WORLD TRADE  
ORGANIZATION  WT/TPR/M/228 
30 April 2010 
 (10-2351) 
Trade Policy Review Body 
6 and 8 April 2010  
 
 
 
TRADE POLICY REVIEW 
 
ARMENIA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF ARMENIA 4 
III. STATEMENT BY THE DISCUSSANT 6 
IV. STATEMENTS BY MEMBERS 9 V. REPLIES BY THE REPRESENTATIVE OF ARMENIA AND ADDITIONAL 
 COMMENTS  18 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 21 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Armenia are 
reproduced in document WT/TPR/M/228/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/228 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Armenia was held on 6 and 8 April 2010.  The Chairperson 
H.E. Mr. Bozkurt Aran (Turkey) welcomed the dele gation of Armenia, headed by H.E. Mr. Mushegh 
Tumasyan, Deputy Minister of Economy, and H.E.  Mr. Vardan Aramyan, Deputy Minister of 
Finance, and the discussant, Mr. Pasi-Heikki Vaaranmaa (Finland).  
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Armenia was contained in document WT/TPR/G/228 and that of the WTO Secretariat in WT/TPR/S/228. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Armenia:  the United States;  Canada;  Chinese 
Taipei;  Ukraine;  the European Un ion;  Japan;  and Argentina.   
4. The following delegation had submitted written ques tions after the two-week deadline:  India. 
5. The Chairperson said that after considering the reports prepared for the Review he would like 
to make some remarks.  In particular, the progress the country had made in a relatively short time.  
The country became independent from the Soviet  Union in 1991 and, despite severe economic 
problems, very quickly launched into a process of  reform.  This process included accession to the 
WTO which was achieved in 2003.  Since joini ng the WTO the reform process had continued and 
Armenia's first Trade Policy Review, was a good oppor tunity to review what had happened since 
accession.   
6. He noted that in many ways, Armenia's trade policies since accession made it a model for 
many of the original Members of the WTO:  it ha d a low bound, and even lower applied tariffs;  it did 
not use export subsidies or export taxes;  it did not apply quantitative restrictions to imports or 
exports;  it was working to streamline customs proc edures and simplify taxes and tax administration; 
and it did not use tariff quotas.   
7. No doubt its open attitude to trade and investme nt had helped its economic growth which, 
until last year, was very strong.  Although the ec onomy went into reverse in 2009, it had been 
growing very strongly, nearly doubling between 2003 and 2008;  real GDP growth grew at an annual 
average rate of 12% in 2003-08.  This was achieved  while inflation was kept in check and the Dram 
appreciated against all major currencies.  Growth was led by the private sector, as practically the 
entire economy had been privatised and central planni ng of the type seen in the Soviet Union was a 
fading memory.  As of the end of 2009 the privati zation process was essentially completed.  Inflows 
of FDI in Armenia reached US$3.4 billion in Dece mber 2008.  The recession in 2009 was caused by 
the global financial crises but, unlike some other co untries, was not exacerbated by any weakness in 
Armenia's financial system which had remained stable  and well regulated.  But, the decline in foreign 
remittances and foreign investme nt meant the end of the domestic construction boom, reduced 
consumption and, as a result, the economy contracted sharply.  In 2009, the contraction in real GDP 
was expected to be up to 15%.  The recession had al so highlighted some institutional shortcomings 
and some implementation issues which Armenia was seeking to address. 
8. As Armenia continued to work with external agencies, particularly the World Bank, the IMF 
and the European Commission, it would, no doubt, succeed in overcoming the difficulties facing it 
and resume growth and development. WT/TPR/M/228 
Page 4  
 
  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF ARMENIA  
9. Armenia is a small and land-locked country, wi th a tiny share in global trade in goods and 
services; it is below than 0.05% of world trade in both goods and services. Since independence in 
1991, the country has immediately embarked on libera lization policies, most of which were formally 
fixed as commitments in the framework of its accession to the WTO in 2003. 
10. The successful implementation of reforms and sound macroeconomic stability move our 
country forward to the rapid economic growth a nd development. After 2000 Armenia recorded double 
digit GDP growth which significantly reduced poverty in our country. Key drivers of growth are external financing and growth of productivity as well as development of construction and services 
sectors.  
11. The share of trade in GDP is about 45% with 25% trade deficit. The main trade partners of the 
country are CIS and the EU. The main export orient ed sectors are mining, jewellery and IT. Imports 
of food products exceed the exports several times. 
12. Global financial and economic crisis had huge  impact on the Armenian economy. GDP was 
declined by 14.4% in 2009, which was mainly due to about 40% reduction of  the construction sector. 
There are trends in economic recovery and we  are expecting about 3% growth for 2010.  
13. Armenia has a liberal trade and investment regime.  The aver age applied tariff is among the 
lowest of WTO Members. Armenia's average app lied MFN tariff is 2.7% with a simple tariff 
structure:  no tariff quotas; 73% of tariff lines are duty free; and almost all the rest subject to a 10% tariff rate. It grants MFN and national treatment to  foreign investors, which are present in almost 
every sector of the economy.  In many areas, particularly in services, Armenia's trade policies are 
more liberal than its WTO accession commitments. All exports from Armenia are duty free.  
14. As for non-tariff regulations such as technical re gulations, standardization, metrology, market 
surveillance and accreditation, as well as phytosanita ry measures, etc. reforms focused to the 
introduction of European practices.   
15. In the area of intellectual property rights, furt her measures are taken to make protection more 
effective and reliable in Armenia.  
16. WTO related recent policy developments also i nvolve government procurement. It has started 
negotiations for the accession to the WTO Governme nt Procurement Agreement and work is in 
progress towards bringing respectiv e national legislation in conformity with the rules. 
17. Armenia grants considerable agricultural market  access to its trade partners. It has been 
implementing the WTO Agreement and its commitme nts. Since January 2009 domestic agricultural 
production is subject to the same taxation regime as all other sectors of the economy. 
18. It should be noted that Armenian export of ag ricultural products face considerable market 
access difficulties, which are particularly related to the requirements of product conformity with strict 
regulations of destination countries. To meet th ese requirements will take time and investments.  
19. Armenia has deposits of molybdenum, copper, a nd gold. Despite high transportation costs, 
mining accounts for over a quarter of Armenia's exports  and has been a place of considerable foreign 
investment.  Food processing, IT and chemical industry are the other important sectors of industry.   
20. The services sector has an important role for GDP growth. The liberal polices and absence of 
restrictions became a reason for FDI inflows in this  sector. Recent termination of the exclusive right  WT/TPR/M/228 
 Page 5 
 
 
  of the key telecommunications services provide r, improved competition, brought significant 
reductions in tariffs, and a better quality of service. 
21. Armenia has bilateral free trade agreements with the almost all CIS countries and currently 
enjoys preferential market access under the EU GS P+, as well as the GSP programs of the USA, 
Canada, Switzerland and Japan.  
22. Euro-integration is among the priorities of Armeni an foreign policy. One of the key goals of 
the cooperation with the EU is signing of a Deep and Comprehensive Free Trade Agreement. 
Preparatory efforts are ongoing and we work actively to start negotiations next year.  
23. Economic crisis emphasised the importance of the continuation of the reforms and 
development of competitive sectors of the economy . Economic diversificati on and wider integration 
to the global markets is a key source for post-crisis  growth sustainability and development. Thus, the 
preparatory process for singing the DCFTA with the EU will lead to further institutional reform and 
will promote gradual enlargement of market access  and export expansion.  In addition, further 
improvement of business environment and developm ent of knowledge based economy infrastructures 
are the priorities of the Government. 
24. Currently, the Government has initiated sever al sound developmental programs. Among the 
notable ones is the Techno City project of Gyumri.  The project aims at building and developing educational institutions and research centres that will offer opportunities for innovation, development 
of IT based industries, and development of small and medium entrepreneurship. 
25. The North-South Road Corridor Investment Programme is another initiative of the 
Government of Armenia, which is supported by Asian Development Bank. This program aims at 
constructing first class highway, which will link mini ng and other export oriented clusters of the 
country to the seaports as well as to change the price structure of the transportation costs.  
26. To conclude I would like to mention that lib eralization continues to be one of the key 
objectives of Armenia’s economic policy agenda a nd the Government of Armenia will continue 
taking all necessary measures to ensure further implementation of our WTO commitments in all areas. WT/TPR/M/228 
Page 6  
 
  III. STATEMENT BY THE DISCUSSANT (H.E. Mr. Pasi-Heikki Vaaranmaa (Finland)) 
General 
27. We have under Review a country that in ma ny respects could be depicted as a model WTO 
Member. Not perfect, for sure, but quite impressive anyway. I am confident that Members take this Review as an opportunity to encourage Armenia furt her forward on the road of integration into the 
multilateral trading system, but at the same time it must  be recognised they have already done a great 
deal. Let me offer a few observations for a start.  
28. Armenia is a low-income, land-locked, net food-im porting country in transition. It is situated 
in one could say a somewhat rough neighbourhood in  the Southern Caucasus. There are just over 3 
million people living on an area a bit bigger than Albania and a bit smaller than Belgium; 80% of the 
land is mountainous.  
29. Export base is fairly narrow, base metals (coppe r, molybdenum), precious stones, metals and 
mineral products are principal exports. In 2008 they ma de almost two-thirds of Armenian exports and 
just over a half in 2009. Despite the fact that around 70% of the GDP is made in services, nearly half 
the workforce is employed  in the agriculture.  
30. Armenia became independent in 1991, following the collapse of the Soviet Union. In the 
aftermath there was a considerable amount of chaos and conflict that lead to the country’s isolation 
and economic decline.  Early on, however, Armenia decided on a path of opening up and 
liberalisation. It was the only economically viable option. It was a decision that made political sense 
as well. The period of reform has been intense, lasting nearly 20 years.  
31. There was a financial reform and introduction of  a new currency. Over the years, combined 
with fairly rigid fiscal disciplines, it managed to  bring stability to the market and enable wider 
economic and trade reforms.  
32. There was a decision to maintain  close ties with Russian Federation, a country where a lot of 
people of Armenian origin live and work, and whose re mittances continue to be an important factor in 
the Armenian economy.  
33. A key decision I feel was made when Armeni a started looking towards the European Union as 
a model for Armenia’s policies, laws and regulations . The EU is Armenia’s biggest trading partner, 
and Armenia can only benefit from increased cooperati on and closer ties with the EU. Further steps to 
that direction are to be welcomed.  
34. Along with the developments in the bilateral/reg ional sphere there was the multilateral track: 
an accession process to the WTO. It was started al ready during the GATT era in 1993, and over the 
years encouraged a continuation of reforms. Those reforms were consolidated when Armenia became 
a member of the WTO in 2003. The reform pr ocesses are still ongoing, but one must acknowledge 
that Armenia has come quite a long way from the early 1990’s.  
35. I have said earlier that Armenia could be a model WTO Member.  What do I mean by that?  
The tariff structure is simple, all tariff lines are bound. Average bound tariff is only 8.5% and average 
applied tariff is even lower at 2.7%. The latter is among the lowest in the whole Membership.  There 
are no tariff quotas nor import restrictions. There ar e no export restrictions or export subsidies or 
export processing zones.  Customs procedures are being simplified and delays reduced. 
36. On services, Armenia has coverage of 11 of the 12 services sectors, with 97 subsectors of 160 
possible covered. This is certainly a decent schedul e. Of course there is still room for improvement,  WT/TPR/M/228 
 Page 7 
 
 
  for instance in mode 4 – given that the current legi slation would allow for fu rther liberalisation than 
exists according to the schedules. 
37. World Bank Doing Business index ranked Armenia 43rd (out of 183) in terms of business 
environment (the placement was 50 in 2009). It is among the best third of countries in the Eastern Europe/Central Asia region.  
38. A stable economy and liberal tax, investment and trade regimes have fostered a growth driven 
by foreign investment, foreign aid and remittanc es from Armenians abroad .  Thus, although Armenia 
has a big trade deficit, the economy grew by more than 10% per year 2003- 2008. At the same time 
the Central Bank managed to keep inflation in  check and government spending was kept under 
control.   
39. With all the money coming from abroad, real estate prices and construction activity increased.  
Construction accounted for nearly one third of GD P in 2008.  The reductions in investment and 
remittances meant that a property bubble burst an d the economy shrank sharply in 2009. The global 
downturn hit Armenia hard. There was a fall in dema nd and in prices of commodities that contracted 
exports even sharply. 
40. A consolation of sorts was that the banking sector was solid so the Government was not 
afflicted by the additional woe of ba iling out banks. The crisis did point to some structural defects in 
the Armenian economy. The current budget deficit mean s that one needs to improve the collection of 
revenue, for one. With a little luck however, Arme nia looks well placed to recover and start growing 
again. There are some areas one would need to focus on, though.  
Some issues 
41. Growing again will depend on trade.  Trade is less than 50% of the GDP, which is quite low 
for a small open economy. Considering the inadequate  infrastructure and high transport costs it is not 
too surprising, however. It is likewise understandable th at imports have an important role in the trade 
of a country like Armenia.   
Market access 
42. One factor which would help sustainable growth would be better access to markets.  Armenia 
has GSP status with some markets, it qualifies for GSP+ treatment in the EU.  
43. It seems clear that conclusion of the DDA woul d help it further – let us think about trade 
facilitation, for instance, where Armenia has been an active par ticipant in the negotiations.  
44. So would reducing the cost of trade.  Export s leave either by plane or overland through 
Georgia.  Improving the roads in both Armenia a nd Georgia and the port facilities in Georgia would 
help. 
45. The closed borders also impede access to the rest of the world. The border issues are of 
course political and will have to be resolved as such , but the situation clearly has trade implications. 
All steps towards normalising relations are to be enc ouraged and welcomed. It is after all clear that 
resolving the issues will benefit everybody.  
46. Although customs procedures have improved, ther e are still problems that appear to be in 
need of tackling.  Members have posed questions on  customs valuation, and it is mentioned in the 
Secretariat Report as well.  Also, the number of doc uments for imports and exports has been reduced 
but it is not clear if this has led to any actual reduction in procedural time. WT/TPR/M/228 
Page 8  
 
  47. This leads to a more general problem of implementation.  There is clearly a lot of legislation 
in place, and further there is evidence of Armeni an authorities working to improve matters, but in 
many areas there still seems to be problems in impl ementing the legislation. This concerns not only 
customs procedures but also SPS and TBT area, and improving the operations on these two fields would help domestic production and trade as well. 
Some minor points 
48. Foreign investment is encouraged but forei gners cannot own land – th ere is a constitutional 
ban.  Agriculture is one area that many depend on and is important for the economy. While I think 
there are limits as to by how mu ch you can increase the relative si ze of agricultural production in an 
economy or terrain such as Armenia’ s, the development of agriculture might still be helped by foreign 
investment.  
49. I note that tariffs in general are simple ad valorem  tariffs, but there are a few tobacco and 
beverage lines which have a specific duty which is mean t to represent the tariff, plus VAT, plus excise 
duty.  It is not clear how this duty is divided between the three different taxes. 
General concerns 
50. For a small economy, competition policy and regulation will always be an issue.  On some 
sectors there is a lot of concentration – as noted by  Armenia's State Commission for the Protection of 
Economic Competition.  In a small economy this ma y be unavoidable but it requires regulation and 
attention, nevertheless.   
51. A conservative financial system served Armenia well in the last couple of years as its banks 
were not all too stressed by the financial crises.  However, easier access to credit for business would 
help the economy.  Essential business services, lik e accounting and legal services, are developing 
rapidly. There are still concerns particularly about legal services, linked also with the problems of 
perceived corruption.   
Conclusion 
52. The main challenge for Armenia is to escape dependence on a narrow economic base of 
exports of minerals and inflows of remittances fro m abroad.  Armenia has a lot of potential from its 
open attitude to trade and investment, a huge diaspora,  its mineral wealth, its long history and related 
tourist potential, and so on.  Diversification is not easy but it is possible and it is a must if Armenia is to climb further on the ladder s of economic development. 
53. To do so requires further reforms, perhaps less of law, but more of implementation and 
institutions.  Not all institutional reform is in the public domain for that matter, there are further 
possibilities on areas of finance, law and accounting.  Armenia seems to be doing all this. A trade 
agreement with the European Union would help both  in itself and as an incentive to further reform by 
authorities and the private sector.  WT/TPR/M/228 
 Page 9 
 
 
  IV. STATEMENTS BY MEMBERS 
UNITED STATES 
 
54. Since Armenia’s independence in 1991, th e structure of its economy has changed 
substantially, with sectors such as construction a nd services replacing agriculture and industry as the 
main contributors to its economic growth.  This did not happen easily and the adjustment continues.  
Like other New Independent States of the former Soviet Union, Armenia's economy still suffers from the legacy of a centrally planned economy and th e breakdown of former Soviet trading networks.  
And Armenia’s efforts have been hampered by the gl obal economic downturn that concerns us all.  In 
its Report for this TPR, the Secretariat has c oncluded that “continued efforts to improve 
implementation of institutional and regulatory reforms and to devel op a more diversified economy are 
key to Armenia's future economic growth.”   We agree with the Secretariat’s assessment. 
55. We hope that when this TPR is finished, and upon further reflection, the Armenian 
government will conclude that, despite its frustra tions with current globa l economic conditions, its 
best choice is to refocus on the sound economic po licies that have formed the foundation for the 
progress the nation has made since independence in  1991 and WTO accession in 2003.  Since 1991, 
Armenia’s leaders have sought to implement policies in support of international trade and investment 
and market economy principles.  Since Armenia’s WTO accession in 2003, the government reports that Armenia has enjoyed strong economic growth as a result of market-ori ented trade and overall 
economic policies.  Apart from the government’s as sertion, the Secretariat states that Armenia has 
continued to reform since accession and that Armeni a “has a liberal trade and investment regime”.  
Pointing to the average applied tariff, at 2.7%, the Secretariat goes on to say that this average applied 
tariff “is among the lowest of WTO Members”.  Furthermore, Armenia provides MFN and national 
treatment to foreign investors, “which are pr esent in almost every economic sector” and, the 
Secretariat says, “in many areas, particularly in services, Armenia's trade policies are more liberal than its WTO accession commitments.”  I would note, too, that we appreciate the good progress that 
Armenia is making in its accession to the WTO Gove rnment Procurement Agreement, and hope that 
Armenia will be able to complete its accession in 2010. 
56. Armenia should be encouraged by these findi ngs.  Continued reform and market-driven 
policies have resulted in an improving business clim ate and economic growth. Armenia reports that it 
enjoyed double-digit growth rates from 2002-2007 as a result of its open market policies and reforms. While growth slowed in 2008 and stalled in 2009, along with much of the global economy, we remain 
hopeful that Armenia can recover from the global financ ial crisis and return to its higher trajectory of 
growth.  As the government points out, Armenia now ranks 43
rd out of 183 economies in the World 
Bank's Doing Business 2010 report.  The World Bank Report conf irms that improvements Armenia 
has made in the procedures for starting a business ar e notable, in particular with regard to credit 
information access and simplification of legal procedures for registering an enterprise.  Also, 
Armenia’s actions to reduce the number of goods requiring inspection and streamline the number of 
documents needed to clear goods have improved trad ing across the nation’s borders.  With indicators 
like these, we are confident that Armenia has wisely chosen the economic path that holds the greatest 
promise. 
57. We appreciate that there have been and will continue to be bumps along the way.  Some 
difficulties are unavoidable, namely those presente d by geography.  For a landlocked country like 
Armenia, the marketplace and open access are key to economic growth.  As a nation of traders, 
Armenia seems to remain undaunted by geography.  When Armenia broke free of the constraints of 
communism, its skilled entrepreneurs quickly emerged to form the basis of a market economy and the 
government established the framework to support this  economy.  We hope that the legacy of war in 
Nagorno Karabakh is short-lived and that the normalization process between Turkey and Armenia 
will succeed, because it will have important benefits fo r trade in the two countries and in the region.  WT/TPR/M/228 
Page 10  
 
  58. The United States has consistently supporte d Armenia and provided approximately $1.8 
billion in total assistance si nce the dissolution of the Soviet Uni on.  The United States continues to 
provide substantial economic assistance to Armenia in support of its development.  Our assistance is 
helping Armenia to increase private sector comp etitiveness, enable access to finance, and reduce 
administrative and regulatory constraints to enterprise growth.  In 2009, the U.S. Agency for 
International Development (USAID ) and other U.S. Government agencies implemented important 
programs including:  support for the development of the pharmaceutical industry; harmonizing supervision of the securities market and  insura nce industry; improving Credit Bureau operations; 
assisting banks in developing the energy sector; de veloping small and medium enterprises in the 
dairy, food processing and other sectors.  
59. Over the years, the U.S.-Armenia trade relations hip has been based on our shared belief in the 
efficacy of the market economy.  Despite the geogr aphical distance between our two countries, I am 
pleased to say that trade between the United Stat es and Armenia grew steadily between 2004 and 
2008.  While we experienced a decline in 2009, we l ook forward to a quick return to this historic 
upward trend.  We are committed to helping our Arme nian partners recover strongly and return to a 
path of steady and robust growth.   
60. Our two governments maintain regular, hi gh-level contact in support of economic 
cooperation.  The U.S.-Armenia Joint Economic Task  Force oversees and seeks to further our bilateral 
cooperation.  Established in 2000, the Task Force has met semi-annually to advance overall economic 
and market reforms in Armenia and to discu ss opportunities for helping Armenia’s long-term 
economic development.  Our trade agenda and business climate feature prominently in our 
deliberations. 
61. In addition to its commitment to active WT O membership, Armenia is pursuing trade 
agreements of various kinds with a number of partne rs, including its current effort to negotiate a Free 
Trade Agreement with its biggest trading partner, the European Union.  We look forward to hearing 
from Armenia, in the context of this review, a bout the progress it has made toward concluding this 
agreement.    
62. While Armenia has demonstrated an impressive  commitment to open trade, some issues 
remain; the written questions that the United States s ubmitted in the context of this TPR convey some 
of our concerns.  For example, the World Bank has reported on Armenia’s difficult tax system, and 
we look forward to hearing from the Armenian delega tion about efforts the government may be taking 
to improve its tax regime. 
63. In the area of customs administration, we take  note that Armenia in 2009 reduced to three the 
number of documents that must be presented at customs clearance. We hope to hear about any 
measures in addition to document reduction that  Armenia is considering for the purpose of 
simplifying and expediting customs procedures.  
64. From the Secretariat’s Report, we understand th at the GOST system of standards and sanitary 
and phytosanitary regulations used in the Soviet Union was de jure  abolished in Armenia and that 
Armenia is now in the process of bringing its san itary and phytosanitary standards into convergence 
with the EU system.  We would be grateful for a detailed explanation of Armenia’s laws regarding 
food safety, veterinary services and plant protection/ quarantine, and how they relate to the WTO SPS 
Agreement.  
65. In the area of intellectual property rights, Arme nia indicates in its report that the government 
adopted a Concept Paper in 2009 that outlines th e programs and measures that the government will 
implement to ensure effective and reliable protecti on of intellectual property rights.  We hope that  WT/TPR/M/228 
 Page 11 
 
 
  Armenia will be able to share its Concept Paper with  us so that we can, in turn, share our insights and 
experience in this regard with the government. 
66. Similarly, the Secretariat Report indicates that the government sent a new draft Law to 
broaden the coverage of rights rela ted to geographical indications (G Is) to the National Assembly at 
the end of 2009.  It also states that the 2008 am endments to the Law on Tr ademarks, Service Marks, 
and Appellation of Origin of 2000 were not sufficien t to clarify certain aspects of the Law and that a 
draft of an entire new law was pre sented to the National Assembly at the end of 2009.  We are eager 
to know when WTO Members will have an opportunity to review this new GI law and amendments to 
the trademark law. 
67. In closing, Armenia is a valued partner of th e United States and our relationship is a lasting 
and durable one.  The Obama Administration is comm itted to broadening this relationship, deepening 
it, and working with Armenia to assist th e government in achieving the nation’s economic 
development goals and aspirations .  Cooperation in the WTO is an important element of our 
partnership.  I would like to emphasize that we  continue to value our work with Armenia’s 
government and our WTO partners to strengthen and build on the WTO’s rules-based system and to 
achieve a market-opening conclusion to the Doha Round.  
CANADA 
68. We congratulate Armenia on its efforts to bring its trade regime into conformity with the 
obligations it assumed on accession and to establish a dynamic and liberalized market economy. 
69. Though modest, trade relations between Canada  and Armenia have grown strongly in recent 
years.  Bilateral trade in goods amounted to 28.4 million dollars (US$26.6 million) in 2008 and 
42.9 million dollars (US$37.7 million) in 2009, figur es which are much higher than the average of 
5.9 million dollars (US$3.3 million) recorded from 2000 to 2007.  Canada and Armenia are also 
bound by an agreement on the promotion and protec tion of foreign investment and a double taxation 
agreement, which constitute a solid foundation on which to build their future commercial relations. 
70. We applaud Armenia’s success in maintain ing macroeconomic stability and reasonable 
control over its fiscal and monetary policies; public debt  levels have remained manageable in this first 
decade of the 21st century. However, the global economic cr isis had a significant effect on the 
Armenian economy and revealed its reliance, thr ough the construction sector , on foreign remittances 
and foreign direct investment. It exposed th e need for continued efforts to improve the 
implementation of institutional and regulatory re forms and to develop a more diversified and 
competitive economy. Those reforms are key for c oping with the current recession and for putting 
Armenia on the path towards sustainable economic growth.     
71. We are pleased that Armenia remains strongly committed to the multilateral trading system 
and free market principles, as shown by its active pa rticipation in the Doha Development Agenda, its 
trade agreements with the other members of th e Commonwealth of Independent States, and its 
willingness to build closer ties with the EU, with the aim of full integration. We are encouraged by 
Armenia’s continuous engagement, despite resource constraints, in taking the necessary measures to 
ensure further implementation of the WTO Agreements.   
72. Canada would like to commend Armenia on the le vel of ambition being exhibited during its 
accession to the WTO Agreement on Government Procurement (GPA), both in terms of content and timing. We look forward to continued colla boration with Armenia in this forum. 
73. In closing, Canada strongly encourages Armenia to further build on the achieved reforms, to 
focus on implementing and enhancing those alread y in place, and to work on diversifying its 
economy. These efforts will further improve Armenia’s position in and integration into world markets, allowing its industries and citizens to r eap tangible benefits from trade liberalisation. WT/TPR/M/228 
Page 12  
 
  SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  
74. It is most encouraging to see that since its accession to the WTO in 2003, Armenia has 
established such a liberal trade and investment regime . The average applied tariff, at 2.7%, is one of 
the lowest among all the WTO Members. It grants MF N and national treatment to foreign investors in 
nearly every sector of the economy. And, we have  noticed, Armenia’s trade policy, in the services 
sector in particular, already goes beyond the liberalization measures specified in its WTO accession 
commitments. I also wish to mention how pleased we  are to have the opportunity of working closely 
with Armenia as a fellow-member of the group of Recently Acceded Members (RAMs), under the DDA, and has always been an activ e participant in our proposals. 
75. According to the report, Armenia created a State Revenue Committee in 2008 in order to 
streamline the institutional structure, and custom s procedures were simplified and the processing of 
import documents made more effi cient. However, customs clearance is still perceived as being 
comparatively slow and lacking in transparency in certain respects. This raises the question as to what 
concrete steps the Government of Arme nia intends to take in this regard. 
76. Having said that, like several previous speakers,  we would also like to especially note the 
active participation and contributi ons of Armenia to the work of the WTO, and to the Doha Round 
Negotiations in particular. In our written questions submitted in advance, we identified a few aspects 
of  Armenia’s trade policies that are of particular interest to us. The topics included one on its law on Conformity Assessment of 2004, specifically on first-and second-party assessment and on market 
surveillance, and whether Armenia would be prepared  to make the provisions in this Law clearer and 
more detailed in these areas. Another was on certain restrictions on the rights of foreign citizens and 
persons without citizenship to own land in Arme nia.  We would like to thank the delegation of 
Armenia for their replies to our questions, which we  received this morning. We are looking forward to 
studying them further. 
UKRAINE 
77. We have traditionally and historically good rela tions between our countries. We have also a 
free trade agreement, which we hope to further promote to mutually beneficial outcome for our 
countries. Even though we have rai sed a few issues related to cust oms duties and taxation, IPR, we 
hope we can receive clarifications to them. We hope the issues will be resolved not only to the benefit 
of Ukraine but of all WTO Members. 
EUROPEAN UNION 
78. The EU has been Armenia's largest export and import partner through the period covered by 
this review. The EU-Armenian bilateral relatio ns are currently based on a Partnership and 
Cooperation Agreement which entered into force in 1999 and contains specific trade and investment 
provisions. Moreover, a European Neighbourhood Poli cy Action Plan was agreed in 2006 for a period 
of 5 years, setting out priorities for cooperation. 
79. Armenia benefits from preferential access to th e EU market under the GSP. We are pleased 
that as of the beginning of 2009, Armenia has qualified for additional incentives granted under this 
system to eligible countries that meet specifi ed criteria for sustainable development and good 
governance. This means that Armenia can expor t over 6,300 products duty-free to the EU.  
80. Let me illustrate the bilateral tr ade developments with a couple of  figures. In 2008, before the 
worst hit of the economic crisis, trade between  the EU and Armenia reached 988 million euros, 
representing over a third of Armenia's total trade. The EU market has been particularly - and 
increasingly - significant as a destination for Armenian  merchandise. Exports to EU grew at an annual 
average of 14% between 2003 and 2008, by which ti me they represented over half of all Armenian 
exports. At 318 million, however, the level was s till modest, leaving considerable potential for  WT/TPR/M/228 
 Page 13 
 
 
  expansion, beyond recovery to the pr e-crisis trend. The EU is committed to working with Armenia to 
develop this potential, through fu rther enhancement of bilateral tr ade and investment cooperation and 
through constructive engagement with Armenia in the framework of the WTO. It is in this spirit of 
deepening partnership that the EU would like to draw attention to the following issues. 
81. In the years up to 2008 Armenia had an extende d period of fast economic growth underpinned 
by stability-oriented macroeconomic policies and a wide  range of structural reforms. In contrast, this 
review comes at a time when Ar menia has to address a sharp economic downturn triggered by the 
impacts of the global financial crisis. In particular , budget and current account deficits have escalated. 
The EU, as other international lende rs, has recently approved financia l assistance to Armenia of up to 
100 million euros in order to help overcome the sudden financing gap and while the government 
continues measures to restore balance. Further e fforts to improve customs administration and tax 
collection will be vital in this regard. 
82. The crisis has exposed vulnerabilities that pers ist in the Armenian economy, such as those 
arising from a narrow, non-diversified export base.  The challenge of dive rsifying production and 
bolstering international competitiveness of its goods and services is central to Armenia's future ability 
to grow at high and sustainable rates. 
83. Armenia has made a commendable liberalisation effort over the years since the 1990s. It has 
today an overall open trade and investment re gime. We welcome assurances that Armenia is 
committed to maintaining and consolidating th is openness, as it remains paramount to better 
integration in the regional and global trading systems. 
84. In parallel, we encourage Armenia to furthe r embrace efforts for convergence of its trade-
related regulation with internati onal standards. This would enable  enhanced productivity and product 
quality, and thereby effectively open new markets.  We note in particular that legislative and 
implementation gaps remain in Armenia's sanitary and phytosanitary system. Administrative capacity 
in the area of technical regulation an d standards should also be further strengthened. In this context, 
could Armenia comment on specific steps it is taki ng to improve fulfilment of transparency 
obligations under the TBT and SPS Agreement? 
85. Ensuring effective enforcement of intellect ual property rights and a transparent and 
competitive public procurement process will also require a further capacity-building effort. 
86. The EU is committed to supporting Armenia in a ll the endeavours that I have mentioned, 
including through technical assistance projects. Under the European Neighbourhood Policy Instrument 98 million euros have been allocated in  bilateral assistance to  Armenia between 2007 and 
2010. The figures is planned to increase to 157 million euros for the subsequent three years. 
Regulatory reform and administrative capacity building is one of the priorities for this financing. On 
top, Armenia benefits from relevant regiona l, inter-regional and thematic programmes. 
87. Last but not least, the EU observes with great concern that Armenia's system of VAT and 
excise tax for tobacco does not conform to the pr inciple of non-discrimination as stipulated by WTO 
rules. We are cognizant of the current economic di fficulties, nonetheless, we urge Armenia to take 
immediate steps towards bringing its taxation regi me in full compliance with its obligations as 
Member of this organisation. 
88. To wrap up, the EU invites Armenia to consid er the conclusions from this review in its 
internal deliberations on trade policy.  
JAPAN 
89. I would like to begin with the economic polic y and environment in Armenia. Before the 
global economic and financial crisis, the Armenian  economy had been developing rapidly shown by a WT/TPR/M/228 
Page 14  
 
  double-digit growth rate, which was mainly driven  by the services sector, which had been supported 
by a significantly growing FDI. However, the global  economic and financial crisis has affected the 
economy of Armenia. In 2008, the GDP growth rate d ecreased to 7.0%, and it is  expected to decrease 
further up to -15% in 2009. 
90. Taking into account that foreign direct investme nt has been one of the major driving forces, 
and most of it was spent on construction in the telecommunications and energy sectors, it seems 
essential for Armenia to promote FDI and revive investments in these areas.  
91. As for the trade and investment policies, Japan  appreciates that the Armenian Government 
has not adopted any significant protectionist measures during the current global economic and financial crisis. We also appreciate its low and simple tariffs, although there are some points we 
would like to clarify through written questions. We hope that Armenia will formally join in the GPA 
in the near future.  
92. However, as to the investment environment in Armenia, we have heard of one case in which a 
foreign private corporation had trouble in contrac ting with the Armenian Government and a state-
owned enterprise. Since FDI is essential for the de velopment of Armenia, Japan encourages Armenia 
to further improve its investment environment. 
ARGENTINA 
93. Concerning its tariff policy, we would underlin e the low average tariff applied by Armenia, 
which is one of the lowest in the WTO, as is noted by the Secretariat in its report.  We would also make particular mention of the process of replacing specific customs duties with ad valorem  duties, a 
process which we understand is to be completed next year. 
94. We congratulate Armenia on its liberal services po licies, which are comparable to Argentina's 
trade policy in this area.  We also note the st rong growth recorded by this sector since 2003. 
95. All this is made all the more significant by th e fact that Armenia is a landlocked country.  
An additional factor, with regard to its trade polic y, is the resource constraints faced by Armenia in 
dealing with WTO issues, a problem common to most developing countries. 
96. Regarding agriculture, an area of particular interest to Argentina, we should like to 
congratulate Armenia on the binding of minimum leve ls of protection for the domestic market and 
producer support, which contributes to undistorted international trade in agriculture. 
97. In that connection, Argentina shares the c oncern expressed by the Government of Armenia 
regarding the protectionist agricultural policies applied by certain Members, which exacerbate 
inequalities in market access conditions. 
98. We hope that the days devoted to this Trade Policy Review of Armenia will help Members to 
obtain a more complete understanding of the country 's trade policy and to contribute to its full 
integration into the multilateral trading system. 
KOREA, REPUBLIC OF 
99. Following all my previous speakers, I woul d like to note and join in on extending my 
congratulations to Armenia for its achievements over the past 20 years.   
100. My delegation is encouraged that under difficult circumstances Armenia has successfully 
implemented a number of reform and restructuri ng measures which, collec tively, will ensure its 
continued growth in the future.  We note at th e same time, however, that there are several issues 
Armenia would need to address to ensure sustainable growth of its economy.  WT/TPR/M/228 
 Page 15 
 
 
  101. One is its large deficit in both trade in goods  and trade in services.  While thus far the 
remittance from abroad h as been instrumental in offsetting the deficit, as the Secretariat Report notes 
coupled with Armenia’s narrow export base it would make Armenia vulnerable to external shocks.  
Armenia’s experience in 2009 would be a case in point .  In this context, we would like to inquire 
about Armenia’s view of this issue, and what measures are in the pipelines. 
102. Another issue to note would be customs administration.  While a number of reform measures 
have been implemented in this ar ea and is detailed in the Secretariat Report, apparently there still are 
some other issues which need further work.  In light  of Armenia’s geographical location, we are of the 
view that Armenia would need a well functioning, ef ficient, and transparent customs services to better 
attract foreign investment.  In this context, it might  be worthwhile to hear Armenia’s plans for further 
reform in this area. 
103. As for bilateral relations, Korea and Armenia’s re lations are in its infancy, but growing at a 
solid pace.  Bilateral trade has been growing briskl y at double digit rates over the past ten years and 
Korean companies have started to invest in Arme nia.  Most recently, Korea’s Mineral Resources 
Corporation has signed an MOU with the Ministry of Minerals and Energy of Armenia to cooperate in 
the area of copper and ferro-alloy development.  We hope that this relationship will bear much fruit, 
and serve to further cement the ties between our two countries. 
104. Lastly, please allow me to join other in congrat ulating in assuming the Chairmanship of the 
TPRB.  The TPRB has an important role in ensuri ng the well functioning of the multilateral trading 
system “by achieving greater transparency in, and understanding of” trade policies and practices of Members.  In this context, over the past year the TPRB has played an important role in monitoring the 
developments in the area of international trade. 
BRAZIL 
105. Both reports highlight Armenia’s commenda ble efforts in the pursuit of economic 
development in the face of the constraints faced by the country. In this context, it is noteworthy the 
observance by the Government of a strict fisc al policy and its commitment to carry on trade 
liberalization on the basis of the Accession Protocol  to the WTO. More importantly, those measures 
were accompanied by social reforms, as enshrine d in the Poverty Reduction Strategy Paper of 2003. 
Having social policies at the heart of its Governme nt program, Brazil is interested in exchanging 
information on the results achieved by the Armenian strategy.  
106. We are happy to note that, since Armenia’s accession to the WTO, there was significant 
improvement in most of its macroeconomic indicat ors: the GDP rate has experienced double-digit 
growth; the inflation rate has been kept under co ntrol; the rate of unemployment has decreased and 
the inflows of foreign direct investment (FDI) ha ve grown considerably. Unfortunately, this virtuous 
cycle has been interrupted by the recent economic and financial crisis. 
107. In order to stabilize its economy, Armenia had to r esort to massive external loans to cope with 
a growing trade deficit and reduction of remitta nces from its diaspora. Alternatives such as 
diversification of the economy and development of export oriented i ndustries are not readily available 
and take time to be implemented. Agriculture seems  to be a promising sector with spin-offs to the 
country’s economy.  
108. Armenia’s efforts in the area of trade facilitati on deserve praise, since they are particularly 
relevant in the case of a landlocked country. Neverthe less, as pointed out in the Secretariat’s report, 
the implementation of the customs valuation rules has to be furthered. We ar e convinced that although 
sometimes onerous the full implementation of WTO Agreements results in net benefits.  WT/TPR/M/228 
Page 16  
 
  109. Let me now turn to our bilateral relations.  Even though the Armenian diaspora is relatively 
small in Brazil, amounting to approximately 40.000 peopl e, it is very influential, particularly in light 
of its renowned entrepreneurialism.  
110. We take pride in reporting a marked intensifi cation of bilateral ties with Armenia. In 2006, 
Brazil opened an Embassy in Yerevan and, last year, Amabassador Yeghizarian was appointed to 
represent Armenia in Brazil.  
111. The good relations at the political level have been  reflected in our bilateral trade. Our main 
exports to Armenia are beef, coffee, tobacco and machinery and our main imports include rubber and 
tubes of steel. Since 2002, our bilateral trade has grown steadily, from US$2.4 million in 2002 to 32.7 
million in 2008. We consider that there is still plenty of room for further improvement. 
CHINA 
112. China attaches great importance to trade and economic cooperation with Armenia. During the 
review period, bilateral trade has made ra pid progress upon joint efforts of governments and 
enterprises from both sides. In 2009, in spite of th e international financial cr isis, trade between China 
and Armenia amounted to US$111 million, representing an increase of 38% over 2008. The 
Secretariat Report shows that China is now th e third largest trading partner of Armenia. 
113. We are also pleased to note that China and Armenia keep registering new achievements in 
investment, economic and technol ogical cooperation. Among others, in December 2009, China 
National Aero-Technology Company signed electricity contracts with Armenian  enterprises worth 1 
billion euros; Shanxi-Nairit Rubber Factory, the bi ggest joint venture betw een China and Armenia, 
will start operating very soon. Our countries also  have good and effective collaboration in mineral 
resource exploration, communications  network upgrade, cement plant transformation, power facility 
reconstruction, etc. China would like to work  with Armenia to prom ote exchanges between 
competitive industries in both countries, to explore new growth points which can bring mutual benefits, and to improve the level and qu ality of economic and trade cooperation. 
INDIA 
114. The Armenian economy unfortunately had perhap s to weather the worst impact of global 
financial crisis contracting by almost 15% in 2009.  It was mainly for external factors including drop 
in remittances, investments particularly in constr uction sector and also fall in international prices of 
copper which is an important item on the export bask et of Armenia. We are happy to note that the 
Finance Minister has recently stated that Arme nian economy is in the stage of stabilization and 
revival.   
115. The IMF in its February report had remarked th at continued structural reforms to boost tax 
administration, further strengthen the financial sector, and additional efforts to increase competition 
and raise productivity will be important contribu tors to macroeconomic stability and sustained 
economic growth. It also called further efforts in the social sectors to improve social services and 
reduce poverty. We hope Armenia will continue to ma ke progress for sustainable growth and poverty 
reduction.   
116. The reports have mentioned that Armenia has continued to privatize its remaining state-
owned enterprises.  Still many international financ ial and banking institutions have noted the presence 
of several monopolies and oligopolies in the Armenian economy. As the report has pointed out, at end 2009, state participation in the economy was in 400 companies. We would like to hear from Armenia 
its reform plans enhancing compe tition, pursuing privatisation and diluting stakes of the State in its 
economy.   WT/TPR/M/228 
 Page 17 
 
 
  117. The historic relations between India and Armeni a are marked by warmth and cordiality.  The 
earliest documented references to  the mutual relationship of Armenians and Indians are found in 
Cyropaedia , work by Xenophon (430 BC – 355 BC). Th ese references indicate that several 
Armenians traveled to India, and they were well aware of land routes to reach India, as also the 
general and political geography, socio-cultural milieu,  and economic life of the Indian subcontinent. 
By the order of the Moghul Emperor Akbar(1542-160 5), Armenian merchants were allowed to export 
and import any items without tax, enter those district s of the empire where entrance of foreigners was 
prohibited. Armenians controlled a large part of the international trade of the area, particularly in 
precious stones and quality fabrics. Armenians had trad ing relations with several parts of India, and 
by the 7th century a few Armenian settlements had appeared in Kerala.   
118. The Armenian presence in India can still be fe lt due to Armenian College and Philanthropic 
Society in Kolkata, and their Churches. Armenian Co llege is one of a kind, has been existing almost 
for two centuries and is still serving its noble purpo se by educating students and imparting knowledge 
and wisdom. We also have about 500 Indian st udents in Yerevan, mainly studying medicine. 
119. India recognized Armenia in 1991, establishe d Diplomatic relations in 1992. India and 
Armenia signed a Treaty of Friendship and Cooperation in 1995.  There are nearly 25 Agreements/MOUs covering diverse areas of possible cooperation such as trade & commerce, culture 
etc. Institutionalised India-Armenia Inter-Gove rnmental Commission (IGC) and Foreign Office 
Consultations are held regularly. 
120. At present, India-Armenia trade is modest thoug h it has been registering growth in recent 
years.  Indian exports consist of foodstuffs, electrical equipment, cut and polished diamonds.  
Armenia’s exports include non-ferrous me tals, raw-rubber, books and textiles. 
121. India’s current developmental assistance to Armenia includes: (i) human resource 
development (ii) to establish a Centre for Excelle nce in Information and Communication Technology 
in Yerevan; the Centre is expected to be establis hed by October 2010; (iii) financed by India, the 
Hayastan All-Armenian Fund is implementing a ma jor renovation of the community school of Artsni, 
a village in Armenia’s Lori Region.  On comp letion of the project, the renovated school will 
accommodate all of Artsni’s students. 
AZERBAIJAN (OBSERVER) 
122. I would like to refer to the Secretariat Report on the Economic Environment section which 
refers to the chaos that followed were exacerbate d by the war in Nagorno Karabakh, and also to 
another section of the Trade and Investment Policy Fr amework which refers to the subsequent closure 
of the borders between Armenia and Azerbaijan. Also in the speech of the discussant where he 
referred to a rough neighbourhood of Arme nia being in a land-locked situation. 
123. On behalf of the delegation of Azerbaijan we would like to request the WTO Secretariat to 
bring clarity to those references and what’s im plied other implicitly or  explicitly under those 
expressions. WT/TPR/M/228 
Page 18  
 
  V. REPLIES BY THE REPRESENTATIVE OF ARMENIA AND ADDITIONAL 
COMMENTS 
124. The first group of questions relates to the de velopment perspectives of Armenia, sustainable 
growth and welfare. 
125. The crisis underlines that for small economies such as Armenia’s the creation of competitive 
and high value added economy has no alternative.  Diversification of the economy and the export 
expansion become main pillars of  our economic development policy, which can be seen as the basis 
for the reduction of external vulnerabilit y and push growth and development. 
126. The Government initiated strategy for export lead growth, which will be widely discussed 
with business unions, civil society and in ternational developmental organizations. 
127. The second group of questions relates to the business and investment environment. 
Particularly, tax and customs policies are of great importance. These issues are under primary 
attention of our Government and society. Reforms are in process with close collaboration of a number of international organizations a nd other relevant stakeholders. D espite this we recognize that the 
reforms do not provide immediate results and still some problems and weaknesses remain. The 
Government of Armenia is fully aware of the probl ems existing in the fields of excise tax and other 
non-ad valorem duties and in this regard is currently ta king urgent measures to solve the mentioned 
problems. 
128. The next group of questions mainly relates to institutional and implementation capacities of 
our country. There are questions  related to TBT, SPS and IPR. 
129. It should be noted that our Government is  intensively implementing the legislative 
approximation and institutional harmonization with the EU. However, the existing problems mainly 
relate to the institutional experience, capacities,  implementation and enforcement. Solution of the 
mentioned issues requires long time and durable effo rts. The Government has already undertaken all 
necessary steps with the support of international ins titutions and experts.  In particular, since 2009 the 
EU Advisory Group is working in Armenia and is actively engaged in process of designing and 
implementation reforms. 
130. Finally, I would like to underline that the G overnment of Armenia gives great importance to 
the Armenia’s integration in the multilateral trading system. We reiterate our adherence to the WTO 
commitments. We are confident that the close coope ration and our joint efforts will serve to mutual 
benefits and welfare of our nations.  
DISCUSSANT 
 131. Armenia’s answers demonstrate its commitment to  transparency in tr ade policy which the 
Trade Policy Review Mechanism was created to increase. 
132. In this review, Armenia has received much appr eciation for the reforms it has undertaken over 
the period of almost 20 years.  Members have commended the open, liberal trade and investment 
environment, macroeconomic stability and a co mmitment to the multilateral trading system 
demonstrated not only in the substantive comm itments made during the accession negotiations but 
also in the policies pursued thereafter.   
133. At the same time Members pointed to areas where additional work would be essential. 
Customs procedures, sanitary and phytosanitary measures, government procurement, intellectual 
property rights,  and competition policy have been mentioned, among others.   WT/TPR/M/228 
 Page 19 
 
 
  134. The global economic downturn has hit parts of  Armenian economy quite severely. It has 
pointed to structural vulnerabilities of the country. It is good news that recovery  is already on its way. 
The bad news is that the problems don’t just go away with the recovery. One needs to resolve them, or 
else the next downturn is going to be equally severe.  
135. Armenia needs institutional reforms in order to  have a balanced economy. Implementation of 
legislation has to be improved. What is even more  important, and as I said in my opening statement as 
as was echoed in a number of interventions on Tuesday , in order to have sust ainable economic growth 
Armenia is in need of diversification of its economy. I think this has been recognized by the 
Government of Armenia.   
136. The good news is that there is a lot of unused or  underutilized potential. There is also clearly 
willingness to help and assist in unleashing this poten tial, as was manifest in several statements on 
Tuesday.  Armenia is not left alone to deal with these tasks.  
137. I congratulate Armenia for its impressive performance during its first Trade Policy Review 
and thank the Delegation for their hard work.  
UNITED STATES 
138. We would like to thank the delegation of Armenia for the written responses that they 
submitted to the questions that we have provided an d we will examine their responses in detail.  We 
do have four follow-up questions based on our first initial reading of the written responses, I will 
submit those questions to the Secretariat and the dele gation of Armenia.  They have to do with import 
prohibitions, and Articles 23 and 24 of the Law on Copyright. 
UKRAINE 
139. In the framework of the Trade Policy Review  my delegation has been given a wonderful 
opportunity to get a better view of many details of quite liberal trade regime, economic environment, 
market access, legal and institu tional framework of Armenia. 
140. We appreciate answers prepared by the Armenian delegation to our written questions and we 
take note of them.  Nevertheless, Ukraine is seeking further clarifications as regards what effective 
measures the Government of Armenia will take in  the area of IPR law enforcement in order to 
eliminate violations in relation to trademarks. 
141. We also encourage the Government of Armenia to  take speedy and effective steps to comply 
with the national treatment provisions, since Armenia had committed it would apply its domestic 
taxes in a non-discriminatory manner upon accession to the WTO.  We would appreciate an update on the developments in this area. 
142. Ukraine is of the opinion that there may not be  any leniency to much delayed compliance to 
the basic WTO principles particularly in national tr eatment and protection of intellectual property, our 
concern being that it may jeopardize the integr ity of the multilateral system of rules and 
commitments. 
143. We hope that Armenia will be able to provide  clarifications and respond to these two items 
within the 30 day period according to the TPR procedure. 
144. Ukraine commends Armenia for its commitment to further liberalization as one of the key 
objectives of its economic agenda, which we believe envisages WTO compliance as an integral part. WT/TPR/M/228 
Page 20  
 
  145. The delegation of Ukraine sincerely wishes the delegation of Armenia every success in their 
country’s efforts in economic re form, sound development programs as the Government have plans to 
do so, since there is always room for improvement. 
EUROPEAN UNION 
146. The EU would like to thank the delegation of Armenia for the replies to our advance written 
questions, although we have had little time to review them, our experts have signalled some 
comments and follow-up questions to the replies.  Fi rst, concerning Armenia’s tax regime for tobacco 
products we welcome the announcement of new legisl ation on taxation for cigarettes.  However, we 
would appreciate if Armenia provided a little more de tail on the provisions of th is legislation and how 
it will ensure WTO compliance.  We will provide th e specific questions in writing to the Secretariat. 
147. Moreover we will seek further clarification on veterinary and sanitary import permits.  Also 
we will submit a few additional questions on draf t law to govern geographical indications and on 
Armenia’s plans to improve quality, access and competition in some of the services sectors.   
INDIA 
148. I would like to thank the delegation of Armeni a for providing us detailed responses to our 
questions.  I would like to point out that perhaps our question No. 2 has been misunderstood as I look 
at the response and I think that there is not much correlation with the question the response provided.  
I would appreciate if you could give some details on that.  It is also not clear the response provided to 
our question No. 4 regarding Armenia’s plans to diversify its food imports.  
CHINA 
149. China commends the efforts by the delegation of Armenia in trying to answer Members’ 
questions.  My delegation just received a set of questions regarding Armenia’s investment policies 
from the Capital, which we will submit through the Secretariat.  We would appreciate receiving replies in about a month's time. 
JAPAN 
150. We would like to express our appreciation for the replies to our questions from Armenia. 
Unfortunately, the answers do not give any description over neither of the current non- ad-valorem  
tariffs nor of the future revised ad-valorem  tariffs. However, we welcome that the review process on 
these tariffs is taking place. We are looking forwar d to seeing the details of the new tariffs to be 
introduced in 2011, through notifications to the re lated committee and answers to other delegates. 
ARGENTINA 
151. Argentina would like to join the other delegati ons in thanking the delegation of Armenia for 
kindly replying to our written questions.  We are also gr ateful for the Secretariat's invaluable efforts in 
compiling the documents and producing the report whic h we have used as input in this review.  
We are grateful for the effort devoted by Armenia to this review, which, as we know, involves a considerable expenditure of material and huma n resources, especially in the case of a developing 
country like Armenia.  My capital is currently examining Armenia's replies and, if necessary, 
Argentina will submit additional questions or request s for clarification to the Secretariat and the 
delegation of Armenia. 
  WT/TPR/M/228 
 Page 21 
 
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
152. This is the first Trade Policy Review of Arme nia since it acceded to the WTO in 2003 and I 
would like to thank the Government of Armeni a and the Secretariat for their reports, and 
Mr. Pasi-Heikki Vaaranmaa of Finland for his rema rks as discussant, all of which gave us a good 
basis for the Review.  In addition, the particip ation of H.E. Mr Mushegh Tumasyan, the Deputy 
Minister of Economy from Yerevan, along with his de legation, helped the examination of the trade 
policies of Armenia. 
153. From the different reports, and the statements and questions from Members on Tuesday, it is 
clear that the progress made by Armenia since Inde pendence in 1991 and since it acceded to the WTO 
in 2003 is widely appreciated.  Above all, many of  us noted that Armenia's open attitude to trade and 
investment, helped by the remittanc es from Armenians living abroad, we re critical factors in the rapid 
economic growth and poverty reduction seen in  the years before and after accession. 
154. But, as delegations have noted, the global economic downturn that started in 2008 has hurt 
Armenia.  The financial system has weathered the storm and has been shown to be sound.  I did note 
that some other factors showed signs of weakn esses.  In particular, the narrow export base, the 
dependence on remittances to cover the balance-of-p ayments deficit, and the rapid and unsustainable 
growth of the construction sector exacerbated th e downturn in 2009.  The challenge for the 
Government now is to encourage diversification in  order to reduce exposure to external shocks, like 
the financial crisis, as well as internal s hocks like the end of the construction boom. 
155. The second point which was implied in the ques tions and statements we heard on Tuesday 
was that reform needs to continue, although the focu s for that reform might need to shift from legal 
and institutional issues to improving implementation of government policy.   
156. In the first decade after independence, Armenia' s trade and investment policies were focused 
on getting the basic legal framework into place.  Th is was driven by many factors, among which was 
accession to the WTO.  After accessi on, the focus switched to strengt hening the institutions essential 
to implement the laws.  In this regard, the S ecretariat Report highlights the changes to customs 
administration, the judiciary, and intellectual prope rty which have taken place.  It would now appear 
that much of the necessary legislation is in place and most of the institutions to overlook or enforce 
those laws have been set up.  Now might be the time to focus on getting the institutions to work as 
efficiently as possible so that they can ef fectively implement government policy.   
157. Of course, these are not three neat, sequential steps.  To a large extent institutional and 
implementation reform go hand-in-hand, and Armenia has already taken great strides to move forward 
in all three areas.  After reading the reports and listening to the discussion I feel that the focus now 
shifted to implementation of the laws and policies through the institutions which have been created 
over the past 20 years. 
158. I have no intention of trying to list every ar ea touched by the questions from Members but I 
have noted their willingness to continue working with  Armenia and I would note that there were some 
common issues, such as:  
(a) support for Armenia's early accession to th e Government Procurement Agreement; 
(b) how border procedures, rules of origin, and customs valuation can limit market access 
for its trading partners; 
(c) concerns about the development, transp arency, and application of SPS and TBT 
measures; WT/TPR/M/228 
Page 22  
 
  (d) compliance of laws on intellectual property and geographical indications with the 
TRIPS agreement;  and  
(e) possible discrimination against imports in the application of VAT and excise duties 
on tobacco. 
159. Finally, as I am from the part of the world next to the Southern Caucasus, I would not refer to 
it as a "rough neighbourhood" as Pasi-Heikki, the discussan t, suggested.  I would prefer to think of it 
as a beautiful part of the world blessed by a long, yet complicated history.  In the TPR we are dealing with trade issues and trade can only play its role in moving from that difficult past to a better future.  
As the Chairman of the TPR, I can only comment  on trade policy and note that Armenia has taken 
great strides, despite recent diffi cult economic times, it ha s maintained its liberal trading policies.  
From its answers to the questions put by the Memb ers and its Report, Armenia has shown that trade 
reform is continuing and in this manner. I am c onfident that the Members can join me in wishing it 
every success in the future. 
 
__________