The Armenian government, at its Cabinet meeting Thursday, approved the draft of the interim free trade agreement between the Eurasian Economic Union (EAEU) and Mongolia, which was signed on June 27 in Minsk, the capital of Belarus.

The agreement provides for the simplification of import and export procedures, as well as the reduction of customs duties on a reciprocal basis for 367 product names on each side.

Of particular importance for Armenia are the reduced rates for the export of cigarettes, brandy, chocolate, mineral water, and canned fruits. As a result, the average customs duty on Armenian goods in Mongolia will be reduced from 7.5% to 1.2%. The privileges will apply to 98% of current exports from Armenia.

The term of this agreement is three years, with the possibility of extension for another three years unless the parties agree otherwise. This term is standard for interim preferential trade agreements, as similar conditions were also in place for the EAEU interim agreement with Iran, before it was replaced by a full free trade agreement.

According to customs statistics, exports from Armenia to Mongolia amounted to $340,000 in 2024, and $516,000 in 2023. Imports from Mongolia to Armenia amounted to $53,000 and $7,000, respectively.

According to the Armenian government, taking into account the potential increase in supplies, the reduction in customs duties will enable Armenian companies to save up to $1 million annually.