EU deepens engagement with Armenia; Council approves zero-tariff trade

Brussels – Following Ukraine and Georgia, the European Union is now turning its attention to Armenia, extending its sphere of economic influence to another former Soviet state that has historically and traditionally been of Russian interest. The Council of the EU has approved the introduction of temporary trade liberalisation measures for Armenian products to support Armenia’s economy in the wake of Russia’s trade restrictions on the country. With this decision, around 80 per cent of Armenia’s exports will be liberalised, effectively making them tariff‑free.

The government in Yerevan has shifted its focus westwards, looking increasingly towards Europe and less towards Russia. These decisions have prompted the Kremlin to take retaliatory measures, underlining Moscow’s influence over the Caucasian republic. The EU is now seeking to reach out to Armenia through a trade initiative which, by forging closer ties between the two sides, marks a new step forward for the EU towards the East, in a further declaration of intent against the Russian Federation.

In its policy of expanding into Eastern Europe, the EU is careful not to compromise its own interests; indeed, trade liberalisation includes safeguard measures to protect the EU market should imports negatively impact European producers. The special trade regime will, however, be temporary. It will be valid for two years from the entry into force of the regulation. To become operational, all that is needed now is the European Parliament’s approval, with a plenary vote expected during the September plenary session (14–17 September). The intentions, however, are already in place. 

“Today’s decision sends a clear message: when faced with economic coercion, the EU will respond,” and thanks to this preferential scheme “we will create new opportunities and stand with our partners,” said Helen McEntee, the Foreign and Trade Minister of Ireland, the country with the rotating presidency of the Council of the EU. It is the EU that is seeking to oust Russia from the international stage to replace it, and the Irish minister makes this clear by emphasising that “Europe stands with Armenia and its people, who have chosen a clear path for reform and closer cooperation with the European Union.”