YEREVAN. – Armenia needs to monitor its business competitiveness in the Customs Union (CU).

Armenian Prime Minister Tigran Sargsyan noted the above-said at Saturday’s Second Economic Forum—titled “Armenia-Customs Union: Opportunities and Challenges”—of the ruling Republican Party. 

Sargsyan stated that the average import customs duty is 2.4 percent in Armenia, whereas this is about three times more in the CU.

As per the PM, the high customs duties of a variety of products may cause a price increase in Armenia. On the other hand, if Armenia protects its market within the CU, it will open before local production and investments.

“We are getting a lot of complaints that the Armenian farmers are forced to compete with cheap Indian, Brazilian, and American meat. Such matters should be at our focus,” the premier said.

On the other hand, according to Sargsyan, the increase of the customs duties from third countries can mean a reorientation on the product demand from the CU. In this regard, problems may arise for those producers and manufacturers who export products and technology to non-CU countries.

The PM also noted that Armenia will have to reconsider some of its World Trade Organization commitments, and therefore negotiations should start with this institution.

Following the talks that were held on September 3, 2013 in Moscow between Armenian and Russian Presidents Serzh Sargsyan and Vladimir Putin, Sargsyan had announced that Armenia plans to join the Customs Union and subsequently engage in the formation of the Eurasian Economic Union. In December 2013, the “road map” for Armenia’s accession to the Customs Union was adopted. And in January of this year, the Government of Armenia approved the action plan for the implementation of this “road map.” The formal joining is expected in May. Aside from Russia, Belarus and Kazakhstan likewise are members in the Customs Union.

Photo by Arsen Sargsyan/NEWS.am