WT/REG171/R/I  
 
5 February 2016  
(16-0795)  Page: 1/8  
Committee on Regional Trade Agreements  Original: English  
 
UKRAINE-ARMENIA IMPLEMENTATION REPORT 
 This Implementation Report has been draf ted in accordance with Article 15 of the 
Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 
issued in January 2013. 
  This report does not prejudge the Parties' po sition on the concept and the duration of the 
implementation periods in FTAs and their relationship to the "reasonable length of time" within the 
meaning of Art. XXIV:5(c) of the GATT 1994 or "the reasonable time-frame" within Art. V:1(b) of the GATS.   
_______________ 
  
1  BACKGROUND INFORMATION ON THE AGREEMENT 
1.1.  The Free Trade Agreement between the Cabi net of Ministers of Ukraine and the Government 
of the Republic of Armenia was signed on 7 October 1994 and entered into force since 
18 December 1996. 
1.2.  The Agreement covers trade in goods and based on Article XXIV of GATT. 1.3.  Statistical data on trade in goods between the Parties, some indications on Parties' import 
coverage after full implementation of the FTA as  well as information about trade defence measures 
can be found in Annexes to this report.  
2  PROVISIONS ON TRADE IN GOODS 2.1  Import duties and charges,  and quantitative restrictions 
2.1.  Parties committed not to impose taxes and charges on imports from another Party higher 
than those imposed on domestic goods or imports from the third countries.  
2.2.  Rules for transportation, storage and payments for goods originating in another Party should 
not differ from those applied to goods from third countries. 
2.1.1   Tariffs 2.3.  Duty-free trade regime is applied to all goods. 2.4.  No tariff rate quotas are applied. 
2.1.2  Quantitative restrictions 
2.5.  Parties committed that quantitative or other special restrictions may be introduced only 
within reasonable limits and for a strictly defined time period. WT/REG171/R/I 
 
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  2.6.  In Armenia, according to the Resolution № 9021 imports of selected types of wood and 
articles of wood has been banned since 2000. 
2.7.  Ukraine applied import quotas on cane sugar from 1998 to 2001 and from 2003 to 2004.2 
Also, import quotas on selected types of coal and coke were introduced in Ukraine in 2013.3 
However, Ukraine didn't import such products from Armenia. 
2.1.3  Products excluded from liberalization  
2.8.  Agreed list of exemptions should be an integral part of the Agreement. 
2.1.4  Final tariff schedule applied by RTA parties 2.9.  Duty-free trade is implemented over the en tire tariff schedule unless exemptions are agreed 
upon between the parties and respective protocols ratified by both parties. 
2.2  Export duties and charges,  and quantitative restrictions 
2.2.1  Tariffs 2.10.  No export duties or taxes and charges of equivalent effect should be applied by Parties in 
bilateral merchandise trade. 
2.11.  However, Ukraine has applied export duties on waste and scrap of metal since 2006. 
According to the Law № 441-V4, this export duty is applied irrespective of existing free trade 
agreements. 
2.12.  The Republic of Armenia does not apply export duties. 2.2.2  Quantitative restrictions 
2.13.  Parties agreed that quantitative restrictions on exports may be applied in trade between the 
Parties. 
2.14.  From 2012 voluntary export restrictions have  been applied in Ukraine on exports of selected 
cereals, wheat and maize. Each marketing year the Ministry of Agrarian Policy and Food and 
exporters sign Memorandum of Understanding defini ng consensus amounts of agricultural exports. 
2.15.  Since 2012 Ukraine has applied export quotas on some irreplaceable natural resources, in 
particular, on natural gas of the Ukrainian origin, and on slag, ash and residues containing copper 
and zinc. 
2.16.  In Armenia, according to the Resolution № 902, exports of selected types of wood and 
articles of wood has been banned since 2000. 
2.3  Regulatory provisions on trade in goods 
2.3.1  Rules of origin  2.17.  Initially rules of origin in Ukraine-Armenia bilateral trade were regulated by Rules of Origin 
of Goods dated 24 September 1993
5, signed by the CIS member states. 
                                               
1 http://www.arlis.am/documentview.aspx?docid=22618  
2 http://zakon3.rada.gov.ua/laws/show/334/98 
http://zakon3.rada.gov.ua/laws/show/994-14  
http://zakon3.rada.gov.ua/laws/show/1797-14  
http://zakon3.rada.gov.ua/laws/show/2462-14  
http://zakon3.rada.gov.ua/laws/show/868-15  
http://zakon3.rada.gov.ua/laws/show/619-2004-%D0%BF  
3 http://zakon2.rada.gov.ua/laws/show/225-2013-%D0%BF/paran2#n2  
4 http://zakon2.rada.gov.ua/laws/show/441-16  WT/REG171/R/I 
 
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  2.18.  However, because of plurilateral free trade negotiations within the CIS, contractual 
framework on rules of origin has changed several times.  
2.19.  Revised Rules of Origin of Goods were passed on 30 November 2000.6 In 2009 Agreement 
on Rules of Origin of Goods in the CIS7 was signed. It was ratified on 7 July 2011, and came into 
force for Ukraine on 14 September 2011. 
2.20.  No special references to WTO legal documents are included in rules of origin applied in 
Ukraine-Armenia bilateral trade.  
2.3.2  Non-tariff barriers 
2.21.  No specific commitments regarding standards, technical regulations and conformity 
assessment are included into the Agreement. 
2.3.3  Sanitary and phytosanitary measures 
2.22.  No specific commitments regarding sanitary and phytosanitary measures are included into 
the Agreement.  
2.3.4  Trade defence instruments 
2.23.  No specific commitments regarding defence instruments are included into the Agreement. 
2.24.  Information about Ukrainian trade defence instruments that could affect Armenia can be 
found in Annex 2 to the report. 
2.25.  Analysis of application of trade defence instruments by Ukraine shows that some products 
imported from Armenia were subject to safeguard measures applied irrespective to the country of origin. In particular, safeguard measures in the form  of quotas on parts of tubes and pipes of iron 
or steel were applied in 2008-2011. 
2.26.  The Republic of Armenia started application of trade defence instruments only since the date 
of the accession to the Eurasian Economic Unio n (2 January 2015). In particular, Armenia will 
apply a safeguard measure in the form of quotas on harvesters and modules thereof from 
31 December 2015 till 21 August 2016.  
3  PROVISIONS ON TRADE IN SERVICES 3.1  Commitments 
3.1.  The Agreements does not contain any specific commitments on trade in services. 
4  OTHER PROVISIONS IN THE AGREEMENT  4.1  Export control 4.1.  Parties agreed to coordinate policy on export control regarding third countries. In order to 
maintain such cooperation, an effective system of export control should be created by facilitating 
regular consultations and mutually agreed measures.  
4.2.  The most recent law that regulates state control of export in Ukraine is the Law "On State 
Control of international Transfers of Goods Designated for Military Purposes and Dual-Use Goods"
8 
passed on 20 February 2003. The state control is  conducted by the State Service for Export 
Control of Ukraine. 
                                                                                                                                               
5 http://zakon4.rada.gov.ua/laws/show/997_055  
6 http://zakon4.rada.gov.ua/laws/show/997_484  
7 http://zakon4.rada.gov.ua/laws/show/997_m65  
8 http://zakon4.rada.gov.ua/laws/show/549-15  WT/REG171/R/I 
 
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  4.3.  In Armenia, the most recent law9 setting norms in the area of export control was passed on 
15 May 2010. The law is aimed at protection of national interests; compliance with international obligations regarding proliferation of weapons of mass destruction; limitation of transfer of conventional weapons. The Ministry of Economy is an  authorized state body in the sphere of export 
control in Armenia. 
4.2  Transit 4.4.  Free transit principle is an important prec ondition for implementation of Agreement. Both 
Parties committed to ensure free transit of goods originating from customs territory of another 
Party or third countries. Free movement of goods shipped to another Party or any third country should also be guaranteed. 
4.5.  Parties took an obligation to provide to an other Party's exporters, importers or carriers all 
available and required facilities and services for transit on terms that are not worse than those 
that are provided to their own transport operators or carriers of any third country. 
4.6.  Procedures and conditions of transit are regulated according to international rules. 
4.3  Re-exports 
4.7.  No specific commitments regarding re-exports are included into the Agreement. 4.4  Trade and competition 
4.8.  Unfair business practices are recognized as those which contradict the Agreement. They may 
inter alia include those which aim at hindering or restricting competition in the Parties' markets, as well as using market power.  
4.9.  Cooperation in the field of competition po licy in the Commonwealth of Independent States is 
regulated by the Agreement on Coordinated Competition Policy
10 signed on 25 January 2000. 
4.5  Common classification  4.10.  Parties committed to use 9-digit commodity nomenclature based on the Harmonized 
Commodity Description and Coding System for th e purposes of tariff and non-tariff measures, 
customs operations as well as exchange of statistics.  
4.11.  The most recent commodity classification used by Ukraine and Armenia is based on 2012 
edition of Harmonized System Nomenclature by World Customs Organization (HS classification). 
4.6  Economic cooperation and capacity building 4.12.  Since 1997 economic cooperation between Ukraine and Armenia has been conducted in 
accordance with the Agreement on Friendship and Cooperation
11. In addition to that, the 
development of bilateral economic relations be tween Ukraine and Armenia during 2001 - 2010 had 
been based on the Agreement on Economic Cooperation.12  
4.13.  In 1998 Agreement between the Governme nt of Ukraine and the Government of the 
Republic of Armenia on Industrial Cooperation13 was ratified. 
4.6.1  Information exchange 4.14.  Competent authorities of the Parties committed to establish a mechanism of information 
exchange. Changes in the national legislation, wh ich can affect implementation of the Agreement, 
                                               
9 http://www.arlis.am/DocumentView.aspx?docid=63681  
10 http://zakon1.rada.gov.ua/laws/show/997_502    
11 http://zakon4.rada.gov.ua/laws/show/051_002  
12 http://zakon4.rada.gov.ua/laws/show/051_017  
13 http://zakon4.rada.gov.ua/laws/show/051_012  WT/REG171/R/I 
 
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  should be immediately provided to another Party, specifically in trade and economic area including 
investments, taxation, banking, insurance and other financial services, transportation, customs and customs statistics. 
4.15.  Information exchange channels are official  enquiries to Ministries, meetings of the Joint 
Intergovernmental Ukrainian-Armenian Commission on Economic Cooperation, international 
organizations and meetings. 
4.6.2  Joint Commission 
4.16.  Parties agreed to establish joint Ukrainian-Armenian commission in order to monitor 
realization of the Agreement and work on further improvement of trade and economic cooperation. 
4.17.  The Joint Ukrainian-Armenian Intergovernmental Commission on Economic Cooperation was 
established on 1996, according to Article 12 of Uk raine-Armenian FTA. The first meeting of the 
Joint Commission was held on 20 July 1999 in Kyiv. Currently, 7 sessions were held. The recent 
meeting took place on 30 November 2013.  
4.18.  Issues discussed during Commissions meetings include assessment of bilateral economic 
cooperation programs, current state and perspectives of trade and economic cooperation, including 
industry, agriculture, transport, and nuclear energy spheres.  
4.7  Protection of legitimate objectives 
4.19.  The Agreement allows Parties to apply measures commonly acceptable by international 
practice in order to protect their legitimate objectives or implement their commitments according to their international rights, including information affecting the interests of national defence; trade in arms, munitions and military equipment; resear ch or production related to the defence needs; 
supply of materials and equipment used in nuclear  industry; protection of public morality and 
public order; protection of industrial and intell ectual property; trade in gold, silver, and other 
precious metals and stones; protection of human, plant and animal health. 
4.20.  On 28 December 2014 Law of Ukraine "On measures concerning stabilization of the balance 
of p ayme nts  of U kraine  i n c omp l ianc e  w ith Art i cle XII of the General Agreement on Tariffs and 
Trade 1994" No. 73-VIII
14 and the Law of Ukraine "On Amending the Customs Code of Ukraine 
(concerning stabilization of the balance of payments)" No. 74-VIII15 entered into force. Pursuant to 
these Laws, Ukraine introduced temporary import surcharge of 10% for agricultural goods and 5% for non-agricultural goods, except essential good s. The measure is to be applied for one year. 
4.21.  Ukraine has applied export quotas on selected types of precious metals and stones since 
1992. 
4.22.  Since 2011 import quotas on ozone-depleting substances have been introduced by 
Law № 327-N
16 in Armenia. 
4.8  Dispute settlement  
4.23.  The Parties have declared intention to avoid disputes in mutual trade. If disputes over 
interpretation and implementation of the provisions  of the Agreement arise, they should be settled 
through consultations. 
4.24.   In 2010, Ukraine requested the WTO for consultations with Armenia and asked for the 
establishment of a panel because of Armenia's measures towards the import of cigarettes and alcoholic beverages. At the meeting on 25 October 2010, the Dispute Settlement Body deferred 
the establishment of the panel. 
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14 http://zakon4.rada.gov.ua/laws/show/73-19  
15 http://zakon2.rada.gov.ua/laws/show/74-19  
16 http://www.arlis.am/DocumentView.aspx?DocID=95682  WT/REG171/R/I 
 
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  ANNEX 1 
STATISTICS ON TRADE IN GOODS 
Table A1.1: Ukraine: Import s from Armenia (million $) 
Year Total Agricultural products* Non-agricultural products* 
1996 4.0 0.2 3.8 
1997 6.1 0.5 5.6 
1998 4.5 1.3 3.2 
1999 1.8 0.5 1.3 
2000 3.4 1.6 1.8 
2001 8.4 5.1 3.3 
2002 5.4 4.5 0.9 
2003 6.2 5.6 0.6 
2004 5.6 4.1 1.5 
2005 13.2 9.6 3.6 
2006 21.3 10.1 11.2 
2007 35.8 12.1 23.7 
2008 25.5 17.6 7.9 
2009 28.2 7.1 21.1 
2010 18.0 8.0 10.0 
2011 18.5 9.0 9.5 
2012 23.0 11.7 11.3 
2013 19.7 12.4 7.3 
2014 13.3 7.4 5.9 
* WTO definition. 
Source: UN ComTrade. 
 
Table A1.2: Armenia: Import s from Ukraine (million $) 
Year Total Agricultural products* Non-agricultural products* 
1996 25.0 19.9 5.1 
1997 10.7 2.5 8.2 
1998 8.4 2.1 6.3 
1999 11.6 5.8 5.8 
2000 12.0 6.9 5.1 
2001 22.0 12.5 9.5 
2002 33.4 16.2 17.2 
2003 49.7 23.0 26.7 
2004 70.5 38.3 32.2 
2005 97.3 41.3 56.0 
2006 137.2 46.8 90.4 
2007 215.1 70.7 144.4 
2008 263.6 95.8 167.8 
2009 165.6 62.1 103.5 
2010 201.3 78.3 123.0 
2011 227.6 114.8 112.8 
2012 179.2 80.3 98.9 
2013 181.0 88.3 92.7 
2014 173.4 92.5 80.9 
* WTO definition. 
Source: UN ComTrade. 
 WT/REG171/R/I 
 
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  Table A1.3: Ukraine import coverage after full implementation of the Agreement  
Coverage 1996  1997  … 2013 2014 
% of tariff lines 100 100 … 100 100 
% of imports 100 100 … 100 100 
Note:  Line coverage (% tariff lines)  is calculated as duty-free quota-free Ukraine's tariff lines on imports 
from Armenia divided by total Ukraine's tariff lines on imports from Armenia. 
 Trade coverage (% imports ) is calculated as du ty-free quota-free Ukraine's imports from Armenia 
divided by total Ukraine's imports from Armenia. 
 For calculation of the coverage ra tes the preferential tariffs in fo rce on 1 January of the indicated 
years has been used.  
Source: Ukraine-Armenia FTA.  
 WT/REG171/R/I 
 
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  ANNEX 2 
TRADE DEFENCE INSTRUMENTS  
Table A2.1: Ukraine: safeguard measures app lied irrespective to the country of origin 
HS 
Nomenclature Code Product description Measure Years 
HS 1996 1905906000 Bread, pastry, cakes, 
biscuits and other bakers' 
wares tariff 2003-2007 
HS 1996 8413919090; 
8412905000; 
7325109900; 
7326909700 Parts of pumps and 
engines; articles of iron or 
steel quota 2005-2006 
HS 1996 6804221800 Millstones, grindstones, 
grinding wheels tariff 2005-2009 
HS 1996 6807101000 Articles of asphalt or of 
similar material tariff 2005-2009 
HS 1996 3506100010 Glues tariff 2006-2007 
HS 1996 8482109000 Ball bearings tariff 2006-2009 
HS 1996 6002921000; 
6002923000; 6002929000; 6002933100; 6002933300; 
6002933900 Knitted or crocheted fabrics tariff 2007-2010 
HS 1996 5208221500; 
5208221900; 
5208229500; 
5208229900; 
5208290000; 
5208321500; 
5208321900; 
5208329500; 
5208329900; 
5208390000; 
5208521000; 
5208529000; 
5208590000 Woven fabrics of cotton tariff 2007-2010 
HS 1996 8539311000 Electric filament or 
discharge lamps tariff 2007-2010 
HS 1996 7304291100 Steel pipes quota 2008-2016 
HS 1996 3605000000 Matches tariff 2009-2012 
HS 1996 7005293500 Sheet glass tariff 2009-2010 
HS 2007 8703221000; 
8703231910 Motor cars tariff 2013-2015 
HS 2012 6911100000 Tableware and kitchenware 
of porcelain tariff 2014-2017 
Source: the official newspaper "Uryadoviy Courier".  
 
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