Armenia's New Opportunities in the EEU

• 05.15.2015, 18:49
• Anna Karapetyan
•  EEU,  "Insight" Analytical Center ,  Armenia,  Analytics

Today the Eurasian Economic Union seeks to actively expand its foreign relations. At the end of May Free Trade Zone agreement will be signed with Vietnam. Negotiations are going on with Israel, Egypt and India. Over the last week it was announced that there are intentions to start negotiations with China and Iran.

In the presence of the Ukrainian crisis and its impact on economic and political relations between the West and Russia, the expansion of ties of the EEU with the East becomes an alternative to the active cooperation with the West. The EEU is now trying to create its own area of ​​economic cooperation, involving in it the World advanced economies, such as China and India, to some extent compensating the losses from the reduction of the trade turnover of Russia with Europe. At the same time, individual member states of the EEU - Armenia, Belarus, Kazakhstan, are trying to use their economic and trade relations with Europe to compensate the total losses from mutual sanctions of the EU and Russia.

The same Russia repeatedly stated its desire for economic integration of the EU and the EEU, but in order to communicate with the EU "on equal terms," the EEU should become an independent economic unit. Cooperation with the countries of the Middle East and Asia are very important in this regard.

 Development of the Union’s external relations means additional revenues and investments for the EEU countries, including Armenia. A particular important role Armenia can play in the formation of a treaty and the development of relations with of the EEU with Iran, as it has a direct border with Iran, and many years of experience of trade and economic cooperation. In addition, the EEU’s deepening relations with Iran will be an additional impetus for the development of communication between the EEU and Iran, including the construction of Armenia-Iran railway. The railway will be an important link not only between the two countries, but also between Armenia and other EEU countries, such as Kazakhstan.

During the meeting of the Supreme Eurasian Economic Council, the President of Kazakhstan Nursultan Nazarbayev also noted about the potential possibility of partnership with Turkey. In this case, the closed Armenian-Turkish border will be a serious obstacle, and the external pressure of the EEU countries on Turkey for lifting the partial blockade of Armenia and opening the Armenian-Turkish border will increase.

These are the perspectives that can be opened before Armenia in the near future. In addition, the EEU becomes an impetus for the development of relations between Armenia and Kazakhstan, Belarus, and Kyrgyzstan (after joining). Traditionally, trade and economic ties have been developed with Russia, but trade turnover with the rest of the EEU countries is at a low level due to lack of communication routes. Now not only Armenia, but also all the EEU countries are interested in the development of communication and networking, as the quality and scope of the interaction between the economies depend on the efficacy and viability of the Union as a whole.

After Armenia’s accession to the EEU the changes are still poorly reflected on the country's population. Many agreements have not been completely implemented, some issues are still under negotiation. To maximize the benefits from the participation in the Union and to solve its own problems, active involvement of Armenian businessmen, experts and concerned sectors of society in the discussion and development of various regulators of the EEU is important.

For example, before the end of the year the negotiations over the Customs Code of the Union are expected to be completed. Several days ago discussions were held in Armenia on the Code with the participation of members of the board of the Eurasian Economic Commission. Armenia must be active in all the discussions and be an initiator in raising urgent questions for itself. Development of a format of cooperation with Iran is a good opportunity for such activities and for increasing its weight in the Union.