Armenia`s government approves draft agreement between EAEU and  Mongolia  

ArmInfo. On December 5, the  Government of Armenia approved the proposal to sign a temporary trade  agreement between the Eurasian Economic Union (EAEU) and its member  states, on the one hand, and Mongolia, on the other.

As noted in the explanatory note to the document, the draft agreement  was approved on September 24, 2024, by the order of the Council of  the Eurasian Economic Commission (EEC).

The objectives of the Agreement, defined in more detail taking into  account its principles and rules, are: a) liberalization and  simplification of trade in goods between the Parties, including by  reducing or eliminating tariff and non-tariff barriers in accordance  with the provisions of this Agreement; b) support for economic and  trade interaction between the Parties; c) encouragement of the  expansion and diversification of trade between the Parties.

The Agreement defines the list of tariff obligations of the Parties,  the rules for determining the origin of goods, the specifics of the  exchange of information within the framework of the Agreement, etc.

The attached lists are an integral part of the agreement and include  375 commodity items for each Party, for which the Parties are ready  to provide tariff concessions. The products presented by the Armenian  side mainly fall into the category of goods of primary interest to  it.

It is noted that the opening of the Mongolian market will provide  Armenian exporters with more competitive conditions for the supply of  products exported from Armenia, such as tobacco (Mongolian rate 30%),  cognac (rate 15%), chocolate (rate 5%), mineral water (rate 5%),  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  customs duty rate on goods exported from Armenia to Mongolia will  decrease from 7.5% to 1.2%. As a result, savings on customs  concessions when exporting from Armenia to Mongolia can amount to up  to 1 million US dollars per year. The document provides for the  establishment of the Agreement's term of three years with the  possibility of extension for another three years, unless the parties  agree otherwise. 

The EAEU already has a number of trade agreements with other  countries. There are free trade agreements with Vietnam, Serbia, Iran  and Singapore, as well as an agreement with China, which, although it  does not eliminate duties, provides for measures to simplify trade.  In addition to Mongolia, the EAEU is negotiating trade agreements  with the UAE, Indonesia, Egypt and India.