Armenia takes EU by surprise with decision to access the Customs Union

Armenia could become member of the Customs Union, which includes Russia, Kazakhstan and Belarus, and could participate to the establishment of the Eurasian Economic Union. The announcement has been made after a meeting (in September) between Russian President Vladimir Putin and his Armenian counterpart, Serzh Sargsyan.
“Armenia’s President, Serzh Sargsyan, said his country wants to join the Customs Union and that he would take all the necessary steps. Moreover, Armenia will participate in the establishment of EurAsEc”, Putin said.

Russia is the most important trade partner for Armenia and, at the same time, the largest foreign investor. “I have confirmed Armenia’s decision to access the Customs Union and to participate in the establishment of the Eurasian Union. It is a rational decision adopted in the interest of Armenia”, declared President Sargsyan.
The announcement has taken EU by surprise, especially since Armenia would have initiated negotiations for a potential free trade agreement during the Eastern Partnership Summit (November 2013-Vilnius). But with the decision of becoming a member of the Customs Union, Armenia has blocked its chances of signing an agreement for setting the free trade area with the European Union, said Lithuanian Minister of Foreign Affairs, Linas Linkevicius.
Lithuania took over the presidency of the European Council in July 2013. EU respects this decision announced by Armenian President in Moscow, but “the two systems are not consistent. We respect any decision of the states, but they cannot access two organisations at the same time, because of the differences of tariff policies”, declared Linkevicius.
However, according to the declarations of the European Commissioner for Enlargement and Neighbourhood Policy, Stefan Füle, EU will not abandon Armenia. “We haven’t given up Armenia and the fact that Armenia now turns to the Customs Union doesn’t mean that its European agenda, values and principles will disappear. We will be present in Armenia and we will support the civil society”, declared Füle.
The EU officials have initially mentioned that Customs Union members are inconsistent with the EU free trade agreement. “We will try to ask for additional clear-ups from the Armenian side and then we will be capable to evaluate the implications”, said EU spokeswoman Maja Kocijancic.
Armenia’s accession to the Customs Union is a process in progress as the political decisions have already been announced. “The procedures elaborated by the Customs Union have become effective and we will apply the legislation of the authorities of the three founding countries. All problems will be discussed during technical negotiations as political decisions have already been announced by Russia and Armenia. We hope that all the member countries of the Customs Union would support this step”, said Russian Minister of Foreign Affairs Sergei Lavrov.
After the announcement made by Armenia, the Russian Government and the Eurasian Economic Commission have initiated talks on Armenia’s member statute. “So far, several approaches have been dealt with and the Supreme Economic Council will meet and will make a decision. If all parties agree on cooperating with Armenia, we will announce the presidents of the three countries and at the end of October we will have the green light to initiate talks with Armenia”, declared Igor Shuvalov, Deputy Prime Minister (Russia). Thus, the main provisions of the first integration level can be agreed on in May 2014. “The Customs Union is operational and we are trying to implement the common economic area within the borders of the Union. For this, we are elaborating an agreement on the establishment of the Eurasian Economic Union until May 2014 that should become operational as of January 2015”, added Shuvalov.

[ by Pamela Luică ]
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