By Martin Banks - 20th February 2012
The opening of free trade negotiations mark a turning point in our trade relations with Armenia
Karel De Gucht
The EU has launched negotiations on a "deep and comprehensive" free trade area with Armenia.
The move, announced on Monday, is designed to boost economic growth and investment.
European trade commissioner Karel De Gucht said the negotiations will cover matters that have become "crucial to a modern, transparent and predictable trade and investment environment".
They will not only tackle market access conditions but also focus on regulatory approximation, which, says the commissioner, will help to achieve a closer economic integration of Armenia with the EU.
He said, "The opening of free trade negotiations mark a turning point in our trade relations with Armenia. We are entering a new phase that will bring our economic ties to a new level of depth and ambition.
"The EU is Armenia's first trading partner and a deep and comprehensive free trade area will give Armenia a more favourable access to the European single market thereby helping to boost economic growth in the country."
His comments are echoed by European enlargement and neighbourhood policy commissioner Štefan Füle, who said, "This is a further sign of the strengthening of our political and economic ties.
"Launching such negotiations is one more step towards closer economic integration which is one of the cornerstones of our relations with countries of Eastern partnership."
He said the free trade area will be part of the broader association agreement which has been negotiated with Armenia since July 2010.
An EU source said, "The EU aims to enhance political stability and security in this country by means of closer economic integration with the EU.
"The free trade area is expected to diversify and strengthen Armenia's export capacity and effectively open the way to access the EU market of 500 million consumers.
"Armenia needs to continue its work towards reaching a stable, transparent and predictable economic environment. This is essential to attract foreign direct investment inflows, leading to job creation and long-term growth.
"The most important gains for Armenia lie therefore behind the border, in regulatory reforms, and as such will impact on its long-term development perspective."
The EU has been negotiating an association agreement with Armenia since July 2010.
The launch of the trade negotiations is conditional upon Armenia fulfilling a set of "key recommendations" which cover reforms in what the EU says are key regulatory areas related to trade, in order to prepare Armenia for the upcoming negotiations.
