Challenges and opportunities of an EU-Armenia DCFTA | EUNewsletter

Challenges and opportunities of an EU-Armenia DCFTA

21 July 2012
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The challenges and opportunities of a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Armenia were discussed during a seminar organised by the EU Advisory Group and the Ministry of Economy on 20 July in Yerevan.
The aim was the analyse the opportunities this process might bring to Armenia and discuss the challenges to achieving a free trade area with the EU.
The seminar reviewed the main elements of the DCFTA negotiation process and the impact of DCFTA on Armenian’s economic relations with the EU. During his opening speech the Minister of Economy, Tigran Davtyan, emphasised that the DCFTA would create new opportunities, especially for the export sector. Onno Simons, the Head of the EU Delegation’s Political, Economic, Press and Information Department noted that the DCFTA between Armenia and the EU cannot just be “on paper”. “By this agreement Armenia has made a decision to move towards the EU, and we will support it” he added. A DCFTA would imply Armenia’s integration with the EU Internal Market to the fullest possible extent. This includes the elimination of barriers to trade, services and investments. Armenian producers and exporters will, thus, be offered free access to a market with over 500 million high income customers. Experts estimate that Armenian exports could increase by 30%.

To be successful, the DCFTA will have to tackle import monopolies, modernise customs and facilitate trade. Other factors include the effective liberalisation of markets, the implementation of EU regulations in sanitary and phytosanitary areas, technical barriers to trade, as well as the attraction of foreign investors to main sectors of the economy.

The first round of negotiations on DCFTA started in Brussels on 19-20 June 2012, following the ”zero-round” preparatory meeting held in early May. Another two rounds are planned in 2012.

Challenges and opportunities of an EU-Armenia DCFTA

The challenges and opportunities of a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Armenia were discussed during a seminar organised by the EU Advisory Group and the Ministry of Economy on 20 July in Yerevan. The aim was the analyse the opportunities this process might bring to Armenia and discuss the challenges to achieving a free trade area with the EU. The seminar reviewed the main elements of the DCFTA negotiation process and the impact of DCFTA on Armenian’s economic relations with the EU. During his opening speech the Minister of Economy, Tigran Davtyan, emphasised that the DCFTA would create new opportunities, especially for the export sector. Onno Simons, the Head of the EU Delegation's Political, Economic, Press and Information Department noted that the DCFTA between Armenia and the EU cannot just be "on paper". "By this agreement Armenia has made a decision to move towards the EU, and we will support it" he added. A DCFTA would imply Armenia's integration with the EU Internal Market to the fullest possible extent. This includes the elimination of barriers to trade, services and investments. Armenian producers and exporters will, thus, be offered free access to a market with over 500 million high income customers. Experts estimate that Armenian exports could increase by 30%. To be successful, the DCFTA will have to tackle import monopolies, modernise customs and facilitate trade. Other factors include the effective liberalisation of markets, the implementation of EU regulations in sanitary and phytosanitary areas, technical barriers to trade, as well as the attraction of foreign investors to main sectors of the economy. The first round of negotiations on DCFTA started in Brussels on 19-20 June 2012, following the ''zero-round'' preparatory meeting held in early May. Another two rounds are planned in 2012.