YEREVAN. – Membership in the Customs Union and signing of the existing free trade area agreement with EU  are mutually exclusive things, German Ambassador to Armenia said.

Reiner Morell noted that free trade area agreement was ready for ratification during the Vilnius summit, but the statement made by President Sargsyan has changed everything.

“These are mutually exclusive things. In any case, in the present form,” Ambassador said during the Thursday press conference.

If Armenia joins the Customs Union, the country must take into account the rules of this structure. This means that Armenia can no longer independently negotiate with the other country on customs matters as the Union will dictate the tariff rates.

“It is logical that it is impossible to work in two directions simultaneously. But you have to try to go forward,” Ambassador Morell emphasized.

Asked about president’s remarks concerning Armenia’s readiness to continue negotiations with the EU, the Ambassador said that it is necessary  to determine how to proceed in practice.

“It is necessary to stop and figure out how to move on. We need to continue the dialogue and see what can be done and what can not,” the diplomat noted.

He recalled that the idea of ​​the Eastern Partnership was to provide a field for cooperation in terms of modernization of society and economy.

“The proposal is still on the agenda. Even if the proposal is changed in the conditions of entering the Customs Union, the idea will remain,” he added.

As to relations with Moscow, the Ambassador noted importance of Russia as a major partner for Armenia.

“Though, Europe also plays an important role in Armenia’s trade turnover. If I remember the figures correctly, the trade turnover between Armenia and Russia is 22 % and with Europe - 29%. EU countries want to continue economic relations with Armenia. The future will show whether membership in the Customs Union will complicate the development of economic relations between Armenia and EU. But I am confident that trade should continue,” he said.

The diplomat said that Armenia can supply minerals, services and agricultural products to the European market, but he found it difficult to say whether these products will be competitive.

Photo by Arsen Sargsyan/NEWS.am