EU Council supported the abolition of duties on approximately 80% of Armenia's exports: what does this mean for business?

YEREVAN, September 3. /ARКА/. The EU Council supported temporary trade liberalization with Armenia, which, once finalized, will allow for the elimination of import duties on approximately 80% of Armenian exports to the EU.

This does not refer to an 80% increase in Armenia's exports, but to the share of current exports to the EU that will be eligible for preferential tariff treatment. Tariff quotas will apply to some agricultural products, and the regime itself includes a number of conditions and protective mechanisms.

What happened

On September 2, the EU Council approved the European Commission's proposal on temporary trade liberalization measures for Armenian products without amendments.

Now the European Parliament must decide its position. The Council expects MEPs to consider the proposal without amendments at the September plenary session.

Following formal approval by the European Parliament, the Council must finally adopt the regulation. It will enter into force the day after its publication in the Official Journal of the European Union. What does the 80% figure mean?

According to the EU Council, the new measures will liberalize approximately 80% of Armenia's exports to the EU.

Ad valorem import duties (duties calculated as a percentage of the product's value) will be temporarily suspended for the relevant products. For eight agricultural products, the exemption from such duties will apply within the limits of the tariff quotas established by the EU.

Which products will receive additional benefits?

The measures may be particularly significant for products traditionally targeted at the Russian market.

According to the Council of the EU, the list of products covered by the new measures corresponds to almost 99% of Armenian exports of fresh fruit, vegetables, and plants to Russia, as well as over 91% of beverage and spirit exports.

The European Commission's proposal specifically names brandy, wine, mineral water, fruit, vegetables, and other agricultural products among the Armenian products facing restrictions on the Russian market.

How long will the benefits be in effect?

The measures are intended to last for two years from the entry into force of the regulation.

The preferential regime will be temporary and exceptional. The EU also reserves the right to reintroduce duties or apply other protective measures if the import of certain goods creates serious difficulties for EU producers.

What conditions must Armenia meet?

The preferences will be granted subject to compliance with the rules of origin of goods and Armenia's administrative cooperation with the EU. Furthermore, Armenia must not impose new trade restrictions on imports from the European Union or increase existing tariffs.

It is also possible to suspend the benefits if Armenia fails to comply with the terms of the preferences, including the essential elements of the Armenia-EU Comprehensive and Enhanced Partnership Agreement (CEPA)—the principles of democracy, the rule of law, human rights, and fundamental freedoms.

Why is this important for Armenia?

The European Union directly links the initiative to the need to help Armenian exporters diversify their markets following the trade restrictions and transit barriers imposed by Russia in 2026.

In 2025, the EU was Armenia's third-largest trading partner, but accounted for only 7.9% of Armenia's merchandise exports. The EU's share of Armenia's total trade turnover was 11.3%, and of its imports, 13.5%.

To take advantage of these new opportunities, exporters will need to comply with the EU's rules of origin and other conditions for receiving trade preferences.

Economists' Opinions

Economist Hrant Mikaelyan believes that the abolition of duties alone is unlikely to lead to a significant increase in Armenian exports to the EU.

According to him, the main obstacles remain more complex and expensive logistics, intense competition in the European market, EU requirements and standards, and the limited diversification of Armenian exports.

Dr. Tatul Manasaryan, head of the Alternative research center and Doctor of Economics, believes that political factors play a significant role in the EU's current decision, including those related to broader competition for influence in the region and Russia's changing role in the South Caucasus.

He thinks that those Armenian producers whose products meet the strict requirements of the European market will be the first to benefit from the new opportunities, so the practical impact of the incentives will depend on the willingness of businesses to comply with these standards.