Armenia WT/TPR/S/228 
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II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(1) BACKGROUND  
1. As in other states of the former Soviet Union, Armenia's economy contracted sharply after 
independence.  In addition, at that time it was s till suffering the effects of the Spitak Earthquake in 
December 1988, which killed 25,000, left about 500 ,000 homeless and was responsible for the closure 
of the nuclear power plant.  The conflict in Nagorno-Karabakh and the subsequent closure of the 
borders between Armenia and Azer baijan, and between Armenia and Turkey, added to the economic 
difficulties.   
2. The collapse of the rouble and the introducti on of the Armenian dram in November 1993 
marked the start of a return to economic stability .  With IMF support, the Armenian Government 
started to stabilize the economy through an ambiti ous reform programme, which included Armenia's 
1993 application to accede to the GATT and, in 1995, the WTO.  
3. With the assistance of the European Union un der the Partnership and Cooperation Agreement 
between Armenia and the European Union (signe d in 1996), the European Neighbourhood Action 
Plan (adopted in November 2006), the Country Stra tegy Paper 2007-2013 and the National Indicative 
Programme Armenia has undertaken a comprehensive re form of much of its legislation, institutions 
and policy implementation to bring them into line with  those of the EU.  The objective of much of the 
reform is to improve trade and economic ties with the EU to the point where Armenia can establish a 
a deep and comprehensive free-trade area with the Union. 
4. At the same time, Armenia has maintained its existing network of free-trade agreements with 
other nine CIS countries and is exploring the possi bility of improving its econom ic relations with its 
neighbour Iran. 
(2) GENERAL INSTITUTIONAL FRAMEWORK  
(i) Branches of government 
5. Following the collapse of the Soviet Union and a referendum of its citi zens, Armenia became 
an independent republic in 1991.  The Constitu tion was adopted by a nationwide referendum on 
5 July 1995, and a number of amendments were made through another referendum on 
27 November 2005.1  The amendments to the Constitution im proved the distribution of powers among 
the presidency, Government, and National Assemb ly, and provided greater independence to the 
judiciary.  State power is to be exercised based on the principle of the separation of the executive, 
legislative, and judicial powers.  The Venice  Commission of the Council of Europe assisted the 
Armenian authorities in preparing the draft amendm ents before they were put to the referendum 
in 2005.2 
6. According to the Constitution, the head of state is the President who is elected for a five-year 
term with a maximum of two consecutive terms.  The last Presidential election was held in 
February 2008.  The President's responsibilities are set out in Article 55 of the Constitution.  Amongst 
other things, he represents the country in intern ational relations, is the commander-in-chief of the 
armed forces, and is responsible for making a number of key official appointments.  These official appointments include:  
                                                     
 
1 The Constitution is available in English at the Official Site of the President of the Republic of 
Armenia.  Viewed at:  http://www.president.am/library/constitution/eng/ [September 2009]. 
2 Council of Europe (2005). WT/TPR/S/228 Trade Policy Review 
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− the Prime Minister, who must be the person enjoying the confidence of the majority of 
Deputies in the National Assembly or, failing that, the greatest number of deputies;  
− the members of the Government, upon the recommendation of the Prime Minister;  
− four members of the Constitutional Court (there are a total of nine members plus a 
president)3; 
− two legal scholars to the Council of Justice (the re are another nine members of the council 
elected by the General Assembly of Judg es and two more appointed by the National 
Assembly)4; 
− the presidents and judges of the Court of Cassation, upon the recommendation of the Council 
of Justice.  (The Court of Cassation is, th e highest judiciary body in Armenia except for 
constitutional issues);   
− judges of the courts of Appeal and First Instance, upon the conclusion of the Council of 
Justice;  and 
− as Commander-in-Chief of the armed forces, the office of the Highest Command of the armed 
and paramilitary forces. 
7. The President also recommends candidates for the posts of Chairman of the Central Bank, 
Chairman of the Control Chamber, and the Prosec utor General, who are ap pointed by the National 
Assembly.  On the recommendation of  the Prosecutor General, he also appoints the deputies to this 
post.   
8. The head of Government is the Prime Minist er, who chooses the ministers and the Vice Prime 
Minister for appointment by the President.  The Government is responsible  for policy development 
and implementation through ministri es and other public institutions .  At end-November 2009, there 
were 18 Ministers;  one of who, the Minister of Territorial Administration, is also the Vice Prime Minister.   
9. Legislative power is vested in the unicam eral National Assembly, which consists of 
131 deputies elected for five-year terms.  The last elec tions were held in May 2007.  In addition to its 
main role of debating and voting on proposed legisl ation, the Assembly also appoints the Chairman of 
the National Assembly's Oversight Office and the Pr esident of the Constitutional Court,  and elects 
the Human Rights Defender (the Armenian equivalent  of an ombudsman), which requires a two-thirds 
majority of the National Assembly.   
10. The court system in Armenia is based on the Ju dicial Code (in effect since 1 January 2008 
and amended in February 2009).  There are Common Ju risdiction Courts of First Instance, then Civil 
and Criminal Courts of Appeal and, at the highest  level, the Court of Cassation and the Constitutional 
Court.
5  
                                                      
3 The Constitutional Court of the Republic of Armenia online information, "The Structure of the 
Constitutional Court".  Viewed at:  http://www.concourt.am/englis h/structure/index.htm [September 2009].  
4 The Judiciary of Armenia on line information, "About the Council".  Viewed at:  
http://www.court.am/?l=en&id=25 [September 2009]. 
5 The Judiciary of Armenia online informati on.  Viewed at:  http://www.court.am/?l=en 
[November 2009]. Armenia WT/TPR/S/228 
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11. The Common Jurisdiction Courts of First Inst ance are responsible for civil cases involving 
claims of up to 5,000 times the minimum monthly sa lary.  The Civil Court of Appeal has jurisdiction 
to hear civil cases for claims above this thr eshold, bankruptcy cases, and non-property disputes 
specified by procedural law.6  Eight, out of a total of 30, civil court judges are designated to hear 
bankruptcy cases.  The appeals may only be based on evidence presented in the first court.  For 
non-constitutional issues, the highest court is the Court of Cassation.   
12. The Constitutional Court is responsible for determining the constitutionality of domestic 
legislation and the conformity with the Constitution of treaties before they are sent to the National 
Assembly for ratification.  Its responsibilities al so include resolving disputes regarding national 
elections or referenda, and de termining whether there are grounds to impeach the President. 
(ii) Institutional powers in WTO-related matters 
13. In Armenia, a treaty enters into force after th e Constitutional Court has declared it to be in 
conformity with the Constitution and after it has been ratified by the National Assembly.  Under 
Article 6 of the Constitution, all domestic legislatio n in Armenia must conform to the Constitution.  
Therefore, in cases of conflict, the Constituti on and treaties prevail over domestic legislation 
14. Since June 2002 the Official Bulletin of the Republic of Armenia  and the Bulletin for 
Departmental Normative Acts of the Republic of Armenia  have, between them , published all new 
legislation including: international agreements, la ws enacted by the National Assembly, Decrees and 
Orders of the President, Resolutions of the Nati onal Assembly, Resolutions of the Government and 
the Prime-Minister, and Orders of ministers and governors.  
15. On 17 December 1993, Armenia applied to acc ede to the GATT under Article XXXIII of 
GATT 1947.  It applied to accede to the Organizatio n on 31 January 1995, under Article XII of the 
Agreement Establishing the WTO.7  It became the 145th Member of the WTO on 5 February 2003, 
30 days after it had been confirmed that the Protocol of Accession had been ratified by the National Assembly.  
16. The Ministry of Economy has responsibility for most aspects of policy affecting international 
trade in goods and services.
8  It replaced the Ministry of Trade and Economic Development by 
Presidential Decree on 21 April 2008.  The Armenian  Development Agency was established in 1998 
to assist investors, including export promotion activiti es (Chapter IV(5)).  The Agency is governed by 
a board with the Prime Minister as Chairman.  Relevant government ministries and the private sector (for example the Union of Manufacturers and Entr epreneurs) are also represented on the Board.   
17. Sanitary and phytosanitary measures are the r esponsibility of a number of ministries.  The 
Ministry of Agriculture is responsible for measures relating to animal and plant health.  The Ministry 
of Healthcare is responsible for food safety and the Ministry of Environmental Protection for threats 
to the environment (Chapter III(9)).  Technical re gulations and standards are the responsibility of 
various governmental bodies within the Ministry of Economy (Chapter III(8)).   
                                                     
 
6 Until 1 January 2008, all economic disputes were first referred to the Economic Court, which had 
jurisdiction over business-related cases, for both natural and legal persons.  Under the new Judicial Code the 
Economic Court no longer exists and Common Jurisdictio n Courts of First Instance and the Civil Court of 
Appeal hear all business related cases.  
7 WTO document WT/L/25, 10 February 1995. 
8 The Ministry of Economy's website is available in English (Ministry of Economy online information.  
Viewed at:  http://www.mineconomy.am/en/).  Howeve r, many links are only available in Armenian.  WT/TPR/S/228 Trade Policy Review 
Page 16 
 
 
18. The Armenian Central Bank is responsible  for the development, approval, and 
implementation of monetary policy programmes, and issu ing the currency.  It also has the authority to 
license and supervise the activities of credit institu tions in Armenia and, since 1 January 2006, has 
been the regulator and supervisor of the financial market.9  Under the amendments to the Constitution 
in 2005 and the amendments to the Law on Cent ral Bank, the Central Bank is independent 
(Chapters I(2) and VI(4)(ii)).   
19. The privatization programme is the responsibility of the Govern ment's Department of State 
Property Management (Chapter V(2)). 
20. A number of public institutions are responsib le for public policy on investment and its 
implementation in Armenia:  the Ministry of Econom y is responsible for investment generally and for 
improving Armenia's investment rating;  the Business Support Council, for reducing administrative barriers and regulations on investment;  th e Armenian Development Agency (ADA), for 
implementing investment policy;  and the Securities Commission regulates the securities market.
10  
The Law on Foreign Investments of July 1994 is the pr inciple legislation.  No significant restrictions 
are applied to foreign investors, and no significant direct incentives are offered to foreign investors 
over local ones, but investment is encouraged th rough ADA assistance with procedures, and through a 
general policy to encourage investment from dome stic sources or from abroad.  For more details 
(Chapter V(1)(ii)). 
21. Armenia is a landlocked country and two of its four borders are closed.  Thus, although 
transport policy is the responsibility of the Minist ry of Transport and Communication, the larger 
political issues affecting the country have a much greater impact on transport than the roads and 
railways to Georgia and Iran.  Road and rail infr astructure depends on available funds, both through 
the domestic budget and from foreign donors (Chapter VI(4)(iv)).   
22. The State Revenue Committee is responsible fo r collection and administration of taxes, 
including: customs valuation; tariffs; rules of origin, and border controls (Chapter III(1)). 
23. The Agency of Intellectual Property was created in 2002 within the Ministry of Economy, and 
it is responsible for policy formula tion and implementation with respect to intellectual property rights 
(Chapter V(6)).   
(3) INSTITUTIONAL REFORMS  
24. During the accession process a number of important institutional reforms took place covering 
many aspects of the economy, including:  adoption of the obligations of Article VIII of the IMF 
Agreement (Sections 2, 3, and 4);  new system for income, value-added, and property taxes;  adoption 
of bound tariffs;  and continuation of the privatization programme.   
25. Before and since acceding to the WTO in 20 03, Armenia has been pursuing a policy of 
reform in the legal, administrative and institutiona l areas.  Although the most important legal changes 
were the 2005 amendments of the Constitution, other reforms in nati onal legislation ha ve continued, 
including several that directly affect trade.  Th e reforms in legislation included:  the 2001 Law on 
Licensing which simplified import and other licensing procedures;  the 2002 Law on Anti-Dumping and Countervailing Measures;  the 2001 Law on Protec tion of Domestic Market, which established 
the legal basis for safeguard measures; and the 2 004 Law on Veterinary Practice.  The institutional 
                                                     
 
9 Central Bank of Armenia online information, "Financial System and Supervision:  Introduction". 
Viewed at:  http://www.cba.am/CBA_SITE/financial_system_control/?__locale=en. 
10 Ministry of Economy (2007). Armenia WT/TPR/S/228 
 Page 17 
 
 
reforms included: the establishment of the Stat e Revenue Committee in 2008 (Chapter III(1)); the 
changes to the structure of the courts made in 2008 (see above); and the extension of the regulatory 
role of the Central Bank (Chapter VI(4)).  
26. The World Bank has identified several areas wher e reforms are needed to remove constraints 
to economic growth, including several issues linked to the efficiency of the public sector and the reduction of corruption.
11   
27. In the past few years, Armenia has been taking steps to address political and public 
accountability.  In addition to the reforms in th e judiciary and in the Customs Office (Chapter  III(1)), 
penalties for tax evasion were increased and higher au dit standards for public bodies were introduced.  
However, according to the World Bank, survey s of public and business opi nion have repeatedly 
shown tax and customs, education, and anti-co rruption policy as the main areas of concern.12  I n  
addition, despite being ranked 43rd out of 183 countries in the World Bank's Ease of Doing Business 
Index, Armenia's performance varied considerably fr om one category to another, for example, it was 
ranked 5th for registering property and 153rd for paying taxes.13 
28. In Transparency International's 2009 Corr uption Perceptions Index, Armenia was 120th out of 
180 countries, a decline from 99th place in 200714;  according to the Global Corruption Barometer it 
scored particularly badly for confidence in the judiciary.15  This view is supported by other reports.16  
The new Judicial Code of 2008 is meant to addr ess many of the issues concerning public perception 
of corruption in the judiciary.  In addition, the authorities are preparing an anti-corruption strategy, 
which is expected to focus on rules for the c onduct of public servants a nd managing conflicts of 
interest.  It will also address the interaction between the public and pr ivate sectors, not only at central 
government level, but also at agency level.  A third element of the strategy will include improved 
accountability in terms of both how the public service operates and its use of resources. 
(4) MAIN TRADE AGREEMENTS AND OBJECTIVES  
29. Armenia's trade policy is predominantly focused  on trade with the EU and with members of 
the Commonwealth of Independent States (CIS), wh ich together represented 68% of imports and 87% 
of exports (including re-exports) in 2008.  It is al so heavily influenced by the closed borders with 
Turkey and Azerbaijan.  According to reports, th is has greatly limited trading opportunities and 
increased the costs of exports and imports, and has r estricted economic growth in Armenia.  Opening 
the borders would benefit Armenia although it has been  stated that there would be some adjustment 
costs for some sectors.17   
(i) World Trade Organization 
(a) Accession to the WTO18 
30. During the process for its accession to the WTO in 2003, Armenia had a relatively 
straightforward tariff structure with nearly all tariffs at rates of 0% or 10%;  it also had a largely open 
                                                      
11 World Bank et al. (2009). 
12 World Bank et al. (2009).  
13 World Bank and IFC (2009). 
14 Transparency International online information, "Corruption Perceptions Index 2009:  CPI 2009 
Table" .  Viewed at:  http://www.transparency.org/polic y_research/surveys_indices/cpi/2009/cpi_2009_table. 
15 Transparency International (2009). 
16 For example, see Freedom House (2009);  and American Bar Association (2008).  
17 European Parliament (2007);  and World Bank (2001). 
18 For more details on Armenia's accessi on, see WTO documents WT/ACC/ARM/23, 
26 November 2002;  and WT/ACC/10/Rev.1, 28 May 2003. WT/TPR/S/228 Trade Policy Review 
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and non-discriminatory trade and investment regi me.  However, the accession process required 
substantial legislative changes to bring dom estic policies into line with WTO rules.   
31. Upon accession, it bound the entire Schedule in ad valorem  terms with rates ranging from 0% 
to 15% (Chapter III(4)) with each product listed individually.  It also joined in a number of 
zero-for-zero initiatives, including: agricultural equipm ent, chemicals, most construction equipment, 
medical equipment, most paper, pharmaceuticals, steel, and ITA.  
32. Armenia also undertook to abide by the rules a pplicable to developed country Members.  It 
did not undertake any commitments on tariff quotas a nd did not reserve the right to use the special 
agricultural safeguard for any agricultural products.  On subsidies to agriculture, Armenia undertook:  
not to seek recourse to the investment, input, and di versification subsidies provided for under Article 
6.2 of the Agreement on Agriculture for developing  countries; accepted, with effect from end 2008, a 
de minimis  limit of 5% of the value of agricultural production for calculating its Current Total 
Aggregate Measurement of Support19;  and bound its export subsidies at zero.  Furthermore, it 
undertook to remove, by the end of 2008, an exempt ion from VAT which applie d to basic agriculture 
products and veterinary drugs. 
33. Other changes to customs and relate d procedures included:  replacing the ad valorem  customs 
fee of 0.3% by a uniform fee of US$6.50 for customs processing and a specific weight-related fee of US$0.55 per tonne for freight inspection;  changing the origin principle of charging VAT and excise tax on imports, which exempted imports from CIS count ries, to the destination principle to comply 
with Article I of GATT;  and amending the Custom s Code to allow for greater use of transaction 
value as a basis for customs valuation. 
34. Armenia did not apply any quantitative restrictio ns to imports or exports before or after 
acceding to the WTO.  However, a number of products are subject to import prohibitions for health, security, and environmental reasons.   In the accession process Armenia also undertook to apply excise duties in a way that ensures that similar products  are subject to the same levels of duties.    
35. In services, Armenia's commitments cover all sectors except postal services and, not 
surprisingly for a landlocked country, maritime ser vices.  However, it maintains limitations on the 
right of foreign natural persons to own land as well as several other sector-specific restrictions.  
Service suppliers, like all businesses in Armenia, are re quired to register with the State Register of 
Legal Entities. 
(b) Participation in the WTO 
36. Armenia has a Permanent Mission to the Unite d Nations Office and other International 
Organizations at Geneva which currently has one  diplomat, the Permanent Representative, who is 
responsible for trade and economic issues including:   WTO matters; and economic and trade matters 
in other international Organizations based in Ge neva (for example, UNCTAD, WIPO and UPOV).  In 
addition, he is responsible for issues relating to  bilateral trade between Armenia and Switzerland. 
37. In the negotiations under the Doha Development Agenda, Armenia is a member of the group 
of recently acceded Members (RAMs) and has participated in its proposals.  In the most recent draft 
                                                     
 
19 Armenia's de minimis  limit for product-specific support was set at 10% of the total value of 
production of a basic agricultural product, and for non-product-specific support at 10% of the value of total 
agricultural production until 31 Decembe r 2008, after which they became 5% , as in Article 6.4(a) of the 
Agreement on Agriculture. Armenia WT/TPR/S/228 
 Page 19 
 
 
of modalities for agriculture, Armenia has been listed, along with some other RAMs20, as a small, 
low-income RAM with an economy in transition;  therefore, it would be entitled to additional 
flexibility relative to that provided for other recently acceded Members.  Similarly, in the most recent 
draft of modalities for market access for non-agricu lture products, Armenia, along with some other 
RAMs21, would be entitled to greater flexibility th an that provided for other recently acceded 
Members.   
38. Armenia has been particularly active in the ne gotiations on trade facilitation where, as part of 
various groups, it has submitted several pr oposals, mostly on the transit of goods.22  As of end-2009, it 
had not submitted an offer on services.  According to the authorities, it has not been active in the 
services negotiations because it had already made extens ive commitments in this area in its accession 
to the WTO.  Armenia has started negotiations to accede to the Government Procurement Agreement.  
The authorities stated that, although it has not actively participated in many meetings, it is a member 
of the RAMs group, through which it has particip ated in the negotiations.  Furthermore, as a small 
country with limited resources, it has to focu s its efforts where they are most needed. 
39. Following the administrative reorganization under which the Ministry of Economy replaced 
the Ministry of Trade and Economic Developm ent (MTED), an agency was created with 
responsibility for notifications to the WTO.  The Mi nistry of Economy is responsible for the agency 
(Table II.1). 
Table II.1 
Notifications to the WTO, 2003-09 
WTO Agreement Description of require ment Most recent notification Date 
Agreement on Agriculture 
Article 10 and 18.2  Export subsidy  G/AG/N/ARM/13 27/02/2008 
Article 18.2  Domestic support G/AG/N/ARM/16 04/07/2008 
Article 18.3 Domestic support G/AG/N/ARM/15 26/03/2008 
General Agreement on Trade in Services  
Article III:3 Notification S/C/N/464 14/07/2008 
Article III:4 or IV:2 Contact and e nquiry point  S/ENQ/78/Rev.9 01/12/2006 
Article VII:4 Notification S/C/N/304 22/10/2004 
Article XXVIII(k)(ii)2 Notification S/C/N/232/Corr.1 10/10/2003 
Agreement on the Implementation of Articl e VI of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.5 Competent authority G/ADP/N/14/Add.22 
G/SCM/N/18/Add.22 10/10/2006 
Article 18.5 Laws and regulations  G/ADP/N/1/ARM/1/Suppl.2 29/03/2007 
Article 16.4 Semi-annual repor t G/ADP/N/173/Add.1 21/10/2008 
Agreement on the Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation)  
Article 22.2 Notification G/VAL/N/1/ARM/1 06/08/2003 
 Checklist of issues G/VAL/N/2/ARM/1 06/08/2003 
GATT 1994  
Article XVII:4(a) State trading en terprises G/STR/N/12/ARM 20/06/2008 
Article XXIV:7(a) Free Trade Agreement WT/REG171/N/1 27/07/2004 
Table II.1 (cont'd) 
                                                      
20 Albania, Georgia, Kyrgyz Republic, Moldova, and Mongolia. 
21 Albania, Cape Verde, Former Yugoslav Repu blic of Macedonia, Kyrgyz Republic, Moldova, 
Mongolia, Saudi Arabia, Tonga, Viet Nam, and Ukraine. 
22 WTO documents TN/TF/W/137, 21 July 2006;  TN/TF/W/137/Add.1, 24 July 2006;   
TN/TF/W/137/Add.2, 19 December 2006;  TN/TF/W/137/Add.3, 11 January 2007;  and TN/TF/W/137/Add.4, 24 July 2007. WT/TPR/S/228 Trade Policy Review 
Page 20 
 
 
WTO Agreement Description of require ment Most recent notification Date 
Agreement on Import Licensing  
Articles 1.4(a) and 8.2(b) Notif ication G/LIC/N/1/ARM/3 05/09/2007 
Article 7.3  Questionnaire on import 
licensing procedures G/LIC/N/3/ARM/5 03/10/2008 
Article 8.2(b) Notification G/LIC/N/1/ARM/4 24/09/2007 
Agreement on Preshipment Inspection  
Article 5  Notification G/PSI/N/1/Add.10 19/07/2004 
Market Access 
 Quantitative restrictions G/ MA/NTM/QR/1/Add.11 11/04/2008 
Agreement on Rules of Origin  
Article 5 and paragraph 4 of 
Annex II  Notification G/RO/N/41 21/08/2003 
Agreement on Subsidies a nd Countervailing Measures  
Article 25.1 – Article XVI:1 New and fu ll notification G/SCM/N/155/ARM 18/06/2007 
Article 25.11  Semi-annual repor t G/SCM/N/178/Add.1 21/10/2008 
Article 25.12 Competent au thorities G/ADP/N/14/Add.22 
G/SCM/N/18/Add.22 10/10/2006 
Article 32.6 Laws and regulations G/ADP/N/1/ARM/1 
G/SCM/N/1/ARM/1 30/07/2003 
Agreement on Safeguards 
Article 12.6 Laws and regulati ons G/SG/N/1/ARM/1 08/08/2003 
Agreement on Sanitary and Phytosanitary Measures 
Article 7 Annex B Notifica tion G/SPS/N/ARM/24 03/12/2008 
Agreement on Technical Barriers to Trade 
Annex 3C Notification of acceptance G/TBT/CS/N/155 19/02/2004 
Article 15.2 Communication from the 
Republic of Armenia G/TBT/2/Add.75/Rev.1 10/08/2004 
Article 2.9 Notification G/TBT/N/ARM/64 07/05/2008 
Articles 2.9 and 5.6 Notification G/TBT/N/ARM/59 25/10/2007 
Article 5.6 Notification G/TBT/N/ARM/70 21/10/2008 
Agreement on Trade-Related In vestment Measures (TRIMs)  
Article 6.2 Notifications G/TR IMS/N/2/Rev.11/Add.4 06/09/2004 
Agreement on Trade-Related Aspects of  Intellectual Property Rights (TRIPS)  
Article 14.6 - Rome 
Convention Article 17 Laws and regulations IP/N/1/ARM/1 13/08/2003 
Article 63.2 Main dedicated intellectual 
property laws and regulations IP/N/1/ARM/P/2 14/04/2008 
Article 69 Contact points  IP/N/3/Rev.9/Add.1 31/01/2006 
Article 9.1 – Berne Convention 
Article 14 bis, paragraph 2(c) Laws and regulations IP/N/1/ARM/1 13/08/2003 
Source: WTO Secretariat. 
40. Since accession, Armenia has not been involved in any disputes under the WTO's dispute 
settlement mechanism.   
(ii) Generalised System of Preferences 
41. Armenia has GSP arrangements with Cana da, Japan, Norway, Switzerland, and the 
United States.23  Since 1 January 2009, it has had GSP+ status with the European Union.24  
                                                      
23 UNCTAD (2008) lists Canada, the EU, Japan, Switzerland, and the United Sates as having GSP 
arrangements with Armenia.  The Norwegian Customs includes Armenia as eligible for GSP (see Toll Customs Armenia WT/TPR/S/228 
 Page 21 
 
 
(ii) European Union25 
42. In addition to being eligible for the Europ ean Union's GSP+ arrangement, Armenia has a 
number of agreements with the EU covering a broa d range of political, social, cultural and economic 
issues.  The Partnership and Cooperation Agreem ent between the EC and Armenia was signed in 
April 1996 and entered into force in July 1999.  Following the outcome of the European Council of 
14 June 2004, the countries of the South Caucasus entered into the framework of the European 
Neighbourhood Policy.  Following a Country Report published in March 2005, an Action Plan was 
discussed between the Commission and the Armenian Government and adopted in November 2006.26  
The five-year Action Plan is intended to help, inter alia , improve trade and economic integration with 
the EU including through the alignment of laws a nd regulations.  It includes a number of objectives 
relating to trade, such as improving the administ rative capacity of the customs administration and 
setting up a mechanism for consultations with the trad ing community.  It also requires monitoring of 
compliance with WTO rules in th e framework of existing WTO rules and procedures.  The Country 
Strategy Paper for 2007-13 and the National Indica tive Programmes provide technical assistance from 
the EU to Armenia to meet a number of goals , including:  good governance;  regulatory reform; 
administrative capacity building;  and poverty reduction.  
43. Implementation of the ENP Action Plans are intended, inter alia , to assist development in 
Armenia, and the other countries of the South Caucuses (Azerbaijan and Georgia), so that they can negotiate, implement, and sustain a deep and comprehensive free-trade area with the EU.
27  Such an 
agreement would cover more than tariffs and rules of  origin.  It would require close alignment with 
the EU of Armenia's trade-related laws and their implementation in many areas, including:  sanitary 
and phytosanitary measures;  technical barriers to trade;  and intellectual property.  A feasibility study for such an agreement, completed in May 2008, c oncluded that it would benefit Armenia, but that 
Armenia was not ready, at that stage, to enter such an FTA.
28  However, the authorities stated that 
Armenia's implementation of the current Action Plan  and the Country Strategy Plan was contributing 
to the reform and improvement of institutional st ructures which should, in the foreseeable future, 
enable Armenia to start negotiations on establishi ng a deep and comprehensive free-trade area with 
the EU.  
(iii) Commonwealth of Independent States  
44. The Report of the Working Party on the Accessi on of the Republic of Armenia to the WTO 
states that the Treaty of Economic Union between  the Heads of State of the Commonwealth of 
Independent States (CIS) in 1993 was a framework document and that the specifics of preferential 
                                                                                                                                                                     
online information, "Annex 1 – List of GSP-countries:  List of developing countries given "ordinary GSP 
treatment"". Viewed at: http://www.toll.no/upl oad/10%20landlist.pdf [September 2009])  
24 Press Release, "The EC Special Incentive Arra ngement for Sustainable Development and Good 
Governance (GSP+) 2009-2011", Memo/08/777, 9 Decemb er 2008.  Viewed at: http://europa.eu/rapid/ 
pressReleasesAction.do?reference=MEMO/08/777&fo rmat=HTML&aged=0&language=EN&guiLanguage=en 
[September 2009]. 
25 For more details of EU relations with Armenia, see the European Commission online information, 
"External Relations:  Armenia".  Viewed at: http://ec.europa.eu/external_relations/armenia/index_en.htm 
[September 2009]. 
26 European Commission (2006).   
27 European Commission online information, "Bilateral Trade Relation:  Armenia, Azerbaijan, and 
Georgia (South Caucasas)".  Viewed at:  http://ec. europa.eu/trade/issues/bilateral/regions/caucasus/ 
index_en.htm [September 2009]. 
28 Commission of the European Communities (2009). WT/TPR/S/228 Trade Policy Review 
Page 22 
 
 
trading relationships should be defined in the bilateral free-trade agreements.29  The Report of the 
Working Party also states that Armenia had concluded and ratified seven free-trade agreements.30  
45. At the end of 2009, Armenia had nine FTAs in for ce, all them with its CIS partners:  Belarus, 
Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Ru ssian Federation, Tajikistan, Turkmenistan, and 
Ukraine.  Of these, only five have been notif ied to the Committee on Regional Trade Agreements.31  
The agreements effectively appl y duty-free treatment to all merchandise imports into Armenia from 
these countries but they do not cover trade in services, investment or government procurement. 
(iv) Other agreements 
46. Armenia, along with Albania, Azerbaijan, Bulg aria, Georgia, Greece, Moldova, Romania, the 
Russian Federation, Serbia, Turkey and Ukraine, is  a member of the Organization of the Black Sea 
Economic Cooperation (BSEC).  The BSEC is a multilateral, economic initiative aimed at 
encouraging cooperation in the Black Sea region.32  Armenia has had an MFN trade agreement with 
Iran since 199733, and has been exploring the possibility of entering into negotiations to with the 
objective of achieving closer economic ties. 
                                                      
29 The text of the free-trade agreement between th e CIS countries can be found in WTO notification 
WT/REG82/1 of 1 October 1999 
30 Russian Federation, the Kyrgyz Republic, Turkmenist an, Georgia, Ukraine, K azakhstan and Belarus.  
WTO document WT/ACC/ARM/23, 26 November 2002. 
31 WTO documents WT/REG171/N/1, WT/REG172/N/1, WT/REG173/N/1, and WT/REG174/N/1 
respectively (all documents dated 27 July 2004).  See also the WTO Regional Trad e Agreements Information 
System (RTA-IS), online information.  Viewed at:  http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx.  
32 For more information on the BSEC and its related bodes and affiliated centers, see BSEC online 
information.  Viewed at:  http://www.bsec-organi zation.org/Pages/homepage.aspx [September 2009]. 
33 Foreign Ministry of Armenia online information, "Trade Agreement between the Government of the 
Republic of Armenia and the Government of the Islamic Republic of Iran".  Viewed at: http://www.armeniaforeignministry.com/doc/conventions/5-2 2-iran-trade-e-06-05-95-e.pdf [September 2009].