The Armenian government approved the free trade agreement between the Eurasian Economic Union (EAEU), its member states, and Indonesia at its Cabinet meeting Thursday.

The aim of this agreement is to liberalize and simplify trade in goods between the parties, including by reducing tariff and non-tariff barriers.

The respective proposals submitted by the Armenian side mainly include agricultural products that are of primary interest to Armenia’s exports, in particular: mineral waters (current customs duty: 5%, after the agreement enters into force: 0%), canned fruits and vegetables (current customs duty: 20%, after the agreement enters into force: 0%), fruit juices (current customs duty: 5%, after the agreement enters into force: 0%), fruit jams (current customs duty: 5%, after the agreement enters into force: the customs duty is reduced by 50%), etc.

The selection of industrial goods was also carried out according to the above principle and includes such products as copper products (current customs duty: 5%, 0% after the agreement enters into force or a reduction of the customs duty to 0% within 3 years), medicines (current customs duty: 5%, 0% after the agreement enters into force or a reduction of the customs duty for individual products of the specified group to 0% within 3 to 15 years), jewelry (current customs duty: 15%, after the agreement enters into force for individual products of the specified group to 0%), etc.

The agreement is expected to significantly increase the competitiveness of goods from the EAEU member states in the Indonesian market, thereby increasing the export of goods to Indonesia.