By AZE.US
The European Parliament has approved temporary trade relief measures for Armenian products, suspending import duties on eligible goods for two years.
The measure received broad support in the European Parliament, with 583 lawmakers voting in favor, 49 against and 39 abstaining.
The temporary liberalization is intended to make it easier for Armenian exporters to access the European market and support the country’s economy as Yerevan seeks to diversify its foreign trade.
The decision does not amount to a full free trade agreement between Armenia and the European Union. It establishes a limited two-year preferential regime for designated products of Armenian origin.
The vote comes amid the continued expansion of political and economic ties between Yerevan and Brussels. Although Armenia remains a member of the Russia-led Eurasian Economic Union, its government is trying to reduce the country’s dependence on the Russian market and develop alternative export destinations.
Former French Ambassador to Armenia Olivier Decottignies said Armenia had strengthened its sovereignty by diversifying its security, economic and diplomatic partnerships after moving away from exclusive reliance on Russia.
The trade decision coincided with a tightening of monetary policy in Armenia. The country’s Central Bank raised its policy rate from 6.5% to 6.75% – its first increase in almost four years. The regulator cited inflation remaining above its target and accelerating economic growth.
Preferential access to the EU could provide new opportunities for Armenian exporters. However, the country remains closely connected to Russia through trade, energy supplies and its membership in the Eurasian Economic Union.
AZE.US