WORLD TRADE  
ORGANIZATION  WT/REG173/3 
13 March 2007 
 (07-1051) 
Committee on Regional Trade Agreements  
  
 
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
Armenia and Moldova 
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the examination of  the Agreement between the Government of 
the Republic of Armenia and the Government of the Republic of Moldova on Free Trade has been drawn up by the WTO Secretariat on its own responsibility.  The report was requested by the Parties and prepared in  consultation with them in accordance with 
the Guidelines on Procedures to Improve and Facilitate the Examination Process 
(document WT/REG/W/15/Add.1). 
 
Any technical questions arising from this report may be addressed to Mr. Roberto Fiorentino (tel:  022 739 5595) or Mr. Luis Verdeja (tel:  022 739 5244).    WT/REG173/3 
   Page iii  
 
TABLE OF CONTENTS 
  Page 
 
I. TRADE ENVIRONMENT 1  
II. TREATY CHARACTER ISTIC ELEMENTS 4  
A. BACKGROUND INFORMATION  4 
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  4 
1. Import duties and charges, and quantitative restrictions  4 
(a) General provisions  4 
(b) Overall tariff liberalization  5 
2. Rules of origin  5 
3. Export duties and charges, and quantitative restrictions  7 
4. Trade with third parties  7 
C. REGULATORY PROVISIONS OF THE AGREEMENT  7 
1. Standards  8 
2. Safeguard mechanisms  8 
3. Anti-dumping and co untervailing measures  8 
4. Subsidies and state-aid  8 
5. Other regulations  8 
(a) Customs-related procedures  8 
(b) Competition policy  8 
(c) Payments and transfers  9 
(d) Transit  9 
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  9 
E. GENERAL PROVISIONS OF THE AGREEMENT  9 
1. Exceptions and reservations  9 
2. Accession and withdrawal  9 
3. Institutional framework  10 
4. Dispute settlement  10 
5. Relationship with other agreements concluded by the Parties  10 
ANNEX  12 
 Indicators of trade liberalizatio n under the Armenia-Moldova FTA 12 
 
      WT/REG173/3 
   Page 1  
 
I. TRADE ENVIRONMENT 
1. The Parties to the Armenia-Mo ldova Free Trade Agreement (her eafter Agreement) ranked in 
2004 141
st and 129th respectively in terms of globa l merchandise exports and 141st and 130th 
respectively in terms of global merchandise imports .  In 2004, Armenia's total exports accounted for 
US$712 million and imports for US$1,302.  In the same year, Moldova's total exports accounted for 
US$986 million and imports for US$1,773.  The tw o countries showed quite different average 
trade/GDP ratios in 2002-2004 with Armeni a's ratio being 76 and Moldova's 135. 
2. Trade between the Parties is small;  in 2005, it accounted for 0.05 per cent of their combined 
world imports.  In large part this can be explaine d by geographical and geopolitical constraints since 
both countries are landlocked and political unrest in  the region has limited Armenia's access to the 
Black Sea (see Map 1 below). 
Map 1:  Eastern Europe and Southern Caucasus 
 
 
3. Developments in trade between the Parties is shown in Charts I.1 and I.2 below. 
4. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in 2003, is shown in Chart I.3, on the basis of HS section product categories. 
 WT/REG173/3 
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01234
1999 2000 2001 2002 2003 2004 200502004006008001 0001 2001 4001 6001 800Chart I.1
Armenia:  merchandise imports from and exports to world and Moldova, 1999-05
Source :  UNSD, Comtrade database.US$ million US$ million
Imports from Moldova Exports to MoldovaLeft-hand scale:
Total imports Total exports Right-hand scale:
 
01234
2000 2001 2002 2003 2004 200505001 0001 5002 0002 500Chart I.2
Moldova:  merchandise imports from a nd exports to world and Armenia, 2000-05
Source :  UNSD, Comtrade database.US$ million US$ million
Imports from Armenia Exports to ArmeniaLeft-hand scale:
Total imports Total exports Right-hand scale:
 
 WT/REG173/3 
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Chart I.3
Armenia and Moldova: product composition of merchandise trade, 2003
Armenia's imports from Moldova Moldova's imports from Armenia
Source :  UNSD, Comtrade database.Other 
4.7
Prepared foods
28.3
Fats & oils
21.0 Vegetable products
18.0Per cent
Mineral 
products
7.5Stone, plaster
 & cement
16.5
Mineral products
21.3Optical
0.6
Base metals  5.0
Prepared foods
7.5Stone, plaster & cement
31.0Pearls
45.4
Plastics, rubber
4.9Pearls
26.9
Mineral products
14.4Chemicals
6.3Vegetable products 
5.8Vehicles, 
aircraft  4.4Other
13.8
Machinery
15.3
Chemicals
9.5Other
14.8
Vegetable products
5.9
Textiles
8.5Prepared foods
6.5
Machinery  
   3.0
Textiles  4.6
Raw hides
5.7Optical  4.7
Base metals
13.5Pearls
52.3Mineral products 
 2.6
Textiles
16.4Vegetable products
11.6Prepared foods
39.8Other
12.9
Prepared foods
10.6Machinery  3.8Total:  US$2.7 million Total:  US$194,200
Total:  US$1.2 billion Total: US$1.4 billion
Total:  US$670.5 million Total:  US$790.3 millionBase metals
6.2
Machinery
10.7Prepared foods
       7.6
Vehicles,
aircraft  5.4Textiles
3.0
Other
3.9
Fats & oils  3.7Chemicals
11.5Machinery
15.5
Pulp of wood  
4.0   
Armenia's global exports M oldova's global exportsArmenia's global imports Moldova's global imports
Animal products  3.6
 
5. Five product categories - prepared foods, fats and oils, vegetable products, stone, plaster and 
cement, and chemicals - accounted for more than 95 per cent of Armenia's imports from Moldova in 
2003.  Moldova's four largest export product categori es – prepared foods, textiles, vegetable products WT/REG173/3 
Page 4  
 
and raw hides – made up 73.4 per cent of Moldov a's total exports in 2003 and accounted for more 
than 46 per cent of Armenia's imports from Moldova.  
6. Five product categories – pearls, stone, plaster  and cement, machinery, prepared foods and 
optical – accounted for the totality of Moldovan imports from Armenia in 2003.  Armenia's four 
largest export product categories – pearls, base me tals, prepared foods and minerals – made up 
83.9 per cent of Armenia's total exports in 2003 an d accounted for 60.8 per cent of Moldova's imports 
from Armenia.  Pearls alone repr esent 52.3 per cent of Armenian global exports and accounted for 
45.5 per cent of Moldova's imports from Armenia. 
II. TREATY CHARACTERISTIC ELEMENTS 
A. B
ACKGROUND INFORMATION  
7. The Free Trade Agreement between Armenia and Moldova was signed by the Parties on 
24 December 1993;  it entered into force on 21  December 1995, following their ratification, 
acceptance or approval.1  The Agreement is of an indefinite duration.  
8. The Agreement, which covers trade in goods , was notified to the WTO by Armenia on 
17 June 2004, following its accession to the WTO.2  The Agreement was notified under Article 
XXIV:7 of the GATT 1994 and the Understanding on  the Interpretation of Article XXIV of GATT 
1994 as establishing a free-trade area (WT/REG173/N/1).  The terms of reference for its examination were adopted by the Council for Trade in Goods on  1 October 2004 (WT/REG173/2).  The text of the 
Agreement, composed of 19 Articles, was circ ulated to the Members as document WT/REG173/1. 
9. This Agreement is to be seen in the context of the Agreement on Creation of a Free Trade 
Area between the Commonwealth of Independent States  (CIS FTA), signed on 15 April 1994 and its 
related Protocol on Amendments and Supplements  of 2 April 1999.
3 (see paragraph 44 below).4 
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
10. Each Party accords MFN and national treatme nt on goods covered under the Agreement with 
respect to (i) the imposition of internal taxes or charg es;  (ii) the application of special limitations or 
conditions;  and (iii) rules on ware housing, reloading, storage, and transportation of goods as well as 
payments and transfers (Article 2). 
                                                      
1 The Republic of Moldova ratified the Agre ement on 20 September 1995 (law nr. 575-XIII);  
the Republic of Armenia ratified the Agreement on 21 December 1995. 
2 Armenia and Moldova became Members to th e WTO on 5 February 2003 and 26 July 2001, 
respectively. 
3  The Agreement and the Protocol we re notified to the WTO 1 October 1999 
(WT/REG82/N/1).  CIS membership: Azerbaijan, Ar menia, Belarus, Kazakhstan, Kyrgyz Republic, 
Moldova, the Russian Federation, Tajikistan, Turkme nistan, Uzbekistan, Ukraine and Georgia;  these 
countries provisionally applied the Agreement pending ratification.  The Agreement entered into force 
on 30 December 1994, following ratification by three of its Parties.  Both Armenia and Moldova have 
ratified the CIS-FTA;  the Secretariat is unclear a bout the status of ratification of the CIS FTA for 
Belarus, the Russian Federation, Turkmenistan and Ukraine. 
4 The Secretariat is unclear about the relati onship between the Agreement and the CIS FTA. WT/REG173/3 
Page 5 
 
  
11. Article 1 of the Agreement prohibits the app lication of customs duties, taxes and charges 
having equivalent effect on imports of originating goods traded between the Parties.  Exceptions to 
this general rule, if any, are to be agreed upon an nually and will become an integral part of the 
Agreement.5 Article 4 provides that the Parties shall refrain from using discriminatory measures, 
including the introduction of quantitative restric tions (QRs) or similar measures on the import of 
goods under the Agreement.  A Party may, however , introduce QRs in cases of balance of payment 
difficulties (see paragraph 37 below).6 
12. Article 3 provides that the Parties may draw up by mutual agreement indicative annual lists of 
goods and services of paramount export importance.  Such indicative lists are to be agreed upon by 
the Parties' competent bodies and are to be formalised in a separate protocol to the Agreement.7 
(b) Overall tariff liberalization8 
13. The Agreement covers Chapters 1-97 of the Harmonized System (HS) with no exceptions.  
Tariff elimination among the Parties is implemented in its entirety as of entry into force of the 
Agreement and no plan and schedule for tariff libera lization is provided.  Thus, all trade between the 
Parties is subject, as of entry into force of the Agreement, to duty-free treatment.  
2. Rules of origin 
14. Disciplines of a general nature regarding rules of origin are set out in Article 1:2 of the 
Agreement.  In the context of the CIS FTA, a Decision on Rules for the Determination of a Country of 
Origin of Goods  was adopted on 30 November 2000 by the Council of Heads of the CIS 
Governments;  these rules also govern the preferen tial trade relations of the Armenia and Moldova 
under their bilateral trade agreement.9  The CIS rules or origin are summarized below, and their 
customs-related issues are presented in paragraphs 30-31. 
15. According to paragraphs 1-4 of the Decision, a good is originating if: 
(a) it is wholly obtained in the Parties;10  or 
(b) the non-originating materials incorporated  in a good have undergone a change in 
tariff classification (CTC) at the heading level (CTH, 4-digit);11  or 
(c) it complies with the product-specific rules of  origin included in Annex 1 of the CIS 
FTA Decision.   
16. The Decision provides that CTH under (b) above  is the basic rule for granting origin;12  it 
applies to all goods except those listed in Annex 1 to the Decision - for th em, the requirements are 
                                                      
5 According to the Parties no such list of  exceptions has to date been drafted. 
6 According to the Parties QRs have to date never been imposed. 
7 According to the Parties no such lis ts have to date been drafted. 
8 Unless otherwise specified, all statistics, tabl es and charts contained in this document have 
been prepared on the basis of data provided by the Parties. 
9 These rules have been communicated to the WTO and circulated in document WT/REG82/5 
of 31 March 2003. 
 10 Including goods obtained in one Party exclusively from materials qualifying in their own right as 
originating. 
11 The basis for the CTC is the CIS unified, ni ne-digit Commodity Nomenclature of Foreign 
Economic Activities (CN FEA).  This nomenclature is based upon the Harmonized System (HS) and 
the European Union Combined Tariffs and Statistics Nomenclature;  its first six digits are harmonized 
with the HS. WT/REG173/3 
Page 6  
 
those specified in the Annex – i.e. manufacturing/processing operations, CTC or the percentage criterion.   
17. For a large majority of the products listed in  Annex 1, origin is granted if the product 
undergoes a CTH, although in many cases subject to restri ctions.  In some cases, origin is granted on 
the basis of an import content requirement (MC), ei ther applied alone (for Chapters 90-93 and some 
products of chapters 84-86 and 94) or in combin ation with another criterion;  it establishes at 
50 percent the maximum value of non-originating ma terials allowed in the final product, expressed as 
a percentage of the ex-works product’s price.
13  A technical test applies for some products in Chapters 
25 and 40-44.    
18. Paragraph 3 provides for diagonal cumulation between CIS;  in the context of the 
Armenia-Moldova bilateral agreemen t, this means that diagonal cumulation with all CIS countries is 
permitted.14  Thus originating materials from any of th e CIS countries incorporated in a good of the 
other Party are in any case considered originating.   Further, paragraph 8 and Note 3.3 of Annex 1 
provide for the absorption principle – i.e. when a non-originating material acquires originating status 
by meeting the corresponding processing requirement, th is material is considered to be 100 per cent 
originating once incorporated into a final product. 
19. A tolerance rule is included in Note 3.6;  it provides that non-originating materials which 
would otherwise not be accepted may nevertheless be used provided their value does not exceed 15 per cent of the ex-works price of the product.  A list of minimal, non-qualifying operations or 
processes carried out in the territory of the Partie s which do not confer origin is provided for in 
paragraph 5.  The provisions of  paragraphs 6-7 provide disc iplines on how certain materials 
(unassembled goods;  neutral elements;  accessories, sp are parts or tools) are to be treated/valued 
when determining the origin of the goods. 
20. Paragraph 9 lists the requirements vis-à-vis  territoriality, namely that in order to receive 
preferential treatment: (i) the goods are exported on  the basis of a contract whose signatories are 
residents of a Party;  (ii) the goods are imported by a natural person residing in a Party;  and (iii) the 
goods are imported from the customs territory of one Party into that of the other Party.  In the absence 
of direct transport, only transit through the territory  of third countries is allowed;  however, the Parties 
may agree on other possible cases where origin may not be lost if direct transport does not occur.
15 
                                                                                                                                                                     
12 In some instances, restrictions regard ing changes from the same heading apply. 
13 More details on these calculations are c ontained in paragraph 4 of the Decision. 
14 Diagonal cumulation is not permitted with c ountries that have not ratified the CIS FTA. 
15 "Parties" in the context of territoriality incl ude all countries that have ratified the CIS FTA. WT/REG173/3 
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Box II.1:  Rules of Origin: Basic Features at a Glance 
• CTH (and wholly obtained or entirely produced goods) as the regime-wide rules of origin.  
• Exceptions to CTH exist in the form of product specific criteria: 
 - MC rules, either alone or  as supplementary rule;  or 
 - Process rules used in certain case 
• Diagonal cumulation with CIS countries. 
• Absorption principle. 
• Tolerance rule at 15% of the ex-works price of the product.  
• Outward-processing not authorized. 
• Importer and exporter have to be residents of a [CIS] Party. 
• Only transit through other territories is authorized.  
3. Export duties and charges, and quantitative restrictions 
21. Article 1 of the Agreement prohibits the app lication of customs duties, taxes and charges 
having the equivalent effect on expor ts of originating goods traded betw een the Parties.  Exceptions to 
this general rule, if any, are to be agreed upon annually.16 
22. Article 4 provides that Parties shall refrai n from using discriminatory measures, including 
QRs or similar measures on goods exported under the Agreement.  A Party may, however, introduce 
quantitative restrictions in cases of balance of  payment difficulties (see paragraph 37 below).17  
4. Trade with third parties 
23. Against the Parties’ common background of rein forcing existing and previous ties between 
countries in the region, Article 7 of the Agreemen t commits the Parties to “endeavour to establish a 
common customs tariff” vis-à-vis  trade of third parties, via regular consultations.18  In addition, 
Parties have committed themselves to inform each othe r of their existing customs tariffs and relevant 
exceptions.  
24. Article 12 provides that the Parties shall c onsult regularly, and take mutually agreed 
measures, for the creation of an effective system of export control vis-à-vis  third parties.  Armenia and 
Moldova apply export permission, control and/or licensing to all destinations on inter alia  weapons, 
ammunition, military equipment, kits to produce su ch equipment;  explosives;  nuclear materials, 
technologies, equipment and insta llations to produce such materials; ionic radiation sources;  
medicines;  and certain live animals and plants.19   
C. REGULATORY PROVISIONS OF THE AGREEMENT  
25. The Agreement does not include a regulatory framework typica lly found in regional trade 
agreements notified to the WTO.  Therefore, in  the absence of these regulations in the bilateral 
agreement, and unless otherwise specified, the regul atory provisions applying to intra-trade between 
Armenia and Moldova are (i) those of the CIS FTA;  and (ii) for regulatory issues not dealt with by 
CIS FTA, the provisions of the WTO and its relevant agreements.   
                                                      
16 According to the Parties such exceptions have never been agreed upon nor applied. 
17 According to the Parties no such QR has to date been introduced. 
18 According to the Parties the "common custom s tariff" was meant for the countries outside 
the CIS;  however, the harmonization process has never been initiated. 
19 The Republic of Moldova controls the exports, re-exports, imports and transits of strategic 
goods through law nr. 1163-IV ratified on July 20 , 2000. The Republic of Armenia controls the 
exports, re-exports, imports and tran sits of dual usage goods through law nr. HO 7-N ratified on July 
20, 2003. WT/REG173/3 
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1. Standards 
26. The Agreement does not contain provisions rela ting to technical barriers to trade nor to 
sanitary and phytosanitary measures.  
2. Safeguard mechanisms 
27. The Agreement does not contain provisions relating to the introduction of safeguard 
measures, except in cases of balance-of-payments difficulties (see paragraph 37 below). 
3. Anti-dumping and countervailing measures 
28. While no provision on anti-dumping or countervailin g measures is included in the Agreement, 
Article 8 addresses the issue of unfair business practices (see paragraph 32 below). 
4. Subsidies and state-aid 
29. The Agreement does not contain provisions relating to subsidies or to state-aid.  
5. Other regulations 
(a) Customs-related procedures 
30. Paragraphs 10-22 of the CIS rules of origin deal  with the customs-related aspects of the rules 
of origin.  Preferential treatment is granted upon the submission of a proof of origin;  in general, a 
Certificate of Origin (CT-1) is required, but a d eclaration of origin may also be accepted in specific 
cases in accordance with the Parties’ legislation (paragraphs 10 and 17).
20    A Certificate of Origin 
remains valid for 12 months,21 and its validity shall be checked on the basis of samples/specimens of a 
CT-1 form certificate exchanged among Parties.  Certifi cates of Origin are issued at the time of export 
by the competent authorities of the exporting coun try, namely “Expertise” LLC of the Republic of 
Armenia Trade-Industrial Palace in the case of Arme nia and the Chamber of Commerce in the case of 
Moldova. 
31. Additional rules are provided regarding other aspects of certificates including cases of re-
exportation of goods (paragraph 18);  the issuing of certificates on a retrospective basis, as a duplicate;  and when diagonal cumulation is applie d (paragraph 13).  In cases where doubts arise as to 
the authenticity of the Certificate or the inform ation contained therein, the customs body of the 
importing Party may submit a request to the issuing authority of the exporting Party or to the 
competent body of the country of origin for additional information (paragraph 16).  Duties paid on a good that would have qualified as originating may be  refunded provided a Certificate of Origin is 
presented within one year from the date of customs clearance (paragraph 21).   
(b) Competition policy 
32. Article 8 prohibits “unfair business practices” a nd commits the Parties not to allow and to 
eliminate, the following methods:  
                                                     
 
20 According to the Parties the "declaration of  origin" does not work in practice and the 
authorities request the CT-1 certificate. 
21 A specimen of the Certificate of Origin CT-1 is contained in Annex 2 of the CIS rules of 
origin and can be found at http://www.customs.am/pdf_eng/ct-1.pdf. WT/REG173/3 
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• agreements between enterprises, decisions ma de by the associations of enterprises, and 
general methods of business practices aime d at hindering or limiting competition or 
disrupting the competitive environment in the territories of the Contracting Parties;  and 
• actions by means of which one or a few en terprises use their dominant position, limiting 
competition within the entire territory of the C ontracting Parties or a significant part thereof. 
(c) Payments and transfers 
33. Article 5 provides that all settlement and paymen ts related to trade and economic co-operation 
between Armenia and Moldova should be carried out according to the agreement established between 
the authorized banks of the two countries.22 
(d) Transit 
34. Article 10 highlights the importance of freedom of transit;  it commits the Parties (i) to 
provide for unimpeded transit through their territori es;  (ii) to apply both MFN and national treatment 
principles with respect to transit-related issues;  and (iii) to conclude a special agreement on transit.23  
All these provisions became redundant on ce both Parties acceded to the WTO.24 
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
35. No sector-specific provisions exist in the Agreement.   
E. GENERAL PROVISIONS OF THE AGREEMENT  
1. Exceptions and reservations 
36. Article 11 provides for general and security excep tions for trade in goods, along the lines of 
Articles XX and XXI of the GATT 1994. 
37. Article 4 details the conditions for the appli cation of QR or simila r measures designed to 
safeguard a Party’s balance of payments;  it provid es for (i) their application only within reasonable 
limits and for a strictly defined time-period; (ii) the provision of full information on the reasons for 
introducing the measures, if possible in advance,  (iii) the holding of consultations, (iv) the 
introduction of any such measure to be formalized in a separate protocol.25 
2. Accession and withdrawal 
38. Article 18 provides that the Agreement is open to accession by any third State under terms 
and conditions agreed between the Parties and the acceding State.  Each Party can notify the other 
Party in writing of its intention to terminate the Agreement, which will become invalid 12 months 
later.  
                                                      
22 According to the Parties this Artic le applies to any commercial bank. 
23 The Parties signed a bilateral agreement on international auto traffic on 30 October 1996. 
24 It is worth highlighting that  this Agreement predates their Parties’ accession to the WTO;  
therefore, the rights and obligations of Article V of the GATT 1994 (Freedom of Transit) did not 
apply to the Parties’ mutual trade at the time of the conclusion of the Agreement.  
25 According to the Parties no such lists of excep tions have to date been drafted nor have QRs 
ever been introduced.. WT/REG173/3 
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3. Institutional framework 
39. Article 6 deals with transparency;  it provid es (i) for a regular exchange of information 
between the Parties on laws and regul ations related to the economic activ ity;  (ii) that a Party shall be 
informed without delay of changes in national legi slation that may influence the implementation of 
the Agreement;  and (iii) that the coordination of such information shall be handled by authorized 
bodies in each Party.
26 
40. Article 16 establishes a joint Armenian-Moldovan Commission charged with the 
administration and monitoring of the Agreement.  Regular meetings are not foreseen, but shall take 
place at the request of either Party.  The Agreem ent also provides for the establishment of trade 
representations of one Party in the territo ry of the other Party (Article 17).  
4. Dispute settlement 
41. Article 15 deals with the settlement of disputes be tween the Parties.  It states that the Parties 
shall “endeavour to avoid conflicting situations in mu tual trade”, and provides that disputes related to 
the interpretation or application of the Agreement’s provisions shall be resolved through negotiations. 
42. The Agreement also states that as a genera l rule commercial disputes between economic 
entities of both countries will be resolved by arbitr ation tribunals with exclusive jurisdiction.  The 
rules and procedures of the tribunal, the place of ar bitration and the applicable law can be defined by 
the individual contracts.  The Parties also undertak e to assure in their terr itory "effective means to 
recognize and enforce arbitration awards".27 
5. Relationship with other agreements concluded by the Parties 
43. Articles 13 and 14 deal respectively with pre-ex isting and future agreements;  they provide 
that (i) the provisions of this Agreement replace th ose of earlier agreements insofar as the latter are 
incompatible with or iden tical to the former; and  (ii) that the Parties remain free to conclude other 
agreements with non-parties or in ternational organisations provided these do not contradict the goals 
and terms of this Agreement. 
44. Article 13 is of particular importance with r espect to the CIS FTA, as in practice, trade 
between the Parties is regulated by the Agreement on issues covered by it;  for all other issues not 
dealt with in the Agreement but dealt with in the CIS FTA, the provisions of the latter apply.28 
45. Table II.1 below lists the RTAs to which Ar menia and Moldova are parties to, and which 
have been notified to the GATT/WTO and are in force.   
Table II.1 
Armenia and Moldova:  Participation in RTAs (notified and in force) 
GATT/WTO Notification Partner/Agreement  Date of entry into force  Type of agreement  
Year WTO Provision 
Armenia 
CIS 30.12.94 Goods 1999 GATT Art. XXIV 
Georgia 11.11.98 Goods 2001 GATT Art. XXIV 
                                                      
26 In the Republic of Moldova the authorized body is the Ministry of Economy and Trade and 
in the Republic of Armenia the authorized body is Ministry of Trade and Economic Development. 
27 At the date of entry into force of the Ag reement, neither Armenia or Moldova had signed 
the New York Convention of 1958 on the Recognition a nd Enforcement of Foreign Arbitral Awards.  
Both countries are now Contracting States to the Convention.  
28 The CIS FTA and its related Protocol on Amen dments and Supplement contain provisions 
on inter alia  technical barriers to trade, safeguards, anti-dumping, countervailing measures, 
government procurement, subsid ies and dispute settlement.  WT/REG173/3 
Page 11 
 
  
GATT/WTO Notification Partner/Agreement  Date of entry into force  Type of agreement  
Year WTO Provision 
Kazakhstan 25.12.01 Goods 2004 GATT Art. XXIV 
Kyrgyz Republic  27.10.95 Goods 2001 GATT Art. XXIV 
Moldova 21.12.95 Goods 2004 GATT Art. XXIV 
Russian Federation 25.03.93 Goods 2004 GATT Art. XXIV 
Turkmenistan 07.07.96 Goods 2004 GATT Art. XXIV 
Ukraine 18.12.96 Goods 2004 GATT Art. XXIV 
Moldova 
Albaniaa 01.11.04 Goods 2004 GATT Art. XXIV 
Bosnia and Herzegovinaa 01.05.04 Goods 2005 GATT Art. XXIV 
Bulgariaa 01.12.04 Goods 2005 GATT Art. XXIV 
CIS 30.12.94 Goods 1999 GATT Art. XXIV 
Croatiaa 01.10.04 Goods 2005 GATT Art. XXIV 
FYROMa 01.12.04 Goods 2005 GATT Art. XXIV 
Kyrgyz Republic 21.11.96 Goods 1999 GATT Art. XXIV 
Romania 01.01.95 Goods 1997 GATT Art. XXIV 
Serbia and Montenegroa 01.09.04 Goods 2005 GATT Art. XXIV 
a Agreements concluded in the context of the Stability Pact for South Eastern Europe. 
Source : WTO Secretariat. WT/REG173/3 
Page 12  
 
ANNEX 
Indicators of trade liberalization under the Armenia-Moldova FTA
 
 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by Armenia and Moldova to MFN imports is shown in Tables A.1 
(Armenia) and A.2 (Moldova) below, broken down in to agricultural, industrial and all products.  
Applied MFN duty rates in 2005 serve as a basis of comparison.29 
2. In 2005, for the 26.9 per cent of tariff lines where duties apply, Armenia had a flat MFN rate 
(10 per cent), as presented in Table A.1.30  The remaining 73.1 per cent of Armenia's tariff lines are 
duty-free at an MFN level.  Its (unweighted) av erage MFN rate (2005) is 2.7 per cent on all goods, 
with a higher average tariff applied to agricultural goods than to industrial products.  Eighty per cent 
of MFN tariffs on industrial products are duty-free, while 22.1 per cent of agricultural tariffs are duty-
free.  As of 2005, Moldovan exporters enjoyed an  (unweighted) average margin of preference of 
100 per cent on all products vis-à-vis  the prevailing average MFN tariff in 2005. 
Table A.1 
Armenia:  Indicators of tariff rates applied to MFN and Moldovan imports 
(Per cent) 
All products  Agricultural products  Industrial products  
Average 
applied tariff  Average 
applied tariff  Average 
applied tariff  Origin 
of goods  Year  
Overall  On 
dutiable
a Share of 
duty-free 
tariff lines  Overall  On 
dutiablea Share of 
duty-free 
tariff lines  Overall  On 
dutiablea Share of 
duty-free 
tariff lines  
MFN 2005 2.7 10.0 73.1 7.8 10.0 22.1 2.0 10.0 80.0 
Moldova 2004 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a "On dutiable" excludes duty-free tariff lines. 
Source:  IDB (2005 MFN); data for Moldova calculated by the S ecretariat on the basis of the text of the Agreement. 
3. Moldova  has a variable MFN tariff structure with  an (unweighted) average MFN rate of 
5.67 per cent on all goods in 2005, including the 45.73 per cent of tariff lines that are duty free at an MFN level.  The average applied tariff for agricu ltural goods (12%) is roughly three times that of 
industrial goods (3.87%).  Fifty-five per cent of industrial products enjoy MFN duty-free tariffs, while 
14.52 per cent of agricultural products are duty-free.  As of 2005, Armenian exporters enjoyed an (unweighted) average margin of preference of 100 per cent on all products vis-à-vis the prevailing 
average MFN tariff in 2005.  
Table A.2 
Moldova:  Indicators of tariff rates applied to MFN and Armenian imports 
(Per cent) 
All products  Agricultural products  Industrial products  
Average 
applied tariff  Average 
applied tariff  Average 
applied tariff  Origin 
of 
goods  Year  
Overall 
 On 
dutiablea Share of 
duty-free 
tariff 
lines  Overall 
 On 
dutiablea Share of 
duty-free 
tariff 
lines  Overall 
 On 
dutiablea Share of 
duty-free 
tariff 
lines  
MFN 2005 5.67 10.67 45.73 12.0 14.52 15.8 3.87 8.66 55.0 
Armenia 2004 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a  "On dutiable" excludes duty-free tariff lines. 
Source:  Moldova's 2005 tariff schedule.  Calc ulated by the Secr etariat on the basis of the text of the Agreement.  
                                                      
29 Although the Agreement entered into force in  1995 it was decided to use recent MFN rates 
rather than obsolete data.  MFN rates for Armenia were taken from the IDB.   
30 Note that Armenia's 2005 tariff is in HS 1996 nomenclature. WT/REG173/3 
Page 13 
 
  
4. Table A.3 shows the market access opportunities in Moldova for Armenia's top 25 exports, 
which in 2002-2004 accounted on average for 86.26 per cent of its global exports, and compares them with the MFN applied tariff.  All products became duty free as of 21 December 1995, at the entry into force of the Agreement.  The table also shows th e applicable rules of origin to those products. 
5. Armenia's top 25 exports cover a total of 62 HS 8-digit tariff lines.  Of these 25, fifteen 
exports (which account for 26 HS 8-digit lines and 67.26 per cent of Armenia's average global exports 
in 2002-2004) already benefit from zero MFN duties in the Moldovan market.  The remaining 10 products, which account for 19 per cent of Arme nia's global exports, started benefiting from duty 
free access in 1995.  The margin of preferen ce for Armenia's exports varies from zero to 
20 percentage points.  
Table A.3 
Moldova:  Market access opportunities und er the FTA, for Armenia's top 25 exports 
Armenia's top 25 export products in 2002-04 A ccess Conditions to Moldova's import market 
Under the Agreement Share in 
global exports 
(%) HS number & description of the product 
Avge MFN  
applied tariff 
(%) Duty-free in as of 
entry into force  
(No. of HS 8-digit 
lines) Origin rules 
33.71 710239 Diamonds (jewellery) worked but not mounted or set 0 1 CTH (Manufacture from) 
8.17 220820 Spirits obtained by distilli ng grape wine, grape marc 0,5 €/l 19 CTH (any heading 
w/restrictions)+PR, 
6.47 710813 Gold, semi-manufactured forms, non-monetary 0 2 CTH (Manufacture from) 
4.66 720270 Ferro-molybdenum 0 1 WO or CTH 
4.09 710231 Diamonds (jewellery) unworked or simply sawn, 
cleaved 0 1 CTH (Manufacture from) 
3.97 711319 Jewellery and parts of precious metal except silver 15 1 WO or CTH 
3.11 260300 Copper ores and concentrates 0 1 WO or CTH 
3.05 740200 Unrefined copper, copper anodes, electrolytic 
refining 0 1 CTH+MC 
2.32 271600 Electrical energy 0 1 WO or CTH 
2.26 621210 Brassieres and parts thereof 15 2 WO or CTH 
2.14 261390 Molybdenum ores and concentrates except roasted 0 1 WO or CTH 
2.02 261310 Molybdenum concentrates, roasted 0 1 WO or CTH 
1.85 760120 Aluminium unwrought, alloyed 0 3 CTH+MC 
1.61 760711 Foil, aluminium, not backed, rolled but nfw, < 
0.2mm 0 2 CTH+MC 
1.57 911110 Watch cases of, or clad with, precious metal 5 1 MC 
0.99 760200 Waste or scrap, aluminium 0 3 CTH+MC 
0.93 400249 Chloroprene (chlorobutadiene) rubber (CR) except 
latex 5 1 WO or CTH 
0.56 810299 Molybdenum, articles ther eof nes 0 1 MC w/restrictions 
0.56 200290 Tomatoes nes, prepared or preserved, not in vinegar 20 6 WO or CTH 
0.44 240220 Cigarettes cont aining tobacco 3 €/1,000 
pieces 3 CTH>50% 
0.40 030629 Crustaceans nes, not  frozen 10 1 WO or CTH 
0.36 911430 Clock or watch dials 5 1 WO or CTH 
0.34 740400 Copper/copper alloy waste or scrap 0 3 MC 
0.34 720449 Ferrous waste or scrap, nes 0 4 WO or CTH 
0.33 621290 Corsets, braces and parts thereof 15 1 CTH+MC 
86.26  TOTAL OF ABOVE  62   
Source:  Trade data 2002-2004 (COMTRADE), MFN rates and li beralization schedule taken from data provided by 
 Moldova.   WT/REG173/3 
Page 14  
 
6. Table A.4, similarly shows the market acce ss opportunities in Armenia for Moldova's top 
25 exports (at the HS 6-digit level), which acc ounted on average for 59.08 per cent of Moldova's 
global exports in 2002-2004.   
7. Moldova's top 25 exports cover a total of 36 HS 8- digit tariff lines.  Nine of the top 25 exports 
(which account for 20 HS 8-digit lines and 12.14 per cent of Moldova's average global exports in 
2002-2004) already benefit from zero MFN duties in the Armenian market.  The remaining 
16 products, which account for 46.92 per cent of Mo ldova's global exports, enjoyed duty free access 
as of 1995.  The margin of preference grante d by Armenia to Moldova varies from zero to 
ten percentage points, in terms of ad valorem  duties but it benefits mostly from the removal of the 
specific duties;  these cover mainly alcoholic products. 
Table A.4 
Armenia:  Market access opportunities under the FTA, for Moldova's top 25 exports 
Moldova's top 25 export products in 2002-04 Access Conditions to Armenia's import market 
Under the Agreement Share in 
global exports (%) HS number & description of the product 
Avge MFN  
applied tariff (%) Duty-free in as of 
entry into force  
(No. of HS 8-digit 
lines) Origin rules 
19.45 220421 Grape wines nes, fortified wine or must, pack < 2l 100 AMD/L 1 CTH (any heading 
w/restrictions)+PR 
4.21 220430 Grape must, unfermented, except as fruit juice 100 AMD/L 1 CTH (any heading 
w/restrictions)+PR 
3.10 220820 Spirits obtained by distilling grape wine, grape marc 1100 AMD/L 1 CTH (any heading 
w/restrictions)+PR 
3.06 80232 Walnuts, fresh or dried, shelled 10 1 WO or CTH 
2.82 410110 Bovine skins, whole, raw 0 1 PR 
2.10 80810 Apples, fresh 10 1 WO or CTH 
1.92 120600 Sunflower seeds 10 1 WO or CTH 
1.79 151219 Sunflower or safflower oil, fractions simply refined 10 1 PR 
1.78 410121 Bovine hides, whole, fresh or wet-salted 0 1 PR 
1.68 200970 Apple juice not fermented or spirited 10 1 WO or CTH 
1.64 151211 Sunflower-seed or safflower oil, crude 10 1 PR 
1.54 220429 Grape wines, alcoholic grape must nes 100 AMD/L 1 CTH (any heading 
w/restrictions)+PR 
1.45 640399 Footwear, sole rubber, plastics uppers of leather, nes 10 1 WO or CTH 
1.37 610910 T-shirts, singlets and other vests, of cotton, knit 10 1 WO or CTH 
1.32 252020 Plasters (calcined gypsum or calcium sulphate) etc 0 1 CTH (any heading)+PR 
1.28 240110 Tobacco, unmanufactured, not stemmed or stripped 0 1 WO or CTH 
1.18 701092 Carboys/bot/flask<.33>1 0 1 WO or CTH 
1.04 220410 Grape wines, sparkling 75 AMD/L 1 CTH (any heading 
w/restrictions)+PR 
1.02 100190 Wheat except durum wheat, and meslin 0 1 WO or CTH 
1.02 100510 Maize (corn) seed 0 1 WO or CTH 
0.98 20230 Bovine cuts boneless, frozen 10 1 ECTH 
0.96 100590 Maize except seed corn 0 1 WO or CTH 
0.83 170199 Refined sugar, in solid form, nes, pure sucrose 10 1 CTH (any heading)+PR 
0.76 841370 Centrifugal pumps nes 0 12 WO or CTH 
0.76 620211 Womens, girls overcoats etc of wool or hair not knit 10 1 MC w/restrictions 
59.08  TOTAL OF ABOVE  36   
Source:  Trade data 2002-2004 (COMTRADE), MFN rates and li beralization schedule taken from data provided by 
Armenia. 
 
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