At its Cabinet session Thursday, the Armenian government approved the signing of a temporary trade agreement between the Eurasian Economic Union (EAEU) and its member states, as one party, and Mongolia, as the other party.

The purpose of this agreement is to liberalize and simplify trade in goods, to support economic and trade interaction, as well as to encourage the expansion and diversification of trade between the two parties.

The opening of the Mongolian market will provide Armenia’s exporters with more competitive conditions for the supply of products exported from Armenia, such as tobacco (Mongolian rate: 30%), brandy(rate: 15%), chocolate (rate: 5%), mineral water (rate: 5%), and canned fruits ( rate: 5%).

The concessions provided by the Mongolian side to the Armenian side will cover 98% of exports from Armenia to Mongolia. The average rate of customs duty on goods exported from Armenia to Mongolia will drop from 7.5% to 1.2%. As a result, savings from customs duty privileges during exports from Armenia to Mongolia can amount to $1 million per year.

The term of this agreement is set for three years, with the possibility of extension for another three years—unless the parties agree otherwise.