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Armenia Should Solve the Problem of Diversification of Exported Goods to India

Last week, the Eurasian Economic Union and India signed a joint statement on the start of negotiations around the establishment of the Free Economic Zone (FEZ). Signing on behalf of the Eurasian Economic Union, the Trade Minister of the Eurasian Economic Community, Veronika Nikitishina said that the completion of the negotiations around the FEZ in 2-3 years will be a "very good result".

Free trade zone is a type of deep economic integration that gives the member countries the possibility of unlimited trade with each other, without taxes and customs duties. In the context of what has been said, the creation of FEZ between the Eurasian Economic Union (EAEU) and India will not only increase gross exports and trade with India, but will also contribute to the development of trade relations between India and individual member countries of the EAEU. Naturally, the  future negotiations will discuss the features of the two economies (the EAEU and India). Meanwhile, as a primary effect, the parties interested in the FEZ may expect to develop and deepen the already established trade relations with India. In this regard Armenia is not an exception.

The Armenian-Indian trade relations have a solid foundation. During the past ten years, the statistics of the Armenian-Indian trade turnover had the following form.[1].

 

Year

Exports (US dollars)

Imports (US dollars)

2004

13 200

 

17 346

 

2005

18 100

 

19 231

 

2006

1 264

 

41 850

 

2007

10

 

26 245

 

2008

152

 

58 456

 

2009

2 708

 

43 541

 

2010

5 464

 

48 007

 

2011

2 981

 

70 766

 

2012

1 232.9

 

69 565.2

 

2013

203.4

 

67 421.4

 

2014

225.3

 

3 456.6

2015

426.3

51 889.7

 

As it is seen, the given statistics of ten years shows that the Armenian-Indian trade turnover was accompanied by a negative balance for Armenia. It is in this direction that work should be done ahead the creation of the FEZ between EAEU-India. It should be noted that from India Armenia mainly imports meat products, tea, rice, precious stones, medicine, textiles, jewelry, manufactured goods, goods made of plastic and linoleum, electrical appliances, and in turn exports precious and semiprecious stones, copper and copper goods, aluminum and products made of it, chemical products, non-ferrous metals, scrap metal and raw rubber.

That is, we have a task of diversifying the list of exported goods and increasing the volumes of goods currently being exported. 2-3 years mentioned by Nikitishina is sufficient for preparatory work in this direction.  

 



[1] Source: RA Customs Service

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