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.
