European Forum

EU green lights free trade area negotiations with Armenia

On 21 February the European Union officially gave a final green light to launch negotiations with Armenia on a far-reaching free trade agreement that should significantly deepen the country’s integration with the 27-nation bloc. The EU trade Policy committee unanimously made the decision after Armenia complied with preconditions of legislation changes, improvement of law enforcement and strengthening of corresponding structures in a number of spheres related to foreign trade over 2011. The first round of negotiations is expected “soon in 2012,” according to the European Commission’s statement.

Turning point
A Deep and Comprehensive Free Trade Area (DCFTA) with Armenia will boost economic growth and investments in this Eastern European partner. By establishing the free trade area, Armenia will have an opportunity to diversify and guide its exporting capacities and to enter the European single market of about 500mln consumers on more favourable conditions. According to EU Trade Commissioner Karel de Gucht: “The opening of free trade negotiations mark a turning point in our trade relations with Armenia. We are entering a new phase that will bring our economic ties to a new level of depth and ambition.” EU Enlargement Commission Stefan Füle called it “a further sign of the strengthening of our political and economic ties.”

Association agreement
The EU has been negotiating a broader Association Agreement (AA) with Armenia since July 2010. The DCFTA will be a part of the AA, a treaty within the framework of the EU’s Eastern Partnership program. This program offers six former Soviet republics, including all three South Caucasus states, closer ties with the bloc in return for political and economic reforms.

Sources: Radio Free Europe, Reuters, EurasiaReview
Image Flickr by Arthur Chapman