EU-Armenia Relations: Possible Future Developments and Prospects

Abstract:

Armenia concluded its negotiations on the EU-Armenia Association Agreement which includes a Deep and Comprehensive Free Trade Area (hereinafter AA &DCFTA) in July, 2013. However, its announcement to join the Russia-led Customs Union hinders its initialling, given incompatibilities with its trade component.

Nevertheless, the European Union and Armenia have developed and reached a high degree of cooperation over the past four years. Proof of this includes achievements in areas of the Human Rights Defender Institution, electoral processes, transparency, good governance, freedom of the press, border management and fight against crime and corruption. These are examples of Armenia’s efforts in implementing EU-inspired reforms and standards.

On the other hand, the EU has deep relations with other partner countries throughout the world, including some
that belong to existing customs unions and trade blocs, such as Brazil, for whom the EU is the primary trading partner, and Malaysia, where trade and other domains of cooperation are dissociated. Inspired by these cases, there clearly should be room for further cooperation between the EU and Armenia, regardless of their respective trade commitments with third parties.

In addition, there is a growing consensus, both on the EU and the Armenian side, about the need to upgrade
EU-Armenia’s legal basis for cooperation, taking into consideration all the above-mentioned. This future legal
basis could take the shape of an “AA Light” or “PCA Plus” that would allow the EU and Armenia to further develop their relations by capitalising on their current achievements, given that the vast majority of areas for cooperation are non-trade related. However, even in the area of economic cooperation, sectoral agreements should remain feasible, as is the case, for instance, for EU-Uruguay relations.

Finally, it is now up to the Republic of Armenia to take the initiative and show political will for further cooperation with the EU and to make concrete proposals in the areas already defined in the EU-Armenia joint declaration, adopted in Vilnius in November 2013.