Armenian government approved a proposal to sign an agreement on economic partnership between the EAEU and the UAE
YEREVAN, June 26. /ARKA/. On Thursday, at a regular meeting, the Armenian government approved a proposal to sign an agreement on economic partnership between the EAEU and its member states and the UAE.
Negotiations on the agreement have been ongoing since 2022. In order to prepare it, four rounds of negotiations were held, during which the text of the draft agreement, issues of tariff liberalization, as well as lists of goods attached to the agreement for which the parties are ready to provide tariff preferences were discussed.
The agreement is aimed at liberalizing and simplifying trade in goods between the parties, including by reducing tariff and non-tariff barriers, promoting economic and trade cooperation between the parties, and stimulating the expansion of trade between them.
The coverage of exports from Armenia to the UAE on preferential terms will be 95% of the current export volume, the remaining 5% are not subject to concessions. This mainly concerns tobacco products and their substitutes, copper ore, alcoholic beverages, chocolate containing alcohol and juices. Tobacco and alcoholic beverages are systemic exceptions on the part of the UAE, the import of which is prohibited in all free trade agreements to which the UAE is a party.
As of 2023, out of 270 types of goods exported from Armenia to the UAE, a preferential access regime will be established for 217 after the agreement comes into force. As a result, while maintaining export volumes, Armenian exporters will receive a direct benefit of about $ 500 thousand, and the average customs duty on goods exported from Armenia to the UAE will decrease from 6% to 2.6%.
As for agricultural products, the proposals submitted by the Armenian side mainly include products of primary export interest for the RA, in particular, other fresh fruits, including strawberries, wild strawberries, etc., lactose, fresh tomatoes, fruit juices, honey, jams, mineral water with sugar, live plants, apples, apricots, sauces, etc.
In general, the volume of agricultural exports from Armenia to the UAE for the specified commodity items exceeds $ 1.5 million. At the same time, the volume of the UAE market for these commodity items is estimated at approximately $ 550 million, and Armenia's export potential is at least $ 10 million.
As for industrial products, the selection was also made according to the above principle and includes such products as aluminum sheet, aluminum alloys, medical devices, electronic equipment, other furniture, broadcasting equipment, etc.
In general, the volume of industrial exports from Armenia to the UAE for the specified commodity items exceeds $ 9.5 million. At the same time, the volume of the UAE market for these goods is estimated at $51 billion, and Armenia’s export potential is at least $25 million.
