Prime Minister, d eputy 
prime ministers, and ministers. The number of d eputy prime ministers may not exceed three, and 
the number of ministers may not exceed 18.  
2.15.   The Prime Minister is appointed by the President of the Republic following nomination by a 
majority of the National Assemble. Within five days of nomination, the Prime Minister is required to 
propose candidates for the posts as deputy prime ministers and m inisters. The President may then 
appoint these candidates to their posts or apply to the Constitutional Court to examine the 
applications and make a decision on their appointments.7 In accordance with Article 212 of the 
Constitution, the Government must su bmit its resignation to the newly -elected President on the 
day the President assumes office, as happened on 9 April 2018. The President is then required to 
accept the Government’s resignation and, within seven days, after resignation, a parliamentary 
major ity must nominate a candidate for Prime Minister to be discussed by the National Assembly 
the day af ter nomination, as happened on 17 April 2018. The Government must then be formed 
within 15 days following appointment of the Prime Minister.   
2.16.   In line with the above constitutional procedures, a Prime Minister assumed office on 
9 April 2018. However, on 23 April, following a non -violent revolution, he resigned and new 
elections, held on 1 May were inconclusive as nominees for the post failed to get a majority  of the 
National Assembly, but, f ollowing a session of the National Assembly held on 8 May, a new Prime 
Minister was elected and a new Government formed on 7 June 2018, following the approval of the 
National Assembly.  
2.17.   The Constitutional Court determines th e compliance of commitments in an international 
treaty with the Constitution before the treaty may be ratified by the National Assembly , after 
which the international treaty may enter into force.8 Laws must comply with constitutional laws, 
whereas secondar y regulatory legal acts must comply with constitutional laws and other laws. In 
cases where a conflict exists between norms in an international treaty already ratified by Armenia 
and in any law, the norms of the international treaty shall apply.9 
2.18.   According  to the WB Ease of Doing Business Index, Armenia rank s 47th out of 190 countries 
(October 2017). Armenia' s performance varied from one category to another: e.g., it ranked 15th 
for starting a business and 97th for resolving insolvency.10 On the distance to frontier (DTF) metric 
– which assesses a country's absolute level of regulatory performance on a scale from 0 to 100 
where 0 represents the lowest performance and 100 represents the best – Armenia's score went 
from 71.92 in 2017 to 72.51 in 2018.  
2.19.   Armenia ranked 107th out of 180 countries in Transparency International's 2017 Corruption 
Perceptions Index. According to the Index, businesses face a high risk of corruption, mostly in the 
judicial system and the police sector.11 According to the GAN Business Anti- Corruption Portal, 
                                                
7 Amendments to the Constitution of the Republic of Armenia, 6/12/2015, Chapter (6) on Government.  
8 Amendments to the Constitution of the Republic of Armenia, 6 December 2015, Chapter (4), 
Article  116, on National Assembly; and Chapter (7), Article 168/3, on Courts  and the Supreme  Judicial  Council. 
9 Amendments to the Constitution of the Republic of Armenia, 6 December 2015, Chapter (1), Article 5, 
on Fundamentals on the Constitutional Orders. 
10 World Bank, Ease of Doing Business, Armenia online information. Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/armenia . 
11 Transparency International (2013), Overview of Corruption and Anti -Corruption in Armenia , 
23 August. Viewed at: https://transparency.am/storage/overview -of-corruption- in-armenia -en.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  businesses also face risks of corruption in the tax and customs administrations.12 The Government 
adopted a number of anti -corruption reforms and strategies, such as the Anti-corruption Strategy 
and its action plan for 2015 -2018, a law o n criminalizing illicit enrichment, and a law on whistle -
blower protection . A legislative package on the establishment of a new independent anti-corruption 
body has followed many of the recommendations set by the OECD's Istanbul Anti- Corruption 
Action Plan  and of the Group of Sta tes against Corruption (GRECO).  
2.3  Policy Objectives  
2.20.   On 29 September 2016, the Ministry of Economy became the Ministry of Econom ic 
Development and Investments. Its responsibilities include: overseeing, designing and 
implementing Armeni a's economic, investment and industrial policies; promoting tourism; 
regulating trade and commerce; and administrating work relating to Armenia's membership in the 
EAEU and the WTO, and economic relations with the European Union.  
2.21.   Armenia's Development Str ategy 2014- 2025 (ADS) is based on the following four priorities: 
growth of employment; d evelopment of human capital; improv ing the social protection system; 
and institutional modernization of public administration and governance.  In this regard, the main 
objective for the first five years  of the Strategy is to increase employment through the creation of 
quality and well- paid jobs, as well as sustaining economic growth and enhancing 
competitiveness.13 These objectives are to be achieved through, inter alia :  
• Improving the business and investment environment, and promoting investment and 
competitiveness;  
• Increasing the country's international competitiveness;  
• Appropriate monetary policy and deeper financial intermediation; and 
• Better public revenue policy thr ough expanding the tax base (including higher taxes on 
visible wealth and the introduction of a capital gains tax), and better tax collection.  
2.22.   In addition to general economic and social policies, the Strategy also includes direct policies 
aimed at various sectors and areas: 
• Industry and export promotion to encourage a transition from resource -intensive 
industries to knowledge -based industries , focussing initially on diamond -cutting, gold 
smiths, the production of watches, light industry, brandy and wine production, 
pharmaceuticals and biotechnologies, the production of canned foodstuff s, the 
production of mineral waters and juices, engineering/precis ion engineering, and the 
processing of non ‐ferrous minerals;  
• Tourism development to encourage more visitors th rough better infrastructure and the 
reduc tion of  the cost of getting to Armenia through, inter alia , the implementation of 
an "open- skies" approach, and better transport systems within Armenia;  
• Information technology sector growth through: the continued es tablishment of techno 
parks, incubators, and better infrastructure; support to universities; a favourable tax 
policy; support for SMEs and start -ups through training and information; and direct 
support to IT companies offering innovative products or servic es; 
• Agriculture and rural development through a variety of programmes to increase 
production and improve productivity in agriculture while creating off -farm opportunities 
in rural areas. The programmes include support for cultivation in disadvantaged areas, 
irrigation, seeds , and a system of guaranteed prices for some key agricultural 
products; and  
                                                
12 GAN business anti -corruption portal, a compliance management platform for business, Armenia 
Corruption Report. Viewed at: http://www.business -anti-corruption.com/country -profiles/armenia . 
13 Government Decree No 442 -N of 27 March 2014 (Annex), Armenia Development Strategy for 
2014- 2025, Section II.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • Small and medium -sized enterprises  (SMEs), which are to be assisted through several 
programmes including: the continuation and expansion of the system of state 
guarantees for loans for SMEs with the potential to export, substitute for imports, or 
create knowledge; direct support to start -up SMEs; and access to state procurement 
for SMEs.  
2.23.   To achieve these goals, improvement of both the business environment and the investment 
climate will remain the main key areas of the state framework policy, coupled with a significant 
reduction in state intervention.14 These elements are also emphasized in the amended 
Constitution.15 
2.4  Trade Agreements and Arrangements  
WTO  
2.24.   Armenia bec ame the 145th member of the WTO on 5 February 2003.  
2.25.   Before its accession to the EAEU , Armenia had a relatively straightforward tariff structure: 
nearly all tariffs were applied at rates of 0% or 10%. With 100% binding coverage, all tariff lines 
were bound in ad valorem  rates.  
2.26.   Armenia ratified the Trade Facilitation Agreement (TFA) and deposited its instrument of 
acceptance of the Protocol on 20 March 2017. In accordance with Articles 15 and 16 of the TFA, 
Armenia notified provisions for implementation under categories A, B, and C. It requested further 
technical assistance and capacity -building activities relating to three provisions under category C: 
use of international standa rds under Article 10.3;  a single window under Article 10.4;  and freedom 
of transit under A rticles 11.5 to 11.10. It  set indicative dates of 31 December 2020 for the 
implementation of provisions under category C , and 31 December 2018 for the implementation of 
Category B measures.16 
2.27.   Armenia became a party to  the Government Procurement Agreement 1994 (GPA 1994) on 
15 September 2011. In June 2015, it acceded to the Revised Government Procurement Agreement 
(Revised GPA). According to the authorities, Armenia's in tention in joining the GPA was to increase 
transparency, and to promote integrity and competition in the government procurement market. 
Armenia is not a party to the Information Technology Agreement (ITA) and has yet to accept the 
Protocol Amending the TRIPS Agreement.  
2.28.   Armenia's notifications to the WTO since the  last TPR are listed in Table 2.1.  
Table 2.1 Notifications to the WTO, 2013 -17 
WTO agreement  Description of 
requirement  Most recent notification  Date  
Agreement on Agriculture    
Article 18.2  
Article 18.2  
Article 18.3  Table ES:1, Export 
Subsidies  
Table DS:1, Domestic 
Support  
Table DS:2, Domestic 
Support  G/AG/N/ARM/28  
G/AG/N/ARM/23  
G/AG/N/ARM/24  18/05/2018  
13/04/2015  
13/04/2015  
General Agreement on Trade  in Services    
Article V:7  
Article V:7  Regional trade 
agreement  
Regional trade 
agreement  S/C/N/790  
S/C/N/889  05/02/2015  
05/05/2017  
Agreement on the Implementation of Article VI of the GATT 1994 (Anti -Dumping Agreement)  
Article 16.4  
Article 18.5  Semi-annual report  
Laws and regulations  G/ADP/N/308/ARM  
G/ADP/N/1/ARM/3  26/03/2018  
02/11/2016  
                                                
14 ADS, Section IV: Economic Development Strategy.  
15 Amendments to the Constitution of the Republic of Armenia, 6  December 2015, Chapter  (3), 
Article  86, on the Main Objectives of State Policy . 
16 WTO document G/TFA/N/ARM/1, 17 August 2017 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  WTO agreement  Description of 
requirement  Most recent notification  Date  
GATT 1994     
Article XVII:4(a)  
 
Article XXIV:7(a) 
Article XXIV:7(a) 
Article XXVIII:5  State trading 
enterprises  
 
Customs Union  
Free Trade Areas  
Market Access, 
Schedule CLV  G/STR/N/13/ARM 
G/STR/N/14/ARM  
WT/REG363/N/1  
WT/REG385/N/1  
G/MA/298  12/02/2013  
 
05/02/2015  
05/05/2017  
30/09/2014  
Government Procurement Agreement 2012    
Article XVI:4  Statistics for 2015  GPA/137  06/05/2016  
Agreement on Rules  of Origin  
Annex II, paragraph 4  Notification  G/RO/N/162  21/07/2017  
Agreement on Subsidies and Countervailing 
Measures    
Article 25.1 –Article XVI:1  
Article 25.11  
Article 32.6  New and full 
notification 
Semi-annual report  
Laws and regulations  G/SCM/N/284/ARM  
G/SCM/N/305/ARM  
G/SCM/N/1/ARM/3  14/04/2015  
21/10/2016  
02/11/2016  
Agreement on Safeguards  
Article 12.1(a)  
 
 
Article 12.6  Initiation of 
investigation 
 
Laws and regulations  G/SG/N/6/ARM/1 
G/SG/N/8/ARM/1 
G/SG/N/10/ARM/1 
G/SG/N/11/ARM/1  
G/SG/N/1/ARM/3  16/01/2015  
 
 
02/11/2016  
Agreement on Technical Barriers to Trade    
Article 2.9  
 Notification  
 G/TBT/N/ARM/86  
G/TBT/N/ARM/85  
G/TBT/N/ARM/84  
G/TBT/N/ARM/83  
G/TBT/N/ARM/82  
G/TBT/N/ARM/81  
G/TBT/N/ARM/80  
G/TBT/N/ARM/79  
G/TBT/N/ARM/78  
G/TBT/N/ARM/77  
G/TBT/N/ARM/76  
G/TBT/N/ARM/75  
G/TBT/N/ARM/74  16/07/2018  
16/07/2018  
30/05/2018  
06/11/2017  
11/09/2017  
11/09/2017  
10/05/2017  
18/01/2017  
27/10/2016  
24/10/2016  
09/06/2016  
09/06/2016  
14/01/2016  
Agreement on Sanitary and Phytosanitary Measures  
Article 7  G/SPS/N/ARM/28  16/07/2018  
 G/SPS/N/ARM/27  29/05/2018  
 G/SPS/N/ARM/26  12/03/2018  
 G/SPS/N/ARM/25  12/03/2018  
 G/SPS/N/ARM/24  03/12/2008  
Agreement on Trade Facilitation (TFA)    
Articles 15 & 16  Notification of 
category 
commitments  G/TFA/N/ARM/1  17/08/2017  
Source:  WTO Secretariat.  
2.29.   Armenia has directly participated in one WTO dispute settlement case. It was a respondent 
to a complaint brought by Ukraine relating to measures affecting the importation and internal sale 
of cigarettes and alcoholic beverages (Table 2.2).  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 2.2 WTO dispute settlement cases 
Subject  Respondent/  
Complainant  Request for 
consultatio
n received  Status (as at 
31/07/2018 ) WTO 
document 
series  
Armenia/Measures 
Affecting the 
Importation and Internal 
Sale of Cigarettes and 
Alcoholic Beverages  Armenia/Ukraine  20/07/2010  Complainant requests 
consultation with 
respondent, no panel 
established and no 
withdrawal or mutually 
agreed solution notified  WT/DS411  
Source:  WTO Secretariat. 
2.30.   Armenia has not made any tariff rate quota commitments or reserved the right to use the 
special agricultur al safeguard (SSG) for any agricultural products in its schedule of concessions. 
Moreover, it has no agricultural export subsidy commitments. Armenia made a commitment in its 
Working Party Report to not seek recourse to the investment, input, and diversification of 
agricultural subsidies provided for under Article 6.2 of the Agreement on Agriculture for developing 
countries. Armenia accep ted a de minimis  limit of 5% of the value of agricultural production for 
calculating its Current Total Aggregate Measurement of Support.  
2.31.   Armenia's schedule of specific commitments under the GATS covers all sectors, except 
postal and maritime services (as it is a landlocked country). There are limitations on foreign 
natural persons owning land. All businesses in Armenia are required to register with the State 
Register of Legal Entities. They can register electronically through the e lectronic register in 
Armenia's portal .17 
2.32.   Armenia is a landlocked country and two of its four borders are closed, i.e. Azerbaijan and 
Turkey. Transport policy is the responsibility of the Ministry of Transport, Communication, and 
Information Technologies. The Ministry plays an important role in ensuring transport routes 
through the northern border with Georgia and the southern border with Iran.  
2.33.   Since the last R eview, the Permanent Mission of Armenia to the WTO remains limited to one 
official, the Permanent Representative (PR). The P R is responsible for trade and economic issues, 
including: WTO matters; economic and trade matters in other international o rganizations based in 
Geneva (for example, UNCTAD, WIPO and UPOV); and bilateral trade between Armenia and 
Switzerland.  
Regional trade a greements  
2.4.2.1  Eurasian Economic Union (EAEU)  
2.34.   In December 2013 the road map for Armenia to join Belarus, Kazakhstan and the Russian 
Federation and accede to the EAEU. The aim was to harmonize Armenia's legislation with the legal 
framework of the EAEU. The majority of the measures envisaged in the road map were 
implemented and, based on the Treaty of Accession,  Armenia became the fourth member State of 
the EAEU on 2 January 2015. The Kyrgyz Republic acceded to the EAEU later in the same year, on 
12 August 2015.  
2.35.   In accordance with the Treaty on Accession to the EAEU, exemptions with regard to the 
payment of import duties , provided for under international treaties concluded with Armenia before 
1 January 2015 (including in the implementation of programmes under such international treaties 
after 1 January 2015), will continue to apply in accordance with those international treaties. Under 
Article 114 of the EAEU Treaty, bilateral international treaties between the member states 
envisaging deeper integration than the provisions of the EAEU Treaty or international treaties 
within the Union , or stipulating any additional benefits for their natural and/or juridical persons , 
shall be applied between the contracting states.  
                                                
17 Government of the Rep ublic of Armenia online information. Viewed at:  
https://www.e -register.am/en/ . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  2.36.   The E urasian Economic Commission (EEC)  is the s upranational regulatory body responsible 
for the implementation of  external trade policy and its regulation for the member States  of the 
EAEU . The EAEU is more comprehensive than its predecessor a greement, the Eurasia Economic 
Community (EAEC), in both siz e and substantive scope. The EAEU provides for the free movement 
of goods, services, capital and labour, and for coordinated and agreed common policies in a 
number of areas. To a certain extent, the EAEU guides the trade policy reform agenda of Armenia.  
2.37.   The EAEU Treaty expands the competence of the EEC into a number of new policy areas, 
including financial services and agricultural policy. Beyond these areas, the EAEU Treaty commits 
the parties to harmonizing national policies over time in the areas of fin ancial regulation, monetary 
policy, macroeconomic policy, competition, transportation and rail policy, labour migration policy, 
and policies regulating their markets for oil and gas. It also aims to promote the harmonization of 
the electricity markets with in the EAEU.  
2.38.   When Armenia joined the EAEU, authority over many aspects of its foreign trade regime was 
transferred to the EEC. Some of these issues include import tariff rates, trade in transit, non -tariff 
measures (e.g. tariff -rate quotas, import licensing, and trade remedy procedures), customs 
policies (customs valuation, customs fees, and country of origin determinations), border 
enforcement of intellectual property rights ( IPRs), the establishment and administration of special 
economic and indus trial zones, and the development of technical regulations and SPS measures.  
2.39.   One of the EAEU's main functioning principles is the formation of the unified trade regime 
with third countries. Negotiations on issues falling under EAEU competence, notably trade  in 
goods, are held by a single delegation comprised of representatives of all EAEU member States 
and the EEC. Negotiations on issues that do not fall within the competence of the EAEU, such as 
trade in services and investment, are held by the EAEU members  exclusively. The decision to 
launch negotiations on trade in goods with other countries is made by consensus by the Supreme 
Eurasian Economic Council (SEEC) on the basis of conclusions presented in the final report by the 
relevant joint feasibility study group.  
2.40.   According to information provided by the authorities, Armenia and its EAEU partners are 
negotiating free trade agreements (FTAs) 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 trade -economic cooperation, and with I ran on 
a temporary agreement leading to an FTA. Both agreements were signed in Kazakhstan on 
17 May 2018, with entry into force foreseen by the end of the year.  
2.41.   As a result of accession to the EAEU , Armenia is currently engaged under Article XXIV:6 of 
the GATT ( Section 3.1.4), in negotiations with other WTO M embers on a compensation and 
adjustment package.  
2.4.2.2  Bilateral agreements  
2.42.   Armenia has eight  bilateral RTAs (FTAs) in force, with Georgia, the Republic of Tajikistan, 
the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Moldova, 
Turkmenistan, and Ukraine. All have been notified to the WTO except for the agreements with 
Belarus and Tajikistan. Bilateral agreements can continue to exist provided that they do not 
contradict the EAEU.  
2.4.2.3  Commonwealth of Independent States  (CIS)  
2.43.   Armenia is a signatory to a t reaty on a free trade area on goods between members of t he 
CIS, which also includes: Belarus; Kazakhstan; the Kyrgyz Republic; Moldova; 
the Russian  Federation; Tajikistan; Ukraine ; and Uzbekistan (since 2014). This treaty was signed 
on 18 October 2011, and entered into force on 20 September 2012 (for Armenia,  on 17 October 
2012).18 It substantially eliminated all duties on goods traded between member states of the FTA, 
and it abolished quantitative restrictions on imports from members. It  contains provisions on rules 
of origin, government procurement, freedom of transit, safeguard measures, anti -dumping and 
                                                
18 RTA Database, Armenia, the Treaty on a Free Trade Area between members of the Commonwealth of 
Independent States (CIS). Viewed at: http://rtais.wto.org/UI/PublicShowMemberRTAIDCard.aspx?rtaid=762 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  countervailing measures, granting of subsidies, technical barriers to trade, sanitary and 
phytosanitary measures, balance of payments, and dispute settlement.19  
Other a rrangements  
2.4.3.1  European Union  
2.44.   In addition to being eligible for the European Union's GSP+ arrangement, Armenia has a 
number of agreements with the E uropean Union covering a broad range of political, social, cultural 
and economic issues.  
2.45.   On 24 November 2017, Armenia and the European Union signed the C omprehensive and 
Enhanced Partnership Agreement (C EPA) which b oth parties have ratified and which has been  
provisionally applied since 1 June 2018. The aim of the A greement is to strengthen the 
comprehensive political and economic partnership and cooperat ion between the sides , based on 
common values and close ties, raising Armenia's participation in EU policies, programmes, and the 
works of agencies. In CEPA, t he parties reaffirm ed their commitment to free market economy 
principles, sustainable development , regional cooperation, and effective multilateralism.  
2.4.3.2  Generalised System of Preferences  (GSP)  
2.46.   Armenia has GSP arrangements with Canada, Japan, Norway, Switzerland, and the United 
States.20 Since 1 January 2009, it has had GSP+ status with the European Union.  
2.5  Investment Regime 
2.47.   The Ministry of Economic Development and Investments is the main government body 
responsible for the development of the investment policy in Armenia. Since the last R eview, the 
Law on Foreign Investment of 1994 remains the main legal act regulat ing investment. It provides 
general provisions and the legal regulation of foreign investment. Chapter II of the Law regulates 
the state guarantee concerning the protection of foreign investments. A new law is currently being 
considered by the National Assembly. If adopted,  it will replace the existing L aw. The text of the 
new law is available in English on the Ministry's website.  
2.48.   Armenia follows the "open door" principle with res pect to its investment policies. Elements 
in the policy include: the liberalization of investment activities; the protection of investors; and 
granting of national treatment and most favoured nation treatment to foreign investors and 
investments . The overa ll objectives are: to improve the investment environment; to improve the 
legal framework; and to promote investment, including f oreign direct investment (FDI). The 
ultimate goal is to create favourable investment and a business -friendly environment; to inc rease 
regulatory transparency; to promote Armenia's competitive advantages; to develop market 
infrastructure; to create high quality and high paid jobs; to develop human capital; and to provide 
sustainable economic growth.21 
2.49.   To achieve these goals, Armenia adopted, on 8 October 2015, the Investment Policy 
Concept, and a timetable of activities. This C oncept was designed to: describe the investment 
environment in the country; define the main goals; and set the principles and directions for their 
implementation. It also recommends solutions to solve problems and meet defined goals with 
regard to the investment environment in Armenia.22 
                                                
19 Treaty on a Free Trade Area (St. Petersburg, 18 October 2011), the Treaty on a Free Trade Area  
between members of the CIS . 
20 UNCTAD (2015) lists Canada, the E uropean Union, Japan, Switzerland, and the United S tates as 
having GSP arrangements with Armenia. The Norwegian and EU Customs include Armenia as eligible for GSP 
and GSP+ . UNCTA (2015), Gener alized System of Preferences – List of Beneficiaries , Geneva, February. 
Viewed at: http://unctad.org/en/PublicationsLibrary/itcdtsbmisc62rev6_en.pdf .  
21 Ministry of Economic Development and Investments, Investment policy, online information. Viewed 
at: http://mineconomy.am/en/96 .  
22 Appendix o f the Protocol Decree of the Government No . 45, 8 October  2015; The Concept Paper of 
the Investment Policy of the Republic of Armenia. Viewed at: 
http://mineconomy.am/media/2017/05/1962.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  2.50.   The Development Foundation of Armenia (DFA) was established in 2015 as a result of a 
merger between the Armenian Development Agency (ADA), the Industrial Development 
Foundation (IDF), and the National Competitiveness Foundation of Armenia (NCFA). The DFA is the  
national authority for the  promoti on of investment and export. The highest management body of 
the DFA is the Board of Trus tees; the Prime Minister is the ex officio president and a member of 
the board. The Head of the Financial -Economical Department of the Government Staff of Armenia 
is also an ex officio  member of the Board. The DFA works on two main pillars: (i) attracting foreign 
investment; and (ii) increasing exports. It is described as a one -stop shop for investors ; it works 
to attract investors, and provides post- investment services to them. It provides information on 
Armenia's business climate, investment opportunities and relevant legislation. It also helps 
investors with project implementation and government coordination. As for the second pillar, the 
DFA assist s exporters in promoting their products, and in finding appropriate global markets for 
their exports. It also assists them in increasing their export volume . It diversifies export markets 
through promoting Armenian products in international trade fairs. It also provides limited financia l 
assistance to businesses through special government programmes.  
2.51.   A new platform for investment projects was launched to attract investors to Armenia,  and to 
present existing projects in Armenia to potential investors. It  was launched in  April 2018 by the  
Ministry of Economic Development and Investments,  in collaboration with Business Armenia and 
the UNDP. Investors can view implemented investment projects , as well as projects under 
implementation. They can submit their own investment projects, by filling out an application form 
in the website.23 
2.52.   Companies  registered by a foreigner in Armenia have the right to buy land. Although foreign 
citizens are not allowed to own land, they may take out long -term leases. Armenia also does not 
require prior screening or specific authorization for investment. I mported machinery equipment 
and raw materials of industrial significance are  exempt  from VAT at the border. There are a 
number of incentives available for investment projects.  Armenia has no restrictions on the 
repat riation of profits or  staff recruitment ; and it has  no foreign exchange controls.  
2.53.   Armenia adopted the  Law on Free Economic Zones on 25 May 2011. This Law aims to 
regulate the establishment, organization, and operation of free economic zones (FEZs) in Arme nia. 
FEZs may be  established by government decision s, which includ e, inter alia , the objectives of the 
establishment of the FEZ ; the operational type and types of activities; qualifying standards; and 
the investment programme for establishment.24 There are currently three FEZs in Armenia. The 
Alliance FEZ was launched in 2013 , and is oriented towards  the production and export of high and 
innovative technologies. The Meridian FEZ was launched in March 2015 , and  was designed as an 
infrastructure for  jewellery, diamond- cutting and watch -making manufacturing companies.25 In 
December 2017, the Meghry FEZ was established in the south of the country on the border with 
Iran. Tax breaks and other incentives are regulated at the national level by EAEU member States. 
Companies operating in FEZs are fully relieved from corporate income tax, property tax, profit tax, 
and custom duties, as well as VAT for services delivered to the organizer and operator and 
products in the territory of the FEZ . In determining the taxable income of a taxpayer who has been  
an FEZ operator for a full year, aggregate income is reduced by the amount of income received 
from activities conducted in the FEZ . 
2.54.   Article (6) of the Law on the Establishment of a Unified Financial Regulation and Supervision 
Framework, which was adopted on 22 December 2005 and came into force on 1 January 2006, 
terminated the Securities Commission and the  authorities that were in charge of regulating the 
securities market. The L aw entitled the Board of the Central Bank of Armenia to take over the 
authorities and functions of the Securities Commission.  
2.55.   According to the official website of the Ministry of Economic Development and Investments , 
Armenia has signed bilateral treaties on the reciprocal promotion and protec tion of investment with 
42 countries . Armenia is also a signatory of the International Convention on Investment Disputes. 
In addition, it has investment treaties and double taxation treaties with a number of countries  
                                                
23 Invest in Armenia. Viewed at: http://investmentprojects.am/ . 
24 Law on Free Economic Zones, adopted on 25 May 2011. Viewed at: 
http://mineconomy.am/media/2017/03/994.pdf . 
25 The Ministry of Economic Development and  Investments, Investment Policy Department, Armenia 
Free Economic Zones. Viewed at:  http://www.mineconomy.am/hy/360 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  (Table 2.3 and Table 2.4) . Armenia also singed two new double taxation treaties with Egypt and a 
revised agreement with India that are not yet effective and initialled treaties with Oman, 
Seychelles, Uzbekistan, Malta, Israel , Kyrgyz Republic and Denmark. The author ities also indicated 
that th ey are currently negotiating a number of new treaties with several countries. The benefits of 
the double tax treaties are easy to access by providing supporting documentation of residency 
from foreign tax authorities.  
Table 2.3 Countries having bilateral investment treaties for the promotion and 
protection of foreign investments with Armenia  
No. Country  Signed  Validated  Entere d into force  
1 Argentina  16.04.1993  27.09. 1993 10.10.1994  
2 Austria  17.10.2001  09.10.2002  01.02.2003  
3 United States  23.09.1992  26.09.1995  29.03.1996  
4 Bulgaria  10.04.1995  29.08.1995  27.03.1996  
5 Belgium -Luxembourg  07.06.2001  20.02.2002  19.12.2003  
6 Germany  21.12.1995  23.06.1997  04.08.2000  
7 Iran 06.05.1995  14.11.1995  26.02.1997  
8 Lebanon  01.05.1995  29.08.1995  01.10.1998  
9 Canada  08.05.1997  17.03.1999  29.03.1999  
10 Cyprus  18.01.1995  12.06.1996  03.08.1998  
11 India 23.05.2003  27.04.2004  30.05.2006  
12 Greece  25.05.1993  13.10.1993  28.04.1995  
13 Kyrgyzstan  04.07.1994  29.08.1995  26.11.1995  
14 United Kingdom  27.05.1993  13.10.1993  11.07.1996  
15 China  04.07.1992  06.10.1992  17.03.1993  
16 Romania  20.09.1994  11.10.1995  24.12.1995  
17 Viet Nam 01.02.1993  28.04.1993   
18 Georgia  04.06.1996  18.02.19 97 18.01.1999  
19 Ukraine  07.10.1994  16.01.1996  07.03.1996  
20 France  04.11.1995  05.08.1996  21.06.1997  
21 Italy 23.07.1998  11.10.2000  12.12.2000  
22 Switzerland  19.11.1998  09.10.2002  04.11.2002  
23 Israel  19.01.2000  21.03.2001  25.06.2003  
24 Qatar  22.04.2 002 23.10.2002  08.10.2007  
25 Tajikistan  03.04.2002  04.11.2002  18.11.2002  
26 Russian Federation  15.09.2001  02.12.2005  08.02.2006  
27 Belarus  26.05.2001  21.11.2001  10.02.2002  
28 United Arab Emirates  20.04.2002  04.11.2002  Has been replaced by 
the treaty of 2016  
29 Uruguay  06.05.2002  25.03.2003  15.12.2013  
30 Finland  05.10.2004  27.02.2007  20.04.2007  
31 Turkmenistan  19.03.1996  -  
32 Egypt  09.06.1996  08.12.2005  21.02.2006  
33 Netherlands  10.06.2005  02.12.2005  01.08 .2006  
34 Latvia  07.10.2005  27.02.2007  21.04.2007  
35 Sweden  08.02.2006  25.02.2008  01.05.2008  
36 Kazakhstan  06.11.2006  25.02.2008  01.08.2010  
37 Syria 17.06.2009  16.11.2009  26.04.2010  
38 Kuwait  25.06.2010  18.03.2018  04.09.2013  
39 Trade and Investment Framework 
Agreement between the Government 
of the Republic of Armenia and the 
Government of the United States of 
America  07.05.2015  04.11.2015  13.11.2015  
40 Lithuania  25.04.2006  27.02.2007  16.07.2016  
41 Iraq 07.11.2012  17.06.2016  16.07.2016  
42 Jordan  29.10.2014  23.10.2017  22.11.2017  
43 United Ara b Emirates  22.07.2016  19.10.2017  21.11.2017  
(the treaty has replaced 
the agreement of 2002)  
44 Japan  14.02.2018    
Source:  Ministry of Economic Development and Investments: Viewed at: 
http://www.mineconomy.am/media/2018/01/2802.pdf . 
  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 2.4 List of countries having double taxation treaties with Armenia, signed, and in 
force  
Treaty partner from Tax Service website  Signed  In force  
   
Austria  27.02.2002  01.04.2004  
Belarus  20.07.2000  19.11.2001  
Belgium  07.06.2001  23.09.2003  
Bulgaria  10.04.1995  01.12.1995  
Canada  26.06.2004  29.12.2005  
China  05.05.1996  30.11.1996  
Croatia  22.05.2009  18.02.2010  
Cyprus  17.012011  19.09.2011  
Czech Republic  06.07.2008  15.07.2009  
Estonia  13.04.2001  23.01.2003  
Finland  16.10.2016  30.12.2007  
France  09.12.1997  01.05.2001  
Georgia  18.11.1997  03.07.2000  
Greece  12.05.1999  18.07.2002  
Hungary  10.11.2010  26.10.2010  
India 27.02.2002  01.04.2004  
Iran 06.05.1995  10.07.199 7 
Italy 14.06.2002  05.05.2008  
Kazakhstan  06.11.2006  19.01.2011  
Latvia  15.03.2000  26.02.2001  
Lebanon  16.09.1998  13.12.2000  
Lithuania  13.03.2000  26.02.2001  
Luxembourg  23.06.2009  09.04.2010  
Moldova  16.10.2002  01.01.2005  
Netherlands  31.10.2001  22.11.20 02 
Poland  14.07.1999  28.02.2005  
Qatar  22.04.2002  06.11.2007  
Romania  25.03.1996  25.08.1997  
Russian Federation  28.12.1996  17.03.1998  
Switzerland  12.06.2006  07.11.2007  
Syria 29.06.2005  11.12.2006  
Thailand  07.11.2001  12.11.2002  
Turkmenistan  05.06.1997  30.12.1999  
Ukraine  14.05.1996  25.11.1996  
United Arab Emirates  20.04.2002  19.12.2004  
Indonesia  12.10.2005  12.04.2016  
Slovenia  11.10.2010  23.04.2013  
Tajikistan  30.06.2005  02.07.2016  
Kuwait  30.11.2009  12.04.2013  
Spain  16.12.2010  21.03.2012  
United Kingdom  13.07.2011  21.02.2012  
Ireland  14.07.2011  19.12.2012  
Serbia  10.03.2014  03.11.2016  
Slovak Republic  15.05.2015  01.02.2017  
Sweden  09.02.2016  29.01.2017  
Germany  29.06.2016  01.01.2017  
Source:  Armenia authorities and Tax Service of the Republic of Armenia online information. Viewed at: 
http://www.petekamutner.am/Content.aspx?itn=tsTLDoubleTaxationAvoidance  
 WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.  During the current review period, the major change to the implementation of Armenia's trade 
policy was its accession to the Eurasian Economic Union (EAEU).1 The Accession Treaty was signed 
on 10 October 2014; and, following the completion of ratification procedures , it entered into force 
on 2 January 2015 when Armenia became a member of the EAEU. Among members2 of the EAEU, 
a customs union with a single internal market for goods, common customs regulations and a 
common external trade regime are  in operation. All Arme nian foreign trade regulations, including 
customs legislation, are thus primarily based on rules established at the supranational level of the 
EAEU. National competence in the many areas of trade policy was effectively transferred to the 
Customs Union (CU)  level in May 2012 a nd then the EAEU level in 2015.  
Customs procedures under the new EAEU Customs Code  
3.2.  Armenia 's Customs Code (2001) was replaced by the Customs Code of the CU  in 2015. 
Pending the adoption on entry into force of the EAEU Customs Code, the Customs Code of the CU 
applied during the period 1 January 2015 to 31 December 2017. The EAEU Customs Code entered 
into force on 1 January 2018 along with numerous decisions of a supranational nature.3 The Code 
is composed of nine sections, which cover: ge neral provisions; customs payments and contingency 
measures; customs formalities; customs procedures; movement of certain types of goods across 
the Union 's customs border; customs control; customs authorities; authorized economic operators  
(AEOs); and transition provisions. A notable feature of the new system is its digital nature, 
replacing paper copies. Customs regulations are also provided by domestic legislation and remain 
in force to the extent that they do not conflict with the EAEU  Customs Code . 
3.3.  According to the authorities, the EAEU Customs Code is based on generally accepted 
international rules including the Revised Kyoto Convention . The Code is the principal legal 
document governing EAEU customs administration and procedures, including the rights a nd 
obligations of national customs authorities, importers and exporters. It contains detailed provisions 
related to customs control, operations, payments and various types of customs procedures 
(e.g. release for domestic use, export, re- importation and re -exportation, inward and outward 
processing, temporary imports or exports, and use of customs warehouses). It also includes 
WTO-related rules and disciplines on customs valuation, rules of origin, customs fees, special 
economic zones  (SEZs), trade in transi t, the protection of intellectual property rights (IPRs) at the 
border, and the right of appeal against customs decisions.  
3.4.  The Union uses a fixed customs revenue sharing mechanism, irrespective of the entry point , 
with the following ratio:  Armenia 1.22%, the Republic of Belarus 4.56%, Kazakhstan 7.055%, 
Kyrgyz Republic, 1.9%, and the Russian Federation 85.265%.  The revenue is to be distributed on 
the next business day following the payment of the import duties.  
3.5.  The State Revenue Committee (SRC) continues t o be responsible for tax revenue collection 
and customs administration.  
3.6.  The EAEU Customs Code is intended to ensure uniform rules and customs operations for all 
EAEU member States; it also provides additional facilities for foreign declarants as compared to 
the Code previously in force. Its main innovations are as follows:  
• Customs declarations and clearance procedures should be performed electronically  from 
2020. Hard copies of documents will be allowed only in certain cases , such as imports for 
personal u se, goods under transit arrangements, and doubt following the risk 
assessment system (Article 10 4 of the Customs Code);  
                                                
1 Armenia and the Russian Federation notified the "Treaty on Accession of the Republic of A rmenia to 
the Treaty on the Eurasian Economic Union as of 29 May, 2014" under both Article XXIV of the GATT 1994 and 
Article V of the GATS (WT/REG363/N/1 and S/C/N/790). 
2 From 2015, the EAEU comprised the territories of Russia, Belarus, Kazakhstan, Kyrgyz stan and 
Armenia.  
3 These will replace the previously applied 2009 Customs Code of the CU and some international 
agreements covering customs regulation, used during the earlier stages of economic integration. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • The creation of a single window for all customs operations by economic operators;  
• Automatic release of goods (without direct participa tion of the customs authorities) 
within four hours from the registration of the customs declaration ( in exceptional cases, 
this can be up to one working day );  
• Customs declarations may be submitted prior to the arrival of the good at the delivery 
point set by the customs authority – previously , prior declarations were required before 
importation into the EAEU 's customs territory. Reasons for denying the release of goods 
subject to a preliminary customs declaration include any changes applicable to the tariff, 
taxes or procedures for granting privileges for their payment, and internal market 
protection;  
• The preliminary determination of the customs value of goods is now  made before 
customs clearance; 
• Operators may defer payment of customs duties and taxes during customs clearance of 
goods;  
• A customs declaration must be registered by the SRC no later than one work ing hour 
from submission of the declaration. Registration may be denied in a number of cases, 
including failure to comply with the customs declaration form , or its inappropriate 
compilation. The reasons for such a denial and appropriate corrective measures  must be 
specified;  
• Common, supranational customs procedures replace previous nationally -regulated 
procedures as regards special free -zones and free warehouse customs procedures;  
• The status of declarants for foreign legal entities is regulated. Representa tive offices and 
branches of foreign legal entities are authorized to declare goods only as part of the 
procedure of the release of goods for their own consumption; and  
• Any legal entity incorporated under the legislation of an EAEU member State involved in  
international trade can apply for AEO status, recognized throughout the Union on the 
basis of a self -assessment questionnaire. Such status is granted upon the recognition by 
the national customs authority of compliance with international safety standards;  a 
registry of AEOs was  also established.  
3.7.  According to the authorities, the EAEU Customs  Code was designed to simplify customs 
clearance procedures for importers and exporters , and meet the requirements of the EAEU 
business community. In the EAEU Customs Code, the  preliminary information system has been 
improved, AEOs were categorized,  the priority of electronic declaration s was introduced, etc. In 
addition, a mendments at national legislation level were made to introduc e an electronic declaration 
system an d, from April 2018,  a pilot project was introduced to this affect. Before the EAEU 
Customs Code entered into force , the authorities organized training on the legislative  changes , 
both for customs officials and the business community , to enhance their under standing of the 
changes. Also, the SRC set up a c all centre to provide information to the pr ivate sector regarding 
clarifications on customs legislation and procedures. Moreover, the Customs Service is in the 
process of adapt ing its existing infrastructure for future changes through flexible internal 
regulations.  
Customs valuation  
3.8.  The SRC is responsible for applying the regulations on customs valuation.  Since Armenia 's 
accession to the EAEU, issues regarding the customs value of imported goods are determined 
according to Chapter 5 of the EAEU Customs Code.  
3.9.  The dutiable value of goods is the c.i.f. value of imports , and the six methods for determin ing 
customs value are the same as those in the WTO Customs Valuation Agreement. The  fundamental 
basis for determining the customs value of the goods is the transaction value . The alternative 
methods are the value of identical goods, the value of similar goods, the deductive value, the WT/TPR/S/379 /Rev.1  • Armenia  
 
- 36 - 
 
  computed value and, finally, 'reasonable means consistent with the principles and general 
provisions of the Agreement '. Whichever method is used, the objective is to determine the 
customs value based on the real c.i.f. price level. In other words, the customs value should include 
all commissions paid to midd lemen , either by the buyer or the seller, the packing costs, costs of 
transportation to the EAEU border, etc.  
3.10.   According to the authorities, in 2016 , the proportion of consignments using transaction 
value was 64.85%,  and the proportion using  other methods was 35.15%. In 2017,  the proportions 
were 66.13% and 33.87%, respectively.  
3.11.   During the transition period, a n importer may opt to pay customs duties at the EAEU level 
instead – this allows  the resale of the imported exempted products to other EAEU  member St ates.4 
Customs duties are stated at EAEU level, with exceptions for about 966 tariff lines for which a 
transitional period applies during which Armenia applies lower tariff rates. If a product is released 
at one of these lower tariff rates, according to Ar menia's membership agreement with the EAEU, 
the product is considered as conditionally released and it is not treated as an EAEU product. In 
order to be an EAEU product, the difference between tariff rates applied by the EAEU and Armenia 
must be charged, a nd the product may then be resold in other EAEU member States.  
3.12.   In cases of dispute between the importer and the SRC, there is a provision in the L aw on 
Customs Service , according to which decisions made by Customs can be appealed in the Appeal 
Commission of the SRC or in Court. In 2017,  there were seven appeals related to transaction value 
rejection, two of which were satisfied, two were satisfied partially and three were rejected.  
Rules of origin  
3.13.   The country of origin is used to determine the application of tariff and non -tariff measures 
and trade statistics. The legal basis for determining the country of origin is specified in Chapter 4 
of the EAEU Customs Code. For goods that are not wholly obtained, originating status is granted 
on the basis of: (a) a change in tariff classification at the HS four -digit level; (b) a value -added 
requirement, set at a maximum of 50%  of non -originating inputs; or (c) a specific technical 
requirement. Basic operation s (such as mixing, the slaughter of animals, preparation for sale, and 
the packaging of goods) do not qualify as substantial transformation.  
3.14.   As regards trade with third parties, three types of rules of origin may apply: those for 
most-favoured nation ( MFN) trade, Unified System of Tariff Preferences ( USTP ) trade , or for trade 
under regional trade agreements ( RTAs). 
3.15.   Trade with RTA partners is carried out in accordance with the preferential rules of origin of 
the relevant RTA , such as the Free Trade Agreemen t (FTA) between the EAEU and Viet Nam5; if 
these do not exist or have not yet been adopted, the non -preferential rules of origin shall apply 
until such time as RTA -specific rules of origin are adopted.  
3.16.   MFN rules of origin are used in the application of the  common external tariff ( CET), 
non-tariff measures, trade defence measures, labelling, government procurement , and for 
statistical purposes.  
3.17.   Under the USTP, the rules of origin limit non -originating materials to 50% of the exported 
product.  Valuation of imported materials is on the basis of the customs value , while for exported 
products it is on the basis of the ex -factory price. Until future EAEU rules on USTP are adopted, the 
Protocol on the USTP of the CU  of 12 December 2008 will continue to apply with regard to USTP 
country eligibility criteria and procedures for inclusion into the above lists.  
3.18.   Article 37:6 of the EAEU Treaty authorizes the EAEU Commission to act upon false 
declarations of origin. In cases of repeated false declarations of origin by a third party, the 
Commission is authorized to monitor the assessment by customs authorities of member States of 
the correctness of the declaration of origin of goods imported from a particular country. In case of 
                                                
4 This refers to those goods which are included  in Annex 4 to the Treaty on Accession of the Republic of 
Armenia to the Treaty on the Eurasian Economic Union.  
5 EAEU Commission online information. Viewed at: 
http://www.eurasiancommission.org/en/nae/news/Pages/19 -08-2016.aspx . WT/TPR/S/379 /Rev.1  • Armenia  
 
- 37 - 
 
  systematic false declarations of origin, the  Commission is authorized to suspend the acceptance of 
the member State's document certifying the correctness of the declaration of origin. Despite the 
role given to the Commission, member States remain , however , free to check the origin of the 
imported go ods, and to adopt any measure aimed at addressing the results of the assessment . 
3.19.   To qualify for preferential access under the EAEU USTP scheme, imports of eligible products 
require the Certificate of Origin Form A from the competent authorities of the exporting country. 
Importers must request preferential treatment at the time of declaration of the goods , and present 
supporting documentation. Under the Agreement on Rules of Origin of Goods from Developing and 
Least -developed Countries, customs authorities of the importing country may lodge a request with 
the authorities in the country that issued the certificate of origin to provide additional documentary 
proofs. If the certificate or other proof of origin is not accepted, MFN treatment should be applied 
until the origin of the goods is established. The importer can recover the difference in the duties 
paid for a period of one year from the date of over -payment upon the submission of a request to 
the customs office to which duties had been paid.  
3.20.   In the L aw on Customs Service , there is a provision on the appeal s process, according to 
which decisions made by C ustoms can be appealed in the Appeal Commission of the SRC or in  
Court. In 2017,  there were no appeals related to origin matters.  
Tariffs  
3.21.   Armenia 's accession to the EAEU in 2015 has resulted in increased tariffs for the majority of 
imports. Armenia was re quired to harmonize its customs tariffs with those of the EAEU, with 
temporary exemptions for up to five years for 966 tariff lines , including foodstuffs.6 The CET7 of 
the EAEU is based on the applied rates of the Russian Federation and its WTO accession 
commitments. The Eurasian Economic Commission (EEC) is the multilateral entity established by 
EAEU members to handle , inter alia , the harmonization of tariffs, tariff rate quotas , and licensing 
and certification.  
3.22.   As of 29 May 2014, the Treaty on the Accession of the Republic of Armenia to the Treaty on 
the Eurasian Economic Union contains a provision that Armenia shall ensure that goods imported 
into Armenia at lower tariffs than the unified EAEU tariff, will be used only in the territory of 
Armenia and wil l not be re -exported to other EAEU member  States without payment of the 
difference between the respective import tariff rates. Moreover, the Treaty also contains a 
provision that Belarus, Kazakhstan and the Russian Federation  have the right to establish a 
procedure for handling the arrival of such goods into their territory. Armenia must ensure that 
imports of products facing lower tariffs are for domestic consumption , and adopt measures to 
prevent trade deflection.  
3.23.   On 10 December 2014, the EEC issued EEC Council Decision No. 1138, which approves a list 
of transitional import tariff rates for Armenia until 2022.  
3.24.   As shown in Table s 3.1 and A3.1 , the list includes: agricultural items, such as beef, pork, 
poultry, and dairy products; grains, including wheat a nd rice; chemicals; plastic and rubber 
products; textiles; base metals; machinery ; vehicles ; and precision instruments. By 2022, nearly 
all of the listed items, with the exception of some products, will see import tariff increases . 
                                                
6 The full list of the goods for which Armenia negotiated temporary customs tariff exemptions and their 
timing is available in Annex 4 of the Accession of the Republic of Armenia to the Treaty on the Eurasian 
Economic Union. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/ttr/Documents/%D0%98%D0%97%D0%AA%D0%AF%
D0%A2%D0%98%D0%AF%20%D0%A0%D0%90%20%D0%BD%D0%B0%2010.12.2017.pdf.  
7 Article 42 regulates the EAEU's CET, by specifying that EAE U member States have a CET and a 
Common Commodity Nomenclature of Foreign Economic Activity. The CET has ad valorem , specific and 
combined duties. Countries acceding to the EAEU are allowed CET derogations in accordance with the list of 
goods and rates in the country's accession agreement to the EAEU (Article 42:4). Such imported goods are to 
remain in the country, which shall adopt measures to ensure that these are not re -exported to other EAEU 
member States without the payment of the tariff differentials due. 
8 EEC Council Decision No. 113  "On Approval of the List of Goods and Rates that shall be subject to a 
Transition Period during which the Republic of Armenia shall Apply the Rate of Import Customs Duties Differing 
from the Rates of the Unified Customs Tariff of the Eurasian Economic Union " (original in Russian).  WT/TPR/S/379 /Rev.1  • Armenia  
 
- 38 - 
 
  Table 3.1 Transitional import tariffs for Armenia in the EAEU  
(Number of tariff lines by year and HS chapters  to be aligned with the EAEU common tariff) 
  2018  2019  2020  2021  2022  Total  
01 - Live animals and animal products      18   41 59 
02 - Vegetable products    22 13   22 57 
03 - Animal or vegetable fats and oils      3   2 5 
04 - Prepared foodstuff s, beverages and tobacco  2 2 14   3 21 
05 - Mineral products      22     22 
06 - Chemicals  4 10 187     201 
07 - Plastic and rubber, articles thereof  2   12 34   48 
08 - Raw hides and skins, leather      4     4 
09 - Wood and articles of wood      11 3   14 
10 - Paper and paperboard      4 5   9 
11 - Textiles and textile articles      59 46   105 
13 - Ceramic products, glass and glassware      7 3 1 11 
14 - Precious stones, articles thereof        1 10 11 
15 - Base metals and articles thereof  1   48 5   54 
16 - Machinery and electrical machines    2 30 12 3 47 
17 - Vehicles      276     276 
18 - Precision instruments, clocks and watches    9 11     20 
20 - Miscellaneous manufactured articles    1   1   2 
Total 9 46 719 110 82 966 
Note: The number of tariff lines is based on the 2018  tariff schedule in the HS17  nomenclature. 
Source:  Annex 4 to the Treaty on the Accession of the Republic of Armenia to the Treaty on the Eurasian 
Economic Union.  
3.25.   Within the EAEU legal framework, the Treaty on the Multilateral System authorizes 
temporary exceptions to the CET (Article 1:4). However, it also states that " the Parties concerned 
shall consult each other and enter into negotiations with interested WTO Members expeditiously 
with a view to harmonize import tariffs. The Parties shall coordinate their positions and express the 
intention to follow the respective provisions of the WTO Agreeme nt that are applied in case of tariff 
harmonization by the CU" .  
3.26.   A fully harmonized CET is the ultimate aim; renegotiations in case of a breach of bindings 
under GATT Article XXIV:6  are to be carried out by the Party concerned in a coordinated manner 
with other EAEU member States. Under G/SECRET/37 of 4 November 2014,  Armenia has initiated 
procedures under GATT Articles XXIV:6 and XXVIII , to take account of its accession to the EAEU. 
There are 6,536 tariff lines to be renegotiated .  
3.1.4.1  MFN applied tariff  
3.27.   Armen ia continues to apply MFN tariffs to all WTO Members. As shown in Table 3.2, the 
structure of the tariff schedule changed significantly between 2009 and 2018. The structure of the 
2009 applied tariff was simple: no tariff quotas ; 72.6% of all lines were du ty-free and almost all 
the rest were subject to a 10 % tariff rate; non -ad valorem  tariffs were applied to 0.5% of tariff 
lines; and the simple average tariff rate was 2.7% , one of the lowest among WTO M embers.  WT/TPR/S/379 /Rev.1  • Armenia  
 
- 39 - 
 
  Table 3.2 Structure of the MFN tariff schedule 2009 and 2018  
  2009  2018  
Simple average rate (%)  2.7 7.5 
 HS 01 -24 7.8 12.1 
 HS 25 -97 2.0 5.9 
 WTO agricultural products  6.6 12.8 
 WTO non -agricultural products  2.2 6.0 
Duty-free tariff lines (% of all tariff lines)  72.6 19.6 
Simple average of dutiable lines only  9.8 9.4 
Tariff quotas (% of all tariff lines)  0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.5 13.0 
Non-ad valorem  tariffs with no ad valorem  equivalents (AVEs) (% of all tariff lines)  0.5 4.8 
Domestic tariff "peaks" (% of all tariff lines)a 26.7 2.5 
International tariff "peaks" (% of all tariff lines)b 0.0 4.9 
Nuisance applied rates (% of all tariff lines)c 0.0 1.3 
Coefficient of variation  1.6 1.2 
Total number of tariff lines  5,864  12,178  
 Ad valorem  rates  5,835  10,599  
  of which: duty -free rates  4,256  2,383  
 Specific rates  29 567 
 Compound rates  0 13 
 Alternate rates  0 999 
a Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
b International tariff peaks are defined as those exceeding 15 %. 
c Nuisance rates are those greater than zero, but less than or equal to 2 %. 
Note: Including AVEs for non- ad valorem  rates, as available. S pecific rates, for which no AVEs are 
available, are excluded from the calculations. Import value and quantities to calculate AVEs are 
taken from the UN Comtrade database.  
 Out of 1,579 non- ad valorem  rates, 992 AVEs were calculated by the Secretariat. AVE s were 
calculated: for 416 out of 567 specific rates; for 13 out of 13 compound rates; for 563 out of 999 
alternate rates (for the remaining 151 alternate tariff lines , the ad valorem  part is used for the 
calculation).  
 The 2009 tariff is based on the HS07  nomenclature, and the 2017 tariff is based on the HS17 
nomenclature, respectively at 8 - and 10 -digit level s. 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.28.   In 2018, non -ad valorem  import tariffs apply to 1,579 tariff lines , or 13 % of all tariff lines, 
compared to 0.5% in 2009. Since EAEU accession, Armenia' s applied tariffs have increased to a 
simple average of 7.5 %9, as it harmonizes its tariffs with the CET. Import duties on agricultural 
products are higher than on non -agricultural products. Within agriculture, animals and animal 
products, fats and oils , and prepared food and beverages are the categories subject to the highest 
import duties (Chart 3.1).  
3.29.   Armenia does not administer  tariff quotas.  
3.30.   Armenia's 2018 applied tariff reveals a noticeable, although not large , "v-shaped" 
escalation . (Table 3.3.) There is negative escalation between unprocessed and semi -processed 
products , mainly due to relatively high protection of agricultu ral raw materials. On the other hand, 
there is positive escalation between semi -processed and fully processed products.  
 
                                                
9 Tariff analysis is based on 98.8 % of all tariff lines, excluding 151 tariff  lines subject to specific duties 
for which no AVEs are available . WT/TPR/S/379 /Rev.1  • Armenia  
 
- 40 - 
 
  Chart 3.1 Average applied MFN tariff rates by HS section  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.3 Summary analysis of Armenia 's MFN tariff , 2018  
 Number of 
linesa Average 
(%) Range 
(%) Coefficient 
of 
variation  Non-ad 
valorem  
rates 
(%) Duty 
free 
(%) 
Total  12,178 (151)  7.5 0-281.1  1.2 13.0 19.6 
HS 01 -24 3,156 (111)  12.1 0-281.1  1.2 31.1 6.1 
HS 25 -97 9,022 (40)  5.9 0-115.8  0.9 6.6 24.3 
By WTO category        
WTO agricultural products  2,703 (111)  12.8 0-281.1  1.2 35.0 8.0 
Animals and products thereof  560 (1)  26.5 0-80 1.0 59.3 10.0 
Dairy products  163 14.3 5-17.6 0.1 52.8 0.0 
Fruit, vegetables, and plants  565 8.8 0-78.3 0.6 15.4 3.0 
Coffee and tea  74 (1)  7.5 0-19.3 0.6 44.6 12.2 
Cereals and preparations  243 (1)  8.5 0-30 0.6 23.5 14.4 
Oils seeds, fats, oil s and their 
products  200 7.4 0-15 0.7 12.5 15.0 
Sugars and confectionary  130 (76)  14.6 0.5-77.9 1.2 83.1 0.0 
Beverages, spirits and tobacco  458 (32)  11.2 0-281.1  1.3 43.9 6.8 
Cotton  6 0.0 0-0 0.0 0.0 100.0  
Other agricultural products, n.e.s.  304 4.6 0-13 0.5 5.3 10.2 
WTO non -agricultural products  9,475 (40)  6.0 0-115.8  0.9 6.7 22.9 
Fish and fishery products  603 7.1 0-44.1 0.5 6.3 0.7 
Minerals and metals  1,748 (4)  7.0 0-21.7 0.6 0.6 11.0 
Chemicals and photographic supplies  1,443 (1)  4.0 0-11 0.6 0.4 22.3 
Wood, pulp, paper and furniture  630 (1)  8.5 0-65.1 0.6 8.9 7.0 
Textiles  883 (10)  7.6 0-115.8  1.0 13.1 9.1 
Clothing  361 (14)  10.4 0.3-86 0.8 82.8 0.0 
Leather, rubber, footwear and travel 
goods  336 (3)  6.9 0-74.5 1.2 21.4 9.8 
Non-electric machinery  1,279  2.7 0-15.1 1.4 0.2 62.1 
Electric machinery  601 (1)  4.4 0-69.4 1.2 1.5 46.4 
Transport equipment  755 (6)  6.9 0-23 0.8 3.0 28.2 
Non-agricultural products, n.e.s.  758 6.9 0-20 0.8 0.1 24.4 
Petroleum  78 3.7 0-5 0.6 0.0 26.9 
By ISIC sector        
ISIC 1 - Agriculture, hunting and 
fishing  779 6.2 0-78.3 0.8 7.1 10.7 
 ISIC 2 - Mining  126 4.0 0-15 0.7 0.0 22.2 
 ISIC 3 - Manufacturing  11,272 (151)  7.6 0-281.1  1.2 13.5 20.1 
Manufacturing excluding food 
processing  8,785 (40) 6.0 0-115.8  0.9 6.8 24.3 
 ISIC 4 - Electricity  1 0.0 0-0 0.0 0.0 100.0  
WT/TPR/S/379 /Rev.1  • Armenia  
 
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   Number of 
linesa Average 
(%) Range 
(%) Coefficient 
of 
variation  Non-ad 
valorem  
rates 
(%) Duty 
free 
(%) 
By stage of processing        
 First stage of processing  1,423  5.8 0-78.3 0.7 5.8 11.9 
 Semi-processed products  3,295 (79)  5.7 0-77.9 0.7 3.5 12.8 
 Fully processed products  7,460 (72)  8.6 0-281.1  1.3 18.5 24.0 
By HS section        
 01 Live animals and products  1,258  15.9 0-80 1.2 32.3 4.8 
 02 Vegetable products  616 7.2 0-78.3 0.7 11.4 10.1 
 03 Fats and oils  151 8.9 0-25 0.6 16.6 9.9 
 04 Prepared food, beverages and 
tobacco  1,131 (111)  10.9 0-281.1  1.0 42.4 4.9 
 05 Mineral products  281 4.0 0-10 0.5 0.0 17.4 
 06 Chemicals and products thereof  1,318 (1)  3.9 0-11 0.6 0.4 20.6 
07 Plastics, rubber, and articles 
thereof  361 5.4 0-43.2 0.7 2.2 20.2 
 08 Raw hides and skins, leather, and 
its products  218 5.5 0-15 0.7 0.0 14.2 
 09 Wood and articles of wood  352 8.4 0-15.2 0.4 0.0 4.0 
10 Pulp of wood, paper and 
paperboard  223 7.0 0-15 0.5 0.4 10.8 
 11 Textiles and textile articles  1,207 (24)  8.2 0-115.8  1.0 34.0 6.4 
 12 Footwear, headgear, etc.  115 (3)  11.4 0-74.5 1.2 61.7 7.0 
 13 Articles of stone, plaster, cement  299 10.9 0-16 0.3 0.0 3.0 
 14 Precious stones and metals, pearls  66 11.7 0-21.7 0.6 4.5 18.2 
 15 Base metals and articles thereof  1,171 (4)  6.4 0-19.3 0.7 0.7 12.3 
16 Machinery, electrical equipment, 
etc. 1,962 (1)  3.3 0-69.4 1.4 0.6 57.1 
 17 Transport equipment  774 (6)  7.0 0-23 0.8 3.0 28.0 
 18 Precision equipment  358 4.6 0-15 0.9 0.0 34.6 
 19 Arms and ammunition  24 15.7 13.6-16 0.1 0.0 0.0 
 20 Miscellaneous manufactured 
articles  286 (1)  10.8 0-65.1 0.6 20.3 3.5 
 21 Works of art, etc.  7 0.0 0-0 0.0 0.0 100.0  
a The figure in brackets refers to the number of specific lines being excluded from the calculations due 
to the unavailability of AVEs. 
Note: Including AVEs for non- ad valorem  rates, as available. In case of unavailability, the ad valorem  part 
of alternate rates is used for alternate rates. Specific rates for which no AVEs are available are 
excluded from the calcula tions. 
 Import value and quantities to calculate AVEs are taken from the UN Comtrade database. 
Source:  WTO Secretariat calculations, based on data received by the authorities and the UN Comtrade 
database (for calculations of AVEs). 
3.1.4.2  Tariff concessions 
3.31.    According to the legislation of the EAEU, tariff concessions are stated in the Treaty of the 
Eurasian Economic Union, in international agreements between the EAEU and third parties, and in 
the Decisions of the EEC. Some examples of exemptions from customs duti es include: imported 
currency of member States, as well as currency of third countries; goods imported for the purpose 
of eliminating the effects of natural disasters, accidents and disasters within the framework of 
humanitarian assistance ; and goods impor ted for charity  purposes by third countries, international 
organizations, or governments in accordance with the legislation of the member States as 
gratuitous assistance,  including technical assistance.  
Other charges affecting imports  
3.1.5.1  Charges exclusively a pplied to imports  
3.32.   Under Article 47 of the EAEU Customs Code, fees and taxes connected with importation and 
exportation are the competence of the member States individually. The amount of fees may not 
exceed the estimated costs incurred by the customs auth orities for the performance of the acts in 
respect of which the customs fees are established. The terms and conditions for their payment , as 
well as any applicable exemption s, are set out in domestic legislation.  WT/TPR/S/379 /Rev.1  • Armenia  
 
- 42 - 
 
  3.33.   In Armenia, imports are subject to: a custo ms formalities fee of AMD 3,500 (US$7.30), a 
customs inspection and recording fee of AMD 1,000 (US$2.00) for each cargo weighing less than 
one tonne, and AMD 300 (US$0.60) for each additional tonne of cargo. When customs formalities 
and/or inspections are carried out elsewhere than in places determined by the customs authorities 
or during non- working days, the customs fees are doubled. Importers and exporters also have to 
pay AMD 1,000 (US$2.00) for each document (form) provided by Customs. In addition, importers 
may incur other customs user fees,  depending on the services supplied by Customs, such as the 
accompaniment of transit shipment and warehousing services or giving preliminary decisions on 
classifications of goods. In the Customs Code of the EAEU  (Article 47) , it is stated that the amount 
of customs fees may not exceed the estimated costs incurred by the customs authorities for the 
performance of the acts in respect of which customs fees are established.  
3.1.5.2  Indirect taxes  
3.34.   With few exceptions , all imports are subject to VAT , and alcoholic beverages, tobacco 
products and fuels are also subject to excise duties . According to IMF estimates, for 2016, the 
latest year available, VAT collected represented 33 % of total tax revenue , or the equivalent of 
6.7% of GDP, with VAT collected from imports representing  about 60 % of total VAT collection. The 
SRC is responsible for administering and collecting all taxes applied to imports .  
3.1.5.2.1  VAT  
3.35.   Armenia 's VAT law was based on the principles of the European Union VA T Directive. 
VAT-registered persons may deduct the VAT paid on their inputs from the VAT charged on their 
sales,  and account for the difference to the tax authorities.  Armenia 's current VAT law  was 
repealed on 1 January 2018 when the Tax Code of the Republ ic of Armenia entered into force.   
3.36.   A 20 % VAT is levied on all economic activities, with the exception of those subject to 
simplified taxation (i.e. companies with a taxable turnover of less than AMD 115 million 
(US$292,000) in a tax year). From 1 January 2 019, the VAT threshold will be AMD 58.35 million.  
The taxable base is the customs value of the goods, plus the amount of any import duties and 
excise tax es levied at the time of importation. VAT must be paid after the registration of the 
customs declaratio n before the release of the goods . Exported goods and related services are 
zero-rated. Since  1 January 2017, import s of goods from non -EAEU member States  by taxpayers 
with AEO status,  or by a group of resident tax payers conducting investment projects approved by 
the Government , are exempt from VAT . In addition, VAT is not applied to imports of goods listed in 
Law No. HO -195 o n Approval of the L ist of G oods Imported by Organizations and Individual 
Entrepreneurs not Subject to E xcise Tax, the Import of which is Exempt from VAT , dated 
29 June 2001, imports of goods and services by individuals for personal use, imports of personal 
property by individuals taking up permanent residency in Armenia, or imports of cultural items. 
Payment of VAT related to imports under approved investment programmes may be postponed for 
a period of up to three years.  
3.1.5.2.2  Excise tax 
3.37.   Excise tax is levied on domestically -produced and imported alcoholic beverages, tobacco 
products, petrol, and diesel fuels (Table 3.4). The tax r ate varies according to the product and , in 
most cases,  is defined as a specific rate.  
Table 3.4 Excise tax rates 2018 -2021  
Goods  Unit of measure  Tax rate  
After 
1 January 
2018  After 
1 January 
2019  After 
1 January 
2020  After 
1 January 
2021  
Ethyl spirit  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre (by recalculation 
of 100% spirit)  50%, but not 
less than 
AMD 900 per 
litre    WT/TPR/S/379 /Rev.1  • Armenia  
 
- 43 - 
 
  Goods  Unit of measure  Tax rate  
After 
1 January 
2018  After 
1 January 
2019  After 
1 January 
2020  After 
1 January 
2021  
Alcoholic 
beverages  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 73%, but not 
less than 
AMD 725 per 
litre 84%, but not 
less than 
AMD 835 per 
litre 96%, but not 
less than AMD 
960 per litre  110%, but not 
less than AMD 
1,100 per  litre 
Vodka made of 
fruits and/or 
berries  1 litre  AMD 800 
per litre    
Cognac, brandy 
and other 
spirituous liquors  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre (by recalculation 
of 100% spirit)  50%, but not 
less than:  
AMD 3,000 per 
litre 
(1- to 3-year-
old spirits);  
AMD 3,500 fper 
litre 
(4- to 5-year-
old spirits);  
AMD 6,000 per 
litre 
(6- to 10-year-
old spirits);  
AMD 8,500 per 
litre 
(11- to 15-
year-old 
spirits);  
AMD 14,000 
per litre  
(16- to 19-
year-old 
spirits); and  
AMD 22,000 
per litre (mo re 
than 20 years 
old spirits)     
Whisky, rum and 
other spirituous 
liquors  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 66%, but not 
less than 
AMD 3,970 
per litre 76%, but not 
less than AMD 
4,560 per  litre 87%, but not 
less than AMD 
5,250 per  litre 100%, but not 
less than AMD 
6,035 per  litre 
Beer Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 30%, but not 
less than AMD 
105 per litre     
Grape wine  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 10%, but not 
less than AMD 
100 per litre     
Vermouth and 
other grape 
wines  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 50%, but not 
less than AMD 
750 pe r litre     
Other brewed 
drinks (apple 
cider, pear cider, 
honey -drinks)  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 25%, but not 
less than AMD 
270 per litre     
Grape, fruit and 
other wines  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 
1 litre 10%, but not 
less than AMD 
100 per litre     
Tobacco products  Maximum retail value 
stamped (excluding VAT 
and excise tax) or 1 ,000 
units 15%, but not 
less than AMD 
7,275 per 
1,000 units  15%, but  not 
less than AMD 
8,370 per 
1,000 units  15%, but not 
less than AMD 
9,625 per 
1,000 units  15%, but not 
less than AMD 
11,070 per 
1,000 units  WT/TPR/S/379 /Rev.1  • Armenia  
 
- 44 - 
 
  Goods  Unit of measure  Tax rate  
After 
1 January 
2018  After 
1 January 
2019  After 
1 January 
2020  After 
1 January 
2021  
Cigars  1,000 units  AMD 605 ,000    
Cigarillos  1,000 units  AMD 16 ,500    
Tobacco 
substitutes  1 kg AMD 1 ,500    
Motor oil  Value (excluding VAT 
and excise tax) or 
customs value or 
acquisition value or 1 kg  50%, but not 
less than AMD 
400 per kg     
Petrol  1 ton AMD 40 ,000    
Diesel fuel  1 ton AMD 13 ,000    
Raw oil and oil 
materials  1 ton AMD 27,000     
Gases produced 
from oil and 
other hydro -
carbons  1 ton AMD 1,000     
Compressed 
natural gas  1,000 m³  AMD 25,000     
Note: Taxpayers producing excisable goods in Armenia should submit a quarterly excise tax return by the 
20th day of the month following the quarter, and make excise tax payments by the 20th day of each 
month. 
Source:  Data provided by the authorities. 
3.38.   For goods  importe d into Armenia from outside the EAEU, the excise tax is payable between 
the time of the registration of the customs declaration and the release of goods.  
3.39.   The taxable base of the excise tax  on goods imported from EAEU member countries is the 
factory price/customs value and the goods value. In cases of exporting/importing goods taxable by 
excise tax from/into Armenia to/from EAEU mem ber States, the legal framework is provided by: 
(i) Annex 18 of the EAEU Treaty, namely the Protocol on the Procedure of Levying Indirect T axes 
and the Mechanism of Control over their Payment while Exporting and Importing Goods, 
Performing Works, Rendering Services; and (ii) the  Tax Code of the Republic of Armenia.  
Import prohibitions, restrictions, and licensing 
3.40.   While most imports are free of prohibitions, quotas or licensing requirements, there are 
restrictions for health, security or environmental reasons. These restrictions include requiring 
authorization for pharmaceutical products and medicines, phyto- protect ion 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.  
3.1.6.1  Legal framework  
3.41.   A list of activities subject to licensing is provided in the Law on Licensing, which provides for 
the type of licences: automatic and non -automatic.  
3.42.   The EAEU "Common list of goods" on which non- tariff measures (NTMs ) are applied, was 
adopted by E EC Board Decision No . 30/15 and include s: (i) goods banned for importation into or 
exportation from the customs territory of the EAEU ( eight categories of products); (ii) goods 
covered by a permit -based procedure for importation into or exportation from the customs 
territory of the EAEU ( eight categories of products); (iii) goods subject to bans or restrictions 
applying only to some of the EAEU member States; (iv) specific import/export/transit 
requirements applying to certain goods; and (v) information on the institution responsible for 
admini stering the measures.  
3.43.   The Law on Notification of the Implementation of Activities, adopted in 2015, replaces the 
licensing with notification of 17 types of activities. Operators can engage in activities , subject to 
notification , for five working days afte r the notification is submitted.  WT/TPR/S/379 /Rev.1  • Armenia  
 
- 45 - 
 
  3.1.6.2  Institutional framework  
3.44.   The Licensing and Permits Agency10 provides services in the field of licenses, permits, 
Kimberly certificates, hotel facility qualifications , and conclusions. It  grants licen ces to trade 
organizations  covering trading areas, the production of measurement units, the control of exports 
of controlled goods , and the controlled transfer of intangible values and permissions for  dual-use 
goods in transit through Armenia. It also issue s findings on the results  of processed goods that  are 
imported under the temporary import (export) customs regime.  
3.45.   The Agency provides the following services for the realization of its goals and objectives:  
1. Classification of h otel industry establishments ; 
 
2. Implementation of the Kimberley Process Certification ; 
 
3. Provision of permits for the export  of dual-use items , their transit through the 
territory of the Republic of Armenia,  and the implementation of the transfer of 
information and c ontrolled intangible values/result s of intellectual activity ; 
 
4. State Approval of End -user Certificate s, and provision of Import Certificate s; 
 
5. Approval of a ctivities  subject to notification for the trade, import, export or transport 
of natural processed or raw but unframed and loose diamonds classif ied under the  
710210000, 710221000, 710231000 codes in the Commodity Nomenclature of 
Foreign Economic Activity ; 
  
6. Provision of licenses for the export /import to/from  а third country of precious metals, 
precious stones, raw precious metals, scrap and waste of precious metals, precious 
metal ores , and concentrates and raw materials containing precious metals;  
 
7. Approval of a ctivities subject to notification for assaying and hallmarking of items 
made from precious metals ; 
 
8. Qualification of refiners, assayers and hallmarkers of precious metals ; 
 
9. Approval of lists of imported (exported) precious items and process ed product s of 
natural diamonds, and natural raw diamonds for processing purposes;  
 
10. Approval of activities  subject to notification for the import of vodka classified under  
code 2208 in the Commodity Nomenclature of Foreign Economic Activity ; 
 
11. Employment of tax, custom and other mandatory fee privileges provided by the 
Framework Agreement signed between the Republic of Armenia and the Commission 
of the Eur opean Communities.  
 
3.46.   During the review  period,  a series of measures and legislative amendments were taken to 
facilitate the administrative burden for businesses. Another innovation was the insertion of a new 
application receiving system on the governmental website ( http://www.e -gov.am ) as a result, 
business entities can electronically submit applications or notifications and other necessary 
documents.  
3.47.   Regarding t he import of agricultural chemicals by the Ministry of Agric ulture , there are 
compulsory health, hygiene, and consumer rights standards for a range of foodstuffs, electrical 
goods, alcoholic and non -alcoholic beverages, tobacco products, and children's clothes, among 
other imports. According to Government Decree No.  1524- N of 25 December 2014 and Minister of 
Agriculture Order No . 6-N of 15 January 2015, the Ministry of Agriculture may issue a  one-time 
import license for plant protection products, which are included in the unified product list of 
external economic ac tivity and are imported from third countries . 
                                                
10 The Agency is a detached subdivision of the Ministry of Economic Development and Investments. WT/TPR/S/379 /Rev.1  • Armenia  
 
- 46 - 
 
  3.48.   The concerned body regarding import/export licen ces for medicines is the Ministry of Health.  
Licences are applicable to the export/import of goods subject to quantitative restrictions ( QRs), 
exclusive rights, p ermit -based procedures (i.e. automatic licences ), tariff quotas (TQs ), and import 
quotas applied as special safeguard measures. General and exclusive licen ces are issued in cases 
determined by the Commission. Licen ces issued by the authorized body of one m ember  State are 
recognized by all other m ember States. Detailed rules as regards how licensing shall be carried out 
are defined in the Appendix to the Protocol on NTMs . According to Government Decree No. 105-N 
of 8 February 2018, and Government Decree No. 32- N of 18 January 2018, from 15 August 2018,  
import/export licenses for medicines, and for  narcotics and psychotropic substances, respectively,  
are to be issued by the Ministry of Health.  All restrictions concerning the import of medicines are 
listed in the Law o n Medicines.  
Anti-dumping, countervailing and safeguard measures  
3.49.   The principal legal basis for trade defence instruments (anti -dumping  (AD), countervailing 
(CV) and safeguards  (SGs) ) is Annex 8 of the EAEU Treaty , i.e, the Protocol on the Application of 
Safeguards, Anti -dumping and Countervailing Measures in Respect of Third Countries. A number of 
secondary acts of the EEC  regulate specific aspects of trade defence instruments, inclu ding 
confidentiality matters, internal decision -making procedures , and materials for domestic producers 
aiming to facilitate the preparation of complaints.  
3.50.   The full list of relevant laws and regulations was notified to the WTO11 in 2016,  and consists 
of:  
a) Articles 48, 49 and 50 of the EAEU Treaty of 29 May 2014;  
 
b) Annex No. 8 to the EAEU Treaty (Protocol on the Application of SG , AD and CV 
Measures with respect to Third Countries);  
 
c) Decision of the EEC Board of 7 March 2012 No. 1 "On some issues of SG, AD and CV 
measures in the common customs territory of the CU" ; 
 
d) Provision , dated 7 March 2012, for the use and protection of confidential information 
and proprietary information with limited distribution in the body responsible for 
investigating;  
 
e) Regulation -making and draft decisions of the EEC  for SG, AD and CV measures,  of 
7 March 2012;  
 
f) Board of EEC Decision No. 44 of 16 May 2012 " On some issues of protection of the 
domestic market "; and 
 
g) Section VI to Annex No. 3 to the Treaty on the Accession of the Republic of Armenia to 
the Treaty on the Eurasian Economic Union of 29 May 2014 (Conditions and 
Transitional Clauses).  
3.51.   The authority for trade defence investigations in the EAEU is the EEC  and its Department for 
Internal Market Defence,  which make recommen dations on trade defence measures . Final 
decisions on measures follow investigations made by the Board of the EEC ( by a two -thirds 
majority); the Board consists of EEC ministers re presenting all the EAEU member S tates. 
3.52.   According to paragraph 186 of the Pro tocol, an investigation can be initiated by the 
Commission on its own initiative or on the basis of a complaint lodged by the domestic industry 
manufacturing like products (relevant for AD and CV investigations) or like or directly competitive 
products (in  the case of SG). In practice, so far , all investigations have been initiated following 
domestic industry complaints.  
3.53.   A complaint can be lodged either by individual domestic producers or by a group or 
association of domestic producers manufacturing a major  share of like products (for AD and CV) or 
like or directly competitive products (for SG). The EAEU applies thresholds for domestic industry 
                                                
11 See notification document G/ADP/N/1/ARM/3 , 26 October 2016 . WT/TPR/S/379 /Rev.1  • Armenia  
 
- 47 - 
 
  that are similar to those in other jurisdictions. In particular, the complainant must demonstrate 
that its complain t is expressly supported by at least 25 % of the total EAEU production, and 
moreover, it must be supported by over 50%  of the volume of the like (or directly competitive) 
products manufactured by those producers who have expressed an opinion on the complain t.  
3.54.   All definitions of terms, procedural requirements and time -limits that apply pursuant to the 
Protocol and that are actually applied by the EEC in trade -defence investigations ( TDI) aim to 
follow the respective WTO rules on TDIs.  
3.55.   Since 2012, according to the authorities, the Department has completed 27 TDIs, consisting 
of 1 anti-subsidy investigation, 7  SG investigations and 19 AD investigations. The countries most 
affected are Ukraine (eight investigations) and China (nine). The subject products range from 
caramel and bulldozers to oil country tubular goods and citric acid.  
3.2  Measures Directly Affecting Exports  
Customs procedures and requirements  
3.56.   Almost all provisions on customs procedures are regulated in the EAEU Customs Code, some 
at EEC level ; only minor peculiarities are regulated at the level of national legislation.  All goods 
exported from Armenia outside the EAEU are subject to customs declarations. Since there is no 
border with the other EAEU member States, land and sea transportation between Armenia and 
other EAEU member States is carried out through customs transit procedures. Goods can be 
declared at the customs office s where the goods are located, as set out in Armenian legislation. A 
declaration form is submitted to the customs official, who is responsible for verifying its 
completeness as well as the validity of the supporting documentation  and, if there is no basis for 
rejection, the form is th en registered.  Goods and vehicles with International Road Transport (TIR) 
carnets exported by legal persons may be declared at any customs house. Goods must be released 
in four hours after registration of  a declaration . In exception al cases, release can take one  working 
day or more.  
Export taxes  
3.57.   The EAEU member S tates have concluded a separate accord concerning export duties, 
according to which each member S tate of the EAEU establishes its own list of goods to which 
export duties may apply, which is commu nicated to the EEC. On that basis, the EEC maintains a 
consolidated list of products subject to export duties for all member States  of the EAEU. Member 
States  retain the power to adopt and amend the export duty rates applied on the export of goods 
containe d in the consolidated list and originating in their territories. Similar rules are reflected in 
the Customs Code of the E AEU, signed on 11 April 2017,  which enter ed into force on 
1 January  2018. Export duty rates are subject to periodic amendments by decis ions of the 
governments of the member S tates. There is no single official public database at the EAEU level 
where up -to-date export duty rates may  be consulted.  
3.58.   For Armenia, the applied rate of customs duty for all goods has been zero during the review 
period. Exported goods and ancillary services are zero -rated for VAT purposes. Exported goods are 
also exempt from excise tax.  
Export prohibitions, restrictions, and licensing 
3.59.   As is the case for most imports, the vast majority of exported products are free of  any 
prohibitions or quotas. The export restrictions that do exist are imposed for health, security, and 
environmental reasons. Armenia has no export licensing regime;12 however , for some products , 
exporters need to obtain prior s tate permission for export operations. These are weapons, nuclear 
materials, pharmaceuticals, rare animals and plants, and rare objects or artefacts considered part 
of the national patrimony. Armenia applies only those trade embargoes imposed by United Nations 
Security Council resol utions. Export s of dual -use goods are  regulated by the L aw on Controlling 
                                                
12 This does not apply to the export of nuclear materials, radioactive materials, or devices containing 
radioactive materials, since the export  of these materials are  stipulated/regulated  by the Law on Licensing and 
the Law on the Safe Utilization of Atomic Energy for Peaceful Purposes, Government Decree No. 3 46-N of 
24 March 2005 and Government Decree No. 1790 of 9 December 2004 , respectively . WT/TPR/S/379 /Rev.1  • Armenia  
 
- 48 - 
 
  Export of Dual- Use Commodities Items, their Transit through the Territory of the Republic of 
Armenia as well as the Transfer of Dual -Use Information and Products of Intellectual Activity. The 
export of controlled items is done via permission granted by the Ministry of Economic Development 
and Investments . 
Export finance, insurance and promotion  
3.60.   The Export Insurance Agency of Armenia Insurance CJSC  (EIA)  was founded on 
23 October  2013 by  the decision of the Government . Its mission is the promotion of Armenian 
exports, which is implemented within the framework of the Export- Oriented Industrial Policy.   
3.61.   According to the  authorities, c urrently the EIA  offers two insurance products for Armenian 
exporters:  export insurance and pre -export financing insurance (PEF).  
3.62.   Export insurance gives exporter more confiden ce when signing contracts with foreign 
buyers , offering competitiv e deferred payment terms and insur ing them for a number of 
commercial and political risks of non -payment from their foreign buyers. Export insurance polic ies 
also enable exporters to benefit from working capital financing opportunities offered by banks and  
credit organizations, without collateral.  
3.63.   PEF insurance allows exporting business entities to receive affordable financing without 
collateral for the  manufactur e of goods, which can be used to cover the purchase of raw materials, 
packaging, transportation  costs, etc. It helps to ensure continuity in the  production process , and 
contributes to the expansion of export volumes.  
3.64.   The Armenian Development Foundation acts as a one -stop-shop for investors, and is also 
responsible for export promotion and assisting  companies in finding markets for their products.  
3.65.   The authorities state d that Armenia does not provide subsidies contingent on export 
performance . 
3.66.   In June 2011, Armenia adopted the  Law on Free Economic Zones (FEZ s) and developed 
several regulations at the  end of 2011 to attract foreign investment into FEZs. The legislation is 
administered by the Ministry of Economic Development and Investments. The Ministry elaborated 
the FEZ policy, coordinates the procedure for the granting of permits to FEZ developers a nd 
residents, issues FEZ resident permission certificates, maintains the FEZ residents register, carries 
out monitoring activities, etc.   
3.67.   The legislation on FEZs grants the following incentives: no VAT on the  deliver y of services 
and the supply  of goods in the FEZ territory  to FEZ operators and organizers; t ax-free profit  for 
legal entities and no income tax for sole proprietor s who are  residents  of FEZs;  no property tax  on 
public and industrial buildings and structures owned or leased by residents  within FEZs; no  
customs charges or  non-tariff regulation measures  applied on goods rel eased under the " Free 
Customs  Zone" procedure; freely convertible currency is permitted as a medium of exchange while 
trading within FEZs, unlike the rest of Armenia, where trade is allowed only us ing the national 
currency. The services rendered by the s tate bodies in FEZs are implemented on a simplified, 
one-stop-shop basis.  
3.68.   Three FEZs are currently operational:  
• The Alliance FEZ was opened in August 2013, and currently h as 13 businesses using  its 
facilities. Its focus is on high -tech industries , which include information and 
communication technologies  (ICTs), electronics, pharmaceuticals and biotechnology, 
architecture and engineering, industrial design , and alternative e nergy. In 2014,  the 
Government expanded operations in the Alliance FEZ to include industrial production as  
long as there is no similar production already occurring in Armenia;   
• In 2015, the Meridian FEZ opened in Yerevan ; it focuse s on jewellery production, 
watch -making, and diamond -cutting. Seven companies are currently operating there. 
The duration of both the Alliance and Meridian FEZs  is 10 years ; and  WT/TPR/S/379 /Rev.1  • Armenia  
 
- 49 - 
 
  • The Meghri FEZ was established in Meghri town  in the  Syunik province , on the bo rder 
with Iran, in 2017.  Its operating type is defined as industrial and logistic  in a large 
number of sectors. Its  planned duration is 50 years.  
Duty and tax concessions  
3.69.   Under current EAEU and Armenian legislation, all exports are zero- rated for VAT and exempt 
from excise tax es. In addition, there are exemptions from tariff duties for imports of products that 
enter under one of the following import procedures : for processing  in the customs territory ; 
temporary imports (which may be partially or totally ex empted from duties and taxes) ; and 
re-exports .  
3.3  Measures Affecting Production and Trade  
Business environment  
3.70.   According to the Armenian Development Strategy for 2014- 2025,  Armenia's international 
competitiveness level is calculated using the benchmarks of the annual Global Competitiveness 
Report publis hed by the World Economic Forum (WEF).13 It cites, among others targets, the 
following : 
• reducing the regulatory burden on businesses by half;  
• optimizing inspections;  
• strengthening pro -competition policy and institutional capacity; and  
• enhancing investment promotion.  
3.71.   In the WEF Global Competitiveness Report 2013- 2014, Armenia was ranked 79th among 
148 countries , based on 113 benchma rk indicators characterizing 12 "pil lars" of the economy ‐  
institutions and their quality, infrastructures, macroeconomic environment, healthcare and basic 
education, higher education and human resources training, goods market efficiency, labour market 
efficiency, financial markets developme nt, technological readiness level, market size, business 
sophistication level, and innovation level. The S trategy predicted that policy drafted and enacted in 
in the ensuing years would significantly enhance Armenia's international competitiveness.14 
Compar ed with 2012, there were significantly higher rankings for goods market efficiency, 
business sophistication, and innovation in 2016 ( Table 3.5).15  
                                                
13 Annex to Government Decree No. 442-N of 27 March 2014.  Viewed at: 
https://collaboration.worldbank.org/docs/DOC -23480 . 
14 WEF (2013), The Global Competitiveness Report 2013 -2014, Geneva. Viewed at: 
https://www.w eforum.org/reports . 
15 WEF (2017), The Global Competitiveness Report 2017 –2018, Geneva . Viewed at: 
https://www.weforum.org/reports .   WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 3.5 Armenia in the WEF Global Competitiveness Report  
 2012  2016  
 Rank  
(out of 148)  Score (1 -7) Rank  
(out of 137)  Score (1 -7) 
Basic requirements  73 4.5 77 4.5 
Institutions  65 4.0 55 4.1 
Infrastructure  80 3.8 80 3.9 
Macroeconomic environment  64 4.9 101 4.1 
Health and primary education  85 5.5 55 6.0 
Efficiency enhancers  85 3.9 78 4.0 
Higher education and training  77 4.2 69 4.4 
Goods market efficiency  58 4.3 35 4.7 
Labour market efficiency  50 4.5 51 4.4 
Financial market development  76 3.9 78 3.9 
Technological readiness  72 3.7 77 4.1 
Market size  117 2.7 115 2.8 
Innovation and sophistication 
factors  88 3.4 67 3.6 
Business sophistication  87 3.8 68 4.0 
Innovation  103 3.0 70 3.3 
Overall  79 4.1 73 4.2 
Source:  WEF (2013), The Global Competitiveness Report 2013 -2014, Geneva; and WEF (2017), The Global 
Competitiveness Report 2017 –2018, Geneva.  
3.72.   The Regulatory Guillotine Program Phase II (1 January 2014  to 31 December 2015) was 
aimed at reducing administrative costs and the regulatory burden on businesses.  During both 
phases of the Regulatory Guillotine Project (Phase I started in May 2012) , out of 2 ,487 legal acts 
that affected  business procedures , 2,187 were revised , simplified , or abolished.  Armenia has 
continued to focus on improv ing the business and investment environment. According to the 
authorities, k ey objectives include:  
- A reduction in the a dministrative burden of regulations that had a direct impact on 
businesses and citi zens;  
- A reduction in the direct contact of businesses and citizens with the State, through the 
introduction of interagency electronic information exchange systems;  and 
- As a one ‐time measure , the reduction and simplification of state regulations (by about 
50%) relat ing to busin esses and citizens.  
3.73.   Since 2014,  the Government has launched e-Government services , such as the online 
customs declaration and a single window system, to reduce bureaucracy. For example, t he single 
window for issuing permits and certificates for the import and export of animal and plant products, 
food products and items related to  food products has been applied since May 2015.  
Standards and other technical requirements  
3.74.   The legal framework f or standards, technical regulations, and conformity assessment is the 
EAEU Treaty and national legislation. According to the EAEU Treaty, " technical regulation of the 
EAEU members shall be used for the purpose of protecting life and (or) human health, property, 
the environment, protecting life and (or) health of animals and plants, prevention of actions 
misleading consumers as well as to ensure energy efficiency and resource conservation within the 
EAEU. Adoption of technical regulations of the EAEU for oth er purposes is not allowed".16  
3.75.   Furthermore, the Treaty states that international standards are the basis for technical 
regulations in the EAEU, "except in cases where respective documents are unavailable or non -
consistent with the purposes of technical reg ulations of the Union, including due to climatic and 
geographical factors or process- related and other specific features ". In the absence of an 
applicable international standard, regional standards or national standards of other countries may 
                                                
16 EAEU Treaty, Article 52(1).  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  be used as a basis for EAEU measures. A product subject to a technical regulation may be put into 
circulation in the EAEU  only if it has passed the necessary conformity assessment procedures.17 
3.76.   At the EAEU level,  the EEC approves , inter alia , the: 
• General list of produc ts subject to EAEU technical regulations;  
• Procedure for the development and adoption of EAEU technical regulations;  
• EAEU technical regulations;  
• Procedure for the inclusion of certification bodies and testing laboratories to the EAEU 
universal registry of compliance assessment bodies, as well as their  establishment and 
maintenance; and 
• EAEU uniform compliance certificate and compliance declaration.  
 
3.77.   To date,  about 46 technical regulations have been adopted in the EAEU . (Standards are not 
adopted by the EAEU .) In order to meet the requirements of technical regulations, interstate 
standards are used, which are developed and adopted by the Eurasian Standards Committee 
(EASC) ; also used are national standards of the member countries of the EAEU . There are about 
5,000 standards currently listed by the EEC as supporting the technical regulations in force in the 
EAEU. About 60% of them are harmonized with international standards. The procedure within the 
EEC for the adoption of technical regulations and standard s is the same as that in Russia. 
(http://www.eurasiancommission.org/ ). 
3.78.   Issues related to standards and technical re gulations  continue to be the responsibility of 
different government bodies within the Mini stry of Economic Development and Investments  and 
the Government . The National Institute of Standards (SARM)  CJSC is the national standardization 
body. It coordinates the activities of standardization technical committees. The Ministry of 
Economic Developme nt and Investments also oversees the work of the National Institute of 
Metrology  and the National Accreditation Body, a non -commercial state organization .18 The WTO 
Notification Agency , under the Ministry of Economic Development and Investments , is responsi ble 
for complying with Armenia 's notification obligations under the Agreement on Technical Barriers to 
Trade ( TBT Agreement ), and is Armenia's TBT enquiry point .  
3.79.   At the national level, the authorities:  
• Establish procedure s for state control (inspection) regarding compliance with EAEU 
technical regulations in Armenia,  and bear responsibility for failure to comply with 
EAEU technical regulations requirements.  
• Establish the accreditation procedure for conformity assessment bodies, and elaborate 
the state policy for accreditation and conformity assessment; and  
• Encourage  the accreditation of conformity assessment bodies , as accreditation assures 
the competence and reliability of these bodies . 
3.80.   EAEU Treaty provisions and EAEU Decisions on the preparation and application of technical  
regulations , conformity assessment procedures, and  sanitary and phytosanitary measures are 
based on the following:  
• Interaction between member States and supranational bodies, in particular within the 
Consultativ e Committee on Technical Regulation and Application of Sanitary, 
Veterinary and Phytosanitary Measures (the Consultative Committee);  
• An appointed "Developer " - a member State or the EEC – to lead the discussion on a 
particular draft technical regulation  within a working group composed of 
                                                
17 EAEU Treaty, Annex 9 "Protocol on Technical Regulation within the Eurasian Economic Union", 
paragraph 3.  
18 Formerly the Accreditation Agency . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  representatives from member States with specific technical and administrative 
expertise;19 
• Public consultations on draft technical regulations ;20 and 
• The EAEU 's technical regulations and the list of standards supporting the 
implementation of those technical regulations; these  are approved by the Commission 
– either the Board or the Council - depending on the subject matter. The Council has 
the right to veto the decisions taken  by the Board. In general, prior review and 
approva l by the relevant national authorities are  also required.  
3.81.   The Consultative Committee  is an advisory body to the Board that develops proposals for 
technical regulations and sanitary, veterinary and phytosanitary measures on the basis of agreed 
positions of the EAEU member States ' authorized bodies. Sub- committees on Standardization and 
Uniformity of Measurements are established under the Consultative Committee.  
3.82.   Armenian companies will have had up to five  years to comply with the technical regulations 
of the EAEU. Before the deadline, companies must  comply with the relevant national legislation. 
For most of the goods manufactured in the EAEU which are subject to safety requirements, the 
transitional period began on 1  January 2016, and for some products, such as furniture or wheeled 
vehicles, the new requirements will be mandatory beginning in  2019 and 2022,  respectively. The 
Government recommends that exporters and importers begin using EAEU technical regulations as 
soon as possible. By the end of the transitional period , all the goods produced, imported and 
circulating in the territory of the  EAEU must meet the U nion's mandatory requirements .  
3.83.   The Market Surveillance Inspection Body is a state inspectorate body that oversees  the 
fields of measurement uniformity , market surveillance, technical regulation, and consumer 
protection. It provides services regarding safety, and quality of consumer goods ; it also defines  
rules of trade and industry, establishes means of measuring the performance of controls,  and 
oversees  the protection of the rights and interests of consumers .  
Box 3.1 Standards  
SARM  is the national standardization body in Armenia. It maintains the national library of standards, which 
includes international (ISO), CIS (GOST), EU (EN), Armenian (AST), and other standards.  Currently, 
certificates of conformity issued or accepted by SARM are required for most food products, alcoholic drinks, 
and electro -technical and petroleum products.  In recent years there has been a substantial movement toward 
the adoption of common international wording and usage on product specifications and certification 
procedures.  
In 2017, SARM adopted and registered 471 national standards, pertaining to the energy, construction and 
environmental sectors as well as conformity assessment, from which 129 standards are identical to equivalent 
international and European standards.  
SARM is a member of the International Organization for Standardization (ISO) since 1997. It participates in 
technical standardization activities of 40 ISO technical committees and 19 subcommittees. It is a partner 
standardization body (PSB) of the European Co mmittee for Standardization (CEN) since 1  January 2007, 
affiliate member since 1 January 2008 and is currently a CEN companion sta ndardization body (CSB) since 
1 January 2017, participating  in standardization activities of several CEN technical committees.  
As a Member of the WTO, Armenia is required under the TBT Agreement to notify to the WTO all  proposed 
technical regulations that could affect trade with other Member countries.  
SARM has been accredited as a certification body for products, services and  quality and environmental 
management systems (ISO 9001 and ISO 14001). It also carries out conformity assessment work in the 
above -mentioned fields and tests a large number of items. Test certificates from foreign laboratories are 
accepted if appropriate interstate agreements exist.  
Source:  Data received from the  authorities.  
                                                
19 The functions and interactions of working groups  and the Consultative Committee are defined by two 
regulations: "of Working and Expert Groups on S PS and TBT" - Decision of the Minister on Technical 
Regulation, Member of the EEC Board of 3 October 2013, and "on the Consultative Committee on Technical 
Regulation, Application of Sanitary, Veterinary and Phytosanitary Measures" - Board Decision No. 161/12. 
20 Online information. Viewed at: 
http://www.eurasiancommission.org/en/act/texnreg/depsanmer/publ/Pages/default.aspx  for SPS , and 
http://www.eurasiancommission.org/en/act/texnreg/deptexreg/tr/Pages/projectsPublic.aspx  for technical 
regulations.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.84.   Regarding significant developments during the review period, the authorities have 
highlighted the following:  
• The reform agenda of the quality infrastructure in the " 2010- 2020 Qualit y Infrastructure 
Reform Strategy " of 2010 aims  to improve the competitiveness of Armenian products in 
foreign markets and reduc e technical barriers;   
• Along with the adoption of new legislation (laws o n Technical Regulation, o n 
Standardization, on Accredita tion, and on Uniformity of measurements) , structural 
adjustments and capacity building activities were launched in the areas of technical 
regulations, accreditation and conformity assessment, standardization, metrology , and 
market surveillance ;  
• Since Armenia 's accession  to the E AEU in January 2015, 46 national technical 
regulations have been reviewed. Currently, 1 7 national regulations are in a transitional 
period, and 36  EAEU technical regulations have been  enforced. Th e transitional period is 
to allow Armenian exporters, importers, and producers to adjust to new requirements ;  
• The National Accreditation Body (ARMNAB)  has been  an associate member of the 
European Co-operation for Accreditation (EA) since November 2016 . This was the first 
step towards signing  bilateral and multilateral agreements with regional and 
international organizations, including the E A, the International Laboratory Accreditation 
Cooperation  (ILAC), and the International Accreditation Forum  (IAF);  
• SARM  has developed new harmonized national standards to remove trade barriers and 
promote the export and import of products ; 
• SARM considers it beneficial to cooperate with the European Committee for 
Electrotechnical Standardization  (CENELEC ) and ETSI. However, to gain  membership to 
CENELEC there is a requirement to be at least a corresponding member of the 
International Electrotechnical Commission ( IEC). Armenia is currently an affiliate 
country to the IEC. There is currently a  lack of awareness and understanding of 
stakeholders on the benefits of  membership of the  IEC; and    
• A national strategy on metrology has also been developed to improve metrology and to 
improve  the international traceability of measurements. The aim of this strategy is to 
determine the direction f or 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 also plan s to become  a member of the International Bureau of Weights 
and Measures and International Organization of Legal Metrology.  
3.85.   Up to end- May 2018, Armenia had made a total of 92 notifications to the WTO on TBT 
measures (including revisions, supplements, and addenda). Between 1 January 2010 and 
end-May 2018, 14 notifications were made, all were technical regulations and regular notifications, 
mostly with the objective of protecting human health or safety. Eleven of the notifications related 
to draft EAEU technical regulations, and three were national ones.21 No specific trade concerns 
have been raised by other WTO Members about TBT measures taken by Armenia.  
Sanitary and phytosanitary (SPS) requirements  
3.86.   Armenia is a member of the World Organization for Animal Health  (OIE)  and Codex 
Alimentarius, and is a contracting party to the International Plant Protection Convention (IPPC) .  
3.87.   According to the authorities, during the review period, laws and regulations were aligned 
with international standards in line with the EAEU frame work.22 Also, laboratories have been 
modernized and upgraded with new equipment and systems. Further, the phytosanitary veterinary 
and food safety legislation has been brought into compliance with the procedures defined by the 
                                                
21 WTO documents G/TBT/N/ARM/71 to G/TBT /N/ARM/84. 
22 In the scope of SPS measures, the  following laws have been approximated:  
1. The Law on Food Safety and State Control , LA-143-N of 21 June 2014;  
2. The Law on Food Safety , LA-135-N of 21 June 2014;  
3. The Law on Veterinary , LA-137-N of 21 June 2014; and   
4. The Law on Phytosanitary , LA-140-N of 21 June 2014.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  International Standards for Ph ytosanitary Measures of the IPPC , and the standards and practices of 
the OIE and Codex Alimentarius. Additionally, Armenia has worked on a food safety risk 
assessment and a risk management framework to enhance the performance of the food safety 
system.  
3.88.   According to Government D ecision s N1731- N of 30 December  2010 and N1147- N of 
8 October 2015,  the authorized regulatory body on food, veterinary, phytosanitary and food safety 
inspection was the State Service for Food Safety under the  Ministry of Agriculture , which is also 
the national enquiry point.  According to Paragraph 11 of Part 3 of Article 9 of the Law on the State 
Administration System Bodies, the State Service for Food Safety was changed to the Food Safety 
Inspection Body. According to Part 8 of Article 9 of the same Law, the transition period will elapse 
on 30 September 2018. At the same time, according to Paragraph 7 of the Annex of the Law on 
the Structure and Activity of the Government, the Ministry of Agriculture will develop and 
implement the Gove rnment's policy in the field of veterinary, phytosanitary and food safety.  
3.89.   The legislation regarding  food safety consists of:  
• The Law on State Control for Food Safety , LA-143-N of 21 June 2014;   
• The Law on Food Safety , LA-135-N of 21 June 2014;  
• The Law on Veterinary , LA-137-N of 21 June 2014;  
• The Law on Phytosanitary , LA-140-N of 21 June 2014;  and 
• The Law on Feed, HO -141-N of 21 June 2014.  
 
3.90.   In addition, SPS- related provisions are found in Section XI and Annex 12 of the EAEU Treaty 
(Protocol on the Application of Sanitary, Veterinary and Phytosanitary Measures). Decisions of the 
Commission of the CU  or of the EAEU regulate in greater detail the application of these measures.  
3.91.   The EAEU Treaty establishe d a coordinated SPS policy for EAEU members . However, 
member States retain their rights to introduce temporary SPS measures, e.g. in cases of justified 
risk of specific imported goods. The Treaty provides that procedures for implementing these 
temporary SPS measures are to be developed by the Commission (Artic le 56.4).  
3.92.   In line with Article 56.1 of the Treaty, SPS measures must be applied on the basis of 
scientific principles , and only to the extent necessary for the protection of human, animal or plant 
life and health. They must be based on international and regional standards, except when their 
application on a scientific basis results in a higher level of protection. According to CU Commission 
Decision No . 721/11, in the absence of EAEU or national rules establishing veter inary and SPS 
requirements, the standards, guidelines and recommendations of the Codex Alimentarius 
Commission, the OIE, or the IPPC are applied. Those standards prevail over the more restrictive 
rules applicable in the Union , so long as there is no scientific justification for the application of the 
latter.  
3.93.   The EAEU 's risk assessment disciplines, as defined in Board Decision No . 17/14, are based 
on Article  5 of the WTO SPS Agreement.23 Member States are required to ensure that veterinary or 
SPS measures ar e based on an assessment, as appropriate to the circumstances, of the risks to 
human, animal or plant life or health, taking into account risk assessment techniques developed by 
the relevant international organizations. In addition, they are also required to take into a ccount 
relevant economic factors, including the potential damage in terms of loss of production or sales in 
the event of the entry, establishment or spread of a pest or disease, the cost of control or 
eradication in the territory of the membe r States and the relative cost- effectiveness of alternative 
approaches to limiting risks.  
3.94.   Each EAEU member State is obliged to recogni ze veterinary certificates issued by the other 
member States. Regulated products with high phytosanitary risk based on the principle of scientific 
analysis imported into the Union 's customs territory must be accompanied by a phytosanitary 
certificate whenever in transit within the area (paragraph 23 of the SPS Protocol).  
                                                
23 Decision N o. 17/14 amends CU Commission Decision N o. 835/11 on Equivalence of Sanitary, 
Veterinary and Phytosanitary Measures and Conduct of Risk Assessment. These Decisions can be found, in 
Russian only, at https://docs.eaeunion.org/docs/en- us/0044949/cuc_21102011_835  and 
https://docs.eaeunion.org/docs/en- us/0044176/clcd_11022014_17 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.95.   The EAEU 's disciplines are implemented on t he basis of Commission Decisions No . 317/10 
(as amended) o n the Application of Veterinary and Sanitary Measures in the Customs Union and 
No. 318/10 on Assurance of Plant Quarantine in the Customs Union, which establish the following:  
a) Common lists of goods subject to veterinary control and to phytosanitary quarantine 
control;  
b) Common regulations regarding veterinary and phytosanitary control, inspection and 
approval procedures at the EAEU 's external borders and within its customs area, as 
modified by CU Commi ssion Decision No.  893/11;24 
c) A list of Common Veterinary Requirements –  i.e. supporting documentation 
(veterinary certificate/passport), import permit and registration  of third country 
enterprises - for 110 groups of products subject to veterinary control;  and 
d) A common veterinary certificate. In addition, common export veterinary certificates 
are also defined for 46  controlled products when these are imported from third 
countries into the territory of the EAEU (CU Commission Decision N o. 607/11). This 
Decisi on has been amended several  times to align the veterinary certificates with 
international standards, recommendations and guidelines.  
3.96.   In the absence of common veterinary requirements for the EAEU, bilateral certificates may 
be developed based on a common EA EU position, in accordance with relevant international 
standards, guidelines and recommendations. When common veterinary requirements exist, 
exporters may either use the EAEU common veterinary certificate or alternatively a bilateral export 
certificate tha t reflects the particular conditions of the exporting country. Bilateral export 
certificates that differ from the EAEU 's common certificate and requirements can be negotiated 
between EAEU member States ' competent authorities and an exporting country (Decis ion No.  
726/11 on Veterinary Measures), provided that: the exporting country had made such a 
substantiated request prior to 1  January  2013; the certificate ensures the appropriate level of 
protection, as determined by the EAEU member States; and its terms and requirements are no 
less favourable than those of an international treaty concluded prior to 1 July 2010 between the 
relevant EAEU member State and the exporting country.  
3.97.   Any bilateral veterinary export certificate (as amended) , initialled by one of th e EAEU 
member States before 1 July 2010, remains valid for exports to the customs territory of the EAEU 
until an export certificate is agreed with the EAEU member State based on the agreed positions of 
the other EAEU member States. If the former was initia lled between 1 July  and 1 December 2010, 
it remains valid for import and circulation only in the territory of the EAEU member State that 
initialled the certificate.  
3.98.   After Armenia joined the EAEU, SPS standardization requirements have become more 
stringent  in order to match EAEU requirements. One example is the direct application of EAEU 
technical regulations by all member States . Another example is the provision of the conformity 
assessment of food products according to EAEU technical regulation 021/2011. Another example is 
the new labelling requirement , according to EAEU technical regulation 022/2011, which stipulate s 
that food products marketed in the EAEU area should be labelled in Russian and in any other 
language required by the legislation of each mem ber State. In addition, certain food safety criteria 
have become more stringent, in particular with regards to the maximum residue limits ( MRLs) of 
certain substances in food products.  
3.99.   At end -May 2018, Armenia had made a total of 27 notifications to the WTO on SPS 
measures, of which 3 were made after 1 January 2010. All 3 of these notifications related to EAEU 
measures, 2 to goods subject to veterinary control and 1 to goods subject to p hytosanitary 
control. No specific trade concerns were addressed to Armenia during this period, nor did Armenia 
raise any concerns about measures taken by other Members.  
                                                
24 The common regulation for carrying out joint veterinary control and inspection was repealed by CU 
Commission Decision N o. 834/11 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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Competition policy and price controls  
3.100.   In the area of competition, important reforms ha ve taken place over the review period. 
The Law o n Protection of Economic Competition  (the Competition Law ), adopted on 
6 November  200025, was amended in 2011, 2013, 2017 and 2018. The amendments from March 
2018 modernized the Law in line with the requiremen ts of the new Constitution of the Republic of 
Armenia, and international standards, including the rules and principles of the EAEU and the EU-
Armenia Comprehensive and Enhanced Partnership Agreement (CEPA) .  
3.101.   The State Commission for  the Protection of Economic Competition  (the Commission ), 
established in 2001, is responsible for the pro tection of economic competition.26 Its main 
functions, as stipulated by the Competition Law, are the following:  
• Detection/disclosure of abuses of monopolistic or dominant posit ions; 
• Detection/disclosure of anti- competitive agreements;  
• Control of mergers and acquisitions;  
• Detection/disclosure of unfair competition practices; and  
• Control/prohibition of state aid.  
3.102.   Since 2010, the Commission has carried out advocacy work to increase  public awareness 
of competition issues. The Commission's sessions are open to the public, and any physical or legal 
person may attend. Furthermore, the Commission attaches significant importance to round -table 
discussions with the participation of represe ntatives of the business community and 
non-government organizations (NGOs) representing the interests of consumers. Issues raised 
during such discussions have been taken up in studies undertaken by the Commission.27 
3.103.   In the period 2010- 17, the Commission con ducted research in different product markets to 
reveal competition problems. The studies, carried out by the Commission with civil society 
participation, showed that most product markets in Armenia had been liberalized. Remaining 
natural monopolies exist i n the gas, electricity, and water sectors, and where special rights have 
been transferred by the State in the form of concessions (such as with regard to railways and 
airports).  
3.104.   At the same time, according to the studies, even in markets where big compani es operated 
in a dominant position, dozens of small and medium -sized companies also participated in these 
markets, thus contributing to enhancing competition.  
3.105.   One  of the main goals of the Commission consists of the elimination of barriers to market 
entry. Therefore, the Commission carried out studies on a wide number of consumer goods to 
identify trends in the competitive environment in these markets, assigning a high priority to equal 
opportunity for market entry by all economic entities. The results of th e studies, undertaken in the 
period 2014- 16, showed that the number of economic entities importing consumer goods and/or 
socially important goods (19 commodities were studied including flour, margarine, rice, macaroni, 
vegetable oil, chicken meat, pork, le ntils, green peas, corn, wheat, chocolate products, care 
accessories, and cleaning products) increased from 940 in 2014 to 1,534 in 2016, which may be 
seen as an indication that the competitive environment in those product markets was  improved 
overall.28  
                                                
25 See the Competition Law , adopted on 6  November 2000 and ame nded on 23 March 2018, available in 
the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economi c_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 .  
26 See the Competition Law , Article 17 , available in the A rmenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version o f the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
27 Online information. Viewed at: http://competition.am/index.php?menu=153&lng=1 .  
28 Online information. Viewed at: http://competition.am/uploads/resources/Annual_Program_2018.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.106.   The further development of the institutional capacity and the consistent work carried out 
by the competition authority throughout the review period has contributed to an overall 
improvement in the competitive environment in Armenia. For example, the WEF Wor ld 
Competitiveness Report of 2017- 2018 ranks Armenia 40th out of 137 countries with regard to the 
effectiveness of antimonopoly policy, as compared to 138th out of 139 in 2010.29 Similarly, the 
Report ranked Armenia 28th in 2017 as compared to 133rd in 2010 with regard to the extent of 
market dominance30, and 66th in 2017 as compared to 136th in 2010 with regard to the intensity of 
competition in the domestic market.31  
3.107.   The recent amendments to the Competition Law have extended the Commission's powers 
in order  to make it more effective.32 Overall, the Law applies to acts and practices which have as 
their object, effect, or potential effect the restriction, prevention  or prohibition of economic 
competition, or acts of unfair competition. The Law has been subject to the following changes:  
a) A number of definitions have been inserted, including  those regarding " discriminatory 
conditions ", "comp etition restriction features", " coordination of economic activity ", 
"direct or indirect control", " unjustified high or unjustified low price ", and "a group of 
persons "; in addition, a number of principles have been further  clarified based on 
international practices ; 
b) The definitions of anti- competitive agreements, abuse of dominant position and unfair 
competition have been  clarified and amended;  
c) Anti-competitive agreements between officials of economic entities and state bodies 
have been included as violation s of the Law ; 
d) Administrative liability for  anti-competitive agreements between  officials of state 
bodies and economic entities is now included  in the Law ; 
e) Criteria have been established for the determination of agreements as not  anti-
competitive ; 
f) Potentially ambiguous p rovisions leading to different interpretations  on merger control 
have been  eliminated , and the criteria for the determination of prohibited  
concentration s have been  clarified ; 
g) The methodology for  the determination  of fines now takes into account the previous 
year's profit margins of the economic entity, which will enable the Commission to 
consider the factual circumstance s of each case more effectively and  promote the 
effectiveness of the application of principle of proportionality between offen ce and 
liability ; 
h) New leniency mechanisms for the exemption from liability or the reduction of the 
amount of penalties imposed have been introduced; and  
i) The Commission has been assigned the status of  "autonomous body " in line with  
constitutional amendments adopted on 6 December 2015.  Members of the 
Commission are now appointed by a majority vote  of the members of the National 
Assembly . 
                                                
29 Online information. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010 -11.pdf , pg, 83, piller 6.03; and  
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf , pg. 49, piller 6.03. 
30 Online information. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010 -11.pdf , pg. 83, piller 6.02; and  
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf , pg. 49, piller 6.02. 
31 Online information. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010 -11.pdf , pg. 83, piller 6.01; and  
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf , pg. 49, piller 6.01. 
32 See the State Commission for the Protectio n of Economic Competition, Press Releases Development 
Perspectives and Rates in the Field of Competition in Our Country: A. Shaboyan Lectured at the University of 
Economics , 16 March 2018. Viewed at: 
http://www.competition.am/index.php?page=press_releases&newsID=1511&lng=2 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.108.   Overall, in line with the CEPA principles, the recent amendments to the Competition Law 
extended the scope of the application to public enterprises and their officials, in addition to private 
entities.33 While no particular sectors or entities are exempted from the application of the Law, an 
exemption applies to the exercise of exclusive rights derived from intellectual activity.34 
Furthermore , the Central Bank and the Public Services Regulatory Commission have special 
responsibilities for the application  of competition legislation in the area of financial markets and 
public services.  For example, i n sectors regulated and supervised by the Central Bank, the 
Commission implements its mandate in cooperation with the Central Bank. The Central B ank takes 
the final decision on issues pertaining to competition in the financial services sector in consultation 
with the Commission.35 According to the Law on the Central Bank, the Central Bank has the 
mandate for adopting normative legal acts on competition issues in the financial services sector.36  
3.109.   The Competition Law stipulates that international treaties prevail over national laws.37 The 
EAEU Treaty prohibits the abuse of market dominance, anti- competitive agreements and unfair 
competition on cross -border markets within the EAEU, and confers enforcement powers on  the 
EEC.38 The EAEU Treaty also provides for the harmonization of member States' national legislation 
in the area of competition policy on the basis of general principles, including: effective control of 
economic concentrations ; regulation of natural monopolies ; prohibition of anti- competitive 
agreements concluded by public authorities ; prohibition of abuse s of dominant position ; prohibition 
of preferences granted by state or municipal authorities  (except in particular cases);  and 
codification and application of penalties.  
3.110.   In addition to the Competition Law, the legislative framework comprises the Constitution, 
the Civil Code, the  Law on Administrative Offences and other legal acts.39 These legal ac ts include: 
the Law on Fundamentals of Administrative Actions and Administrative Procedures ; the Law on 
State Registration of Legal Entities, State Record of Legal Entities ' Separate Subdivisions, 
Institutions and of Individual Entrepreneurs ; the Law on Organi zing and C onducting Control; the 
Law on  Electronic Communications ; the Law on Advertising; the Law on Public Procurement ; the 
Law on Trademark ; the Law on Geographical Indications ; and the  Law o n Freedom of 
Information .40 
3.111.   The Competition Law prohibits agreements preventing, restricting or distorting 
competition; prohibits abuses of dominant or monopolistic position ; and regulates concentrations 
preventing, restricting or distorting competition.41 Both h orizontal and vertical agreement s are 
                                                
33 Online information. Viewed at: 
http://www3.weforum.org/d ocs/WEF_GlobalCompetitivenessReport_2010 -11.pdf , p. 83, piller 6.03; and  
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf , p. 49, piller 6.03.  
34 See Competition Law , Article 2. Viewed at: 
http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010 -11.pdf , p. 83, piller 6.03; and 
http://www3.weforum.org/docs/GCR2017 -
2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf , p. 49, piller 6.03 . IPRs are 
regulated under the separate Law on Protection of Economic Competition of 5 December 2000. Viewed at: 
https://www.aipa.am/en/EconomicCompetitionLaw/ .  
35 See Competition Law , Article 2, available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
36 See the Law on  Central Bank, adopted on 13  December 2017, Article 3.  
37 See Competition Law , Article 2, available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
38 Decisions by the EEC on antitrust cases can be appealed at the Union's Court.   
39 See Competition Law , Article 3, available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
40 See the State Commission for the Protection of Economic Competition, Related RA Legislation. Viewed 
at: http://www.competition.am/index.php?menu=148&lng=2 .  
41 See Competition Law , Articles  5, 7 and 8, available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  covered by the Law.42 Such agreements are prohibited43, unless they are  not preventing, 
restricting or distorting competition . At the same time , vertical anti- competitive agreements may 
be considered permissible if they contribute,  or could  contribute , to an improvement in production 
(realization) or in technical (economic) progress,  or in an increase of competitiveness , and sup port 
the interests of consumers.44  
3.112.   Similarly, abuses  of a monopolistic or dominant position are prohibited, with a presumption 
of a dominant position of undertakings with a market share of at least one third for a single 
undertaking, 50% for two undertakings, or two thirds for three undertakings, or if an economic 
entity has market power in a given commodity market. The economic entity  or entities  cannot be 
considered as dominant if , as a seller or purchaser,  they capture no more than one  tenth of the 
given market in terms of sale or acquisition volumes .45  
3.113.   Concentrations, including mergers, acquisitions of shares or assets, amalgamations and 
incorpor ations are subject to ex ante  control if the asset -based notification thresholds of 
Article  9(1) of the Competition Law are met.46 Whenever a  concentration gives rise to concerns 
about harm to competition, including the creation of dominant position or stre ngthening the 
dominant position , the Commission can prohibit such practice or impose certain remedies 
(conditional approval).47  
3.114.   The enforcement of the Competition Law lies with the Commission, which is established as 
an independent authority.48 The independent  status of the Commission was further reinforced in 
the recent amendments to the Competition Law.49 The Commission is comprised of seven 
members , including the Chair, and is appointed by the National Assembly upon the 
recommendation of the Prime Minister.50 Its budget is derived from the government budget.51 The 
Commission's revenues are returned to the government budget  (Table 3.6) .52  
                                                
42 See Competition Law , Article 5(2), available in the Armenian language at: 
http://www.co mpetition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147 &lng=2 . 
43 See Competition Law , Article 5(6), available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the _Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
44 See Competition Law , Article 5.1, available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 .    
45 See Competition Law , Articles 6(2) and 7(1), available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
46 See Competition Law , Articles 8, 9 and 10 , available in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . Ex-ante control is required if the joint value of 
assets/income of the concentration participants , or of at least one of the participants , in the preceding financial 
year exceeds the threshold set by the Competition Commission;  or at least one participant of the concentration 
has dominant position in any product market. 
47 See Competition Law , Article 10, available in the Arme nian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
48 See Decision on the Statute of the Competition Commission , paras. 1 and 2.  
49 See the State Commissi on for the Protection of Economic Competition. Viewed at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Co mpetition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 .  
50 See Competition Law , Article 20 . 
51 See Competition Law , Article 29; the Decision on the Statute of the Competition Commission, 
para. 56. 
52 See Competition Law , Article 36.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 3.6 Revenues of the Competition Commission in 2016 and 2017  
Revenues  2016  2017  Changes in %  
Budget (from the Government)  AMD 317.8  million53 AMD 312.5  million54 -2 
Returned to the Government  AMD 3.6  million55 AMD 1 .9 million  -48 
Source:  Data from the authorities.  
3.115.   The Commission is comprised of a total of 77 staff members, including 10 members of the 
Office of the Chairman, 50 Commission staff members, and 10 maintenance service providers.56 
The Commission is composed of the following Departments: (i) Methodology and Programs 
Elaboration ; (ii) Supervision; (iii) Analysis and Competition Assessment; (iv) Legal; 
(v) International Relations; (vi) Maintenance; (vii) General ; (viii) Human Resource Management ; 
(ix) Accounting ; (x) Monitoring ; and (xi) Internal Audit.57 
3.116.   Proceedings before the Commission are governed by the Co mpetition Law, the Decision on 
the Statute of the Competition Commission, and other legal acts.58 The decision making power of 
the Commission relating to anti-competitive agreements and abuses of dominance is limited to a 
prohibition of enforcement of the a greement in question, and the ordering of remedial measures , 
or, in cases of repeated abuse of dominance in the year, disaggregation (division, separation, 
alienation of shares) of the economic entities .59 In the appraisal of concentrations, it decides on 
the approval , suspension or termination  of concentrations , and can impose conditions.60 A leniency 
programme is in place .61 The provisions on  leniency application  have been improved in the 
amended version of the  Competition Law; and relevant provisions on the  exemption from 
sanctions and /or decrease s of the amount of penalties have been clarified .62 
3.117.   The Competition Law  grants economic entities and public  bodies the right to appeal a  
Commission decision before the courts. I n case of non -payment of penalt ies imposed by decision s 
of the Commission , they are subject to collection as prescribed by the Law on Compulsory 
Enforceme nt of Judicial Acts and the Law  on Fundamentals of Administrative Actions and 
Administrative Procedures.  The Competition Law  also gives the Commission the right to initiate 
court proceedings if one of its decisions is not implemented. Furthermore, damages, established by 
the Commission in accordance with the Law, can be imposed to compensate  economic entit ies or 
other persons for harm caus ed by  anti-competitive practices . 
3.118.   Fines  for anti- competitive agreements, abuses of dominant position or  prohibited 
concentration s are determined by decision of the Commission , and may be up to 10% of the 
proceeds of the economic entity participating in the  concentration earned in the year preceding the 
                                                
53 See the State Commission for the Protection of Economic Competition, Annual Report 2016, available 
in Armenian at: http://competition.am/uploads/resources/Annual_report_2016.pdf .  
54 See the State Commission for the Protection of Economic Competition, Annual Report 2017 . Viewed in 
Armenian at:  http://competition.am/uploads/resources/Annual_Report_2017.pdf . 
55 See the State Commission for the Protection of Economic Competition, Annual Report 2017 . Viewed in 
Armenian at:  http://competition.am/uploads/resources/Annual_Report_2017.pdf . 
56 See the State Commission for the Protection of Economic Competition, Personal List. Viewed at: 
http://www.competition.am/index.php?menu=357&lng=2 .  
57 See the State Commission for the Protection of Economic Competition, Commission Staff . Viewed at: 
http://www.competition.am/index.php?menu=246&lng=2 .  
58 See Decision on the Statute of the Competition Commission, para. 3.  
59 See Competition Law , Article 19. Viewed in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is avai lable in English at: 
http://www.competition.am/index.php?menu=147&lng=2 .. 
60 See Competition Law , Articles 10 and 19. Viewed in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2  . 
61 See Competition Law , Article 36.1, 36.2. Viewed in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
62 See Competition Law , Article 38 . Viewed in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_Law_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index .php?menu=147&lng=2 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  participation in the concentration . Furthermore, the  failure to declare a  concentration may result in 
a fine of up to AMD 5  million .63  
3.119.   In the years 2014- 17, 67 decisions relating to anti- competitive agreements were taken. No 
case led to the imposition of a fine , and none was subject to leniency. (Table 3.7).  
3.120.   In the years 2014- 17, 54 decisions relating to the abuse of dominance were taken . Three 
cases led to the imposition of a fine. 
3.121.   In the area of merger control, the number of mergers reviewed in the period 2014- 17 
reached 394.  
Table 3.7 Competition enforcement  
 2014  2015  2016  2017  
Total complaints/requests      
Anti-competitive agreements  0 64 1 2 
Leniency applications  0 0 0 0 
Abuse of dominance infringements  9 28 8 9 
Mergers reviewed  165 65 77 87 
Approved with remedies  1 0 0 1 
Approved without remedies  164 65 77 86 
Blocked  1 0 0 0 
Number of administrative  fines 6 1 5 0 
Number of court cases  8 3 9 8 
Source:  Data received from the authorities.  
3.122.   Armenia has active ly participat ed in strengthening and formalizing international  
cooperation efforts , with a view to minimiz ing frictions arising from procedural or  substantive 
differences between national competition regimes.64 By the end of April 2018, Armenia had 
intergovernmental agreements on cooperation in the sphere of competition policy with 
competition/antitrust authorities of Georgia, France, Romania, Moldov a and Ukraine.  Armenia 
participates in international fora on competition policy, including conferences and events organized 
by the Internationa l Competition Network, the OECD,  UNCTAD  and the CIS Interstate Council of 
Antimonopoly Policy .65  
Consumer protect ion policy  
3.123.   Consumer protection is guaranteed by the Constitution , which, as one of the objectives of 
the state policy, aims at: " protecti ng consumer rights and exercising supervision over the quality 
of goods, services and works".66 
3.124.   The Law o n Protection of R ights of C onsumers  of 2001 (Law on Consumer Protection), 
regulates the protection of consumers' rights in purchasing and other forms of marketing of 
products.67 The Ministry of Economic Development and Investments, the Public Services 
Regulato ry Commission, and the Competition Commission are in charge of consumer protection.68  
                                                
63 See Competition Law , Article 36. Viewed in the Armenian language at: 
http://www.competition.am/uploads/resources/RA_La w_On_the_Protection_of_Economic_Competition_n.pdf . 
An earlier version of the Law is available in English at: 
http://www.competition.am/index.php?menu=147&lng=2 . 
64 See the State Commission f or the Protection of Economic Competition, News, Statement of the 
Council of the Heads of the Governments of CIS Member -States on the Consolidation of the Efforts of the World 
Community to Fight Efficiently against International Cartels , 22 January 2018. V iewed at: 
http://www.competition.am/index.php?page=news_cases&newsID=1492&lng=2 .  
65 See the State Commission for the Protection of Economic Competition, Introduction. Vie wed at: 
http://www.competition.am/index.php?menu=197&lng=2 .   
66 See the Constitution of the Republic of Armenia, Article 86. Viewed at: 
http://www.arlis.am/DocumentView.aspx?docid=108723 .  
67 See the Law on Consumer Protection of 26 June 2001. Viewed at: 
http://www.parliament.am/legislation.php?sel=show&ID=1506&lang=eng .  
68 See the EEC. Viewed in Russian at: 
http://www.eurasiancommission.org/ru/act/texnreg/depsanmer/faq/Pages/%D0%97%D0%B0%D1%89%D0%WT/TPR/S/379 /Rev.1  • Armenia  
 
- 62 - 
 
  3.125.   Article 60 of the EAEU Treaty guarantees the same legal consumer protection to citizens of 
all member States in the territories of the other member States , and it states that a ll citizens  
"have the right to apply to state and consumer public protection and other organizations, as well 
as to courts and/or conduct any other proceedings on the same conditions as nationals of the 
other m ember States ".69 Annex 13 to the Treaty s ets out the principles for a coordinated policy on 
consumer rights protection in the EAEU. The EEC is empowered to provide recommendations to 
the member States on the efficiency of interaction between the authorized bodies in the field of 
consumer rights p rotection, and on the implementation of Annex 13 to the EAEU Treaty; and to 
create consultative bodies for the protection of consumer rights of the member States.70 
3.126.   The CEPA incorporates a consumer protection chapter, which is aimed at ensur ing a high 
level of protection and achiev ing compatibility between the parties'  systems of consumer 
protection.71 In addition to cooperation activities, Article 83 of the CEPA obliges Armenia to 
approximat e its consumer legislation with the EU  acts and other international instruments .72  
3.127.   Overall, while a solid legal and institutional framework exists, the wide application of 
consumer protection policies with regard to different areas of economic activity can result in the 
fragmentation of applicable legislation. In light of the ambitious consumer policy related 
commitments in the international agreements discussed above, it is expected that Armenia may 
undertake further reforms for the modernization of its consumer policy laws and regulations in 
coming years.  
State trading, state -owned enterprises  (SOEs) , and privatization  
3.128.   Armenia last notified the WTO in 2013 that it does not maintain any state trading 
enterprises falling within the meaning of the working definition contained in Paragraph 1 of the 
Understanding on the Interp retation of Article XVII.73  
3.129.   Although the privatization process was much more active in the 1996 to 2005 period, this 
was due to the transition to a market economy and the fact that, at that time, there were far more 
SOEs active in many sectors of the econo my. The current law on privatization (the fifth) is the Law 
on the 2017- 2020 Program for State Property Privatization, which lists 47 entities, for 
privatization, of which 24 are new additions and 23 were in earlier laws but were not privatized. 
Under Government Decision No. 474 of 29 April 2010, the Department of State Property 
Management is responsible for managing the State's share of the entities in the privatization 
programme, implementing the privatization programme in accordance with the Prime Minister's 
Decree of 1 February 2018 and the timetable in Decision 133- A. The Department also carries out 
the financial and economic analysis of SOEs; these are published on its website 
(http://spm.am/en/ ). 
3.130.   As of 1 January 2018,  there were 156 commercial entities with more than 50% state 
ownership (not including those on the list for privatization), of which 92 were healthcare 
companies. Most SOEs are closed joint -stock companies 100% owned by the State. In addition to 
the Civil Code, the laws regulating SOE activities depend on their sphere of activity, and include 
the Water Code, the Forest Code, the Law on the Soil, and the Law on Energy. There are no tax 
privileges for SOEs, and tax legislation applies to them as it does to all enterprises regardless of 
their status.  
3.131.   According to the reports by the Department of State Property Management (under the 
Ministry of Economic Development and Investments), in 2017, out of 142 SOEs assessed, 21 were 
                                                                                                                                                  
B8%D1%82%D0%B0- %D0%BF%D1%80%D0%B0%D0%B2-
%D0%BF%D0%BE%D1%82%D1%80%D0%B5%D0%B1%D0% B8%D1%82%D0%B5%D0%BB%D0%B5%D0
%B9.aspx .  
69 See the EAEU Treaty, Article 60. Viewed at: 
https://www.wto.org/english/thewto_e/acc_e/kaz_e/WTACCKAZ85_LEG_1.pdf .  
70 See the EA EU Treaty, Annex 13, para. V.  
71 See the EU-Armenia CEPA , Article 81. Viewed at: https://eeas.europa.eu/head quarters/headquarters -
homepage/37967/eu -armenia -comprehensive- and-enhanced -partnership -agreement -cepa_en .  
72 See the EU-Armenia CEPA , Article 81. Viewed at: https://eeas.europa.eu/headquarters/headquarters -
homepage/37967/eu -armenia -comprehensive- and-enhanced -partnership -agreement -cepa_en .  
73 WTO document G/STR/N/13/ARM , 12 February 2013 . WT/TPR/S/379 /Rev.1  • Armenia  
 
- 63 - 
 
  loss making, including the Armenian N uclear Power Plant CJSC (AMD 2.8 million in losses) and the 
Yerevan Thermal Power Plant CJSC (AMD 7.1 million)  
3.132.   According to one report, Armenian SOEs adhere to the OECD Guidelines on Corporate 
Governance for SOEs , and most of the enterprises owned by the State provid e public services, like 
geodesy or nuclear power generation, and hence do not impact the competitive environment in the 
country.74  
Government procurement  
3.133.   Public procurement constitutes a significant part of economic activity in Armenia, 
amounting to around 4 -7% of GDP and around 30% of government spending in recent year s. 
(Table 3.8).  The procurement spending of public sector buyers has remained stable, amounting to 
AMD 240,662.6 million  in 2016, and AMD 245,639.8 million  in 2017.75 In 2014, the contracts 
awarded by state government bodies and state institutions amounted to AMD 231,873.6 million ; 
by urban communities , AMD 37,805.8 million ; and by other entities , AMD 75,397.3 million. In 
2015, the contracts awarded by state government  bodies and state institutions amounted to AMD 
264,552.9 million , by urban communities AMD 4,912.9 million ; and by other customers AMD 
72,808.7 million.   
Table 3.8 Total number of contracts and value  
Year Total number of contracts  Total value of procurement  
(AMD million)  Share of GDP (%)76 
2014  25,047 345,076.7  7.15 
2015  25,107 342,274.5  6.8 
2016  29,500 240,662.6  4.7 
2017  25,767 245,639.8  4.5 
Source:  GPA/130/Add.5  and GPA/137 , 18 May 2016,  and the Annual Procurement Report 2016 (in 
Armenian).  
3.134.   In an important development, Armenia became a Member of the WTO Agreement on 
Government Procurement (GPA) on 15 September  2011,77 being the first WTO Member of the 
CEECAC region to join. Subsequent to the re -negotiation of the GPA, Armenia submitted its 
instrument of acceptance of the Protocol Amending the Agreement on Government Procurement 
on 7 May 2015, and the revised Agreement entered into force in Armenia on 6 June 2015.78 
3.135.   The market liberalization commitments undertaken by Armenia in the course of its 
accession to the GPA are wide -ranging, and foresee international tendering for procurements 
undertaken by listed central government, sub- central government and other procuring entities, for 
tenders wit h a value above SDR 130,000 for central government entities, SDR 200,000 for 
sub-central government entities and SDR 400,000 for other entities respectively for goods and 
services, and above SDR 5  million for construction services.79 Armenia agreed to cover  all central 
government entities and subordinated organizations  covered by the Law on Procurement . 
Similarly, at the sub -central level, local authorities, as defined in the Law on 
Administrative -Territorial Division, No. HO -18 of 7 November 1995, are cover ed and specified in a 
comprehensive positive list. Other covered entities include a ll legal persons (authorities, 
establishments and foundations) governed by public law, particularly:  (i) state or community non -
commercial (non -profit) organizations ; (ii) commercial organizations with over 50% of government 
or community shareholding ; and (iii) public services , including utilities sector companies , whose 
procurement is covered by the Law on Procurement .  
                                                
74 U.S. Department of State (2017), Armenia Country Commercial Guide . Viewed at: 
https://www.export.gov/ccg . 
75 See GPA/130/Add.5  and GPA/137 , 18 May 2016; and Annual Procurement Report 2016 (in 
Armenian).  
76 See Sta tistical Committee of the Republic of Armenia. Viewed at: http://www.armstat.am/en/ .  
77 See GPA/105, 7  December 2010; GPA/105/Add.1, 26  May 2011; and GPA/109, 13  September  2011.  
78 See WT/Let/1039, 11 May 2015.  
79 Subject to exceptions as specified in Armenia's Appendix I Annexes to the GPA. See WT/Let/1252 , 17 
May 2017 ; and WT/Let/1067, 3  September 2015 . See also: 
https://www.wto.org/engl ish/tratop_e/gproc_e/gp_app_agree_e.htm . Armenia has notified threshold values in 
the national currency pursuant to GPA/1 , 5 March 1996.  See GPA/W/336/Add.1, 10 December 2015.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.136.   Due to the de -centralization of government procurement,  above -threshold procurements 
constituted only about AMD 61,281.1 million , or 17.75% of total procurement , in 2014,  and AMD 
50,470.9 million , or 14.75%,  in 2015, with a clear emphasis on procurement of goods at the 
central level, in particular by the Ministry of Defense.80 (Table 3.9).  Procurement above the 
threshold in 2016 amounted to AMD 29,213.0, or 22 .8% of competitive procedures. In terms of  
the number of contracts signed, above -threshold procurement resulted in 96 contracts in 2014, 
104 contracts in 2015,  and 106 contracts in 2016. Entities governed by public procurement law 
conducted procurement above the threshold to the amount of AMD 24,536.8 million in 2016.  
(Table 3.10).  Fifteen such contracts have been signed. Data on the value of contracts awar ded to 
foreign suppliers is not available.  
Table 3.9 Total number and value of procedures under/above the GPA thresholds  
Year Procurement of  Total number of 
above -threshold  contracts  Total value of above -threshold 
contracts  
(AMD million)  
2014  Goods  80 42,409.3  
Services  13 7,594.2  
Works  3 11,277.6  
2015  Goods  85 42,648.8  
Services  19 7,822.1  
Works  - - 
2016  Goods  96 32,510.8  
Services  11 19,685.8  
Works  - - 
2017  Goods  16 4.756.6  
Services  10 6.335.9  
Works  - - 
Source:   GPA/130/Add.5  and GPA/137 , 18 May 2016 ; and the Annual Procurement Report from 2016 . 
Table 3.10 Total number and value of procedures above the GPA thresholds by type of 
procuring entity  
Year Procurement by Total number 
of contracts 
above 
threshold  Total value of 
contracts above 
threshold  
(AMD million)  Share of total 
number  of 
contracts by 
relevant entities 
(%)a Share of total value of 
procurement by 
relevant entities (%)a 
2014  Central government 
entities  87 52,249.8  1.4 22.5 
Sub-central 
government entities  2 1,407.3  0.06 3.7 
Other entities  7 7,624  0.04 10.1 
2015  Central government 
entities  102 49,081.5  1.7 18.5 
Sub-central 
government entities  - - - - 
Other entities  2 1,389.4  0.02 1.9 
2016  Central government 
entities  102 28,299.6    
Sub-central 
government entities  4 913.4    
Other entities  15 24,563.8    
2017  Central government 
entities  21 6444.4    
Sub-central 
government entities      
Other entities  5 4648.1    
a Data not available for 2016 and 2017.  
Source:  GPA/130/Add.5  and GPA/137 , 18 May 2016 , and the Annual Procurement Report from 2016 . 
3.137.   The legal framework for government procurement has undergone important reforms in the 
review period, first to ensure compliance with the GPA, including its revised text, and, more 
                                                
80 See GPA/130/Add.5  and GPA/137 , 18 May 2016.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  recently, also with the EAEU Treaty. Armenia has also recently signed the EU -Armenia CEPA,81 
whose procurement chapter reaffirms Armenia's obligations and rights under the WTO GPA. The 
CEPA also enhances the coverage by adding concession contracts, and provides for additional 
obligations related to review procedures. The legal fram ework is designed to ensure value -
for-money in the p rocurement process and based on the following principles:  
"Administration of the procurement process based on consistent rules and in a competitive, 
transparent, open, and non- discriminatory manner;  
Expansion of the bidders' circle and promotion of competition among them for the purposes 
of contract signing; and  
Equal rights for every person to participate in the procurement process, irrespective of being 
a foreign individual or entity or a stateless person."82 
3.138.   During the negotiations leading up to Armenia's accession to the GPA in 2011, a first 
revised Law on Procurements was adopted on 22 December 2010 and entered into force on 
1 January 2011 .83 The Law was designed to develop modern legislation in line with the best 
international practices and to ensure an appropriate implementation capacity.  
3.139.   A first major area of reform consisted  of ensuring an appropriate coverage of public 
procurement rules for the utilities sector, which was aligned with relevant EU procurement rules. 
Furthermore, it established  first stepping stones for the development of e -procurement by setting 
rules regarding tools to be used for communication by electronic means and devices for the 
electronic transmission and receipt of bids. The use of single -source procurement was further 
restricted. In terms of institutions, the Centre for Procurement Support and the Procurement 
Complaint Review Board were created to supplement the functions of the procure ment authority or 
"Authorized Body". These institutions played an important role in implementing measures designed 
to strenghten the domestic review system by creating a board of experts  composed of 
representatives of contracting authorities and private or ganizations . A standstill period was 
adopted to ensure the effectiveness of the review process , and the review body was vested with 
the power to declare the contract ineffective if was unlawfully awarded (i.e. without prior 
publication of a contract notice  or without complying with the standstill period). The Law also 
contained good governance measures, such as an exclusion system for persons convicted by final 
judgment for participation in a criminal organization, for corruption, for fraud, for money 
laund ering, and, by final decision , for anti- competitive behaviour , by designing an independent 
procedure for  the inclusion of such bidders in a black list at the Procurement Complaint Review 
Board. It maintained provisions stipulating that ratified internation al treaty rules prevailed over 
national legislation, and granting any entity, regardless of whether it is  a foreign natural person 
or a legal entity or a stateless person, the equal right to participat e in the procurement 
process .84  
3.140.   On 7 December 2010, Armenia was invited by the Committee on Government Procurement 
to deposit its instrument of accession to the GPA, subject to the adoption of the draft law prior to 
its accession.85 Subsequently, Armenia submitted its legislation for review by the Committee on 
8 February 201186, and its instrument of accession on 16 August 2011 .87 The Agreement entered 
into force for Armenia on 15 September 2011.88  
3.141.   A revised law was adopted on 16 December 2016 and entered into force on 25 April 2017, 
inter alia,  in light of the  entry into force of the revised GPA in 2014 and Armenia's membership in 
the EAEU effective 2015. The new Law maintains most of the features introduced in the 2010 
                                                
81 The Comprehensive and Enhanced Partnership Agreement between the European Union and the 
European Atomic Energy Community and their Member States, on the one hand, and the Republic of Armenia, 
on the other hand. Viewed at: https://eur -lex.europa.eu/legal -content/EN/TXT/?uri=CELEX%3A52017JC0037 . 
82 See the Law on Procurement, adopted on 16 December 2016, Article 3. Viewed in English at: 
http://www.procurement.am/en/page/laws_international_contracts/.   
83 See GPA/  GPA/ACC/ARM/12, 10 February 2011.  
84 See GPA/ACC/ARM/3, 20 April 2010; and documents contained/referenced therein.  
85 See GPA/105, 7 December 2010.  
86 See GPA/ACC/ARM/12, 10 February 2011.  
87 See WT/Let/821 , 13 September 2011 .  
88 See GPA/109, 13 September 2011.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  reforms, and introduces some new elements and features to address remaining concerns, and to  
ensure compliance with the revised GPA and the EAEU Treaty. For example, the general coverage 
of utilities, and enforceable standstill periods, are maintained. Procurement of the Central Bank 
under operational expenses is excluded.  
3.142.   Important reforms were  undertaken with regard to institutional structures: the Centre for 
Procurement Support was abolished and its functions were integrated into a strengthened 
Authorized Body. Centralized procurement is also allowed by the new Law, and is conducted by the 
Authorized Body or other legal entities. P rocedures for centralized procurement for the needs of 
state, and state and community non -profit organizations  are defined in Government 
Decree No. 526-N of 4 May 2017.  Furthermore, a new Procurement Complaints Board,  consisting 
of three members, was created.  
3.143.   Good governance provisions were also strengthened. For example, the new legislation 
requires bidders to provide information on beneficial ownership, and strengthens provisions on 
conflicts of interest of officials  involved in tender evaluation and of the members of the 
Procurement Complaints Board. Minutes of bid opening and evaluation meetings must be published 
within one day of the bid opening  and evaluation. Furthermore, blacklisting provisions are 
enhanced in o rder to harmonize blacklisting among EAEU members, and now also include 
blacklisting of bidders that have shown deficiencies in performance or refused to sign/execute 
contracts. Blacklisted bidders are now automatically excluded from all procurements for a  period of 
two years.  
3.144.   The procedures have been revised considerably in order to comply with EAEU 
requirements. They now comprise (i) electronic auction; (ii) tender; (iii) price inquiry; and 
(iv) procurement from a single source. Thresholds were established, in order to regulate their use 
in line with international trade commitments. In particular, e -procurement provisions were 
enhanced, and timelines were adapted accordingly. Publications in the bulletin are now done 
electronically via the website www.procurement.am . As compared to the previous Law, the 
possibility of conducting negotiations is more restricted. Provisions for the protection of state 
secrecy as sensitive information were introduced.  
3.145.   Overall, the revi sed Law provides an important example for legislation aiming to 
implement both the GPA and the EAEU Treaty in a single piece of legislation. Further amendments 
to the Law introduced in 2018 mainly concern the review procedures. In light of constitutional 
changes, the Procurement Review Board was dissolved and replaced with individual "persons to 
review complaints". While certain general guarantees regarding the independence of the person 
examining procurement complaints are provided under the Constitution a nd the Law o n Bodies of 
Public Administration, the Public Procurement Law ( PPL) provisions designed to guarantee their 
independence, such as selection, remuneration , etc., were removed from the L aw itself.  
3.146.   Some further details have also been spelled out in secondary legislation and/or decisions. 
For example, Decision No. 526- N of 4 May 2017 introduces a requirement  for suppliers  to provide 
evidence of having properly performed at least one similar contract " within the year of submission 
of the bid and thr ee years prior to it ".  
3.3.7.1  Public procurement rules coverage of state -owned firms over the review period  
3.147.   The 2017 Law covers  the procurement activities of  a broad range of contracting 
authorities, namely:  (i) state administration bodies , local self -governmen t bodies, and institutions 
of the S tate and communities ; (ii) t he Central Bank (except for operational expenses ); (iii) state or 
communit y non- commercial organizations; (iv) o rganizations in which the share of the State or 
community exceeds 50%; (v) f ounda tions or associations (unions) created by the State, a 
community, a state or community non -commercial organization, or organizations in which the 
share of the State or communities exceeds 50%; (vi) l egal entities that have received funds in the 
form of a p ublic donation or grant with respect to procurements , financed through such donation 
or grant; (vii) f oundations formed as a result of the reorganization of state or community non -
commercial organizations, or of organizations in which the share of the State or community 
exceeds 50%; and (viii) p ublic undertakings.   WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.148.   Under the 2017 Law, as under the 2011 Law, t he standard and preferred procurement 
method is open tender ing. Procuring entities provide at least 40 calendar days for suppliers to 
prepare and submit requests for participation and responsive tenders. For procurement conducted 
by associations, foundations, or legal entities where  the share of the S tate or communities is 
above 50% , the time -period cons ists of at least 40 calendar days if the value of the procurement is 
above AMD  200 million;  otherwise , the time -period is at least 15 calendar  days. A time-period of 
15 calendar days may also apply in case s of emergency.89 
3.149.   If the procurement process contain s a state secret, single source , closed tender or 
quotation request , procedures may be applied. Pursuant to Article 21 of the PPL, closed tender 
procedures  can relate to either specific or recurring procurements  in relation to goods , works  and 
services included in a special list approved by the Government. The time -period for tendering 
constitutes at least 30 calendar days, in addition to a  mandatory pre -qualification period. For 
procurement conducted by associations, foundations, or legal entities with a  shareholding  of the 
State or community of above 50%, the time -period may consist of at least 15 calendar days, if the 
value of the procurement does not exceed AMD 200 million .90 
3.150.   Tender procedures  can be conducted in two stages if: (i) a procuring entity is n ot able to 
objectively set out the specifications of the procurement tender in accordance with the 
requirements of the PPL; (ii) a procuring entity allows the bidders to present alternative proposals 
on the potential specifications of the procurement; (iii) negotiations with bidders are necessary to 
clarify certain specifications of the procurement; or (iv) procurement s involv e public -private 
partnership s (PPPs) , including asset management or concession transactions.91  
3.151.   Price quotation  applies to goods , works  and services of a value below the GPA 
thresholds.92 In these cases, procuring entities must  provide at least seven calendar days from the 
date of publication of the contract notice  for submission of bids .93 In accordance with part 3, 
Article 22 of the Law on Procurement, the time -limit envisaged for the submission of bids should  
be at least four working days . On the basis of Clause 6, part 1, Article 5 of the Law, the 
Government approves the procedure for the application of procurement procedures provid ed for by 
this Law and the peculiarities thereof . In the framework of the provision, the Government 
stipulated another time -limit in Decision No. 526 -N, dated 4 May 2017, which is not less than the 
time-limit set by the Law ( no less than seven calendar day s). 
3.152.   Single source procurement  is limited to the following situations : (i) the goods, works, or 
services can only be obtained from one source, due to copyrights or related exclusive rights; (ii) in 
cases of emergency; (iii) additional procurements  which wer e not foreseen at the time of an initial 
bid94; (iv) procurements of a value below the Procurement Base Unit95; or (v) procurements made 
outside the territory of the Republic of Armenia.96 
3.153.   Electronic auction applies to goods, services and works included in a  list approved by the 
Government. Pursuant to Decision No.  534-N of 18 May 2017,  a list of 316 goods, services and 
works , ranging from foodstuff s to the printing of passports , has been approved for  procure ment 
through electronic auction. Procuring entities  must provide at least 15 calendar days for suppliers 
to prepare and submit responsive tenders during the electronic auction procedure, if the value of 
the procurement is above  AMD 70  million . Otherwise , the time -period is at least 7 calendar days.97  
                                                
89 See Article 20 of the PPL. 
90 See Article 21 of the PPL. 
91 See Article 18 of the PPL . 
92 Pursuant to Article 22 of the PPL, procurement may be carried out in the form of a price quotation if 
its value is below  AMD 70 million. 
93 See Article 22 of the PPL. 
94 Such conditions include: (a ) the contract on additional goods cannot be technically or economically 
separated from the initial contract; or  (b) the price shall not exceed 10 % of the total price of the initial 
contract. Furthermore, additional procurement from the same entity may be conducted  only once, and the 
price of additional goods may not be set higher than in the contract. 
95 The Procurement Base Unit s reflect the GPA thresholds. The Procurement Base Unit in Armenia is 
AMD 1 m illion.  
96 See Article 23 of the PPL. 
97 See Chapter 4 of the PPL. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.154.   Procu ring entities are required to conduct pre- qualification procedure s in the case of the 
procur ement of  consulting services, during a  two-stage tender procedure, or a restricted specific 
tender procedure. The deadline for the submission of pre- qualification a pplications is at least 
15 calendar days, unless the value of procurement is below AMD 70 million ; or procurement is 
conducted by associations, foundations, or legal entities with the share of the S tate or community  
above 50% ; or in case s of emergency when  compl iance with the deadline is not possible. In these 
cases,  the deadline for the submission of pre- qualification applications is  at least five calendar 
days.98 
3.155.   As regards statistical data on the use of procurement methods, these are mostly available 
for the years up to 2017, in which the 2011 Law was applied. That Law foresaw the following 
procurement procedures:  (i) open procedure;  (ii) competitive dialogue;  (iii) restricted procedure;  
and (iv) n egotiations.  
3.156.   For procurement above the GPA thresholds, most of the procurement in 2015 was 
conducted through the framework agreements (78%), the open tender procedures (14%),  and the 
negotiation procedures (around 8%).99 In 2017, most of the procurement (58%) was conducted 
through the negotiation procedures without announc ement; the framework agreements (24%); 
and the open tender procedures (17%)  (Table 3.11) .  
Table 3.11 Types of procedures used for procurement above the GPA thresholds  
Type of procedure  Year Number of 
contracts  % Contracted value  
(in million AMD)  % 
Open procedure  2015  8 7.7 6,860.5  13.6 
2016a 1 0.9 885.9 1.7 
 2017  6 23 1,902.4  17.1 
Framework agreements  2015  82 78.8 39,347.7  78 
2016  87 81.3 21,836.3  41.8 
 2017  13 50 2,711.4  24.4 
Negotiation procedures without 
announc ement  2015  4 3.8 1,193.8  2.4 
2016  9 8.4 5,204.2  9.9 
 2017  7 27 6,478.7  58.4 
Announcing negotiation procedures  2015  7 6.7 2,245.6  4.4 
2016  3 2.8 467.8 0.9 
 2017  - - - - 
Competitive dialogue  2015  1 0.9 612.3  1.2 
2016  3 2.8 818.8 1.5 
 2017  - - - - 
a The data from 2016 does not include the numbers and values of procurement conducted by entities 
governed by public law.  
N.B. In the current table , the contracted value for 2016 (around AMD 29,213 million) differs from the 
sum of the data on the contracted value in 2016 in Table 3.2 (AMD 52,196.6 million).  Therefore,  the 
total % in the fourth and the last columns amounts to less than 100%.  
Source:   GPA/137 , 18 May 2016 ; and the Annual Procurement Report from 2016 . 
3.157.   The main institutions responsible for public procurement under the 2017 L aw are the 
Authorized Body and the Procurement Complaints Board . However, a further amendment to the 
Law, which enter ed into force on 9 April 2018, resulted in the dissolution of the Procurement 
Complaints Board, and replaced it with a "person responsible to review complaints".  
3.158.   Given that Armenia's procurement system has been largely de- centralized, the Authorized 
Body's main functions are the regulation and coordination of the p rocurement process by the 
procuring entities ("requesters"). It does so by (i) coordinating the drafting of legal acts on 
procurement and adopting them or submitting them to the Government for approval; (ii) providing 
methodological support to the requesters in the organization of procurement activities; 
(iii) ensuring the granting of qualifications to the  procurement coordinators, and the existence of a 
system for their continuing professional education; (iv) organizing the publication of the Bulletin; 
(v) coordinating procurement- related collaboration with international organizations, foreign states, 
and the central government and local self -government bodies; (vi) registering procurement 
                                                
98 See Article 24 of the PPL. 
99 Document GPA/137 , 18 May 2016 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  contracts that create liabilities for the State; (vii) publishing the annual report on public 
procurements, and a list of qualified procurement specialists (persons); (vi ii) approving the 
templates of documents used in the procurement process; (ix) approving forms and submission 
deadlines of documents, including reports submitted to the Authorized Body under this Law; 
(x) approving the register form and compilation procedu re; (xi) carrying out the maintenance and 
coordination of the electronic procurement system; and (xii) with a view to documenting calls 
concerning procurements and rapidly responding to issues, securing the existence of a 
procurement support service (hotli ne).  
3.159.   The person reviewing complaints examine s complaints against the action ( or inaction) and 
decision of the requester  (i.e. procuring entity)  and the evaluation commission . The number of 
persons entitled to carry out the review is decided by the Governm ent decision and is no longer 
regulated by the Law. Decisions of the person reviewing the complaints are subject to appeal to 
the courts.  
3.160.   While the 2017 Law provided for the appointment of the three members of the 
Procurement Complaints Board by the President upon nomination by the Prime Minister, the 
appointment of "persons responsible for review" is not regulated by law, and they are appointed to 
serve for five years. While the Constitution and other legislative acts such as the Law on Public 
Service  provide certain guarantees with regard to the affiliation of persons responsible for review, 
namely that they are not allowed to not hold another position or perform other paid work, except 
for scientific, pedagogical, and creative work,  during the discharge of their powers,100 this 
provision was removed in the recent amendment of the PPL.  
3.161.   As compared to the 2011 Law, the provisions on conflicts of interest of board members 
were strengthened in the 2017 Law. A board member may not review a complaint if it turns  out 
that the appeal process involves an organization founded by such member , or an organization in 
which such member has a share, or by a person who is connected to such member by close family 
or in-law ties (parents, spouses, children, siblings, or spouse 's parents, children, or siblings) , or by 
an organization created by such persons or an organization in which such persons have a share. 
Board member s are required to  sign a statement confirming the absence of a conflict of interest, 
which is published in  the Bulletin together with the decision adopted in respect of the complaint.101  
3.162.   According to the 2017 Law, the launch of a complaint by a written submission to the board 
has an automatic suspensive effect. Interested persons can file such a complaint withi n the 10 -day 
standstill period before the procurement contract is signed, or, in cases involving tender and/or 
qualification requirements, before the bid submission deadline. Any deficiencies in the complaint 
documents have to be corrected within two days.  The procedure ensures that all involved parties 
may be present at the board sessions and present their opinions.  Interested third parties can 
participate in the proceedings, and must submit their similar complaints before a decision is taken 
to avoid losing their right to complain. A written decision on the complaint, which shall also contain 
the justification of the decision, must be adopted and published no later than 20 calendar days 
from the receipt of the complaint. This deadline can be extended once by up to 10 calendar days. 
The board's decisions are published within two working days, are legally binding, and can be 
appealed to the courts.   
3.163.    The 2017 Law enabled the board to prohibit the performance of certain actions and the 
adoption of decisions (b y the procuring entity); to order procuring entities to adopt appropriate 
decisions, including a decision to declare the procurement procedure as failed, except for the 
decree to declare the contract invalid ; to include a bidder in the list of bidders that are ineligible to 
participate in the procurement process; and to record decisions adopted by the board and oversee 
their execution. The provision regarding the possibility to change decisions adopted by the  
procuring entity was removed from the recently amended PPL. There is no separate 
section/provision in the Law dealing explicitly with the power of the b oard to grant interim 
measures that may, however, fall within the powers as described above. If the com plaint is 
justified, procuring entities are liable for compensating the complainant for the damage caused.   
3.164.   A main area of reform overseen by the Authorized Body in recent years has been the 
creation and  modernization of an e -procurement system  (ARMEPS), w hich has been fully 
                                                
100 Article 31 (1) of the Law on Public Servic e.  
101 See Article 49 of the 2017 Law. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  operational since 2012. The scope of contracting entities required to conduct procurement 
procedures by electronic means is currently being enhanced. Almost all competitive procedures are 
organized via e- procurement. Besides an e- tender ing module, planning, reporting and contract 
management modules have been developed, rolled out and are contributing to the creation of a 
full cycle e -procurement system. The e- auction module has been already tested in the Authorized 
Body and will be rolle d out for wider use within a short period of time. The e -procurement reforms 
also include the creation of an Open -Contracting -Data- Standard (OCDS)- based GPA reporting tool, 
and promises to enhance the availability of statistical data.  
3.165.   Furthermore, a Policy  Statement on PPPs  was adopted in November 2017, with a view to 
creating and developing a coherent and systematic approach to PPPs in the future. In that regard, 
it remains to be seen whether adequate and desirable synergies between PPPs and the overall 
procurement system can be strengthened through relevant legislation in order to maintain the 
highest transparency and competition standards.  
3.166.   Overall, the reforms undertaken have significantly strengthened the procurement function 
of the country. The de -centralization of the function means that a majority of procurements falls 
below thresholds contained in international trade agreements such as the GPA. Significant 
expertise in all procuring entities is required, in order to ensure that procurement is carried  out 
according to legal requirements. Furthermore, the availability of statistical and economic data 
depends on adequate reporting by procuring entities. In that regard, the success of on -going 
e-procurement reforms that Armenia has engaged in will be impo rtant determinants, and promise 
to enhance the transparency and efficiency of the procurement function in significant ways.  
3.167.   Armenia has successfully integrated both the GPA and the EAEU Treaty, and its legislation 
seeks to satisfy the requirements of both  treaties and other relevant international standards, such 
as those established by the CEPA. In that regard, some issues of interpretation and application 
may arise, e.g. regarding strict time- limits on what contracts can be used to satisfy prior 
experienc e requirements; how blacklisting provisions are applied; and that the time -limits set for 
bringing challenges before the persons reviewing complaints and the adoption of decisions are 
appropriate in order to find the right balance between timeliness and ef fectiveness. It remains to 
be seen what effects on the independence and effectiveness of the procurement review system the 
latest amendments to 2017 Law will have.  
3.168.   Armenia's active engagement in the GPA Committee and other international fora, and its 
ongoing efforts to put in place a modern e -procurement system, are a very positive signal that the 
country seeks to continue reforming its procurement system to the extent needed in order to 
adhere to the highest international standards.  
Intellectual property r ights  
3.169.   According to one report, Armenia has a strong intellectual property rights (IPR) framework , 
and its legislation is in compliance with the TRIPS Agreement.102 Domestic legislation, including 
the amended Law on Copyright and Related Rights, provides for the protection of IPR s on literary, 
scientific and artistic works (including computer programs and databases), patents and  utility 
models , industrial design, kno w-how, trade secrets, and trademarks.  
3.3.8.1  Overview and institutional framework  
3.170.   The Intellectual Property Agency (IPA) in the Ministry of Economic Development and 
Investments  is responsible for granting patents and overseeing other IPR related matters , as well 
as providing services relating to the legislation on the protection of IPRs .  
3.171.   Armenia requires no state registration for copyright. The collective management 
organization , ARMAUTHOR , manages authors ' economic rights. Trademarks and patents require 
state re gistration by the IPA. There is no special trade secret law in Armenia. Formal registration is 
easy and transparent, the database of IP registrations is public, and trademark applications are 
                                                
102 U.S. Department of State (2017), Armenia Country Commercial Guide . Viewed at: 
https://www.export.gov/ccg . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  published in the official website of the IPA for two months for oppositions and remarks by third 
parties.  
3.172.   At present , the legal field of intellectual property (IP) is regulated by laws and legal acts,  
as well as the international agreements of Armenia. It is a member of the World Intellectual 
Property Organization (WIPO)  since 1993,  and the Eurasian Patent Office (EAPO)  since 1995. The 
IPA cooperates with the European Patent Office (EPO) , other international and regional structures , 
and foreign offices. In 2005, Armenia created an IPR Enforcement Unit in the Organized Crime 
Department of the Armenian Police, which only acts based on complaints from right holders.  
3.173.   Despite the existence of  relevant legislation (Box 3.2) and executive government 
structures, the concept of IPR remains unrecognized by a large part of the local population , and 
the onus for IPR complaints remains with the offended party. The police assert that the majority of 
cases are settled through out -of-court proceedings. While the Government has made some 
progress on IPR issues, strengthening enforcement mechanisms remains necessary.  
Box 3.2 Main IP and IP -related laws enacted by the l egislature  
• Law on Copyright and Related Rights , of 15 June 2006 ( amended on 30  September 2013)  
• Law on Geographical Indications (2010),  of 29 April 2010 (amended in 2016)  
• Law on Trademarks (2010), of 29 April 2010, (amended in 2011, and in 2016)  
• Law on Inventions, Utility Models and Industrial Designs , of 10 June 2008  (amended  on 28 
September 2016)  
• Law on the Legal Protection of Topographies  of Integrated Circuits (1998), of 3 February 1998  
• Civil Code of the Republic of Armenia of 5 May 1998  
• Law on Protection of Economic Competition , of 6 November 2000 (as amended up to  23 March 2018)   
• Customs Code of the Republic of Armenia,  of 6 July 2000, and its Amending Laws  (2014)  
• Criminal Code of the Republic of Armenia,  of 18 April 2003   
Source:  WTO Secretariat .  
3.174.   The Armenian customs authorities track statistics related to the seizure of counterfeit 
goods, but the reports are not periodically updated. The latest relevant information can be found 
at: www.aipa.am , the IPA , and the Ministry of Economic Development and Investments . According 
to legislation, customs authorities only suspend the importation of counterfeit goods, but do not 
seize them.  
3.3.8.2  IP regime  
3.175.   Patents are registered by the IPA . If the object of the protection is a prod uct, the right 
holder has an exclusive right to prohibit any third party from manufacturing, using, introducing to 
the market, offering for sale, or importing or obtaining the product for any of those purposes. 
Similar prohibitions can be imposed if the ob ject is a method. The infringement of a patent can 
result in civil and criminal responsibility imposed by a competent court. The l ength of protection is 
20 years from the date of filing of the application.  
3.176.   Trademarks are registered by the IPA. The right h older of the registered trademark shall 
have an exclusive right to prevent third parties, without his consent, to use any sign in the course 
of trade which:  is identical to the registered trademark and is used in relation to goods and/or 
services for which  the trademark is registered;  is identical or similar to the registered trademark, 
which is used in relation to the goods and/or services which are identical or similar to the goods 
and/or services for which the trademark is registered, where the use of su ch sign creates a 
likelihood of confusion on the part of public, including association with the registered trademark;  is 
identical or similar to the trademark registered for other goods and/or services, where the latter 
has a reputation in the Republic of Armenia and the use of that sign would cause unfair advantage 
for the trademark or be prejudicial to the distinctive feature or the reputation of the trademark.  
The infringement of a trademark can result in civil and criminal responsibility imposed by a 
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  Protection of Economic Competition of the Republic of Armenia (SCPEC RA) as a result of unfair 
competition . The l ength of protection is 10 years from the date of filing of the application , and it 
can be renewed indefinitely for 10 years at a time.  
3.177.   Registered designs are registered by the IPA. A right holder has the right to prohibit any 
use of the design without their permission. The infringement can result in civil responsibility 
imposed by a competent court.  The l ength of protection is  five years from the moment of the 
introduction of the application. This c an be renewed for five years at a time,  but for no more than 
25 years in total. Unregistered design s are also protected by the law. No specific remedies are 
explicitly prescribed by law for unregistered designs. The l ength of protection is three years from 
the moment when the design was made public in Armenia.  However, there is general protection 
under unfair competition and  other general concepts . The infringement  of designs  can result in  
administrative responsibility imposed by SCPEC RA  as a result of unfair competition . 
3.178.   Copyright protects unique results of creative work that are executed by the author  alone , 
or together with other authors , in the fields of literature, science and art,  and that are expressed 
in oral, written or other objective form , regardless of form of creation, its value or the purpose of 
its creation. Copyright does not require registration. The author has the exclusive right to use their 
creation as they wish, and  to prohibit or authori ze its use by a third party. I nfringement of 
copyright can result in civil and criminal responsibility imposed by the competent court. The 
tangible rights of the author are protected during his/her  lifetime and for 70 years after his/her  
death. The intangible (personal) rights do not have any time -limit for protection.  
3.179.   A new Law on Copyright has been draft ed and circulated within the Government. It 
includes provisions from new international agreements (the Marrakesh and Beijing Treaties) , and 
provides additional detail on many of the provisions in the current L aw. Copyright contract rights 
are better defined , and examples of contracts between the user and the right  holder are included. 
Phonogram producers ' rights are harmonized with copyright holders ' rights , and are extended to 
70 years. The new legislation also includes specific provisions from the Marrake sh and Beijing 
Treat ies, regulating the rights of disabled artists and orphan works. The IPA and the Ministry of 
Justice have  also proposed changes to the Civil Code and the Criminal Code to improve IPR 
protection by specifying in more detail what information the court should take into consideration 
when determining compensation, fair remuneration, and calculating damages. This new legislation 
is due to be submitted to the Parliament for approval in the third quarter of 2018.  
3.180.   Inventions can also be protecte d as utility models or trade secrets, and signs can also be 
protected as geographical indications or designations of origin.  
3.3.8.3  IP framework at the EAEU level  
3.181.   There are no customs borders between the countries of the EAEU , and goods can circulate 
freely with in the single economic space. This has increased the importance of IP protection across 
the EAEU, taking into account that every member State has its own IP leg islation . EAEU disciplines 
on IP address all categories under the TRIPS Agreement , and are contained in the Treaty 's Section 
XXIII on " Intellectual Property " (Articles 89 -91) and the " Protocol on Protection and Enforcement 
of Intellectual Property Rights " (Annex 26).  
3.182.   The Treaty 's main goal is to create a common system for protecting IP Rs, including 
preventing breaches of IP Rs in the Union. It also makes provisions for coordinating the actions of 
the authorities in Union member countries to warn about, highlight, prevent and investigate 
breaches of IP Rs, and improve their activities.  
3.183.   While member Sta tes are allowed to maintain their domestic legislation on IPRs , Article 89 
provides for cooperation towards their harmonization. Articles 90 and 91 stipulate that member 
States perform their activity in the protection and enforcement of IPRs in accordance with 
international treaties. Further enforcement provisions are foreseen with regard to IPRs, including 
measures provided in the EAEU Customs Code and international treaties , and acts of the EAEU on 
customs regulations.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.3.8.3.1  Trademarks  
3.184.   The Draft Agreement on T rademarks, Service Marks and Appellations of Origin of the 
EAEU103 was approved at board level , and is expected to enter into force in 2018, following the 
completion of ratification procedures. The Agreement foresees the introduction of the " EAEU 
trademark " and "appellation of origin of the EAEU goods ", simultaneously protecting goods in all of 
the EAEU territor ies. The Agreement introduces a regional trademark and service mark protection 
system, providing the establishment of a Union Trademark , as well as a regional system for the 
protection of appellations of origin of goods. The draft Treaty does not envisage the creation of a 
regional trademark office; rather, it provides for the collaboration of all member States ' patent and 
trademark offices  in examinin g an application for the registration of a Union Trademark that would 
be valid in all EAEU countries.  
3.185.   The term of registration of trademarks is 10 years, with unlimited renewal for a maximum 
period of 10 years each time (Annex 26, Sections III -V). The Dra ft Agreement on EAEU 
Trademarks regulates relations in connection with the registration, legal protection and use of 
trademarks (service marks) and appellation of origin of the EAEU in its member States . In 
particular, the Agreement provides for the submis sion of one application for the Union 
Trademark/appellation of origin in any of the patent offices of the member States; obtaining a 
single protective title in the territory of the Union; a single window for a pplicants ' needs; a Single 
Register for the Uni on's trademarks and one for the Union 's appellations of origin, both posted on 
the official website of the Union; and comprehensive legal protection. The Union 's 
trademarks/appellation of origin will co- exist alongside national ones, and brand owners will have 
the option of applying for one or the other, or both. Under the Union 's regime, a brand owner may 
file an application in the local national trade marks office (the "Office of Filing")  of any one of the 
member States where it has an accredited place of business. Examination of the application is 
done by all of the national offices. Examination opinions are being sent to the Office of Filing by 
national patent offices.  
3.186.   A favourable decision leads to the registration of a trademark; in cases of a negative 
opinion of  national patent offices , arguments and observations can be filled  by the applicant . In 
the absence of  arguments and observations, or if the arguments and observations are  rejected, 
the entire  application is rejected  by the Office of Filing . The applicant can , therefore , either try to 
overcome the negative opinion by narrowing the list of goods or , alternatively , move towards 
applying for trademarks/GIs in individual member States. The Agreement also allows the 
conversion of a national application  into a Union application. A Union Trademark registration can 
be enforced, or invalidated, in each member country under the local laws of that country. The 
principle of the exhaustion of exclusive rights applies to trademarks and EAEU trademarks.  
3.3.8.3.2  Copyright  and related rights  
3.187.   With respect to works of science, literature and art, the term of protection for the work of 
an author and of joint authorship, as well as exclusive rights for a posthumous work , are no less 
than the terms of protection under the Berne Convention (1971) and the TRIPS Agreement 
(Annex  26, Section II). Member States grant exclusive rights on a mutual basis to performances, 
names, and other rights under their legislation. The term of  protection for the rights of producers 
of phonograms is no less than that provided by the TRIPS Agreement and the Rome Convention 
(1961). The legislation of member States may provide for longer terms of protection for these 
rights.  
3.3.8.3.3  Geographical indicatio ns  
3.188.   Geographical indications (GIs) are p rotected in the territory of a m ember State if such 
protection is provided under its legislation or international treaties of which it is a member 
(Annex  26, Section VI). Provisions on the appellation of origin of goods define the denomination 
which is recognized as the appellation of origin, legal means for interested parties to prevent the 
misuse of the denomination, or acts of unfair competition in individual member States (Annex 26, 
Section VII). Once the Draft Ag reement on EAEU Trademarks is in force, the appellation of origin 
of EAEU goods will be protected in the territory of all member States in accordance with the 
provisions of that Agreement (Annex 26, Section VIII).  
                                                
103 Online information. Viewed at: https://docs.eaeunion.org/docs/en- us/0149745/clco_10032016_23 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  3.3.8.3.4  Patent rights  
3.189.   Patent terms are the same as in the TRIPS Agreement, at 20 years for inventions , 10 years 
for utility models , and 25 years for industrial designs (Annex 26, Section IX). The protection of 
plant varieties and animal species is provided in accordance with the legislation of member Sta tes 
(these are addressed in Annex 26, Section X on " Selection achievements "). 
3.3.8.3.5  Topographies of integrated circuits  
3.190.   Topographies are protected in accordance with the legislation of member States 
(Annex  26, Section XI). Besides, under the EAEU Treaty, author s of topographies of integrated 
circuits have exclusive rights over them for 10 years (as in the TRIPS Agreement), and a right over 
their ownership. If so provided by member States legislation, rights holders might also have the 
right of remuneration for their use.  
3.3.8.3.6  Trade secrets  
3.191.   Trade secrets shall be understood as data of any character (industrial, technical, economic, 
organizational, etc.), including the results of intellectual activity in the scientific -research sphere, 
as well as data on methods of professional activity that have valid or potential commercial value 
(Annex 26, Section XII). Legal protection for trade secrets (know -how) is provided a ccording to 
the legislation of m ember States.  
3.3.8.3.7  Enforcement  
3.192.   Section XIII of Annex 26 states that enforceme nt of IPRs within the EAEU will be carried 
out in accordance with international treaties concluded within the EAEU, namely the EAEU 
Agreement on the Procedure for Collective Management of Copyright and Related Rights and the 
EAEU Agreement on Unified Custo ms Registry of Intellectual Property Objects of Member States of 
the Customs Union.  
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, Forestry, and Fisheries  
Features  
4.1.  Agriculture continues to play an important, albeit declining, role in supporting  economic 
growth , accounting for a large portion of employment and rural incomes, and as a source for the 
expansion of exports. Therefore,  the expansion of both the agricultural sector and the processing 
industry are key aim s of the G overnment , focusing on  increased productivity, economic efficiency, 
compliance with agro -technical requirements, and the application of modern technologies and 
management systems.1  
4.2.  The gross value added by the agricultural sector fluctuated considerably over the review 
period,  contracting by 16% in 2010, followed by five years of positive growth before contracting 
again in 2016 and 2017.  As a share of GDP, the agriculture, hunting, forestry and fishing sector's 
contribution has declined from a high of 2 3% in 2011 to 17 % in 2017. Similarly, the sector's share 
of employment dropped from 38.6% in 2010 to 31 .3% in 2017,  due to labour migration to other 
activities such as industry and services (Table 4.1).  
Table 4.1 GDP by e conomic activit y and employment, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
GDP by economic activity, at constant price (%age change)  
Agriculture, hunting, forestry and fishing  -16.0  14.0  9.5 7.6 6.1 13.2  -5.0 -5.3 
GDP by economic activity, at current basic price (%)  
Agriculture, hunting, forestry and fishing  19.2  22.8  20.1  20.7  20.4  19.3  18.2  16.7  
Employment by sector (%)  
Agriculture, forestry and fishing  38.6  38.9  37.3  36.3  34.8  35.3  33.6  31.3  
Source:  Statistical Committee of the Republic of Armenia online information.  
4.3.  According to the authorities, gross output declined in 2016 and 2017 by a total of nearly 7% 
due to several factors, particularly unfavourable climatic conditions (hail, frost, and drought) which 
particularly affected crops, which suffered a decline in gro ss output of nearly 20% over these two 
years. The livestock sector was not so badly affected  and gross output increased by a total of 
nearly 8%. The value of losses to agricultural output due to unfavourable climatic conditions was 
AMD 33.6 billion in 2016 and AMD 13.2 billion in 2017.  
4.4.  According to the FAO, the gross value of agricultural products in 201 6 was A MD 1,054 billion , 
of which about 30% was from livestock  and livestock products .2 There are about  317,346 farms, 
practically all of which are owned by smallholders , with an average farm size of 1. 8 hectares.3 
Fertile volcanic soil allows for the cultivation of wheat and barley as well as grazing for animals. 
Irrigated crops include apricots, peaches, plums, apples, cherries, walnuts, quince, figs, 
pomegranates other fruits and grapes , many of which are used in the agricultural processing 
indus try.4 The sector is highly climate sensitive , with potential adverse changes in temperature, 
precipitation, and frequency of extreme events such as droughts, heat waves and floods.5 
Furthermore , most of the land is at an altitude of over 1,000 metres , and over two thirds is on a 
slope of 6 degrees , which exacerbate climate and infrastructure problems.  
4.5.  During the review period, there has been a steady growth in the amount of land under 
cultivation and, since 2011 , production of almost all crops has increase d. According to the FAO , 
cropland occupied about 339,850 hectares in 2016.6 The continued support from the G overnment , 
measures to promote access to subsidized credit, the development of value chains , and the 
enhancement of the productivity and efficiency of farming, such as establishing cooperatives, have 
                                                
1 ICARE  (2017) , Promoting Investments into Agricultural Sector of Armenia , Yerevan. 
2 FAOStat online database. Viewed at: http://www.fao.org/faostat/en/#data . 
3 ICARE (2017), Promoting Investments into Agricultural Sector of Armenia , Yerevan. 
4 FAO (2012), Assessment of the Agricul ture and Rural Development Sectors in the Eastern Partnership 
Countries, Republic of Armenia , Budapest. 
5 U. S. Department of Commerce (2017), Armenia Country Commercial Guide , 2017. Viewed at: 
https://www.export.gov/article?series=a0pt0000000PAtBAAW&type=Country_Commercial__kav . 
6 FAOStat online database. Viewed at: http://www.fao.org/faostat/en/#data . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  assisted in the increase of production. In addition, private sector investments in agriculture using 
greenhouses have  increased and , since 2010,  more than 300 hectares of greenhouses were added. 
In 2015, it was estimated that US$50 million in investments were directed to greenhouses.7 
Furthermore, there has been a considerable amount of investment in the country's irrigation and 
water rights systems,  which has improved the agricultural sector. According to the World Bank, 
instead of growing wheat or barley , many small farmers have been cultivating crops that need 
more water but are of higher value added,  such as vineyards and new orchards.8 
4.6.   The total value of agricultural production at farm gate prices has  been relatively stable since 
2011,  at about AMD  1,100 billion , although there has been considerable variation  from one year to 
the next for some products. These changes in the value of production are due to both changes in 
yield (particularly for fruits, often due to the weather) and changes in prices. For livestock, which 
accounted for about one  third of the value of production (AMD 303 billion ) in 2016,  there was a 
clear upward trend in production until 2014 (AMD 346 billion ); then, lower prices resulted in a 
lower total value of production in 2015 and 2016 ( Table 4.2). 
Table 4.2 Production selected c rops 2000-16  
  2008  2009  2010  2011  2012  2013  2014  2015  2016  
Value of 
production  AMD bn  844  751  634  1,036  1,131  1,136  1,063  1,012  1,054  
Crops  AMD bn  636  549  393  734  831  814  717  674  751  
Fruit, stone 
n.e.s.  AMD bn  327  303  82  334  438  366  257  254  376  
 '000 ha  148  161  39  117  174  176  114  112  156  
 '000 
tonnes  16  16  16  16  17  18  18  16  20  
Potatoes  AMD bn  65  42  63  103  72  79  111  85  57  
 '000 ha  649  594  482  557  647  661  696  608  606  
 '000 
tonnes  34  32  28  29  31  31  30  28  29  
Wheat  AMD bn  27  19  22  31  38  50  48  43  39  
 '000 ha  226  198  183  224  243  312  338  363  350  
 '000 
tonnes  93  89  87  78  93  100  105  108  108  
Grapes  AMD bn  31  27  46  43  44  42  48  48  34  
 '000 ha  186  209  223  230  241  241  261  309  179  
 '000 
tonnes  14  14  15  14  16  16  16  16  16  
Apricots  AMD bn  12  9  20  21  19  11  5  26  31  
 '000 ha  83  81  30  49  76  89  42  116  62  
 '000 
tonnes  8  8  8  8  8  9  9  9  10  
Vegetables, 
n.e.s.  AMD bn  28  24  20  31  35  49  42  30  31  
 '000 ha  32  35  38  35  36  34  35  36  24  
 '000 
tonnes  8  8  7  8  9  9  9  10  10  
Livestock  AMD bn  207  202  241  303  300  321  346  338  303  
Meat, cattle  AMD bn  62  64  87  105  105  115  121  127  134  
 '000 
tonnes  49  50  48  48  48  54  59  64  68  
Milk, whole 
fresh cow  AMD bn  71  60  63  91  82  88  103  97  94  
 '000 
tonnes  14  14  15  14  16  16  16  16  16  
Eggs, hen, 
in shell  AMD bn  31  33  36  38  38  40  45  46  28  
 '000 
tonnes  8  8  7  8  9  9  9  10  10  
Source:  FAOStat online database. Viewed at: http://www.fao.org/faostat/en/#data . 
4.7.  Investments by both the private sector and international organizations have improved the 
situation in the agr o-processing industry , although t he industry is still adapting to a market 
economy and efforts are focused on improving efficiency, competitiveness, and diversification. 
                                                
7 Ministry of Agriculture (2015), Agro Investment Guide: Armenia , Yerevan. 
8 World Bank (2012), The New Landscape of Armenia's Agriculture , 7 March. Viewed at: 
http://www.worldbank.org/en/news/feature/2012/03/07/new -landscape -of-armenia -agriculture . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Some local companies are competing in both the domestic and the international markets , and are 
making investments to sc ale-up production. Increased demand for agricultural products for export 
has provided local farmers with an incentive to improve the efficiency of their operations and 
increase production.9 
4.8.  During the 2013- 17 period, exports of agricultural products (WTO d efinition)10 increased from 
US$364 million to US$ 607 million, about 28% of the total exports  of goods . Over the same period,  
imports declined from  US$840 million in 2013 to US$631 million i n 2016 before increasing to 
US$709 million in 2017. The main exports are cigarettes (HS 240220) and brandy (HS 220820) , 
which represent nearly three quarters of agricultural exports , or 20% of total exports. Imports are 
much less concentrated than exports,  with the top 10 imports in 2017 r epresenting less than half 
of the total imports of agricultural products. In 2017, the main imports were wheat (HS  100199) 
and cigarettes (HS 240220) , followed by frozen chicken meat (HS 020714) and tobacco 
(HS 240120), the latter  being used in the manufac ture of cigarettes ( Chart 4.1). 
Chart 4.1 Exports and imports of agricultural products , 2013- 17 
US$ million 
 
Source:  WTO calculations, based on UNSD Comtrade database (HS 2012).  
4.9.  The principal destination for exports varies depending on the product: for cigarettes, the 
main destination is Iraq followed by the United Arab Emirates and Syria which, combined, are the 
destina tions for nearly all exports of cigarettes; for brandy, 87% of exports are to the Russian 
Federation; and for sheep meat, the main destination is Iran. Similarly, for imports, the source 
depends on the product: for wheat, most imports come from the Russian  Federation; for 
cigarettes, it is Ukraine and the Russian Federation; and for frozen chicken meat, it is the United 
States, Brazil, and the Russian Federation.  
                                                
9 Ministry of Agriculture online information. Viewed at: http://minagro.am/en/agriculture -in-
armenia/agro -processing/ . 
10 For the purposes of this Section of the Trade Policy Report, the definition of agriculture products used 
is that set out in Annex 1 of the Agreement on Agriculture , where fish and fish products are taken to include 
tariff lines under HS2012 Headings 020840, 03, 050800, 050900, 051191, 1504, 1603, 1604, 1605, and 
230120.  
WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.10.   According to the authorities, the level of self -sufficiency in terms of most relevant food 
products is around 60% , which includes potatoes, fruit, vegetables, milk, sheep meat and eggs. 
On the other hand , domestic production of wheat, legumes, sugar, oil, and other types of meat is 
relatively low. Armenia relies heavily on grain imports, especially  cereals.11 
Policy and institutional developments  
4.11.   The institutional framework for agricultural policy did not change  during the review period.  
Agriculture policy is the responsibility of the Ministry of Agriculture, which includes the central 
administration and provincial -level inspection staff. In addition, each province has an agricultural 
department that is separate from the Ministry. There are a number of strategic documents 
designed by the Ministry of Agriculture aiming at developing the sector , such a s the Rural and 
Agricultural Sustainable Development Strategy (RASDS) 2010 -2020, the Plan s of Action for the 
Implementation of the RASDS12, and the Armenia Development Strategy for 2014- 2025.13 
4.12.   Under the RASDS , agriculture is recognized as a national priority for the development of 
rural areas,  and it includes programmes for, inter alia ; infrastructure development; development 
of rural markets; vocational and business training for enterprises; land consolidation and 
improvements in efficiency, including  the development of agricultural cooperatives; and the 
introduction of agricultural insurance.14 In addition, the Armenia Development Strategy (ADS) for 
2014- 2025 also recognizes agriculture as a priority sector , due to its role in providing inputs to the 
food in dustry , which is a sector with strong export potential,  and its role in off -farm rural 
development. Among the challenges noted in the ADS are the poor use of arable lands, low levels 
of irrigation, and a very high number of worn out agricultural machines. Several strategies are 
included in the ADS to make agriculture, forestry and fisheries more productive and sustainable, 
including:  
• Improved use of the resource potential of farms, particularly full use of arable lands, 
increase of crop and animal producti vity, and intensified production;  
• Public assistance projects for primary seed production, renewal of plants varieties and 
provision of seed; and  
• Development and implementation of projects for disease control of agricultural animals, 
activities aimed at pre vention of diseases, and revision of related strategic measures, 
taking into account international experience and efficiency of application in local 
conditions.  
4.13.   In 2011, Armenia adopted a strategy and action plan to bring its food safety system into 
line w ith EU standards. Food legislation includes Laws on: Food Safety; Phytosanitary Measures; 
Trade and Services; Ensuring Uniformity of Measurements; Protection of Consumer Rights; 
Standardization; and Conformity Assessment.  
4.1.2.1  Border measures  
4.14.   During the review period, tariff protection for agriculture increased from 6.6% in 2009 to 
12.8% in 2018, and remains higher than the overall applied MFN average (7.5%, 2018) and the 
average for manufacturing (Table 3.3). Import duties on agricultural prod ucts are higher than on 
non-agricultural products. Animals and animal products, fats and oils, and prepared food and 
beverages are the categories subject to the highest import duties (Chart 3.1 and Section 3.1.4.1).  
4.15.   Following Armenia 's accession to the EA EU, Armenia has negotiated temporary customs 
tariff exemptions for a number of key agricultural items . According to the authorities, the objective 
is to minimize inflation risks for the next five years. These items include some meat and poultry 
items, dair y products, fruit and vegetables, tea, grains, starches, vegetable oils, tobacco, and 
                                                
11 FAO online information. Viewed at: http://www.fao.org/armenia/fao -in-armenia/armenia -at-a-
glance/en/ . 
12 Appendix 1 and Appendix 2 to Government Resolution N o. 1476- N, 4 November 2010. 
13 Annex to Government Decree No. 442 -N, 27 March 2014.  
14 Urutyan, V., Yeritsyan, A., and Mnatsakanyan, H. (2015), Country Report: Armenia , ICARE, March. 
Viewed at: http://www.agricistrade.eu/wp -content/up loads/2015/05/Agricistrade_Armenia.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  gelatin e. By 2022, most agricultural items , with the exception of some fresh and dried fruit , will 
face import tariff increases, with meat and poultry having the largest change. Standardization, 
quality certification, sanitary and phytosanitary requirements, product safety processes and import 
procedures are also based on new EAEU requirements .15 
4.16.   In acceding to the WTO, Armenia did not reserve the right to use the special a gricultural 
safeguard for any product, bound other duties and charges at zero, and did not reserve the right 
to use export subsidies. According to Armenia's notifications to the WTO, no export subsidies have 
been used to suppor t exports of agricultural goods (at end -May 2018, the most recent notification 
was for 2016) .16 
4.1.2.2  Domestic support measures  
4.17.   At end -August  2018, the most recent notification to the WTO on the level of domestic 
support for agriculture was for 2012 and 2013. However, for the purposes of th is Review, the 
authorities provided provisional data on domestic support for 2014 -16 (Chart 4.2). According to 
these data  and the notifications, most support for agric ulture is provided through the Green Box, 
although the total amount varie d from one year to the next. Since 2014, most support in the 
Green Box was for a community agricultural resource management and competitiveness project, 
with nearly AMD  5 billion prov ided in 2016. The project is supported by the World Bank, and aims 
to improve the productivity and sustainability of pasture and livestock systems, and to increase 
the marketed production of selected livestock and high value agri -food value chains.17  
4.18.   Several  other Green Box measures were also implemented with assistance from 
international organizations or national aid agencies, including the International Fund for 
Agricultural Development which supported a programme for marketing opportunities for farm ers. 
4.19.   From the notifications and data from the authorities, Amber Box support during 2008- 16 
has tended to fluctuate considerably, from a total of AMD 52 million in 2010 up to 
AMD 4,919 million in 2015, or from 0.01% of the gross value of agricultural produ ction in 2010 to 
0.52% in 2013 (Chart 4.2). Most support since 2012 has been in the form of credit or input 
subsidies : 
• Under the programme for state support to land users for fertilizer at affordable prices, 
eligible farmers can purchase phosphorous and potassium fertilizer at AMD 140 per kg for 
up to 400 kg per ha for phosphorous fertilizer, and 150 kg per ha for potassium fertilizer. 
In 2016, AMD 2,048 million was spent on the programme;  
• The agricultural credit interest subsidization programme provides subsidies of 4 to 
6 percentage points of the interest rate for credit available to farmers at a total rate of 
14%. The total value of support under the programme was AMD 1,163 million in 2016;  
• Under the cattle breeding development programme, pedigree heifers are imported, new 
cattle -breeding farms established, and pedigree calves are sold to farmers and cattle 
breeding farms. Total support under the programme was AMD 488 million in 2016.  
• Grain seed price subsidization was valued at AMD 234 million in 2016,  for providing 
subsidized spring barley, alfalfa and clover seeds;  and 
                                                
15 USDA FAS (2015), Transitional Import Tariffs for Armenia in EAEU until 2022 , GAIN Report Number 
AM1501, 3 April. Viewed at: 
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Transitional%20Import%20Tariffs%20for%20Arme
nia%20in%20EAEU%20until%202022_Moscow_Armenia%20 -%20R epublic%20of_4 -3-2015.pdf . 
16 WTO documents: G/AG/N/ARM/28, 18 May 2018; G/AG/N/ARM/26 and G/AG/N/ARM/26, 25 April 
2018;  G/AG/N/ARM/1, 13 February 2004; ARM/4, 11 July 2005; ARM/7, 15 June 2006; ARM/10, 20 February 
2007; ARM/13, 27 February 2008; ARM/17, 1 September 2010; ARM/18, 12 October 2010; ARM/19, 19 May 
2011; ARM/21, 22 October 2012; ARM/25, 13 April 2015; ARM/26, 2 5 April 2018; ARM/27, 25 April 2018; and 
ARM/28, 18 May 2018.  
17 WTO document G/AG/N/ARM/24, 13 April 2015, and World Bank online information: Viewed at: 
http://projects.worldbank.org/P133705/second -second -community -agriculture -resource -management-
competitiveness -project?lang=en . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • Diesel fuel prices were subsidized by a total of AMD 275 million in 2016.18 
4.20.   In addition to these programmes, a financial leasing programme was launched in 2017 and, 
in 2018, interest rat e subsidy programmes were introduced for anti -hail nets, drip irrigation 
systems, establishment of intensive orchards, and purchases by agro -processing businesses. 
Furthermore, a new programme of subsidized interest rates for the agricultural sector was 
introduced in September 2017 for loans of AMD 3 to 5 million with repayment periods of up to five 
years, which is intended to encourage the introduction of new technologies and intensive 
production.  
Chart 4.2 Green and Amber Box support, 2008 -16 
 
Source:  WTO Secretariat based on notifications , and information provided by the authorities . 
                                                
18 Information provided by the authorities, and Ministry of Agriculture online informati on. Viewed at: 
http://minagro.am/ . 
WT/TPR/S/379 /Rev.1  • Armenia  
 
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Selected agriculture and livestock  
4.1.3.1  Livestock breeding  
4.21.   Livestock breeding is one of the leading branches of the agricultural s ector. Similar to other 
agricultural products, small households play a key role in animal husbandry, and the production of 
whole milk and meat. In 201 6, about one third of the gross value of agricultural production was 
from animals and animal product s.19 It has also been estimated that 92- 94% of the value of 
animal husbandry was generated by households , and 6-8% (mainly poultry) by commercial 
farms.20 The Government has supported the sector with improvements in legislation, the 
upgrading of laboratories, the development of  infrastructure to ensure traceability , and the 
facilitation  of the export of fresh and processed meat. Due to the promotion of high -value livestock 
and technologically advanced breeding program mes, sheep exports to Iran, Georgia, Qatar, Kuwa it 
and Lebanon have increased in recent years. According to the Ministry of Agriculture, Armenia has 
the capacity to export 180 -200,000  head of sheep annually.21  
4.22.   Poultry breeding has traditionally been among the most intensively developed sectors , and 
is one of the most automated segments of animal husbandry u sing modern technologies. At 
present , there are more than 10 medium -sized and large poultry enterprises in the country , 
producing eggs and poultry meat.22 Around 650- 700 million eggs and 7- 8 tons of pou ltry meat are 
produced annually, and exports are gradually increasing.23  
4.23.   Despite the advances made in livestock breeding,  the sector faces several challenges,  such 
as unsustainable pasture management and underutilization, persistent livestock diseases, 
processing and marketing constraints, and reduced productivity. Additionally, there are seasonal 
fluctuations in the supply of dairy products, with most milk produced in the summer months. The 
dairy and meat sectors are competitive in the domestic market;  however, there is scope for 
strengthening their competitive position by addressing productivity and supply constraints. To 
mitigate these issues and increase exports , the Government continues to assist in the 
implementation of modern technologies , and is prom oting high -value livestock and technologically 
advanced breeding program mes.  
4.24.   In 2018, the simple average MFN tariff for animal products was 26.5% , and 14.3% for dairy 
products. Although domestic production is increasing, the challenges listed above limit Armenia 's 
capacity to exploit export opportunities , and imported meat accounts for half of meat 
consumption.24  
4.1.3.2  Food processing  
4.25.   Armenia has a fast -growing food processing sector , with export potential based on 
ecologically friendly green agro -products. As one of the country 's most developed sectors, and the 
second in terms of export volumes , food processing plays an important role in the economy. The 
most important products are alcoholic beverage s, especially brandy and wine made from locally 
grown grapes. E xports of alcoholic beverages (SITC 112) have increased from US$100 million in 
2010 to US$227 million in 2017; they have been consistent through the review period,  increasing 
slightly from 9.5% of total exports in 2010 to 10.2% in 2017, about 90% of which  was brandy.  
The main exporting markets for spirits are the Russian Federation, Ukraine, and  Belarus.25 
4.26.   The simple average MFN tariff for beverages and spirits was 11.2% in 2018 (Table 3.3). The 
excise tax, an indirect tax levied on domestically -produced an d imported alcoholic beverages, 
varies according to the product's maturity. Rates enforced are compound duties of 50%, but with a 
                                                
19 FAOStat online database. Viewed at: http://www.fao.org/faostat/en/#home . 
20 Ministry of Agriculture  (2015) , Agro Investment Guid e: Armenia , Yerevan.  
21 U.S. Department of Commerce (2017), Armenia Country Commercial Guide , 2017. Viewed at: 
https://www.export.gov/article?series=a0pt00 00000PAtBAAW&type=Country_Commercial__kav . 
22 Ministry of Agriculture (2015), Agro Investment Guide: Armenia , Yerevan. 
23 U.S. Department of Commerce (2017), Armenia Country Commercial Guide , 2017. Viewed at: 
https://www.export.gov/article?series=a0pt0000000PAtBAAW&type=Country_Commercial__kav . 
24 Ministry of Agriculture  (2010) , National Strategy for Sustainable Use and Development of Farm 
Animal Genetic Resources, Yerevan . Viewed at: 
http://www.fao.org/ag/againfo/home/en/news_archive/doc/book_national_strategy_eng.pdf . 
25 UNSD Comtrade online database. Vie wed at: https://comtrade.un.org/data/ . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  minimum that varies with the age of the distilled spirit, from AMD 3,000 for 1 litre of one - to 
three -year-old spirits up to A MD 22,000 for 1 litre for spirits of more than 20 years old.  
4.27.   During the review period,  the Government established  the Association of Armenian Brandy 
Producers in order to maintain the quality of sprits. The Association has developed quality control 
laboratories for its members' products, and has award ed quality certificates since 2013.26  
4.1.3.3  Fresh fruit and vegetables  
4.28.   In terms of fresh fruit and vegetables, apricots, grapes, cherries, peaches, plums, potatoes 
and tomatoes are the main exports. The largest shares, in export value terms, are held by 
tomatoes (0.2% of total exports in 2010, and 0.9% in 2017) and grapes (0% 2010, and 0.8% in 
2017). The main export markets for fruit and vegetables are the Russian Feder ation, Georgia, 
Iraq, Kazakhstan, Ukraine, and Belarus.  
4.29.   The current average MFN applied tariff on fruit, vegetables, and plants is 8.8% (Table 3.3).  
Seasonal import tariffs are applied to certain potatoes, fresh or chilled tomatoes, fresh or chilled 
cucum bers, sweet peppers, fresh apples, certain pears, beet sugar, and certain kinds of white 
sugar. Different tariff rates, depending on the average monthly price at the New York Mercantile 
Exchange, are applied to cane sugar and sugar containing added flavour ing or colouring matter 
(Section 3.1.4.1).  In the period 2015- 25, it is permitted to import raw cane sugar (included in 
EAEU EEA PL 1701 13 and 1701 14) exempted from import custom duties for industrial processing 
in the territory of Armenia.  
4.1.3.4  Cigarettes  
4.30.   The manufacture of cigarettes and other tobacco products is becoming an increasing source 
of revenue for Armenia. In 2016, US$281 million of cigarettes were manufactured, up 23.5% from 
the previous year. Cigarettes are the largest export in the agriculture sector, and exports of them 
increased during the review period from 0.8% of total exports in 2010 to 11.9% in 2017. The main 
importers of Armenian cigarettes are Iraq, Syria, United Arab Emirates and the Russian 
Federation. Imports decreased during the rev iew period, from 1.7% of total imports in 2010 to 1% 
in 2017. Armenia imports tobacco goods mainly from EU member States and the Russian 
Federation. The current average MFN applied tariff on cigarettes is €2 per 1000 pieces.  
4.31.   The tobacco sector is also a major taxpayer and , in 2016,  the largest producer, the Grand 
Tobacco Armenian -Canadian Joint Venture, was the second largest taxpayer in Armenia 
(AMD 22.6 billion in taxes in 2016). This amounted to a 65% increase from the previous year.27  
Fisheries  
4.32.   Fish far ming is an attractive industry in Armenia,  due to favourable climatic conditions for 
year-round commercial farming. An increase in private investment has established a number of 
large and profitable fish farms. Some of these have moved towards vertical integration , and 
started feed production and fish processing plants. In addition, the establishment of cooperatives 
in the fish industry is notable , where several fish farms jointly purchase fish fry and concentrated 
feed, and market fish products.28 According to the Ministry of Agriculture , 13-14 ton nes of 
commercial fish are raised annually in 300 fish farms , 80% of which are located in the Ararat 
valley. In order to increase productivity , commercial fisheries introduced  the semi-closed cycle of 
water management.29  
                                                
26 FAO (2012), Assessment of the Agriculture and Rural Development Sectors in the Eastern Partnership 
countries, Republic of Armenia , Budapest. 
27 Hergnyan, S. (2017), Armen ia's Increasing Tobacco Exports: Who's Buying , hetq investigative 
journalists, 6 April. Viewed  at: http://hetq.am/eng/news/77578/armenias -increasing -tobacco -exports -whos-
buying.html . 
28 FAO (2012), Assessment of the Agriculture and Rural Development Sectors in the Eastern Partnership 
countries, Republic of Armenia , Budapest. 
29 Ministry of Agriculture (2015), Agro Investment Guide: Armenia , Yerevan. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.33.   Fish varieties such as carp, trout, sturgeon and crayfish are regarded as being of high 
quality , with exports to Belgium, France, the Russian Federation , Ukraine, Georgia, and the United 
Arab Emirates . In 2017, the total value of exports of fish and fish products was US$22 million.30  
4.34.   The simple average MFN tariff for fish and fishery products stood at 7.1% in 2018 
(Table  3.3). Customs authorities calculated and collected VAT (20% at the point of entry). For 
imports from other EAEU members, VAT is paid on the 20th of the month following date of 
importation. In order to export fish and fishery products to EAEU countries, it is necessary to be 
registered in "Registry of entities and persons of third countries engaged in production, processing 
and/or storage of products subject to control to be imported in EAEU economic area" of the State 
Service for Food Safety of the Ministry of Agriculture.    
Crops  
4.35.   In terms of crop production , volumes of wheat are the highest among all cereal categories . 
According to 2016 data, the self -sufficiency level for wheat was at 53.2%,  and it is produced by 
smallholders.31 In addition, limited land resources are increasingly being used for higher 
value -added crops such as grapes and fruit . Since the last R eview, there has also been an increase 
in the production of barley  (except in 2017),  which is used as animal feed and in beer production. 
Cereal production in 2017 comprised 302,500 tonnes .  
4.36.   The current average MFN applied tariff on cereals is 8.5% (Table 3.3). Wheat imports 
account for the majority of total cereal purchases. Armenia, a net food importer of wheat, 
negotiated temporary customs tariff exemptions on wheat during its EAEU accession, to minimize 
inflation risks. The Russian Federation continues to be the ma in wheat and flour supplier. In 2017, 
the number of entities engaged in flour imports increased from 23 to 133, with the largest growth 
being registered after Armenia's accession to the EAEU.  
4.2  Mining and Energy  
Mining  
4.2.1.1  Features  
4.37.   Armenia has an abundance of mi neral resources such as molybdenum, copper, gold, lead, 
silver, and zinc. There are also commercial deposits of industrial minerals , including basalt, 
diatomite, granite, gypsum, limestone, and perlite. In addition to extracting minerals, Armenia 
produces aluminium foil and has a diamond -processing industry, both based on imported raw 
materials . The mining sector is one of the largest contributors to export and tax revenues and 
foreign investments.  
4.38.   During the review period,  the mining sector 's share in gros s value added increased from 
2.9% in 2010 to 3. 5% in 2017 (Table 4.3). Despite a decrease in its share of merchandise trade , 
from 47.8% in 2010 to 43.8% in 2017,  mining exports (SITC Rev.3) outperformed other industrial 
products. In 2017,  mining sector exp orts were valued at about US$885 million. Armenia 's main 
export partners for mining products were the Russian Federation  and China. Mining of copper ores 
dominated, accounting for around 98% of the production value , and 20.8% of total merchandise 
exports i n 2010 and 26.6 % in 2017 (Chart 1.1.)  
Table 4.3 GDP by economic activity and employment, 2010 -17 
 2010  2011  2012  2013  2014  2015  2016  2017  
GDP by economic activity, at constant price (%age change)  
Mining and quarrying  22.8 13.9 15.7 5.9 -6.4 56.8 5.9 18.2 
Gross value added by economic activity, at current basic price (%)  
Mining and quarrying  2.9 3.1 3.0 2.5 2.4 2.4 2.9 3.5 
Source:  Statistical Committee of the Republic of Armenia online information. 
                                                
30 UNSD Comtr ade online database, where fish and fish products include tariff lines under HS2012 
Headings 020840, 03, 050800, 050900, 051191, 1504, 1603, 1604, 1605, and 230120.  
31 ICARE (2015), Country Rep ort: Armenia , March. Viewed  at: http://www.agricistrade.eu/wp -
content/uploads/2016/07/Agricistrade_Armenia_rev.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.39.   The sector also contributes to employment,  especially in rural areas,  offering comparatively 
high paid jobs outside of Yerevan. In 2018 , an estimated 9,200 people were employed in the 
sector , accounting for 9 % of those employed in industry.  According to on e report, in addition, the 
relatively high wages in the sector has generated a positive environment for local small and 
medium -sized enterprises (SMEs) operating in the trade and services sectors. Large mining 
projects, such as those located in Teghut (cop per and molybdenum) and Amulsar (gold), were 
implemented with local community stakeholders and multinationals assisting in the development of 
infrastructure such as healthcare, education, and more advanced agricultural technologies . This 
has created spill -overs that have boosted local SMEs.32 Since 2016, work began to prepare the 
Amulsar mine. As at April 2018, 1,460 people were employed by the company and its contractors, 
of which 464 are from surrounding communities. Production is scheduled to start in the  second 
quarter of 2018. Mineral extraction in the Teghut mine was carried out during 2014- 17 but not in 
2018.  
4.40.   In addition, despite its relatively small contribution to GDP, tax contributions are 
comparatively high: for the period 2012 -14, the sector provided an average of 4.8% of overall 
taxes and 8.2% of direct taxes.33 For example, according to one report, the Amulsar Gold Project 
is projected to be among the top five corporate taxpayers in Armenia, generating annually on 
average approximately US$50 million in taxes.34  
4.41.   The mining sector is mainly comprised of  small to medium -sized mines and a few large 
ones. A total of 850  mines of solid mine rals, including 42 metal ones, are currently registered in 
the state inventory of mineral resources. Among these , about 450 have licences to operate, 
including 2 8 metal mines . Among metal minerals , there are 7 copper -molybdenum mines, 
4 copper mines, 2 4 gold and gold- polymetallic mines, 2 polymetallic mine s, 2 iron  ore mines, 
1 aluminium mine and 1 chromite mine.35 The leading producer s of copper and molyb denum 
concentrates are  the Zangezur C opper -Molybdenu m Complex (ZCMC);  Vallex Gr oup and the 
Agarak Copper -Molybdenum Mining and Processing Complex (ACMC).36 The ZCMC mine, located in 
Kajaran, produces 22 million tonnes an nually, representing roughly 60% of the turnover of the 
mining sector.  
4.42.   The sector has attracted a considerable amount of FDI , most  notably during the last review 
period when Cronimet GmbH invested in the acquisition and moderniz ation of ZCMC and, in this 
review period, in 2012,  when investments were made by Vallex to start the Teghut mine.  In 
addition, Lydian International has invested US$420 million in the development of the Amulsar gold 
deposit.37 
4.43.   The sector is developing further facilities for processing  copper, gold, and molybdenum, and 
several gold and iron ore mining projects are underway. However, a  number of problems confront 
the sector. In particular,  in terms of production , mining is domi nated by a small number of large 
operators, making the sector vulnerable to external s hocks which, in turn, may threaten long -term 
sustainability. In addition, p oor mineral recovery rates and concerns about the potential 
environmental effects of mining projects continue to affect the sector. According to the authorities, 
the Ministry of Energy Infrastructures and Natural Resources encourages discussion with interested 
investors about the possibility of introducing new, efficient, environmentally -friendly te chnologies 
in the mining sector.  Furthermore, the authorities have taken steps, such as the introduction of 
                                                
32 World Bank (2016), Strategic Mineral Sector Sustainability Assessment, Swedish Geological AB in 
association with SLR Consultants Ltd.,  AVAG Solutions Ltd., the  AUA Center for Responsible Mining , and the  
AUA Turpanjian Center for Policy Analysis , April. 
33 World Bank (2016), Strategic Mineral Sector Sustainability Assessment, Swedish Geological AB in 
association with SLR Consultants Ltd.,  AVAG Solutions Ltd., the  AUA Center for Responsible Mining , and the  
AUA Turpanjian Center for Policy Analysis. April, p. 54.  
34 AVAG Solutions (2015), Social -economic contribution of the Amulsar Gol d Project , prepared f or Lydian 
International, March. Viewed  at: http://www.lydianinternational.co.uk/images/General_PDFS/Social -economic -
Contribution- Report-March -2015.pdf . 
35 Ministry of Energy Infrastructures and Natural Resources online information. Viewed at: 
http://www.minenergy.am/en/page/472 . 
36 U.S. Department of Commerce (2017), Country Commercial Guide, 2017 , online information. Viewed 
at: https://www.export.gov/article?series=a0pt0000000PAtBAAW&type=Country_Commercial__kav . 
37 AVAG Solutions (2015), Social -economic contribution of the Amulsar Gold Project, prepared for Lydian 
International, March. Viewed at: http://www.lydianinternational.co.uk/images/General_PDFS/Social -economic -
Contribution- Report -March -2015.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  the Law on Environmental Impact Assessment and the Law on Waste Management , to set 
standards for responsible mining , to better align the industry with global environmental practices.  
4.2.1.2  Trade  
4.44.   The main mineral exports are copper ores and concentrates and unwrought gold;  exports of 
both nearly doubled in both value and  quantity during 2013- 17. Export performance of other 
minerals and mineral products vari ed (Table 4.4). 
Table 4.4 Exports of selected minerals and mineral products , 2013- 17 
US$ million 
HS Description  2013  2014  2015  2016  2017  
2603 Copper ores and concentrates  279.9  235.9  316.6  370.0  571.5  
7108 Gold - unwrought  73.6  81.9  98.9  140.9  145.0  
7607 Aluminium foil  80.4  88.5  82.9  77.1  96.4  
7202 Ferro-alloys  102.4  109.7  55.5  66.0  84.4  
7402 Copper; unrefined, copper anodes for 
electrolytic refining  90.2  71.8  65.5  62.8  70.7  
7102 Diamonds, not mounted or set  88.1  118.0  77.3  106.3  72.8  
2608 Zinc ores and concentrates  17.0  13.8  12.0  10.5  16.6  
7113 Jewellery - of precious metal or of metal 
clad with precious metal  21.3  21.5  18.1  19.1  26.9  
2613 Molybdenum ores and concentrates  6.7  8.7  6.2  0.9  8.6  
7112 Waste and scrap of precious metal  0.3 3.8 5.5 2.5 8.0 
8102 Molybdenum, articles thereof  17.5 19.0 11.1 5.0 0.1 
Source:  UNSD Comtrade . 
4.2.1.3  Policy and i nstitutional developments  
4.45.   The Mining Agency within the Ministry of Energy Infrastructures and Natural Resources is 
responsible for administering the sector  and issuing licenses. Key departments and tasks in the 
mining sector include:  
• Mining Granting Agency, managing and administrating mineral permit applications;  
reviewing and approving mineral reserves estimations, required for mining permit 
applications; policy and legal develo pment; and  
  
• Republican Geological Fund, repository for geological data and information, company 
reports, exploration and mining contracts, and reserves data.  
 
4.46.   The sector's r eform process began in the last review period, with the revision of the 
regulatory  framework, the liberalization of contractual mechanisms, and the restructuring, through 
privatization,  of the major mining companies.38 During the current review period, the m ining 
legislation was updated to bring it into compliance with international stan dards. Currently, the 
mining sector is regulated by the following legal acts: the Mining Code of 2012; the Law on 
Environmental Supervision; the Law on Promoting of State Regulation of Technical Security; the 
Law on Environmental Impact Assessment and Envi ronmental Expertise; the Civil Code; the Water 
Code; the Land Code; the Code on Administrative Offences; the Criminal Code; and the Tax Code.  
4.47.   The new Mining Code sets out the regulatory framework governing mining and concessions . 
Exploration rights are awarded on a first -come -first-served basis, while the security of tenure and 
entitlement of mining rights is less clear . The Code states that, essentially , any legal person  can 
apply for a mineral right, although the financial and technical capacity of the applicant needs  to be 
approved.  Licence holders must submit work program mes to the Ministry for approval, and 
licences can be withdrawn if minimum work requirements are not met. According to the 
authorities, there are no restrictions on foreign enterprise s obtaining licences for exploration or 
mining. A total of 452 licences were effective in 2017, compared to 499 in 2015. However, the 
number of licences for metal ores remained constant, at 28 for 2015- 17 (Table 4.5). 
                                                
38 WT/TPR/S/228/Rev.1, 22 April 2010, Section VI(2). WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 4.5 Mineral extraction licences issued, 2015 -17 
 2015  2016  2017  
Total licences issued  499 463 452 
 of which     
  Operation of metal ore deposits  28 28 28 
  Non-metal ore deposits  442 402 393 
  Mineral water  29 31 30 
Source:  Data received from the  authorities . 
4.48.   The Mining Sector Development C oncept was adopted on 24 August 2017, and  the 
Government 's mining sector development strategy is to be adopted by the end of 2019.  
4.49.   In addition to profits tax at 20%, under the Mining Code , companies mining metal ores and 
producers of metal ore concentrates and smelting products are required to pay royalties and make 
payments into the nature and environment preservation fund. For ore concentrates, the royalty 
base is total revenue calculated as total production quantity and price in the purchase agreement. 
For smelting products, the royalty base is calculated as production quantity and price based on 
London Metal Exchange prices. The rate is a fixed rate of 4% plus a variable rate based on a 
formula, as follows:  
R%= 4 + [P/(Revenue x 8)] x 100  
where P = e arnings before interest  and tax (EBIT), and Revenue = g ross revenue from 
sales.  
4.50.   Also under the Mining C ode, mining companies may benefit from a three- year stabilization 
period after being granted the right to mine. During this time , taxes, royalties and other fees may 
not be changed from those applicable at the time of the right being granted. 39 
4.51.   The Governm ent has also adopted legislation needed for the implementation of the Mining 
Code, which is intended to attract private investment, streamline the management of 
environmental and social impact assessments, and enhance public disclosure. Furthermore, t he 
Law on Environmental Impact Assessment and the A mendment to Mining  Code (2016) are 
intended to help set standards for responsible mining , to better align the industry with global 
environmental practices.40 Furthermore, i n 2017, Armenia became the 52nd country to join the 
Extractive Industries Transparency Initiative ( EITI), which  promotes the open and accountable 
management of oil, gas, and mineral resources.  The Ministry of Energy  Infrastructures and Natural 
Resources has adopted new secondary legislation to meet the requirements of the EEC  on the 
provision of information  on underground resources subject to restriction for foreign trade , and 
issuing licenses for exporting mineral resources.  
4.2.1.4  Border and domestic support m easures  
4.52.   During the review period, tariff protection for mining increase d from 1.2% in 2009 to 4 % in 
2018,  but remains lower than the overall applied MFN average (7.5%, 2018) and the aver age for 
manufacturing . (Tables 3.2 and 3.3) . Apart from a limited number of import duty exemptions 
related to machinery and equipment, the tax rules and regulations for mining companies are the 
same as those applied to other industries. Since 2012, the Law on Environmental and Natural 
Resources Paym ents has defined royalties as a n environmental payment for the sale of extracted 
metal minerals and products obtained from their processing in the field of metal extraction. The 
royalty rate is calculated in accordance with the L aw for each reporting year (taking into account 
profitability) , which will not be less than 4% of the sales turnover. Previously, the utilization fee 
was calculated for all types of mineral extraction based on extraction volumes. The Tax Code, 
which entered into force in 2018, also sets the same rules for the calculation of royalties for 
extractors of metal minerals and for extractors of non -metallic minerals ; the calculation of the cost 
of environmental benefit based on extracted volumes has been maintained.  
                                                
39 Genasci, M. (2015), Analysis of Armenia's mining fiscal regime , Mining Legislation Reform Initiative, 
AUA Center for Responsible Mining, American University of Armenia (Yerevan). Viewed at: 
http://mlri.crm.aua.am . 
40 U.S. Department of Commerce (2017), Country Commercial Guide, 2017 , online information. Viewed 
at: https://www.export.gov/article?series=a0pt0000000PAtBAAW&type=Country_Commercial__kav . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.53.   Following Armenia 's accession to the EAEU , Armenia has negotiated temporary customs 
tariff exemptions for a number of key items , such as base metals and precious stones.  However, 
by 2022,  these  items will face import tariff increases.  
Energy  
4.54.   Apart from electricity produced from  hydro sources and other forms of renewable energy , 
Armenia depends on imports for all its primary energy needs. After natural gas, n uclear power 
from the Armenian Nuclear Power Plant (ANPP), using fuel imported from the Russian Federation,  
is the second l argest source of energy , and provides nearly one third  of total electricity.  
Table 4.6 Primary energy supply and final consumption, 2012 -16 
'000 tonnes oil equivalent (ktoe)  
 2012  2013  2014  2015  2016  
Primary energy supply  
 of which  2,971  2,900  2,959  3,187  3,122  
 Oil products  369 325 325 315 301 
 Natural gas  1,927  1,864  1,881  1,956  1,833  
 Nuclear  602 615 642 727 714 
 Hydro  200 187 171 190 202 
 Biofuels and waste  8 9 34 107 148 
 Imports (+)/exports  (-) -137 -100 -95 -107 -82 
Final consumption  
 of which  2,137  2,101  2,001  2,088  2,089  
 Industry  385 384 365 328 320 
 Transport  531 522 555 608 918 
 Residential  665 662 720 656 785 
 Commercial/public services  121 122 255 458 324 
 Agriculture/forestry  12 13 15 39 43 
Source:  International Energy Agency online information. Viewed at: 
https://www.iea.org/statistics/statisticssearch/ ; and Statistical Committee of the Republic of 
Armenia. Viewed at: http://www.armstat.am/en/?module=news&mid=3&id=581 . 
4.55.   During 2013- 17, the value of imports of oil and gas declined,  due to lo wer prices , while 
import quantities were relatively stable  (Table 4.6). With no oil refinery, Armenia imports oil 
products mainly from the Russian Federation, and the E uropean Union. 
4.56.   Most natural gas is imported from the Russian Federation via a 1020 mm pi peline through 
Georgia , with the rest from Iran through a 720 mm pipeline. Gasprom Armenia, wholly owned by 
Gazprom of the Russian Federation, owns and operates the gas transmission and distribution 
networks in Armenia, including the Armenian part of the c onnections with Iran.41 According to the 
amendments to an agreement between the governments of Armenia and the Russian Federation of 
December 2013, the purchase price for natural gas is US$150 per 1,000 m3 for the period from 
1 April 2016 to 31 December 2018. Retail prices for gas are set by the Public Services Regulatory 
Commission (PSRC), following public consultations, and published on its website.42 The gas from 
Iran is under a gas -for-electricity exchange  arrangement (Armenia is a net exporter of electri city – 
mostly to Iran) (Table 4.6).  
                                                
41 International Energy Charter (2017), In-Depth Review of the Ener gy Efficiency Policy of Armenia , 
Brussels.  
42 PSRC online information. Viewed at: http://psrc.am/am/sectors/gas/tariffs . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Table 4.7 Imports of petroleum products, and trade in electricity, 2013 -17 
HS2012  Description  Units  2013  2014  2015  2016  2017  
Imports  
2710 Petroleum oils and 
oils from bituminous 
minerals, not crude  US$ million  341.6  321.2  217.4  198.3  242.6  
'000 tonnes  327.4  322.8  270.6  316.4  344.9  
2711 Petroleum gases and 
other gaseous 
hydrocarbons  US$ million  575.6  467.3  432.9  348.0  358.3  
'000 tonnes  1,725.6  1,785.4  1,651.6  1,613.6  1,779.7  
2716 Electrical energy  US$ million  4.3 9.5 7.7 12.6 14.3 
  GWh  147.7  205.8  173.6  255.2  319.5  
Exports  
2716 Electrical energy  US$ million  78.0 81.3 77.5 57.1 71.0 
  GWh 1,312.9  1,313.6  1,405.5  1,141.1  1,439.6  
Source:  UNSD Comtrade . 
4.57.   The EAEU -applied MFN tariff on hydrocarbons (HS headings 2710 to 2715) is 5% for most 
tariff lines, although some are zero or 3%. The EAEU -applied tariff on fuel elements for nuclear 
reactors (HS 8401 30 000 0) is 15%. However, with most hydrocarbon fuel a nd all nuclear fuel 
coming from the EAEU, the effective rate is zero. Imports of electricity (HS 2716) are duty free.  
4.58.   The Ministry of Energy Infrastructures and Natural Resources is responsible for energy 
policy. The legal and regulatory framework has been relatively stable since 2010, and the principal 
laws remain: the Law on Energy of 2001; the Law on Energy Saving and Renewable Energy of 
2004; and the Law on Safe Utilization of Atomic Energy for Peaceful Purposes of 1999. However, 
several amendments have been adopted over the past eight years, including those relating to 
renewable energy and energy efficiency (such as an amendment to the Law on Energy Saving and 
Renewable Energy to encourage the use of solar power). In addition, a transmission network  (grid) 
code was adopted on 17 May 2017, and transitional rules for the wholesale power market were 
adopted on 9 August 201743, as Armenia began the transition away from a single -buyer model for 
the wholesale market.  
4.59.   The Law on Energy created the legal basi s for regulating the energy sector, including the 
production, transmission, and distribution of electricity, heating, and natural gas, and the licensing 
of, and relations among, the enterprises involved.  
4.60.   The energy section of the ADS for 2014- 25 states that the main policy directions are:  
• Maximum use of domestic energy sources , specially renewable sources of energy;  
• Further development of nuclear energy, in particular the construction of a new energy 
block and improvements in the security of the Armenian Nuclear Power Station 's 2nd 
energy block and the extension of its utilization period;  
• Replacement of run- down  power plants with those employing  new technologies;  
• Diversification of energy supplies and regional integration;  
• Promotion of energy efficiency in a ll sectors using energy resources; and 
• Increasing  the safety and reliability of the electr icity system . 
4.61.   The Strategy also states that public investment in the energy system, excluding large 
projects, should be 0.3% of GDP. However, large projects include a  new nuclear power plant of 
1,000 MW capacity, at a cost of US$4 to 5 billion.44 
4.62.   Under the "Concept of the Energy Security of the Republic of Armenia" (adopted in 2013), 
the "Program -schedule of the events to be held in 2014- 2020", (adopted in 2014) and the  "Energy 
Sector Long -term (up to 2036) Development Concept", (adopted in 2015), energy policy is focused 
on: the development of nuclear energy; regional integration; the development of renewable 
                                                
43 PSRC Resolutions No. 344 -N, 9 August 2017; and No. 161 -N, 17 May 2017.  
44 Governm ent Decree No. 442 ‐N, 27 March 2014, Annex, pp. 72 -74. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  energy, energy efficiency and energy saving programmes; and t he diversification of primary 
energy sources and supply routes.45 
4.2.2.1  Electricity  
4.63.   Armenia  has about 3.4 GW of installed capacity and 2.5 GW of available capacity, compared 
to peak demand of about 1.3 GW during November to February and annual demand of 6,500 GWh. 
However, it has been reported that about half of the generation facilities are ove r 40 years old, 
and may need to be closed and/or replaced in the near future. Demand has been growing by an 
average of 2% per year.  
4.64.   Electricity generation comes from a mix of publicly and privately -owned power plants. In 
addition to the main generators which generate the most electricity (Table 4.8), as at 
1 January  2018, there were about 184 small hydroelectric power plants, with a total installed 
capacity of about 357.7  MW, which, in 2017, generated about 862 GWh.46 In addition, there are 
two wind farms in  operation (total capacity 2.85 MW), four solar photovoltaic plants (total capacity 
of 2.48 MW with an additional 7.52 MW for which licenses have been issued and constructed 
expected), and one biogas plant.47  
Table 4.8 Electricity generation, 2018  
Name  Type  Year 
commissione
d Installed 
capacity  
MW Operational 
capacity  
MW Production  
2017  
GWh  Owner/operator  
Armenian 
Nuclear Power 
Plant Nuclear  1980 440 385 2,600  Haykakan Atomayin 
Electrakayan (HAEK) 
CJSC (state -owned)  
Hrazdan TPP  Thermal  1966-1974 810 710 300 RazTES CJSC 
(private)  
Hrazdan Unit 5  Thermal  2011 480 440 950 Gasprom Armenia 
CJSC (Russian 
Federation)  
Yerevan CCGT  Thermal  2010 272 220 1,500  Yerevan TPC CJSC 
(state -owned)  
Vorotan 
Cascade  Hydro  1970-1989 404 404 446 ContourGlobal Hydro 
Cascade CJSC 
(private)  
Sevan -
Hrazdan 
Cascade  Hydro  1940-1962 559 559 951 International Energy 
Corporation CJSC 
(private)  
Source:  Energy Sector Long -term (up to 2036) Development Concept; and U.S. Agency for International 
Development (2016), Armenia Gap Analysis – With List of Market Challenges and Legal Barriers , 
Contract Number AID -OAA-M-15-00005, Washington, June, pp. 7 -8. 
4.65.   The sta te-owned High Voltage Electric Networks (HVEN) CJSC owns and operates the 
transmission system, and the privately -owned Electric Networks of Armenia (ENA) CJSC operates 
the distribution and retail systems, including retail metering, and billing. Other state -owned 
companies are responsible for systems operations, including dispatching (Electro Power Systems 
Operator CJSC), and settlement (the Settlement Center). The Settlement Center is also 
responsible for metering and billing services to wholesale power mar ket entities. The Armenia 
                                                
45 Ministry of Energy and Natural Resources (2015), Development of Energy Sector – The Republic of 
Armenia , presentation to the EaP Platform 3 Energy Security, Brussels.  
46 Ministry of Energy and Natural Resources  online information. Viewed at: 
http://www.minenergy.am/en/page/448 . 
47 Information received from the authorities. U.S. Agency for International Development (2016), 
Armenia Gap Analysis – With List of Market Challenges and Legal  Barriers , Contract Number AID -OAA-M-15-
00005, Washington, June, pg. 7. Viewed at: 
http://www.minene rgy.am/storage/files/pages/pg_7791595395722_3.2_Gap_Analysis_Armenia_Final_Eng.pdf
International Energy Charter (2017), In-Depth Review of the Energy Efficiency Policy of Armenia , Brussels, 
pg. 43. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Renewable Resources and Energy Efficiency (R2E2) Fund, an autonomous entity established by 
Government Decision No. 799 -N of 28 April 2005, promotes the use of renewable energy.48 
4.66.   Under  the Law on Energy (Article 17), the PSRC is th e regulator, with wide -ranging 
responsibilities which include:  
• Setting tariffs for electricity generation, transmission, and distribution, as well as tariffs 
for system operators, electricity market operator services, and other system services in 
the energy sector;  
• Setting tariffs for natural gas, thermal energy and electricity supplied to consumers by 
the universal supplier, and tariffs for services to consumers provided by licensees;  
• Licensing, in accordance with the procedure established by the Commissio n, and 
request ing from licensees and licen ce applicants all information and data necessary for 
the Commission to issue a licen ce, control its conditions, set tariffs, and settle disputes 
or other issues;  
• Establishing rules of supply and use of thermal energy and natural gas , and approving 
market rules with the consent of the body authorized by the Government;  
• Establish ing mandatory provisions or model forms for energy and natural gas supply , 
and service contracts to be signed between energy sector licen sees, and register ing 
contracts between licensees in the energy sector, as well as import and export contracts 
pursuant to the procedure established by the Commission;  
• Establish ing model electricity, thermal energy and natural gas supply and service 
provis ion contracts, or mandatory provisions thereof, between licensees and 
consumers , and ensur ing their implementation;  
• Conduct ing discussions regarding disputes between licensees, inquiries and complaints 
by consumers regarding the supply of electricity, ther mal energy and natural gas, and 
making decisions and /or clarifications; 
• Setting minimum quality requirements for services provided to consumers by licensees;  
• Giving consent to licensees ' investment program mes, in order to decide whether or not 
the investme nts may be included in future tariffs ; 
• Cooperat ing with the authorized government  body to enhance electrical energy 
capacity , cross- border trade and to expand cross -border cooperation in the energy 
sector; and 
• Approv ing indicators for the safety and reliability of the power system developed by the 
electricity system operator with the consent of the body authorized by th e Government  
(according to the amendments to the Law on Energy which enter ed into force on 
1 July 2018).  
4.67.   As the single -buyer, the ENA purchases electricity from generators under power -purchase 
agreements (PPAs) at prices regulated by the PSRC. Under the Law on Energy, regulated prices 
should be based on estimates of the revenue required for power sector companies. The calculat ion 
includes several factors, including operation and maintenance costs, costs related to environmental 
standards, loan service costs, and reasonable profit. Following a request from the PSRC or the 
licensed power producer, the regulated prices may be revi ewed every six months, although the 
PSRC has the right to set tariffs for a longer period if considered necessary for investment security. 
Tariffs for transmission, distribution, and settlement and systems operations are also based on the 
revenue requirement.49 The actual purchase price varies from one generating plant to another, for 
example the price (excluding VAT) since 1 August 2016 varied from AMD 5.647 per kWh for ANPP 
to AMD 31 per kWh  for Hrazdan TPP.50 
                                                
48 Ministry of Energy Infrastructures and Natural Resources online information. Viewed at: 
http://www.minenergy.am/en/page/410 . ENA online information. Viewed at: 
http://www.ena.am/AboutUs.aspx?hid=38&la ng=2 . 
49 Kochnakyan, A., Balabanyan, A., Antmann, P., Ruggeri Kaderchi, C., Olivier, A., Pierce, L., and 
Hankinson, D. (2013), Republic of Armenia: Power Sector Tariff Study , World Bank Report No. ACS4845.  
50 ENA (2017), Report – 2017 first half -year, pg. 14. Viewed at: 
http://www.ena.am/AboutUs.aspx?id=13&lang=2 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.68.   For renewable energy, since 2007, the PSRC has set tariffs to encourage investment. Under 
the PPAs for new generators, the ENA purchases electricity at feed -in tariffs at guaranteed prices 
for 15 or 20 years; the prices are adjusted each year for inflation and changes in the exchange 
rate. For the peri od 1 July 2018 to 1 July 2019, the feed- in tariffs will vary from AMD 10.605 per 
kWh for small hydroplants on drinking water pipelines, to AMD 42.845 per kWh for wind power 
stations (Table 4.9). The generation of electricity from renewable sources has incr eased 
considerably over the past few years, with more investments planned, including in geothermal as 
well as solar, wind and hydropower. The policy objective is to have at least 220 MW from 
non-hydro renewable sources by 2036.  
Table 4.9 Feed -in tariffs for electricity from renewable sources  
AMD per kWh  
 2012  2013  2014  1 Jan 2015  
1 Jul 2015  1 Jul 2015  
1 Jul 2016  1 Jul 2016  
1 Jul 2017  1 Jul 2017  
1 Jul 2018  1 Jul 2018  
1 Jul 2019  
Small hydroelectric          
 Natural water 
flows 19.551  20.287  21.061  21.168  23.631  23.753  23.805  23.864  
 Irrigation systems  13.033  13.523  14.039  14.110  15.751  15.832  15.867  15.906  
 Natural water 
pipelines  8.690  9.017  9.361  9.408  10.502  10.556  10.579  10.605  
Wind 34.957  35.339  37.007  45.600  42.426  42.645  42.739  42.845  
Biomass  37.447  38.856  38.856  40.542  42.426  42.645  42.739  42.485  
Solar n.a. n.a. n.a. n.a. n.a. 42.845  42.739  42.645  
Note: Tariffs for electricity from renewable energy sources are set by the PSRC for the year ending 30 
June, and are reviewed at least annually. 
n.a. Not applicable.  
Source:  R2E2 Fund online information. Viewed at: http://r2e2.am/en/tariffs/ . 
4.69.   Retail tariffs are set by the PSRC and, after several years of  increases, have been reduced 
since August 2015 (Table 4.10). Low -income households qualify for the lower prices of AMD 40 
and AMD 30 per kWh for peak (day) and off -peak (night) electricity, respectively.  
Table 4.10 Retail tariffs for electricity  
AMD per kWh (including VAT)  
 1 Aug 2014  1 Aug 2015  1 Aug 2016  1 Feb 2017  
110 kV      
 Day 32.85  37.28  34.70  33.48  
 Night  28.85  33.28  30.70  29.48  
35 kV      
 Day 32.85  39.78  37.20  35.98  
 Night  28.85  35.78  33.20  31.98  
6 (10) kV      
 Day 38.85  45.78  43.20  41.89  
 Night  28.85  35.78  33.20  31.98  
0.38 kV and residential      
 Day 41.85  48.78  46.20  44.89  
 Night  31.81  38.78  36.20  34.98  
Socially vulnerable households      
 Day n.a. n.a. n.a. 40.00  
 Night  n.a. n.a. n.a. 30.00  
n.a. Not applicable.  
Source:  PSRC online information. Viewed at: http://www.psrc.am/am/sectors/electric/tariffs . 
 International Energy Charter (2017), In-Depth Review of the Energy Efficiency Policy of Armenia , 
Brussels, pg. 51.  Energy Charter Secretariat (2015), In-depth review of the investment climate and 
market structure in the energy sector of the Republic of Armenia , Brussels, pg. 57.  
4.70.   Under the 2017 Action Plan, approved by the Government, and the Law on Making 
Amendments to the Law on Energy of 2018 (which entered into force on 1 July), Armenia will pass 
from the single -buyer model to a more liberal model with independent suppliers, traders and large 
users of electricity having opportunities to access the electricity market  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.3  Services  
Telecommunications and Information Technology  
4.3.1.1  Sector features  
4.71.   Since the mid -2000s, the Armenian mobile and Internet service provider ( ISP) market has 
become increasi ngly diverse,  with users able to choose from three mobile service operators and 
many ISPs, half of which are foreign -owned.  During the review period, Internet coverage and 
mobile phone subscriptions continued to increase, with the number of Internet subscr ibers 
exceeding 2. 6 million , and the number of mobile phone subscriptions at nearly 3.5 million. At the 
same time, tariffs have continued to decrease (Table 4.11). At the end of 2017, public electronic 
communications networks and Internet access were available in one form or another for all 
population centres (settlements/localities). All three current mobile operators offer 2G , 3G+, and 
4G+ networks, with 4G/LTE servic es available in 90% of  settlements /localities .  
Table 4.11 Basic data on t elecommunications and i nformation technology , 2010- 17 
 2010  2011  2012  2013  2014  2015  2016  2017  
Number of telecom service subscriptions  
'000 
Fixed telephony 
service  609  601  599  592  582  562 532 501 
Mobile telephony 
service  3,865  3,211  3,323  3,346  3,459  3,465  3,435  3,489  
Internet access 
service  1,920  1,819  1,914  2,036  2,084  2,200  2,412  2,624  
Wholesale Internet traffic and tariffs  
Wholesale 
Internet traffic 
imported to the 
country (Mbps)  10,547  26,050  46,942  76,000  87,897  161,524  331,000  379,000  
Average tariff 
wholesale 
Internet traffic in 
the country (AMD 
per Mbps)  66,000  24,000  9,000  7,600  5,200  4,066  3,000  1,400  
Termination rates for interconnection services between fixed and mobile networks  
AMD/minute  
Rate 16.9 13 11.4 11.4 11.4 10.4 9.4 9.4 
Source:  Data received from the authorities.  
4.72.   According to the Public Services Regulatory Commission (PSRC), there are 163 ISPs in 
Armenia, which include companies that operate on public electronic communication network 
licences, as well as companies that operate on simple notifications for Internet access service 
provision.51 Among th em, 105 actually provide I nternet access services o n the market , and the 
four leading operators, including three integrated fixed and mobile network operators, account for 
98% of the market for fixed and mobile I nternet access in terms of their shares in subscriber s, and 
96% of the total revenue from I nternet services . The regulatory authorities primarily focus on 
companies with significant market power, one of which is Armenian, while the other three are 
foreign -owned.  
4.73.   The information and communication technology (ICT) sector focuses on software 
devel opment, industrial computing, electronics, and the production of semi- conductors. The sector 
is important due to its share in GDP, the continued  growth in the number of companies, 
employment and total turnover.  According to the authorities, the information  technology  (IT) 
sector (which includes computer programming, consultancy and related activities, data processing, 
hosting and related activities, and web portals ) grew by 39 % in 2016, with turnover valued at 
US$36.2 million in 2016. Another report stated that total revenue  from the information and 
                                                
51 The four operators are Ucom, Armental (Beeline), Vivacell -MTS, and Rostelecom. WT/TPR/S/379 /Rev.1  • Armenia  
 
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  telecommunications technologies sector , which consists of the software and services sector and 
the ISP sector, reached US$ 765.1 million in 2017, a 37% increase since 2015.52  
4.3.1.2  Telecoms market  structure  
4.74.   The telecomm unications market is represented by 170 companies providing services such as 
wired telecommunication services, wireless telecommunication services, and web hosting services, 
providing mobile and fixed telephony, cable and wireless Internet, and IT infrastr ucture (web 
hosting).  
4.75.   Significant fixed -line operators include VEON Armenia , Ucom , and GNC-ALFA (Rostelecom).  
In the mobile communications  market, Armenia has three main operator s, with MTS Armenia being 
the largest.  
4.76.   The largest fixed-line company is the incumbent telecommunication operator,  VEON . Since 
2007, it has been wholly owned by V EON Ltd., a global provider of connectivity and I nternet 
services headquartered in Amsterdam . VEON Armenia , using the trade name Beeline, provides 
mobile and fixed telephone and Internet services throughout Armenia. In Q 4 2017, it had 
134,000 fixed-line Internet subscribers.  
4.77.   While VEON Armenia held a monopoly position for years, it began to lose market share in 
2005 when MTS Armenia  entered the market and began to offer mobile phone and Internet 
services under the brand name VivaCell -MTS. MTS Armenia  is owned by Mobile TeleSystem s 
(MTS) , one of the largest mobile operators active in Russia  and the CIS . It is now the  largest 
mobile I nternet provider in Armenia. In Q 4 2017, around 1.4  million people were using the 
company's Internet services via mobile phones.  VEON Armenia is now the second largest  mobile  
Internet provider . 
4.78.   The third largest  mobile Internet provider is the local company, Ucom , which originally 
started its activities in 2009 as an alternative fixed -line telecommunication operator . In 2013, it 
was issued a radiofrequency usage authori zation in the 800 Mhz band, allowing its entry into the  
mobile  communications market . In 2015, Ucom  acquired Orange Armenia from France Telecom , 
and started to provide mobile communication services. It has been offering triple -play and 
quad-play convergent  package services, providing customers with access to a full range of Internet 
Protocol Television (IPTV), and fixed and mobile voice and I nternet services.   
4.3.1.3  Regulatory framework  
4.79.   The Ministry of Transport, Communication and Information Technologies is responsible for 
developing policy and preparing draft legislation. The main legal basis for electronic 
communications regulation is the Law on Electronic Communication  of 2005. This L aw sets out the 
functions of the Ministry of Transport,  Communication  and Information Technologie s and of the 
regulator, the PSRC, which is a multi- sector regulator (for energy, water supply and telecom 
services) established by the Law on Public Services Regulation  of 2003.  This Law defines the 
PSRC's authority, mechanisms of c ommissioners' appointments and budgeting principles  (Section 
4.2). 
4.80.   The PSRC is responsible for licensing, market monitoring, and surveillance of the companies 
involved. It is an autonomous body funded by fees from the regulated entities . In addition , the 
State Commission for the Protection of Economic Competition is responsible for competition issues ; 
the authorities have indicated that there have been no competition cases recently . 
4.81.   The telecom sector is regulated through:  
• Law No. HO -176-N, 2005 on Electron ic Communication ; 
 
• Law No. HO -18-N, 2003 on Public Services Regulatory Body ; and  
 
                                                
52 Enterprise Incubator Foundation (2017), State of the Industry Report: Information and 
Telecommunication Technologies Sector in Armenia , December. Viewed at: 
http://www.eif.am/arm/researches/report- on-the-state-of-the-industry/ . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • Law No. HO -193, 2001 on Licensing.  
 
4.82.   In addition , secondary legislation includes numerous orders and decrees, for example:  
• Order No. 71- N of 28  February 2008 of the Minister o f Transport , Communication and 
Information Technologies on Approval of the Frequency Spectrum Chart of the Republic 
of Armenia (last amend ed 24 August 2017); 
• PSRC Decision No. 187 -N on the Regulation of Traffic Exchange Between Public 
Electronic Communication Networks Operator s Establishing for Data Transmission and 
Internet Efficiency Service s; 
• PSRC Decision No. 1 69-N on Radiofrequency Usage Authorizations;  
• PSRC Decision No. 272-N on Licensing Regulations; and  
• PSRC Decision 235- N on Number and Code Usage Authorizations.  
4.83.   As noted in the previous R eport, Armenia's GATS Schedule of Commitments covers virtually 
all basic and value -added services, for which it has agreed, with a few exceptions (i.e. reservations 
of monopoly rights), to impose no limitations t o market access or national treatment for the first 
three modes of supply.53 The GATS Schedule incorporates, under additional commitments, the 
telecommunications Reference Paper negotiated in the context of the extended negotiations.54 
According to the authorities, Armenia has  implemented the provisions of the WTO Basic 
Telecommunications Reference Paper by incorporating them into the Law on Electronic 
Communication, and by gradually implementing these provisions.  
4.84.   Under Article 10 of t he Law on Electronic Communication , the PSRC cannot refuse a licence 
to an applicant that meets all the requirements. Most of the players on the market have foreign 
participation , and some are wholly foreign owned , including two mobile and one major broadb and 
operator  (see above) .  
4.85.   As noted in the previous Report, all providers of public telecommunication networks and 
services are required to obtain a licence from the PSRC before starting activities.55 The allocation 
of the radio- electric spectrum is carried  out via authorizations issued by the PSRC.  It must act 
upon applications within six weeks of receipt, but it may, with notice to the applicant, extend this 
period for an additional three months.  A licen ce is granted for 10 years , and may be renewed 
provid ed the licensee has operated within all the conditions of the original licence.56 Although 
licences may not be transferred or sold to a third party, the control over the company possessing a 
licence may be transferred to a third party upon approval from the  PSRC.  
4.86.   Decisions of the regulator may be appealed to the courts for judicial review in accordance 
with the Law on Public Services Regulatory Body and the Law on Electronic Communication. Any 
court reviewing decisions of the regulator is required to ve rify whether these decisions were 
adopted through proper procedures. However, t he court may not substitute its judgment for the 
regulator 's decision , and must defer to any interpretation of the law by the regulator, provided the 
regulator 's decision is consiste nt with prior judgments on similar cases and contain s no 
inconsistencies. The court may hold unlawful and set aside regulator 's actions, decisions, and 
conclusions only in certain situations, such as when the courts find they are:  arbitrary or 
discriminato ry; contrary to constitutional rights , powers, privileges or immunity ; etc.  There have 
been no appeals to the courts regarding the d ecisions of the regulator.  
4.87.   The provision of telecom networks and services, as regulated by the L aw, and licence 
conditions provided by the PSRC, include : 
• Licensing of activity ; 
• Regulation of healthy competition ; 
                                                
53 WT/TPR/S/228/Rev.1, 22 April 2010, Section VI(4)(iii)(b).  
54 WT/ACC/ARM/23/Add.2, 6 December 2002.  
55 WT/TPR/S/228/Rev.1, 22 April 2010, Section VI(4)(iii)(b).  
56 Chapter 3 of the Law on Electronic Communication of 8 July 2005.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • Organization of uses of radio frequencies; and  
• Other regulatory requirements as set out in the legislation.  
 
4.88.   In accordance with the Law on Ele ctronic Communication (Article 33), one of the duties of 
an operator is to provide for interconnect ions with other operators. This is regulated by 
interconnection contracts negotiated between the parties , although the Law provides minimum 
requirements for these contracts, and c harges for interconnection and/or network access are 
regulated by Article 37. Fees for interconnection are based on a reasonable allocation of the 
service , taking into account: costs incurred to ensure equal interconnection; expenses arising from 
the performance of the interconnection requirements; reasonable capital expenditure; and a 
reasonable allocation of expenses in the future. Disputes related to interconnection and access 
matters are settled by the PSRC.  
4.89.   Provision of retail fix ed telephony services by the fixed- line incumbent operator , VEON 
Armenia,  is subject to regulatory price control by the PSRC. In particular, the PSRC has set and 
oversees price caps for certain types of retail fixed telephony services because VEON Armenia has 
a dominant position  in the fixed telephony services market.  
4.90.   According to the authorities, no u niversal service obligation is imposed on any 
telecommunication operator , due to broad technological diversity, ubiquitous access and the 
affordability of com munication services in the country. In addition , there is full  geographical 
coverage of both fixed and mobile communication  services, which the authorities consider to be 
both accessible and affordable for the general population.  
4.91.   In 2013 , the PSRC adopted a decision that introduced a mobile number portability (MNP) 
service, whereby  consumers may change their mobile  operator without changing the number or 
code they currently use. The MNP service is fully operational among three mobile communication 
operators , and is used by consumers without limitations . 
4.3.1.4  IT trends  
4.92.   Under the Law on State Support for Information Technology Sphere, newly established IT 
companies may be eligible for exemption from profit tax and for a 10% income tax rate . These 
incentives are offered to new companies with fewer than 30 employees for a period of five  years or 
less. A seven -member certifying commission determines eligibility for the se privileges.  At 
end-2017, it was reported that 429 start -ups and new compa nies were eligible.57 In addition, 
under 2016 tax legislation, and effective beginning in 2018, research and development (R&D) 
activities corresponding to criteria to be defined by the G overnment will be considered a VAT -
exempt transaction.  
4.93.   In addition, th e authorities have actively supported the  growing IT industry and , with the 
support of the World Bank, the Ministry of Economy established the Enterprise Incubator 
Foundation (EIF) in 2002 to improve the competitiveness of Armenian companies.  The EIF 
admin isters several projects, often in cooperation with private, national and international agencies, 
to support technology business incubators and IT development.58 
4.94.   Employment in the ICT sector has also increased during the review period. The sector is 
considered to have a comparative advantage , as it provides a productive low -cost labour force 
which has attracted foreign investors. The number of workers employed in the sector was 15,350 
in 2017, an increase of 21% since 2015.59  
4.95.   During  the review peri od, the number of local start- ups and foreign company branches 
increased , with 90% of companies in the sector having been registered between  2000 and 2017.60 
The number of companies peaked in 2017 due to the enforcement of the legal package related to 
                                                
57 EIF (2017), State of the Industry Report: Information and Telecommunication Technologies Sector in 
Armenia , December.  Viewed at: http://www.eif.am/arm/researches/report- on-the-state-of-the-industry/.  
58 EIF online information. Viewed at: http://www.eif.am/eng/ . 
59 EIF (2017), State of the Industry Report: Information and Telecommunication Technologies Sector in 
Armenia , December, p. 29. Viewed at: http://www.eif.am/arm/researches/report- on-the-state-of-the-industry/.   
60 U.S. Department of Commerce (2017), Country Commercial Guide, 2017 , online information. Viewed 
at: https://www.export.gov/article?series=a0pt0000000PAtBAAW&type=Country_Commercial__kav . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  state support for the ICT sector, which defined tax incentives for start- up companies. An estimated 
429 ICT companies operate in Armenia, growing at an average annual rate of 10%, with the 
majority based in Yerevan.  
4.96.   Armenian ICT companies specialize in softwar e development and semiconductor design, 
customized software and outsourcing, financial software, multimedia, web design, information 
systems, and system integration. It has made significant advances in semiconductor design, which 
is registered as i ntellectual property. However, most companies in the ICT sector specialize in 
software development and,  in 2017,  the total turnover of the software and services industry 
amounted to around US$612.7 million , with an average annual growth of 20%. During the review 
period,  the average annual growth in the industry amounted to 29.8%.61 
Financial Services  
4.3.2.1  Features  
4.97.   During the review period,  the financial and insurance services' contribution to gross value 
added increased from 4.1 % in 2010 to 5.4% in 2017 (Table 4. 12). According to the Central Bank 
of Armenia (CBA), as of the end of 2017, asset d istribution within the financial sector included: 
banks, 85.5%;  credit organizations , 9.3%;  insurance companies, 1.0%;  investment companies , 
1.3%;  pension funds, 2.1% ; and other fi nancial institutions , 0.9%.  
Table 4.12 GDP by economic activity and employment, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
GDP by economic activity, at constant 
price (%age change)          
Financial and insurance activities  10.6 23.5 19.9 7.8 13.7 -3.9 8.9 17.7 
Gross value added  by economic activity, 
at current basic price (%)          
Financial and insurance activities  4.1 4.5 4.5 4.5 4.8 4.4 4.9 5.4 
Employment by sector (%)          
Financial, real estate, professional, scientific, 
technical, administrative and support 
activit ies 3.7 3.5 2.9 3.8 3.8 3.6 3.4 3.9 
Source:  Statistical Committee  of the Republic of Armenia online information. 
4.98.   In 2017, the financial market comprised:  
• 17 banks with 525 branch offices;  
• 35 credit organizations with 205 branch offices;  
• 7 insurance companies and 3 insurance brokers;  
• Securities market participants, which included 9 investment companies, 3 investment 
fund managers, the Central Depositary o f Armenia, the NASDAQ OMX Armenia, 
17 commercial banks, 35 credit organizations and 21 reporting issuers;  
• 132 pawnshops;  
• 183 exchange offices;  
• 6 money transfer companies;  
                                                
61 EIF (2017), State of the Industry Report: Information and Telecommunication Technologies Sector in 
Armenia , December, p. 13. Viewed at: http://www.eif.am/arm/researches/report- on-the-state-of-the-industry/.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • 5 companies dealing with the processing and clearing of payment instruments and 
payment documents; and  
• 21 reporting issuers.62 
4.3.2.2  Banking sector  
4.99.   The banking sector dominates the financial system , and remains well capitalized and liquid. 
Bank capitalization remains high, in part due to efforts by banks to comply with the CBA's increase 
in minimum capital requirements.  In 2015, the CBA initiated policies to encouraged cons olidation 
in the banking system and, a s of 1 January  2017,  the minimum capital requirements for banks was 
increased from AMD  5 billion ( US$10.4 million ) to AMD 30 billion (US$62.5 million). As a result, 
the sector's capital adequacy ratio increased to 18.6% in December 2017 from 16.7% in 
December 2013 (Table 4. 13), well above the minimum requirement of 12%.  
4.100.   The increase in the minimum capital requirement had the greatest effect  on small and 
mid-sized banks, triggering mergers and acquisitions.  In 2016, three banks were merged or 
acquired and new capital was injected, mostly by the Armenian diaspora and other foreign 
investors. The consolidation assisted in the provision of financing, and increased efficiency. As at 
end-2017, t he top three banks by assets were AmeriaBank (AMD 677.8 billion  (US$1.4 billion )), 
Ardshinbank  (AMD 568.3 billion ( US$1.2 billion)),  and Armbusiness  (AMD 574.9 billion 
(US$1.2 billion)). Fitch  Ratings  rated these three banks at B+ /Stable.63 The ratings reflect the 
banks' solid domestic franchises and adequate financial profiles, but also the high dollarization 
rates on both side s of their balance sheets, and their e xposure to the operating envir onment.  
Banking services have expanded, notably in the increase of ATMs, bank branches, and loan and 
deposit accounts.  
4.101.   During the review period, banking sector dollarization remained high, leaving it exposed to 
currency -induced credit risks. As at end -2017, 63% of deposits and 64% of loans were 
denominated in U.S. dolllars, while borrowers' incomes are mostly in the local currency.  In addition 
to deposits, banks obtain some local currency funding through loans from international financial 
institutions chan nelled via the  CBA, as t he CBA borrows in foreign currency and on -lends to banks 
in local currency. By doing so, the CBA aims to support the de-dollarization of the economy  and 
reduce risk .64 However, foreign -currency  lending was  still high , at 62% of total lending in 2017.  
4.102.   In addition, funding constraints vary across banks. Banks generally have good  access to 
foreign currency funding , both from domestic and external sources. However,  some factors limit 
the supply of credit, inter alia : high market interest rates; low profitability; lack of local currency 
funding ; and  lack of long -term funding . 
4.103.   The p rofitability of the banking sector fluctuated during the review period  but, at end -
2017, the sector's profits were AMD 40 billion . In 2016, three  banks and , in 2017,  two banks 
incurred losses.  
4.104.   In 2017, t he banking sector's liquid ass ets made up 32.2% of total assets, well above the 
regulatory threshold of 15%  (Table  4.13). In addition, since 2008, t he sector 's loan -to-deposit 
ratio has remained consistently above 100%,  reflecting a high level of funding from stable sources 
such as foreign banks, international organizations, the G overnment , and the CBA.  Interbank 
lending is not a significant source of liquidity and the volume of operations is small . The CBA can 
provide short -term liquidity support via its main instruments, provided there is collateral 
availability. It imposes strict regulatory requireme nts on minimum liquidity levels.65 
4.105.   The ratio of non -performing loans (NPLs) decreased to AMD 146.7 million (5.5% of gross 
loans) at end -2017 from AMD 162.2 million (9.7% of gross loans) at end- 2016, reflectin g the rapid 
                                                
62 CBA online information on Financial Systems and Control. Viewed at: 
https://www.cba.am/en/SitePages/fscintroduction.aspx . 
63 Fitch Ratings (2017), Armenian Banking Sector: Successfully Recapitalised, Challenges Ahead . Viewed  
at: https://www.fitchratings.com/site/search?content=research&request=armenia . 
64 IMF (2013), Republic of Armenia: Financial System Stability Assessment, IMF Country Report No. 
13/10, January. Viewed at: http://www.imf.org/external/ . 
65 CBA online information on Financial Systems and Control. Viewed at: 
https://www.cba.am/en/SitePages/finstabilityintroduction.aspx . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  lending growth in 2016 and bala nce sheet clean -ups prior to merger and acquisition  deals due to 
the new capital requirements initiated by the CBA  (Table 4. 13). Furthermore, a ccording to the CBA 
methodology, a loan is classified as non -performing one day after it became overdue, which is 
stricter than  the IMF definition.66 
Table 4.13 Financial soundness indicators for the banking sector, 2013 –17 
 2013  2014  2015  2016  2017  
 Dec Dec Dec Dec Mar June  Sep Dec 
Capital adequacy (%)          
Total regulatory capital to risk -
weighted assets  16.7 14.5 16.2 20.0 20.0 19.5 19.1 18.6 
Capital (net worth)  to assets  15.3 13.6 14.7 16.2 16.3 16.1 16.1 15.7 
Asset composition (AMD billion)          
Sectoral distribution of loans          
 Industry (excluding energy sector)  222.7  266.3  225.9  227.1  229.6  230.8  244.9  256.4  
 Energy sector  95.4 112.4  111.2  162.2  194.7  210.8  203.0  191.4  
 Agriculture  118.2  150.2  148.9  140.1  143.9  152.4  144.3  144.2  
 Construction  109.4  124.2  106.6  102.8  108.3  118.7  125.6  143.8  
 Transport and communication  54.0 52.0 77.1 79.7 68.9 70.0 75.8 73.8 
 Trade/commerce  352.3  386.3  345.5  335.8  343.9  355.6  390.4  419.6  
 Consumer credits  365.6  451.5  423.1  434.2  451.2  466.6  472.6  511.4  
 Mortgage loans  143.2  172.4  179.0  183.7  182.4  186.2  191.3  209.0  
 Foreig n exchange loans to total 
loans (% total)  63.8 67.5 66.7 64.6 64.1 64.4 64.6 63.5 
Asset quality (AMD billion)          
 NPLs  79.7 149.9  166.0  162.2  166.0  155.6  184.7  146.7  
Earnings and profitability (%)          
ROA (profits to period average 
assets)  1.9 1.0 -0.5 1.1 1.1 1.3 1.2 1.4 
ROE (profits to period average 
equity)  12.0 6.4 -3.5 7.0 6.4 7.9 7.6 7.7 
Liquidity (%)          
Liquid assets to total assets  29.1 25.1 28.0 32.5 32.0 32.2 32.2 32.2 
Foreign exchange liabilities to 
total liabilities  64.1 65.4 65.7 62.6 61.3 61.1 61.2 60.0 
Sensitivity to market risk (%)          
Gross  open positions in foreign 
exchange to capital  3.7 14.6 6.5 6.9 4.9 4.2 3.8 4.0 
Source:  CBA. 
4.3.2.2.1  Policy, institutions and regulatory framework  
4.106.   Since 1 January  2006, the CBA has been responsible  for the regulation and supervision of 
the financial sector. The primary motivation for creating a single supervisory authority was to 
oversee general  risks in the financial market. The authority and responsibilities of the CBA are 
established under the Law on Central Bank of Armenia which was last amended in 2018. The main 
tasks of the CBA are to:  
• Maintain the stability and normal activity of the financial system, including creating the 
conditions necessary for the stability, liquidity, solvency and functionality of the 
banking system;  
• Create and develop an effective pa yment and settlement system;  
• Issue the national currency and organize and regulate the money circulation;  
• Organize and regulate a framework for combating money laundering and terrorism 
financing;  
• Provide essential conditions for the protection of investors  in securities, for the 
formation and retention of equitable quotation in the securities market, for the 
regulation of normal, fair, transparent, trustworthy activities of the securities market 
and its development; and 
                                                
66 Fitch Ratings (2017), Armenian Banking Sector: Successfully Recapitalised, Challenges Ahead . Viewed 
at: https://www.fitchratings.com/site/search?content=research&request=armenia .  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • Provide conditions for consumer rights protection.67 
4.107.   In addition to the Law on Central Bank of Armenia, the main legislation regulating the 
banking sector is the Law on Banks and Banking, as well as other laws  (such as the Law on 
Bankruptcy of Banks, Credit Organizations, Investment Companies, Investment Fund Managers 
and Insurance companies; the Law on Bank Secrecy; the Law on Guaranteeing Compensation of 
Bank Deposits; the Law on Consumer Credits; the Law on Attraction of Bank Deposits; the Law on 
Financial System Mediator; the Law on Funded Pensions; the Law on Covered Mortgage Bonds; the 
Law on Mortgage Credit; the Civil Code; and the Law on Asset Securitization and Asset Backed 
Securities). These are  suppor ted by regulations issued by the CBA which have statutory basis.  
4.108.   Within the CBA there are several departments responsible for methodological and 
development aspects of the financial sector , including:  
• The Financial Supervision Department, which is respon sible for carrying out banking 
supervision;  
• The Financial System Stability and Development Department;  
• The Financial System Regulation Department; and  
• The Law Department.68 
4.109.   In addition , the Licensing and Supervision Committee, which includes the CBA Chairman, 
Deputy Chairmen and other senior officials, is a consulting body which regularly discusses issues 
related to financial sector regulation and supervision,  and makes recommendations to the CBA 
Board and Chairman. The Committee is not defined by any law s, is not a st ructural body of the 
CBA, and does not  have any decision -making authority.  
4.110.   Banking supervision is carried out through on -site inspections and daily off -site 
supervision. On -site inspections are scheduled according to annual plans which are pr epared on a 
regular basis.  In December 2017, the CBA adopted a  risk-based supervision manual, giving 
supervisors the authority to conduct risk -based supervision o f banks. The manual  covers both 
on-site supervision and off -site analysis issue s. The analysis includes a wide -ranging toolkit, such  
as the risk matrix, where significant activities of each bank are assessed for their inherent risk , 
and the quality of risk management, as well as capital, earnings and liquidity are assessed as risk  
cushions . As a re sult, for each bank , an overall (composite) risk rating is provided.  As the new 
supervisory manual enter s into force, the inspections in banks are being planned on a risk -based 
principle, taking into account the risk profile and systemic relevance of the banks, as well as 
system -level risks.69  
4.111.   Progress has also been made in implementing the recommendations of the 2014 
Safeguards Assessment  by the IMF . The CBA has adopted a charter for its board members that 
clarifies their roles and responsibilities, and has also strengthened its oversight and control of 
entities engaged in financial sector development and infrastructure in which the CBA holds equity 
investments. In addition, in 2016, the CBA include d in its annual report the objectives, risks, and 
risk mitigation efforts ass ociated with these investments.70 
4.112.   The increase in the minimum capital requirements to AMD 30 billion was  intended to allow 
the banks to issue bigger loa ns at lower interest rates, and to strengthen the banking system. 
According to the CBA, greater equity should result in larger banks, while the consolidation of banks 
should result in lower service fees, facilitate reductions in interest rates, and improve the quality of 
services provided. According to the authorities, the change is also intended to contribute to 
                                                
67 CBA (2014), Strategy 2015- 2017, CBA Board Resolution No. 313 -A, 18 November. Viewed at: 
https://www.cba.am/EN/panalyticalmaterialsresearches/Razm_15_17_eng.pdf . 
68 CBA online information on Financial Systems and Control. Viewed at: 
https://www.cba.am/en/Si tePages/fscintroduction.aspx . 
69 CBA online information on Financial Systems and Control. Viewed at: 
https://www.cba.am/en/SitePages/fscintroduction.aspx . 
70 IMF (2017), Republic of Armenia  – 2017 Article IV consultation and Fifth and Final Review Under the 
Extended Arrangement, IMF Country Report No. 17/226 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  innovation in the banking system, and a broader spectrum of services, as there would be more 
opportunities for investment.71  
4.113.   To align existing regulations with the amendments to the Constitution, changes and 
supplements were made to the Law on Central Bank  of Armenia,  in particular, the procedures and 
conditions for the appointment of CBA management bodies  (the CBA Chairman and the CBA 
Board ), and the principles of cooperation with state bodies in the field of com petition and statistics. 
In addition, the goal of financial stability was added to the functions of the CBA , on an equal 
footing with the existing goal of price stability. The internal audit regulations of the CBA were also 
improved, in line with best prac tices of international audit principles. Furthermore, the laws were 
amended to simplify the procedure of information exchange among supervisory authorities, to 
exchange information in the absence of international treaties while protecting the confidentiali ty of 
information.  
4.114.   In addition, in October 2017,  the National Assembly  passed amendmends  to the Law on 
Banks and Banking , giving the CBA powers to define stricter prudential standards for systemically 
important banking institutions , to establish permissibl e thresholds (buffers) above ( or below) the 
ratio limits of the key prudential standards , and to use a wide range of macroprudential tools 
(loan-to-value ( LTV) ratio , debt-to-income ( DTI) ratio , leverage ratio, etc) . These standards will be 
phased in, to avoid imposing an excessive burden on banks that are already adjusting to comply 
with the new minimum capital requirement. To better monitor and assess vulnerabilities in the 
banking sector, the CBA continues to en hance stress- testing practices.  
4.115.   Further  changes and supplements  have also been made to the following laws: the Law on 
Legal Acts; the Law on Budget System; the Law on Housing Mortgage Credit; the Law on 
Consumer Crediting; the Law on Currency Regulation and Currency Control; the Law on 
Bankrupt cy of Credit Organizations, Investment Companies, Investment Fund Managers and 
Insurance Companies; and the Law on Insurance and Insurance Activities; as well as the Civil 
Procedure Code.72  
4.116.   According to the authorities, in order to improve the competition and regulatory 
framework, in March 2018, the National Assembly  passed amendmends to the Law on Protection 
of Economic Competition.  
4.117.   The shareholder structure of the banks varies, with non -resident shareholders present in 
all of them. Non -resident participan ts, both legal entities and individuals, are mainly from the 
Russian Federation, Switzerland, Iran, Lebanon, Liechtenstein, France, the United Kingdom, the 
United States, and Kazakhstan. Several international organizations (e.g. the International Finance 
Corporation (IFC), the Deutsche Investitions - und Entwicklungsgesellschaft (DEG), and the 
European Bank for Reconstruction and Development (EBRD)) have shares in several Armenian 
banks. Non -residents accounted for 62% of aggregate equity in 2016, down from 75% in 2011. 
The banking sector shows relatively low concentration. The top five banks hold 53% of total 
banking sector assets.  
4.118.   In terms of market access, there are no restrictions on ownership, participation of foreign 
banks, or of other foreign investor s in Armenia's banking sector. According to legislation, foreign 
banks may establish a subsidiary, a branch or a representative office, and subsidiaries of foreign 
banks are allowed to provide the same types of services as domestically owned banks. Beyond 
Armenia's GATS commitments, branches of foreign banks may accept deposits from Armenian 
nationals. In practice, there are no restrictions on the provision of cross -border banking services. 
Domestically established banks and corporations, as well as retail consumers, are allowed to 
borrow from, and deposit with, foreign banks located abroad. The only practical requirement is 
that foreign banks obtain a licence with the CBA to provide cross -border services that involve the 
establishment of a bank branch or su bsidiary  in Armenia.  
4.119.   In terms of foreign exchange, residents and foreign nationals can hold foreign currency 
accounts, and import, export and exchange foreign currency relatively freely in accordance with 
                                                
71 CBA online information on Armenia's financial system development. Viewed at: 
https://www.cba.am/en/SitePages/achfinancialbankingsystem.aspx . 
72 CBA online information on Armenia's financial system development. Viewed at: 
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  the Law on  Currency Regulation and  Currency Contro l. There are no limitations on the conversion 
and transfer of money, or the repatriation of capital and earnings, including branch profits, 
dividends, interest, royalties, or management or technical service fees. Most banks can transfer 
funds international ly within two to four days. Armenia maintains the Armenian dram as a freely 
convertible currency under a floating exchange rate regime, which is also reflected in the IMF's 
Annual Report on Exchange Arrangements and Exchange Restrictions of 2016.73 At the e nd of 
2014,  the CBA increased the reserve requirement for banks, in line with the implementation of 
conventional monetary policy instruments, to prevent market panic and stabilize inflation 
expectations.  
4.120.   Armenia has also made substantial market access and  national treatment commitments on 
financial services under the GATS. The three most important restrictions concern: (i) the 
cross- border supply of insurance services (excluding those applied to marine and aviation 
transport), which was left unbound; (ii) the prohibition on branches of non -resident banks to 
accept deposits from Armenian nationals  - according to Armenian legislation, this restriction  was 
liberalized and currently there is no such limitation ; and (iii) the reservation of settlement and 
cleari ng services for securities to Armenia's state -owned central depositary.  
4.3.2.3  Insurance  
4.121.   Insurance companies represent 1.1% of the total assets of the financial sector. In 2017, 
insurance companies held total assets amounting to AMD 49.5 billion; total liabilities amounting to 
AMD 30.3 billion; and total capital amounting to AMD 19.2 billion.74 More than a third of insurance 
companies'  assets are held as deposits in banks. Receivables on direct insurance (1 2.5%) and 
securities sold under repo agreements ( 5.4%) are two large items on the balance sheets.  
4.3.2.3.1  Policy, institutions and regulatory framework  
4.122.   The legal framework governing the insurance sector is largely based on the 2007 Law on 
Insurance and Insurance Activities (amended in 2017) and prudential regulatio ns issued by the 
CBA. The  Law regulates the conduct of private insurance and insurance intermediation activities 
including licensing, ongoing supervision, and auxiliary insurance services. Armenia has a sound 
and clearly defined financial sector policy framework that facilitates insurance supervision. Ongoing 
offsite surveillance and on -site inspections are comprehensive and thorough, facilitated by 
well-documented internal policies and manuals to promote consistency in supervisory decisions. 
The CBA regula rly updates the regulatory framework to reflect emerging international best 
practices,  for example, the solvency regime for insurers was strengthened in 2010 to adopt a more 
risk-based and calibrated approach.75  
4.123.   In addition, in 2010,  the National Assembly passed  the Law on Compulsory Insurance 
against Civil Liability in R espect of the Use of Motor Vehicles. The primary objective of the L aw is 
to make sure there are effective procedures in place that protect the rights of parties injured as a 
result of traff ic accidents,  and to call for payment of insurance indemnities.76 There are also other 
types of mandatory insurance, for example, professional liability insurance for insurance 
intermediaries and notaries. Meanwhile, a ccording to Government Decision N o. 375 of 27 March 
2014, since 1 October 2017, medical assistance within the social package  is provided through 
insurance . Beneficiaries of the package are civil and public servants, persons hold ing public 
positions, persons holding administrative and professional positions in state organizations in the 
sectors of education, culture and social protection and their immediate family members.  
4.124.   In 2017, amendments and supplements were made to Law on Bankruptcy of Credit 
Organizations, Investment Companies, Investment Fund Managers and Insurance Companies , the 
Law on Insurance and Insurance Activities, and the Civil Procedure Code. These amendments were 
                                                
73 IMF (2016), Annual Report on Exchange Arrangements and Exchange Restrictions 2016 , Washington, 
October.  
74 CBA online information on Armenia's fina ncial system development. Viewed at: 
https://www.cba.am/en/SitePages/achfinancialbankingsystem.aspx . 
75 IMF (2013), Republic of Armenia: Financial System Stability Assessment, IM F Country Report 
No. 13/10, January. Viewed at: http://www.imf.org/external/ . 
76 CBA online information on Armenia's financial system development. Viewed at: 
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  adopted to align existing regulations with the con stitutional amendments and with international 
criteria for the insurance regulation and supervision framework criteria.77 The Law on Insurance 
and Insurance Activities and Law on Bankruptcy provide for the orderly exit of insurers on both 
voluntary and inso lvency grounds. Policyholders (including ceding insurers) and legitimate 
beneficiaries have priority rights to the assets covering insurers' technical provisions in the  event 
of insolvency.78 The a mendments to the L aw on I nsurance and Insurance A ctivities  include:  
• The definition of the concept of " systemically important insurance companies ", and the 
ability  of defining  stricter  prudential standards for  them; 
• The definition of the internal audit function was changed to be  consistent with the 
internationally  defined internal audit definition ; 
• Internal audit, external audit and responsible actuary protection mechanisms  were put 
in place; 
• The introduction of a procedure for present ing objections of policyholders  in the case of 
life insurance portfolio transfer; 
• The definition of  insurance brokerage activities  was changed to allow brokers to 
conduct insurance brokerage activity with foreign insurers and reinsurers in the case of 
reinsurance; and  
• The inclusion of risk manager and compliance officers in the managem ent staff of 
insurance companies, and the clearer definition of their functions.  
4.125.   In terms of market access, t here are no foreign ownership restrictions in the provision of 
insurance services. Foreign insurance companies may  establish subsidiaries, branche s or 
representative offices in Armenia. There are no restrictions specific to foreign insurance 
companies, except those applied to representative offices , i.e. foreign insurance companies (and 
only those from WTO Member countries) may only provide cross -border supply of insurance 
services that cover maritime shipping, civil aviation, spaceship launching (including satellites), 
international freight carriage, and reinsurance risks . 
4.126.   Under the Law on Insurance and Insurance Activities , the CBA is the sole lice nsing 
authority, with powers to set and impose registration and licensing procedures. In addition, 
insurance intermediaries require a licence/permission , and may only engage in insurance 
intermediation with licensed insurance companies. Only legal entities  may apply for a licence to 
provide insurance brokerage services, while both legal entities or sole entrepreneurs may apply for 
permission and registration as insurance agents. Professional qualification requirements apply to 
both national and foreign applicants, but there are no nationality restrictions for the provision of 
insurance intermediation activities.  
4.127.   The documents required by the CBA for registration and licensing are different for foreign 
and domestic insurance companies. However , the objectives  of the licensing process seem to be 
the same. To a large extent, the CBA relies on information provided by the supervisory authority in 
the foreign company's home country. All applications must be reviewed by the CB A within 30 days 
of submission.  
4.128.   Insuranc e licences may be issued for one or several classes of insurance activity defined in 
Article 7 of the Law. However, the same insurance company cannot provide life and non -life 
insurance simultaneously.  Nonetheless, t he same investor may obtain two separate  licences for 
two separate insurance companies to provide life and non -life insurance. A reinsurance company 
may be simultaneously engaged in the reinsurance of life and non- life insurance.  
4.129.   In 2017, t he Law o n Making Amendments  and Supplements to the Law o n Insurance and 
Insurance Activities  envisages the following regulations:  
                                                
77 CBA online information on Armenia's financial system development. Viewed at: 
https://w ww.cba.am/en/SitePages/achfinancialbankingsystem.aspx . 
78 IMF (2013), Republic of Armenia: Financial System Stability Assessment, IMF Country Report 
No. 13/10, January. Viewed at: http://www.imf.org/external/ . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  • The c oncept of insurance compan ies having systemic significance has been defined. A 
company is considered to have systemic significance if the deterioration of the 
financial position , insolvency, bankruptcy or liquidation of that company may have a 
material adverse effect on the financial system and/or other sector (s) of the economy;  
• Mechanisms for the protection of internal audit, external audit and responsib le actuary 
have been intr oduced; and    
• Policyholders' objection has been introduced in case of the transfer of a life insurance 
portfolio. Particularly, within  two months after announcement of the intended transfer 
of the insurance portfolio, the policyholders, with whom the insur ance contracts are 
envisaged to transfer to another company, may submit to the CBA  their written 
objections on the transfer of the insurance portfolio.  
4.3.2.4  Securities  
4.130.   Since the last Review, there have been several developments in the c apital markets , and 
operators in the  securities marke ts have increased. In 2017, operators included: 17 commercial 
banks as investment service providers; 9 investment companies; 7 insurance companies; 35 credit 
organizations; 21 reporting issuers ; and 3 investment fund managers , from which  2 investment 
fund managers are licensed to carry out the management of mandatory pension fund s. Each of the 
investment fund managers has control over three mandatory funds. In 2017, the six mandatory 
pension funds' net asset value amounted to AM D 105.6 billion, equivalent to about 1.9% of GDP.79 
At end -2017, investment companies had total assets amounting to AMD 64.3 billion; total liabilities 
amounting to AMD 54.5 billion; and total capital amounting to AMD 9.8 billion.80 The share of 
foreign part icipation in domestic government bond markets ha s increased from 0.2% in 2015 to 
2% in March 2017.81 
4.131.   During the review period,  efforts were made to further develop capital markets, including 
by modernizing the settlement and depository system.  
4.132.   The securiti es market also incorporates the Central Depositary of Armenia and the 
NASDAQ OMX Armenia, an organizer of foreign currency trade and securities trade auctions. At 
end-2017: the securities of 21 reporting issuers had been admitted for trading on a regulated  
market (NASDAQ OMX Armenia); and the total amount of bonds issued was AMD 92.2 billion and 
the total amount of shares was AMD 57.7 billion.82 
4.3.2.4.1  Policy, institutions and regulatory framework  
4.133.   The securities market is regula ted by: the Constitution ; international treaties ; the Civil 
Code; the Law on Protection of Economic Competition ; the Law on Administration and 
Administrative Procedure s; the Law on Securities Market;  the Law on Investment Funds ; and the 
Law on Funded Pensions, as well as regulatio ns and normative acts adopted pursuant to the se 
laws. Ongoing developments in the financial sector called for further adjustments to the regulatory 
framework and, in 2010 , the CBA introduced amendments and enhancements to the following 
financial sector law s: Funded Pensions; Investment Funds; Securities Market; the Civil Code; State 
Registration of Rights to the Property; Profit Tax; Record Keeping of Income Tax and Mandatory 
Funded Contributions; State Fees; Value Added Tax; Income Tax; and Limited Liabili ty Companies,  
and, in 2012,  the CBA introduced amendmen ts to the laws on Banks and Banking; and 
Guaranteeing Compensation of Bank Deposits.   
4.134.   In 2016, the parliament passed a package of laws regulating the local financial markets 
and amendments to the L aw on Securities Market.  The new laws provided for the enforceability of 
                                                
79 CBA online information on Statistics of Financial Organizations. Viewed at: 
https://www.cba.am/en/SitePages/statfinorg.aspx . 
80 CBA online information on Armenia's financial system development. Viewed at: 
https://www.cba.am/en/SitePages/fscsecurityintroduction.aspx . 
81 IMF (2017), Republic of Armenia – 2017 Article IV consultation and Fifth and Final Review Under the 
Extended Arrangement, IMF Country Report No. 17/226.  
82 CBA online information on Armenia's financial system development. Viewed at: 
https://www.cba.am/en/SitePages/fscsecurityintrod uction.aspx . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  derivatives transactions, including netting, close -out netting and financial collaterals, and 
amend ments to over 17 laws . It also introduced more than 15 new regulations to the  financial 
legislation . The main objectives of securities regulation and supervision are to: protect investor 
rights and legitimate interests; maintain transparency and the sustainable and efficient 
development of the securities market; make sure a reliable and fair security pricing mechanism is 
in place; and reduce systemic risks in the securities market.  
4.135.   The CBA is also further devel oping domestic capital markets, and has proposed necessary 
legal, regulatory, and infrastructure reforms for ensuring the full enforceability/implementation of 
the International Swaps and Derivatives Association (ISDA) Master Agreements (including ISDA 
credit su pport documentation) in Armenia. The required laws were accepted in 2016.  
4.4  Transport  
Features  
4.136.   Transport, along with w arehousing, contributed about 3% to GDP in 2017 and, along with 
storage, information and communication, about 5.6% (2017) to employment. Being a landlocked 
country, the economy depends on transport and cross -border access. However, exports can only 
be tran sported by air, or overland through Georgia or Iran, as the borders with Azerbaijan and 
Turkey are closed. On both routes  through Georgia and Iran , the mountainous terrain poses  
additional challenges, and roads are often impassable in winter . 
4.137.   There is only  one open international border for r ail services,  at Bagratashen. Beyond 
Georgia, rail freight must be transhipped at Poti or Batumi on the Black Sea.  These issues result in 
high transport costs, particularly for traded goods, and expensive infrastructure development a nd 
maintenance. Therefore, the G overnment has given priority to the development of road and rail 
transportation . With regard to air transport, traffic has increased , and  the Government has 
introduced and amended several policies during the rev iew period.  
4.138.   According to the authorities , 28 million  tonnes of freight were transp orted in 2017, an 
increase from 12 million tonnes in 2012 . During the review period, road and air freight increased 
significantly, while ra il freight decreased (Table 4.14 ).  
4.139.   While most freight is carried by road, the railway line to Georgia carries resource -based 
exports such as stones and mining products, and air transport is used for a limited set of items 
with a high value -to-weight ratio,  such as fresh fruit, diamonds an d jewellery . 
Table 4.14 Overland transport, 2012 -17 
  2012  2013  2014  2015  2016  2017  
Total freight ('000 tonnes)  
of which:  12,094  12,316  10,158  11,053  20,484  27,640 
Rail 3,460  3,275  3,058  2,532  2,611  2,400  
Road 6,840  7,320  5,384  6,865  16,249  23,597  
Air 12.3  10.4  10.4  10.2  18.3  22.3 
Freight revenue ( AMD million)  
of which:  54,136  60,895  60,433  48,297  66,287  .. 
Rail 16,594  16,260  15,885  14,263  14,174  .. 
Road 33,837  42,190  42,673  34,034  52,112  .. 
Air 3,704  2,445  1,875  0.0 2.0  33.5 
Total passenger s (million)  
of which:  249  241  226 209 206  200 
Rail  0.6  0.4  0.4  0.4  0.4  0.4 
Motor vehicles  225.5  217.8 201.9 185.3  182.6 176.0 
Air 1.8  1.8  2.1  1.9  2.1  2.5 
.. Not available  
Source:  Data provided by Armenian authorities and Statistical Committee of the Republic of Armenia, 
Statistical Yearbook of Armenia 2017 . Viewed at: http://www.armstat.am/file/doc/99506088.pdf . 
4.140.   The Ministry of Transport, Communication and Information Technologies (MOTCIT) is 
responsible for developing policies in the transport, communication, and information technologies 
sectors. The Law on State Budge t defines the annual expenditures of the state budget, including WT/TPR/S/379 /Rev.1  • Armenia  
 
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  those allocated for investing in infrastructure. The Government's transport sector strategy is set 
forth in several documents, including the ADS 2025.  
Roads  
4.141.   The main mode of transport is the road network, with a total of  7,570 km excluding urban 
roads. The network is divided into interstate roads, republican roads , and local roads . During the 
review period, road traffic increased not only in absolute terms, but also relative to total traffic.  
Cross -border cargo traffic expanded and, in 2017, over 84% of  total cargo by weight was 
transported by road, com pared to 57% in 2012 (Table 4.14).  
4.142.   Armenia 's integrated budgeting system includes the ADS, a nnual medium -term 
expenditure framework submission s by the MOTC IT, and the annual state budget.  The ADS calls 
for an increase in, and more efficient use of, public resources allocated to the maintenance and 
rehabilitation of roads. The priorities identified in the ADS for the transport sector include:  
• Reconstruction of the north –south road, and of at least one road connecting each 
settlement with the rest of the country;  
• Strengthening of road subsector management;  
• Improvement of public transport services; and  
• Development of eco -friendly transport.  
4.143.   The MOTCIT administers all interstate and republican roads, and delegates its road 
administration functions (including the collection of road and traffic data and the maintenance of 
roads) to the Armenian Road Directorate (ARD), a state -owned non- commercial or ganization, 
through annual contracts. Regional administrations ( marzes ) manage all local roads. Private 
companies provide road maintenance services under five-year contracts with the ARD and the 
marzes .  
4.144.   The main  legislation for road transport is the Law on Road -Users Toll and the Automotive 
Roads Law. Under Government Decree No. 1720- N of Dece mber 2004, Armenia Roads SCJSC was 
restructured to form the Armenia Roads Directorate NCSO. The ARD operates under the MOTCIT. 
Its main functions are to: provide technical assistance to the Ministry on road construction and 
road use; monitor the condition of roads and traffic intensity;  and prepare programmes fo r the 
rehabilitation of roads.  
4.145.   The Road Safety Strategy and the five-year action programme for Armenia and Yerevan 
city were approved by Decree No. 995- N of 13 August 2009. In February 2018, the MOTCIT 
submitted a project on Approving the Road Strategy of the Republic of Armenia. The Strategy is 
aimed at developing the road sector during 2018- 2023,  to improve  regional interconnectivity, r oad 
safety measures and capacity development for relevant authorities and stakeholders , with the aim 
of reaching international road safety standards. The key issues in the Strategy are to address:  
• Structural and territorial discrepancies in road infrastructure development;  
• Inadequate access to transport services for a large amount of the population;  
• Insufficient quality of transportation services and transport safety;  
• Availability of suf ficient financial resources for the development of roads; and  
• Climatic risks and foreign political risks arising from Armenia's geopolitical position.  
4.146.   The Strategy aims to improve road safety measures on the M6 Vanadzor -Alaverdi -Georgia 
interstate road , under  projects financed by the European Investment Bank (EIB) and the Asian 
Development Bank. It includes a grant from the EU's Neighbourhood Investment Facility  (NIF) for 
road safety works and infrastructure improvements of accident black spots. In addition , the 
technical assistance  aspect of the project envisages : road safety audit s and inspections;  technical 
supervision ; road safety auditor training ; a review of road design standards to align with EU 
standards and international best practice o f road safety ; a road safety campaign ; and the 
identification of future road safety investments. Currently, the NIF grant agreement between 
Armenia and EIB is being approved.  WT/TPR/S/379 /Rev.1  • Armenia  
 
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  4.147.   The authorities  have also  initiated the North -South Road Corridor P roject , passing through 
the towns of Bavra, Gyumri, Talin, Yerevan, Sisian , Qajaran  and Meghri , to further expand the 
road network. The Corridor, once completed, will be 489 km long. It will also link with the East -
West Highway in Georgia that leads to the ports of Poti and Batum i on the Black Sea, two key 
shipment points for Armenia. The estimated cost for the entire project is US$3.1  billion. The first 
segment of the Corridor,  from Artashat to Ashtarak , has been completed, and two sectors, from 
Ashtarak to Talin and Talin to Gyu mri, are underway .  
4.148.   The Transport Projects Implementation Organization  implements the Corridor Project and  
other road construction and rehabilitation projects, including those financed by international 
institutions . All maintenance  activities (including re construction and rehabilitation) accounted for 
about 0. 9% of GDP in 2017,  including the ongoing North –South Road Corridor Investment 
Program. The ADS indicated that about 1.2% of GDP has been spent on road maintenance since 
2015.   
4.149.   Most public bus services in Yerevan and secondary towns , as well as intercity routes , have 
been franchised to private operators on a route- by-route basis . Therefore, t he private sector 
provides most road transport services (including international and urban transport services), an d 
competition in the mark et for these services has been described as "robust".83  
4.150.   Public bus services are provided in Yerevan and throughout Armenia (although frequency is 
limited). Foreign companies may  provide public bus services. Like domestic companies,  they must 
register and apply for one of the competitions held by the Yerevan Municipality for each new bus 
route. There are no foreign operators  operating in the market. The authorities do not regulate 
public transportation prices . Most cities have taxi services; taxi drivers, irrespective of their 
nationality, must be licensed by the  MOTCIT. Public transport and taxi services are not subsidized.  
The Government is looking at forming a single route network , aimed at providing a high qua lity 
and secure service in accordance with passenger flow requirement s. Taxis operate  under 
competition conditions , and there are currently no regulations for taxi prices . 
Rail  
4.151.   Armenia 's railway s play a n important role in transportation, with a completely  electrified  
operational network of  703 km. However, the volume of cargo transported by rail has decreased, 
from 28.6% in 2012 to less than 9.4% in 2017 (Table 4.14). This is in contrast to road 
transportation, suggesting that long -distance road haulage has tended to displace rail. In absolute 
terms, road ton ne-km has grown 41% per year, wh ereas rail has grown 2.7% a year.  
4.152.   There is only one railway operator, despite open access provisions. Rail services are 
operated by the South Caucasus Railway CJSC, a su bsidiary of Russian Railways, under a 30 -year 
concession awarded in 2008. On 13 February 2008, the authorities signed an agreement to 
transfer 100% of the state- owned Armenian Railways to Russian Railways. According to the 
agreement, the concession period is 30 years , with a possible extension for another 10 years by 
mutual agreement of the parties. In accordance with the terms of the tender, existing railway 
employees (4,300 people), except those of retirement age, were transferred to the South 
Caucasus Railway , with salary increases of up to 20%. South Caucasus Railway is among the five 
largest companies in Armenia . 
4.153.   The Railways Law expands on the principles for setting infrastructure usage fees, and 
offers guidelines on the procedures for setting tariffs and fees, mentioning non- discriminatory 
treatment as a key principle. According to the World Bank, "Limited competition in ground 
transportation for bulk cargo affects the cost of final products, particularly bread given that 
inadequately regulated prices for railway services are paid to transport wheat and there is no 
alternative transport due to its volume".84 
                                                
83 Asian Development Bank (2014), Armenia: Country Partnership Strategy (2014 -2018) , Section 6, 
pg. 1. Viewed at: https://www.adb.org/documents/armenia -country -partnership -strategy -2014-2018. 
84 World Bank (2013), Republic of Armenia – Accumulation, Competition, and Connectivity , Washington, 
April, pg. 47. WT/TPR/S/379 /Rev.1  • Armenia  
 
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Air transport  
4.154.   Armenia has three  international airports : Zvartnots in Yerevan , Shirak in Gyum ri, and 
Erebuni in Yerevan. Both Zvartnots and Shirak are operated by Armenia International Airports 
CJSC, under a 30- year concession signed in 2001. Erebuni is a joint military -civilian aerodrome 
operated by the military.  
4.155.   Zvartnots is the main air gate way of Armenia , with f lights to several hubs in Europe, the 
Middle East, and other destinations . During the review period, a new terminal building was built , 
capable of handling about 3.2 million passengers a year, which , according to the authorities , 
should ac commodate growing demand until 2030.  Total passenger traffic into and out of Zvartnots 
Airport increased by over 50% since 2011, with nearly 2.5 million people arriving and departing in 
2017, while freight carried through the airport more than doub led to 2 2,324 tonnes (Table 4.15).  
4.156.   Shirak Airport is located in Gyumri, the second largest city of Armenia , in the Shirak 
region , 120 km from Yerevan . Total passenger traffic into and out of Shirak was about 100,000 in 
2017, with 37 1 aircraft movements (Table 4.1 5). This Airport was  recently exempt ed from certain 
taxes and , according to the authorities, may be particularly lucrative for low -cost airlines.  Air 
services at Shirak are given a  50% discount, meteorological services are provided free of charge, 
and the Airport is exempt from s tate exit duty tax for departing passenger s (about US$ 20). 
4.157.   In the period January -April 2018, aircraft movements at the two international airports 
increased by 10.4 % compared to the same period in 2017. Moscow is  the main air hub for  transit 
passengers from Armenia.  Seven  Russian airlines (Aeroflot, Ural Airlines, S7, Red Wings, Globus, 
UT Air, Nord Wind) operate regular flights from Yerevan to Moscow. Approximately 30% of weekly 
flights from Zvartnots Airport depart to Moscow.85 Accor ding to the authorities, passenger 
numbers declined in Shirak in 2016,  as airlines operating flights to Shirak stopped operations. In 
December 2016, Pobeda, a  low-cost Russian airline, started operations to Shirak and serves three  
destinations (Moscow, Sai nt Petersburg, and Rostov) . As a result, passenger numbers increased in 
2017.  
Table 4.15 Air transport numbers, 2011-17 
 2011  2012  2013  2014  2015  2016  2017  
Zvartnots         
 Passenger traffic  1,600,897  1,691,815  1,691,710  2,045,058  1,879,667  2,105,540  2,448,250  
 Freight  (tonnes)  10,014  12,251  10,361  10,345  10,123  18,269  22,324  
 Landings/take offs  9,858  10,392  8,721  10,409  9,012  9,266  10,621  
Shirak         
 Passenger traffic  73,578  71,568  66,534  37,857  39,238  12,421  105,664  
 Freight  (tonnes)  20 32 4 0 51 4 2 
 Landings/take offs  306 252 221 144 152 54 371 
Source:  General Department of Civil Aviation. Viewed at: http://www.gdca.am/projects/p/statistics . 
4.158.   The legal framework for civil aviation is made up of international agreements signed by 
Armenia,  the Law on Aviation of 2007  (which replaced the Law on Aviation of 2002), as well as 
sublegal normative acts . The MOTCIT develops and implements aviation policy. The General 
Department of Civil Aviation (GDCA) is the regulatory body for aviation  and non- military state 
aviation activities , air traffic services, and aviation safety, security and infrastructure . Its 
respons ibilities also include : issuing certificates, permits , and licences for civil aviation activities ; 
aircraft certificates;  permits for operating commercial air services;  and certificates for flight crew , 
air traffic control and aircraft maintenance personnel. Armenia is a member of the International 
Civil Aviation Organization (ICAO), the European Civil Aviation Conference (ECAC), the European 
Organization for the Safety of Air Navigation (EUROCONTROL), a nd the Interstate Aviation 
Committee (IAC).  
4.159.   The Armenia n Air Traffic Service (ARMATS)  provides air navigation services, including air 
traffic control, communication, naviga tion, and surveillance services  and aeronautical information 
services for Armenia's  airspace, in compliance with international civil aviation standards. ARMATS 
                                                
85 General Department of Civil Aviation online information. Viewed at: 
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  is 100% state-owned .86 The authorities noted that, to improve  flight safety in Armenian airspace, 
the following moderniz ation projects were implemented: new air traffic monitoring  systems in the 
Yerevan air traffic control centre and the Shirak tower ; the m odernization of the VHF 
communication network ; the implementation of a w ide area multilateration system for e n-route 
and aerodrome traffic ; and d oppler VHF o mnidirectional range/ distance measuring equipment 
navigation systems.  
4.160.   In terms of participation of foreign investors in air transport services, according to Article 
43 of the Law on Aviation, the authorities issue  an air operator certificate to legal entities 
registered in Armenia, with at least 51 % of shares (i.e. shares of stock, share contributions ) 
owned by  citizens of Armenia and/or legal entities esta blished in Armenia; and to authorized 
bodies of the Governm ent. 
4.161.   In 2003, the G overnment gave the exclusive rights to all domestic and international routes 
for 10 years to Armavia, a private Armenian airline. However, Armavia filed for bankruptcy in 2013 
and suspended operati ons. In 2013, Armenia introduced an open  sky policy for air transport. This 
policy envisages the complete revis ion of the institutional, legal and regulat ory bases to develop a 
competitive and sustainable air tr ansportation system . The reforms are dire cted towards the 
improvement of air connectivity and the development of the aviation industry .87 
4.162.   Currently , Armenia is a party to 40 bilateral air services agreements. On 24 November 
2017, the EU -Armenia Common Aviation  Area Agreement was initialled in  Brussels. This 
agreement is intended to improve market access for airlines, providing better connectivity, more 
choice and lower fares for travellers. According to the authorities , a common regulatory 
framework, for instance in the fields of aviation safety and security , will be established.  
4.163.   During the  review period, Armenia  also enhanced and developed national air services 
cooperation to facilitate the harmonization process among the different national air services in the 
Caucasus region. The objective was to meet global and European standards and directives. The 
harmonization approach is based on the assumption that regional and sub -regional planning, 
development and management is necessary to establish and maintain the future air traffic 
management systems at a safe, productive and cost -effective leve l, which will be accepted by the 
airspace users. Operational Letters of Agreement have been signed between Yerevan Flight 
Information Region and all neighbouring flight information regions .  
4.164.   During the review period, within the framework of cooperation with EUROCONTROL and 
the ICAO, the General Department of Civil Aviation initiated  and developed the following projects 
in Armenian airspace: regional implementation of Reduce d Vertical Separation Minima (RVSM), 
Performance Based Navigation (PBN), migration to  AIXM 5.1 in the European AIS Database (EAD) , 
and the development of the Free Route Airspace (FRA) concept, with the next step of Cross Border 
Operation in 2019. A ccording to the authorities, a s a result of the se projects,  Armenia has been 
able to record high performance in a number of internal/external audits and over views.  
4.5  Tourism  
Features  
4.165.   Tourism is estimated  to have contributed 15.7% to  GDP (US$1,719. 7 million) and 14.1% 
to total employment (162,000 jobs) in 2017.88 During the review period, the sector grew as a 
result of a more focused government policy toward tourism development,  as well as through 
numerous private sector initiatives. Government policies , such as the liberalization of the civil 
aviation sector , have attracted new carriers, increasing t he number of flights, while reducing prices 
on more  competitive routes (Section 4. 4). In 2017, the number of incoming tourist arrivals 
                                                
86 ARMATS online information. Viewed at: http://www.armats.com/eng/visitcard/company.htm . 
87 Annex to Government Decree No. 442 -N, 27 March 2014.  
88 World Travel and Tourism Council (2018), Travel and Tourism Economic Impact Armenia, 2018 , 
London. Viewed at: https://www.wttc.org/- /media/files/reports/economic -impact -research/countries -
2018/armenia2018.pdf . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  increased to 1,494,779,  a growth of 18.7% from the previous year89, while tourism represented 
AMD 529.8 billion in exports  (US$1,092.4 million ), 29.2% of total exports (Table 4.16) .90 
Table 4.16 Tourism arrivals and receipts , 2010-17  
 2010  2011  2012  2013  2014  2015  2016  2017  
Tourist arrivals ( '000) 723  833  963  1,082 1,204  1,192  1,260  1,495  
of which (%)          
 Russian Federation  .. .. .. .. .. .. 21.7 20.3 
 Iran .. .. .. .. .. .. 17.0 14.2 
 United States  .. .. .. .. .. .. 9.6 13.6 
 Germany  .. .. .. .. .. .. 6.3 4.7 
 France  .. .. .. .. .. .. 5.3 4.1 
Receipts from tourism (US$ million)  694  762  853  905  994  956  988  1,092  
.. Not available.  
Source:  Statistical Committee of the Republic of Armenia, socio -economic situation (various years); and 
World Bank online database. Viewed at: https://data.worldbank.org/ . 
4.166.   In 2017, nearly half of tourist visitors came from the Russian Federation, Iran, and the 
United States (Table 4. 16), while other major sources include Germany and France (the European 
Union as a whole accounts for 20.3%). According to the 2013 Armenian International Visitor 
Survey, t he main reason s for visiting were: visiting friends and relatives (51%); holiday and 
leisure (14%); business  and/or conference s (12%); and health treatment (9 %).91  
4.167.   Investment in travel and tourism in 2017 was  AMD 52.8 billion, 4.6% of total investment.  
Armenia has  three  UNESCO World Heritage sites , as well as many historical monuments and scenic 
locations.  There are o ver 2,000 hospitality companies, including hotels, hostels , and other types of 
accommodation, health resorts, catering facilities, transportation companies, tour operators, and 
travel agencies. During the review period,  tourist infrastructure , including transport and 
accommodation , were improved.  
4.168.   According to the World Economic Forum 's Travel and Tourism Competitiveness Report 
2017,  Armenia ranked 84th out of 136 countries. The R eport noted that the country  has a long way 
to go before it is competitive in the inter national tourism market. H owever, on the safety and 
security indicator , Armenia ranked 34th, and on the business environment , 39th.92 
Policy, institutions and regulatory framework  
4.169.   Under Government Decree No. 1385- N of 22 December 2016, t he State Tourism 
Committee is responsible for the development and implementation of tourism policy.  The 
Committee is a state body under the administration of the Ministry of Economic Development and 
Investment s.93 
4.170.   The principal legislation related to tourism is the Law on Tourism  and Tourist Activity of 
2003, which  sets out the principles and objectives of the national policy , and the Government's 
role in policy implementation and the provision of tourism services.  
4.171.   A draft Law on Tourism,  as well as related laws and other legal acts have been prepared 
and submitted to the National Assembly. According to the authorities, the draft Law is based on 
                                                
89 Statistical Committee of the Republic of Armenia (2018), Socio -economic Situation of the Republic of 
Armenia, January -December 2017 , Section 4.1.1. Viewed at: http://armstat.am/file/article/sv_01_18a_421.pdf  
(Armenian). 
90 World Travel and Tourism Council (2018), Travel and Tourism Economic Impact Armenia, 2018 , 
London. View ed at: https://www.wttc.org/- /media/files/reports/economic -impact -research/countries -
2018/armenia2018.pdf . 
91 State Tourism Committee of the Republic of Armenia (2017), Tourism Sector Armenia – Your next 
business destination, presentation. Viewed at: http://www.ba cc.be/wp -content/uploads/2017/12/Mekhak -
Apresyan -Compatibility -Mode.pdf . 
92 World Economic Forum (2017), The Travel & Tourism Competitiveness Report 2017 , Geneva. Viewed 
at: http://www3.weforum.org/docs/WEF_TTCR_2017_web_0401.pdf . 
93 Ministry of Economic Development and Investments online information. Viewed at: 
http://mineconomy.am/en/73 . WT/TPR/S/379 /Rev.1  • Armenia  
 
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  best practices in international tourism legislation, and takes into account development needs and 
challenges in the sector. It includes provisions related to the following:  
• The introduction of an administrative r egister for the tourism sector and the creation 
of a registry for tourism -related  resources ; 
• The introduction of qualification standards for services through the licensing of tourist 
guides, tour operators and travel agents, hotel services, the voluntary qualification of 
tour buses and public catering facilities;  
• The p rotection of consumer rights and the domestic market;  
• Support for ensuring the security of information on Armenia and A rmenian cultural 
heritage;  
• Ensuring of the quality of services and  the continuous improvement of the image and 
competitiveness of Armenia and the Armenian tourism product in the world market;  
• Facilitatin g border crossing s; and  
• Improv ing the business investment environment.  
4.172.   Annual tourism development programmes are prepared by the State Tourism Committee 
and submitted to the Government for approval. These programmes outline the measures to be 
undertaken in that year. The objectives include:  
• Determinati on of priority target markets  (origin of tourists) , and implementation of 
target marketing and promotion;  
 
• Diversification of tourism markets and product,  
• Enhancement, development and promotion of the image of Armenia in the world 
market as a stable, fav ourable and attractive country for entrepreneurial activity, 
investment and tourism;  
• Improv ing access to Armenia through better  transport , and ease of 
arrivals/departures (including visa facilitation) ; and 
• Decentralization of tourism in the different regions through infrastructure 
development and organization of various events.  
4.173.   The Armenia Tourism Development Foundation was established by Government Decree N o. 
785-N of 29 June 2017. Its  main functions include : promotional campaigns to increase  
internat ional awareness of Armenia as a tourism destination; assisting Armenia -based tour 
operators to participat e at key international tourism expos; organizing trips to Armenia for 
international media and tour operators; and developing new and diversified tour products .  
4.174.   The Tatev Revival Project , implemented through a PPP between the Government and the 
Ruben Vardanian and  Veronika Zonabend (RVVZ) Foundation , is a development project in the 
tourism sector. The p roject includes the restoration and preservation of  the 1,000- year-old Tatev 
monastic complex , and the establishment of infrastructure based on local community needs to 
enable tourism promotion.  In addition, the Government has developed investment plans around 
strategic  touristic areas such as the southern  region of Syunik, where the Tatev monastery is 
located, and the Vayots Dzor region,  south of Yerevan. A large -scale revitalization proj ect has 
been launched in Tatev, and a cable car has been built across the Vorotan River to the Tatev 
monastery . Accordin g to the authorities, this has boosted tourism in the region.  
4.175.   At present, the activity of tourist guides is not licensed (Government Decree No. 945 -N of 
10 June 2004 on Tour Guide Licensing was declared invalid according to Government Decree 
No. 245-N of 18 March 2011). However, the new draft Law on Tourism includes provisions for tour 
guide licensing. The 3rd World Federation of T ourist Guides Associations International Training WT/TPR/S/379 /Rev.1  • Armenia  
 
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  Centre (the first in the region) was established in Armenia  in 2014, where in ternational tour guide 
training courses are organized on a yearly basis.   
4.176.   Accommodation establishments are certified, on a voluntary basis, by the Ministry of  
Economic Development and Investments . Certificates are valid for five years, renewable, and are 
granted upon a site visit by  the Classification Commission, which is composed of inspectors from 
the State and the private sector.   
4.177.   There are no restrictions on foreign investment in the tourism sector. In addition , there is 
a visa-free regime for citizens  of more than 50 countries , and visas (or E-visas) are available for 
citizens  of more than 140 countries  upon arrival in the country. Armenia a ctively cooperat es with 
the UN World Tourism Organization  (membership since 1997) , the Organization of the Black Sea 
Economic Cooperation, the CIS Tourism Council,  and other international organizations and 
partners . It also cooperates with foreign countries within the framework of these organizations and 
within the framework of bilateral tourism -related agreements. I t has tourism agreements with 
Argentina, Belarus, Bulgaria, China, Cyprus, Egypt, Greece, India, Iran, the Kyrgyz Republic, 
Lebanon, Moldova, Poland, Romania, the Russia n Federation , Syria, Ukraine, and the United Arab 
Emirates . 
 
  
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Table A1. 1 Merchandise total exports by group of products, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Total exports (US$ million)  1,011.4  1,320.4  1,428.1  1,467.8  1,490.2  1,482.7  1,807.8  2,145  
 (% of total exports)  
Total primary products  64.2 64.9 65.8 67.5 66.2 68.9 63.5 69.4 
Agriculture  16.4 17.0 22.2 26.7 27.8 26.3 28.6 29.2 
 Food 15.5 16.9 22.0 26.5 27.5 25.6 28.1 28.6 
1222 - Cigarettes containing tobacco  0.8 1.2 2.9 4.6 7.8 11.5 11.7 11.1 
1124 - Spirits (other than those under heading 512.16); liqueurs and other 
spirituous beverages, n.e.s.; compound alcoholic preparations of a kind used 
for the manufacture of beverages  9.5 9.9 11.5 12.7 11.0 6.2 8.3 9.7 
 0341 - Fish, fresh (live or dead) or chilled (excluding fillets and minced fish)  0.2 0.4 0.9 1.2 1.2 0.7 0.5 0.8 
 0121 - Meat of sheep or goats, fresh, chilled or frozen  0.0 0.0 0.0 0.0 0.1 0.2 0.5 0.7 
 0544 - Tomatoes, fresh or chilled  0.1 0.0 0.0 0.0 0.0 0.1 1.1 0.6 
 Agricultural raw material  1.0 0.0 0.2 0.2 0.3 0.7 0.5 0.5 
Mining  47.8 48.0 43.7 40.8 38.5 42.5 34.9 40.2 
 Ores and other minerals  25.2 23.8 21.7 21.8 20.2 25.4 23.4 28.9 
 2831 - Copper ores and concentrates  20.8 19.7 15.9 19.1 15.8 21.4 20.5 26.6 
 2875 - Zinc ores and concentrates  1.4 1.1 1.2 1.2 0.9 0.8 0.6 0.8 
 Non-ferrous metals  18.5 16.4 14.4 13.0 12.2 10.9 8.1 7.9 
 6842 - Aluminium and aluminium alloys, worked  7.8 6.6 5.7 5.5 5.9 5.6 4.3 4.6 
 6821 - Copper, refined and unrefined; copper anodes for electrolytic refining; 
copper alloys, unwrought  9.2 8.7 7.3 6.1 4.8 4.4 3.5 3.3 
 Fuels 4.0 7.7 7.5 6.0 6.1 6.2 3.4 3.4 
 3510 - Electric current  2.6 6.6 6.7 5.3 5.5 5.2 3.2 3.3 
Manufactures  31.0 28.9 27.8 27.4 27.9 23.5 27.7 23.5 
Iron and steel  11.9 9.3 7.5 7.0 7.4 3.8 3.7 4.0 
 6715 - Other ferro -alloys (excluding radioactive ferro -alloys)  11.8 9.2 7.5 7.0 7.4 3.7 3.7 3.9 
Chemicals  1.2 1.1 1.3 1.7 1.3 1.5 1.4 1.7 
 5429 - Medicaments, n.e.s.  0.5 0.4 0.4 0.4 0.5 0.5 0.4 0.6 
Other semi -manufactures  11.3 10.9 8.1 9.3 10.3 6.6 7.3 4.7 
6672 - Diamonds (other than sorted industrial diamonds), whether or not worked, 
but not mounted or set  8.9 8.6 5.5 5.9 7.9 5.2 5.9 3.4 
Machinery and transport equipment  3.2 4.3 6.5 3.1 1.7 1.8 2.3 2.4 
 Power generating machines  0.9 0.3 0.1 0.0 0.0 0.0 0.2 0.2 
 Other non -electrical machinery  0.8 0.7 0.8 0.7 0.7 0.6 0.5 0.8 
Agricultural machinery and tractors  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
 Office machines and telecommunication equipment  0.7 0.7 1.3 0.2 0.3 0.1 0.2 0.3 
 Other electrical machines  0.5 0.4 0.4 0.5 0.6 0.4 0.6 0.4 
 Automotive products  0.1 0.1 0.2 0.0 0.1 0.5 0.7 0.6 
 Other transport equipment  0.2 2.1 3.8 1.6 0.2 0.1 0.0 0.0 
Textiles  0.1 0.1 0.0 0.0 0.0 0.9 0.2 0.2 
Clothing  0.5 0.5 1.3 2.6 3.3 4.8 5.1 5.9  
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8421 - Overcoats, car coats, capes, cloaks, anoraks (including ski jackets), 
windcheaters, wind jackets and similar articles (other than those of subgroup 
845.2)  0.0 0.0 0.1 0.6 1.2 1.3 1.0 1.1 
8411 - Overcoats, car coats, capes, cloaks, anoraks (including ski jackets), 
windcheaters, wind jackets and similar articles (other than those of 
subgroup 841.2 and heading 841.3)  0.1 0.1 0.4 0.8 1.0 1.2 1.2 1.1 
8414 - Trousers, bib and brace overalls, breeches and shorts  0.1 0.1 0.2 0.6 0.7 0.8 0.8 0.9 
Other consumer goods  2.7 2.6 3.1 3.7 3.8 4.2 7.7 4.6 
8131 - Lamps and lighting fittings (including searchlights and spotlights), n.e.s.  0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.7 
8973 - Jewellery of gold, silver or platinum group metals (except watches and 
watch -cases) and goldsmiths' or silversmiths' wares (including set gems)  1.3 1.0 0.9 1.5 1.5 1.2 1.1 1.3 
Other  4.8 6.2 6.3 5.0 5.8 7.6 8.8 7.1 
9710 - Gold, non -monetary (excluding gold ores and concentrates)  2.8 5.1 5.4 5.0 5.7 7.0 7.9 6.8 
Source:  UNSD Comtrade database (SITC Rev.3). 
   
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- 114 - Table A1. 2 Merchandise total imports by group of products, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Total imports (US$ million)  3,781.8  4,109.3  4,266.9  4,256.2  4,159.5  3,257.0  3,218.5  3,893.5  
 (% of total imports)  
Total primary products  39.2 42.1 43.3 44.7 42.4 45.1 41.1 37.7 
Agriculture  18.4 19.8 19.9 20.6 20.5 21.6 21.1 19.1 
 Food 17.5 18.7 18.7 19.5 19.0 19.8 19.2 18.0 
0412 - Other wheat (including spelt) and meslin, unmilled  0.4 0.4 0.5 1.4 1.6 2.1 1.8 1.5 
1124 - Spirits (other than those under heading 512.16); liqueurs and other 
spirituous beverages, n.e.s.; compound alcoholic preparations of a kind used 
for the manufacture of beverages  0.8 0.7 0.9 1.0 0.9 1.0 1.5 1.1 
0123 - Meat and edible offal of the poultry of sub -group 001.4, fresh, chilled or 
frozen  1.1 1.1 1.0 1.1 1.1 1.1 0.8 1.0 
1222 - Cigarettes containing tobacco  1.7 1.4 1.2 1.4 1.0 1.3 1.2 1.0 
1212 - Tobacco, wholly or partly stemmed/stripped  0.4 0.4 0.5 1.1 0.9 1.3 1.7 0.9 
0611 - Sugars, beet or cane, raw, in solid form, not containing added flavouring or 
colouring matter  0.3 1.2 1.1 0.9 1.0 0.9 0.6 0.8 
0739 - Food preparations containing cocoa, n.e.s.  0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.6 
 Agricultural raw material  0.9 1.1 1.2 1.1 1.5 1.9 1.9 1.1 
Mining  20.8 22.3 23.4 24.1 21.9 23.4 20.0 18.6 
 Ores and other minerals  0.4 0.4 0.3 0.4 0.4 0.4 0.3 0.3 
 Non-ferrous metals  2.9 2.2 1.9 1.7 2.0 2.4 2.1 2.2 
6841 - Aluminium and aluminium alloys, unwrought  2.4 1.7 1.5 1.3 1.4 1.8 1.5 1.7 
 Fuels 17.5 19.6 21.2 22.0 19.6 20.7 17.6 16.1 
3432 - Natural gas, in the gaseous state  8.9 9.9 12.1 13.4 11.1 13.2 10.8 9.1 
334 - Petroleum oils and oils obtained from bituminous minerals, other than crude  8.0 9.0 8.4 8.0 7.7 6.7 6.2 6.2 
Manufactures  55.5 52.8 50.6 51.3 53.7 54.2 58.0 60.8 
Iron and steel  4.0 3.2 2.9 2.9 3.0 2.6 2.4 2.5 
Chemicals  9.4 9.6 9.7 10.6 10.8 11.4 12.0 12.4 
5429 - Medicaments, n.e.s.  1.9 2.0 2.0 2.3 2.1 2.5 2.4 3.8 
5621 - Mineral or chemical fertilizers, nitrogenous  0.3 0.3 0.5 0.5 0.4 0.7 1.3 0.6 
Other semi -manufactures  10.9 11.6 10.7 11.6 13.4 12.0 12.8 12.9 
6672 - Diamonds (other than sorted industrial diamonds), whether or not worked, 
but not mounted or set  2.5 3.1 2.3 2.7 3.6 2.7 3.9 3.2 
6911 - Structures (excluding prefabricated buildings of group 811) and parts of 
structures  0.7 0.4 0.3 0.3 0.5 0.5 0.4 0.7 
Machinery and transport equipment  22.2 19.0 18.3 17.4 16.7 18.1 18.2 20.0 
 Power generating machines  0.4 0.5 0.9 0.9 0.8 0.4 0.8 1.2 
 Other non -electrical machinery  6.9 5.8 6.2 6.9 6.4 6.4 6.0 7.1 
7232 - Mechanical shovels, excavators and shovel -loaders, self -propelled  0.5 0.6 0.7 0.4 0.4 0.4 0.4 1.0 
Agricultural machinery and tractors  0.3 0.4 0.4 0.4 0.4 0.3 0.2 0.3  
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 Office machines and telecommunication equipment  4.7 4.2 3.7 3.0 3.5 3.2 5.0 4.2 
7643 - Transmission apparatus for radio -telephony, radio -telegraphy, radio -
broadcasting or television, whether or not incorporating reception apparatus 
or sound -recording or reproducing apparatus  0.7 0.6 0.5 0.3 0.7 0.7 1.4 2.2 
 Other electrical machines  5.1 3.3 3.2 3.0 3.2 3.2 2.9 3.7 
 Automotive products  3.4 3.6 3.8 2.9 2.6 4.6 2.9 3.5 
7812 - Motor vehicles for the transport of persons, n.e.s.  1.6 1.9 1.4 1.4 1.5 2.7 1.3 1.3 
7821 - Motor vehicles for the transport of goods  0.9 1.0 1.4 0.7 0.6 0.7 0.6 1.2 
 Other transport equipment  1.6 1.6 0.5 0.6 0.2 0.3 0.5 0.3 
Textiles  1.4 1.8 1.5 1.5 1.6 1.6 2.5 2.0 
Clothing  1.8 1.9 1.8 1.8 2.0 2.5 3.4 3.5 
Other consumer goods  5.9 5.7 5.7 5.5 6.3 5.9 6.7 7.3 
8110 - Prefabricated buildings  0.0 0.2 0.2 0.1 0.5 0.2 0.3 0.8 
Other  5.3 5.1 6.1 4.0 4.0 0.7 0.9 1.5 
9710 - Gold, non -monetary (excluding gold ores and concentrates)  1.6 1.9 1.7 4.0 3.5 0.7 0.7 1.5 
Source:  UNSD Comtrade database (SITC Rev.3). 
 
 
 
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  Table A1. 3 Merchandise total exports by destination, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Total exports (US$ million)  1,011.4  1,320.4  1,428.1  1,467.8  1,490.2  1,482.7  1,807.8  2,145  
 (% of total exports)  
Americas  12.1 14.0 13.3 12.8 12.6 11.6 9.7 3.1 
United States  8.1 7.6 6.1 6.0 5.8 3.6 2.2 2.8 
Other America  3.9 6.4 7.2 6.7 6.7 8.0 7.5 0.3 
Canada  2.9 5.3 6.0 6.0 6.3 7.6 7.4 0.3 
Europe  51.4 48.7 44.3 36.8 31.2 32.6 32.1 39.9 
EU(28)  49.6 46.0 39.3 34.7 29.3 29.7 26.8 28.4 
Bulgaria  15.5 11.5 9.1 10.4 5.7 5.3 9.0 13.1 
Germany  13.1 12.0 10.7 5.8 10.6 9.8 7.5 5.9 
Netherlands  9.8 8.9 5.6 4.5 5.0 3.2 3.1 4.1 
Belgium  7.2 5.3 8.9 8.9 4.2 3.2 2.3 1.8 
Italy 0.5 0.3 0.5 1.6 2.3 3.3 1.7 1.7 
Poland  0.2 0.1 0.0 0.1 0.2 1.0 1.0 0.4 
EFTA 1.7 2.6 5.0 1.7 0.9 2.8 5.3 11.5 
Switzerland  1.7 2.5 5.0 1.7 0.9 2.8 5.3 11.5 
Other Europe  0.1 0.1 0.0 0.4 0.9 0.1 0.0 0.1 
Commonwealth of 
Independent States (CIS)  23.7 23.1 27.8 31.4 27.8 25.6 30.5 33.7 
Russian Federation  15.8 16.7 19.5 22.6 20.4 15.2 20.6 25.2 
Georgiaa 4.8 4.2 5.5 5.1 4.4 7.7 7.8 6.8 
Ukraine  1.2 0.8 1.0 1.0 0.7 0.4 0.5 0.5 
Belarus  0.5 0.4 0.5 0.6 0.6 0.4 0.7 0.3 
Turkmenistan  0.8 0.3 0.9 1.2 0.9 1.1 0.3 0.3 
Kazakhstan  0.3 0.3 0.3 0.5 0.5 0.3 0.3 0.2 
Africa  0.1 0.1 0.0 0.1 0.2 0.1 0.1 0.1 
Middle East  5.2 8.5 8.6 10.1 13.7 17.2 17.3 16.2 
Iraq 0.0 0.4 1.1 3.2 5.4 8.8 7.8 5.5 
United Arab Emirates  0.8 0.7 0.6 0.6 0.8 0.7 3.8 4.3 
Iran 3.9 7.1 6.6 5.9 5.6 5.3 3.9 3.9 
Syrian Arab Republic  0.0 0.0 0.0 0.2 1.2 1.7 1.5 2.3 
Asia 4.4 3.2 3.7 7.7 13.4 12.3 9.1 6.3 
China  3.1 1.2 2.2 4.7 11.5 11.1 5.5 5.5 
Japan  0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 
Other Asia  1.4 1.9 1.5 3.0 1.9 0.9 3.6 0.8 
Thailand  0.3 0.3 0.2 0.2 1.5 0.1 0.1 0.4 
Other  3.1 2.4 2.2 1.1 1.2 0.6 1.2 0.7 
Memorandum:          
Eurasian Customs Union  16.6 17.5 20.2 23.8 21.5 16.0 21.7 25.8 
 Russian Federation  15.8 16.7 19.5 22.6 20.4 15.2 20.6 25.2 
 Belarus  0.5 0.4 0.5 0.6 0.6 0.4 0.7 0.3 
 Kazakhstan  0.3 0.3 0.3 0.5 0.5 0.3 0.3 0.2 
 Kyrgyz Republic  0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.1 
a Georgia is not a member of the CIS but is included in this group for reasons of geography. 
Source:  UNSD Comtrade database.  
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  Table A1. 4 Merchandise total imports by origin, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Total imports (US$ million)  3,781.8  4,109.3  4,266.9  4,256.2  4,159.5  3,257  3,218.5  3,893  
 (% of total imports)  
Americas  5.3 6.7 6.5 6.2 6.1 6.6 5.2 6.9 
United States  2.7 3.2 3.0 2.8 2.7 3.2 2.5 2.9 
Other America  2.7 3.5 3.5 3.5 3.4 3.4 2.8 4.0 
Canada  0.5 0.7 0.4 0.5 0.4 0.4 0.4 1.6 
Brazil  1.4 2.0 2.2 2.1 2.2 1.9 1.5 1.6 
Europe  33.1 33.8 30.9 33.5 33.4 29.2 28.7 29.2 
EU(28)  25.6 26.0 23.8 24.4 24.2 23.3 22.1 21.0 
Germany  4.1 4.0 4.0 4.1 4.2 5.6 5.0 4.2 
Italy 3.2 4.1 3.9 3.8 4.3 4.5 4.0 3.2 
France  2.0 2.0 1.6 1.5 1.9 2.0 1.6 1.9 
Poland  0.8 0.9 1.0 1.0 1.1 1.0 1.1 1.3 
Greece  1.3 1.5 0.7 0.5 0.4 0.5 0.7 1.3 
Bulgaria  3.0 2.5 2.0 1.6 0.6 0.8 1.0 1.0 
Belgium  1.9 1.6 1.7 1.7 2.1 1.5 1.8 0.9 
Spain  0.6 0.9 1.1 1.2 1.2 0.8 0.8 0.9 
EFTA 1.9 1.9 2.1 4.1 3.5 1.6 1.2 2.4 
Switzerland  1.8 1.9 2.0 4.0 3.5 1.6 1.2 2.4 
Other Europe  5.6 5.9 5.1 5.0 5.6 4.3 5.3 5.8 
Turkey  5.6 5.8 5.0 4.9 5.6 4.2 5.2 5.7 
Commonwealth of 
Independent States (CIS)  31.3 30.7 32.3 33.9 33.2 37.5 37.8 36.6 
Russian Federation  21.9 21.5 24.7 25.9 25.7 30.4 30.8 29.9 
Ukraine  6.1 5.6 5.1 5.3 4.9 3.8 3.1 3.0 
Georgiaa 1.3 1.4 1.1 1.5 1.7 2.0 3.0 2.2 
Belarus  0.8 0.7 0.8 1.0 0.7 1.0 0.7 1.0 
Africa  0.7 0.7 0.5 1.8 0.9 1.1 1.3 1.0 
Middle East  7.5 7.9 8.6 8.1 8.4 7.9 7.4 7.0 
Iran 5.8 5.3 5.1 4.4 5.0 6.1 5.1 4.5 
United Arab Emirates  1.0 1.2 1.1 1.6 1.6 1.3 1.8 2.2 
Asia 18.3 16.9 16.7 16.2 17.4 17.2 18.9 18.8 
China  10.6 9.8 9.3 9.0 10.0 9.7 11.3 12.0 
Japan  1.5 1.0 1.5 1.1 1.1 1.4 1.0 1.1 
Other Asia  6.2 6.1 5.9 6.1 6.4 6.1 6.6 5.7 
India 1.2 1.7 1.6 1.6 1.5 1.6 2.2 1.2 
Viet Nam  0.3 0.2 0.4 0.3 0.5 0.5 0.8 0.9 
Other  3.7 3.3 4.4 0.2 0.7 0.5 0.7 0.5 
Memorandum:          
Eurasian Customs Union  23.1 22.9 25.7 26.9 26.5 31.5 31.5 31.0 
 Russian Federation  21.9 21.5 24.7 25.9 25.7 30.4 30.8 29.9 
 Belarus  0.8 0.7 0.8 1.0 0.7 1.0 0.7 1.0 
 Kazakhstan  0.3 0.6 0.2 0.0 0.0 0.0 0.0 0.1 
 Kyrgyz Republic  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
a Georgia is not a member of the CIS but is included in this group for reasons of geography. 
Source:  UNSD Comtrade database.  
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  Table A1. 5 Fiscal account of the general Government, 2010 -17 
  2010  2011  2012  2013  2014  2015  2016  2017  
Revenues and official transfers  23.2  24.0  22.9  24.2  24.4  23.8  23.7 22.9 
Tax revenue  20.8  21.1  21.1  22.4  22.5  21.6  .. .. 
VAT 8.7  8.7  8.7  8.8  9.1  8.4  .. .. 
Income tax  2.1  2.1  2.1  5.6  6.0  6.2  .. .. 
Profit tax  2.2  2.6  2.8  2.7  2.1  2.1  .. .. 
Custom duty  0.8  1.0  1.0  1.0  1.0  1.2  .. .. 
Excise tax  1.4  1.0  1.2  1.1  1.0  1.0  .. .. 
Duties  0.7  0.7  0.6  0.7  0.9  0.7  .. .. 
Payments for the utilization of natural 
resources and environment protection  0.3  0.3  0.6  0.8  0.7  0.6  .. .. 
Property tax  0.3  0.3  0.3  0.3  0.3  0.3  .. .. 
Turnover tax  0.0  0.0  0.0  0.3  0.3  0.2  .. .. 
Compulsory social insurance contributions  3.0  3.3  3.0  0.4  0.3  0.2  .. .. 
Land tax  0.1  0.1  0.1  0.1  0.1  0.1  .. .. 
Other taxes  1.0  1.0  0.6  0.6  0.6  0.7  .. .. 
Other income  1.6  1.3  1.4  1.5  1.5  1.6    
Official transfers  0.9  1.6  0.4  0.3  0.4  0.6  .. .. 
Total expenditures  28.2  26.8  24.3  25.7  26.3  28.6  29.2 27.6 
Current expenditures  22.6  22.1  21.0  22.7  23.4  25.3  .. .. 
Wages of employees of budgetary 
institutions  2.8  2.7  2.5  2.6  2.9  3.2  .. .. 
Acquisition of goods and services  5.1  5.0  5.3  5.2  5.4  5.6  .. .. 
Interest payments  0.9  0.9  1.0  1.0  1.3  1.5  .. .. 
Subsidies  0.9  0.9  0.9  1.0  1.0  1.1  .. .. 
Current transfers  1.7  1.6  1.6  1.6  1.8  2.0  .. .. 
Expenditures of social pensions and 
allowances  7.1  6.8  6.8  6.5  7.2  7.8  .. .. 
Other expenditures  4.2  4.1  3.0  4.8  3.7  4.1  .. .. 
Transaction with non -financial assets  5.6  4.7  3.3  3.0  2.9  3.3  .. .. 
Total deficit  -5.0  -2.8  -1.4  -1.5  -1.9  -4.8  -5.5 -4.7 
.. Not available.  
Source:  National Statistical Service of the Republic  of Armenia online information.  
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  Table A3. 1 Transitional import tariffs for Armenia in the EAEU , 2018-22  
(Number of tariff lines by year and HS chapters to be aligned with the EAEU common tariff) 
  2018  2019  2020  2021  2022  Total  
HS02 - Meat and edible meat offal      1   41 42 
HS04 - Dairy products      17     17 
HS07 - Edible vegetables and certain roots and tubers      1   2 3 
HS08 - Edible fruit and nuts    18       18 
HS09 - Coffee, tea, maté and spices    4       4 
HS10 - Cereals      5   20 25 
HS11 - Products of the milling industry      6     6 
HS12 - Oil seeds and oleaginous fruit      1     1 
HS15 - Animal or vegetable fats and oils      3   2 5 
HS16 - Preparations of meat and/or fish  1         1 
HS17 - Sugars and confectionery    2       2 
HS19 - Preparations of cereals, starch or milk          1 1 
HS21 - Miscellaneous edible preparations  1       2 3 
HS23 - Residues and waste food industry      9     9 
HS24 - Tobacco and manufactured products      5     5 
HS25  - Natural sand, chalk, plastering material      5     5 
HS27 - Mineral fuels and oils, products thereof      17     17 
HS28 - Inorganic chemicals      46     46 
HS29 - Organic chemicals    1 35     36 
HS30 - Pharmaceutical products  4 9 42     55 
HS31 - Fertilizers      21     21 
HS32 - Paints and pigments      3     3 
HS33 - Shampoos and dentifrices      2     2 
HS34 - Soap, washing preparations      16     16 
HS35 - Gelatines and glues      4     4 
HS38 - Miscellaneous chemical products      18     18 
HS39 - Plastic and articles thereof      12 34   46 
HS40 - Rubber and articles thereof  2         2 
HS41 - Leather      4     4 
HS44 - Wood and articles of wood      11 3   14 
HS48 - Paper and paperboard      4 5   9 
HS51 - Wool       11   11 
HS52 - Cotton      10 29   39 
HS54 - Man-made filaments      4 6   10 
HS55 - Man-made staple fibres      19     19 
HS56 - Wadding, felt, and non -wovens      2     2 
HS58 - Special woven fabrics      9     9 
HS59 - Impregnated, coated textile fabrics      1     1 
HS60 - Knitted or crocheted fabrics      12     12 
HS63 - Other made up textiles articles      2     2 
HS69 - Ceramic products      5     5 
HS70 - Glass and glassware      2 3 1 6 
HS71 - Precious stones, articles thereof        1 10 11 
HS72 - Iron and steel     11     11 
HS73 - Articles of iron and steel      18     18 
HS74 - Copper and articles thereof      6     6 
HS76 - Aluminium and articles thereof      6 5   11 
HS78 - Lead and articles thereof  1   2     3 
HS81 - Other base metals and articles thereof      2     2 
HS83 - Miscellaneous articles of base metals      3     3 
HS84 - Machinery and mechanical appliances      28   3 31 
HS85 - Electrical machinery and parts thereof    2 2 12   16 
HS87 - Vehicles      276     276 
HS90 - Precision instruments    3       3 
HS91 - Clocks and watches    6 11     17 
HS94 - Prefabricated buildings    1       1 
HS96 - Miscellaneous manufactured articles        1   1 
Total  9 46 719 110 82 966 
Note: The number of tariff lines is based on the 2018 tariff schedule in the HS17 nomenclature. 
Source:  Annex 4 to the Treaty on the Accession of the Republic of Armenia to the EAEU Treaty.  
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