Processing vs. raw materials: Economist explains benefits of EAEU market for Armenia
YEREVAN, April 14. /ARKA/. The EAEU market is of great importance for Armenia, as it allows the country to export more highly processed goods, said economist Hrant Mikaelyan.
"In contrast to the EU, where only raw materials and basic processing are exported from Armenia, the EAEU receives products from various sectors of the real economy, including light industry, food products, and agricultural goods," he said during the "ARKA Business" program on ARKA news agency’s YouTube channel.
The economist noted that non-tariff barriers specifically, standards within the EU prevent Armenia from diversifying its trade with the bloc.
"This is a serious issue that has prevented Armenia from increasing its exports to the EU over the past decade. In fact, we’re seeing a gradual decline in exports to both the EU and Switzerland," he added.
Regarding the EAEU market, the expert said the situation is quite different, explaining that a free trade zone has been in place since 2012, and Armenia has benefited from it since 2014. As a result, Armenia's economy has grown by an additional 1.5 percentage points annually.
"This is a significant result it's estimated that about 20% of Armenia’s current GDP can be attributed to its participation in the EAEU," he said.
The full interview is available on the ARKA news agency's YouTube channel.
On March 26, 2025, Armenia’s National Assembly approved a draft law initiating the country's accession process to the European Union. On April 4, President Vahagn Khachaturyan signed the law. According to Arman Egoyan, Chair of the NA Committee on European Integration, the law simply expresses the will of the Armenian people; at this stage, there are no plans to formally apply for EU membership.
Earlier, Armenian Prime Minister Nikol Pashinyan stated that Armenia does not intend to sever economic ties or reduce trade volumes with the EAEU or Russia. Instead, the country is pursuing economic diversification and aims to increase trade with the European Union as well.
According to Armstat, Armenia’s trade with the EAEU grew by 54% in 2024, exceeding $12.7 billion. In contrast, trade with the EU decreased by 11.7% to $2.34 billion. Armenia’s largest EAEU trade partner is Russia, with trade turnover from January to December reaching $12.4 billion (a 56.5% increase). In the EU, its top partner is Germany, with trade volume totaling $486.15 million (a 23.7% decline).
