EU representative says GSP+ opportunities used not fully in Armenia

ArmInfo. GSP+ - a scheme grants duty reductions on exports to the EU on some 6,000 tariff lines - came into effect in Armenia on Jan 1 2014. This means that nearly 6000 names of Armenian products will be exported to the EU on zero or reduced customs fees, Jose Maria Medina Navaro, a represent of the EU Delegation to Armenia told reporters, Tuesday. He said only 14 countries benefit from GSP+.

EU representatives met with Armenian businessmen Tuesday to inform them of more export opportunities to EU. Medina Navaro said EU closely follows Armenia's development and anticipates certain reforms in human rights, environment and others fields.  The EU representative said the GSP+ preferences do not run contrary to Armenia's membership of the Russian-led Eurasian Economic Union.  "Simply EU is a preferential sales market for Armenia," he said.

Alina Boiciuc, Policy Coordinator for Trade and Sustainable Development, Generalised System of Preferences (GSP) at Directorate-General for Trade, European Commission, said shifting to GSP+, a more flexible and improved trade regime than GSP, is a big achievement for Armenia. It is a 500-million-strong big market of 28 countries.  However, she said, Armenia exports to Europe less tan imports, despite its big export capacity. In her words, Armenia exported mainly copper in 2014. 32% of exported goods are mining products, 17% - cloths, 17% - precious stones.  Boychuk said exports via GSP+ system decreased in 2014 and 2013, but has increased in the current year.  President of the Union of Armenian Exporters Raffi Mekhchyan, in turn, said it is a great honor for Armenia to be in the list of the developing countries that benefit from GSP+ and Armenia should work to improve the local production quality to sustain the stiff competition in the European market.  Armenia joined the GSP (Generalised Scheme of Preferences) on Jan 1 2009. Initially the scheme involved 167 countries, including Armenia, Georgia, and Azerbaijan and was designed for 3 years.

On Jan 1 2014, Armenia shifted to GSP+ - a component of the EU Generalised Scheme of Preferences ('GSP') for developing countries.  It offers additional trade incentives to developing countries already benefiting from GSP to implement core international conventions on human and labour rights, sustainable development and good governance.  Last year, export to EU totaled 273 million dollars, of which 90 million were via GSP+ scheme.