The European Union and Armenia on Wednesday successfully concluded negotiations on a Deep and Comprehensive Free Trade Area (DCFTA), as part of the Association Agreement between the EU and the Republic of Armenia.

At the seventh and final round of negotiations – held in Yerevan – negotiators reached agreement on the key elements of a deal which will create a new framework for trade relations between the EU and Armenia, EU said in a statement.

“The DCFTA will strengthen Armenia’s economic integration with the EU by providing better market access for European and Armenian goods and services to each other’s markets. It will offer Armenia a framework for modernising its trade relations and for economic development on the basis of far reaching harmonisation of laws and regulations in various trade-related sectors. These reforms will create the conditions for Armenia to bring key sectors of its economy in line with EU standards. The improved trade opportunities brought about by the DCFTA are expected to bring economic benefits to both the EU and Armenia.

An independent study suggests that in the long run the Armenian economy could gain an extra €146 million a year, representing a 2.3% increase in GDP. Removing non-tariff measures is key to realising these benefits. For its part, the EU is expected to gain by some €74 million.

The DCFTA will have significant impacts on Armenia's trade. The forecast 15.2% increase in Armenian exports and 8.2% increase in its imports in the long run will lead improve Armenia’s trade balance in relative terms.”