The measures will liberalize around 80 percent of Armenian exports to the EU, the Council said in a press release.
It added that the preferential arrangement comes with certain conditions and also includes safeguard measures “to protect the EU market if imports adversely affect EU producers.”
The Council endorsed the European Commission proposal without changes, clearing the way for the regulation to be swiftly adopted if the European Parliament also approves the proposal without amendments.
“Europe stands with Armenia and its people, who have chosen a clear path for reform and closer cooperation with the European Union,” Helen McEntee, Minister for Foreign Affairs and Trade of Ireland, said, as quoted by the Council of the EU.
“Today’s decision sends a clear message: when faced with economic coercion, the EU will respond. We will create new opportunities and stand with our partners,” she added.
The regulation introduces a temporary suspension of import duties for a broad range of Armenian products, including selected agricultural products subject to tariff-rate quotas. The measures will apply for two years from the regulation’s entry into force and will cover almost 99 percent of Armenia’s exports of fresh fruit, vegetables and plants to Russia and more than 91 percent of beverages and spirits.
The proposed regulation is intended to support Armenia after trade restrictions imposed by Russia have disrupted Armenian exports and transit routes. It also aims to strengthen EU-Armenia trade relations in line with the Comprehensive and Enhanced Partnership Agreement (CEPA).
“The preferential arrangements remain conditional on Armenia complying with the applicable rules of origin, engaging in administrative cooperation with the EU, refraining from introducing new trade restrictions on EU imports and respecting the essential elements of the CEPA, including democratic principles, the rule of law and human rights,” the Council of the EU said.
The European Parliament is expected to adopt its position without amendments during its September plenary session. Once that position is formally adopted, the Council will approve it and the regulation will be adopted, entering into force on the day following its publication in the Official Journal of the EU.
Visiting Yerevan in early July, European Commission President Ursula von der Leyen promised that the EU will open its tightly protected and regulated market to Armenian agricultural products.
Her announcement came in response to Russia gradually banning the import of various goods from Armenia in May of this year, including agricultural produce, fish products, beverages, dairy products and cut flowers.
The Russian sanctions followed two European summits in Yerevan during which Prime Minister Nikol Pashinian reaffirmed his administration’s intention to seek Armenia’s eventual accession to the EU.
Russia says these aspirations are no longer compatible with the South Caucasus nation’s membership in a Russian-led trade bloc essential for the Armenian economy.
Data released by the Armenian government late last month showed that Armenia’s exports continued to fall significantly in July, declining by about 16 percent year on year.
While calling the Russian sanctions ungrounded, Pashinian has repeatedly urged local businesses to use the “opportunity” to diversify Armenian exports. In June and August, his government approved subsidies to farmers and agribusiness firms that manage to find new export markets.