WT/TPR/S/379/Rev.1 30 January 2019 (19-0494) Page: 1/119 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT ARMENIA Revision This report, prepared for the second Trade Policy Review of Armenia, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Armenia on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr John Finn (Tel: 022 739 5081), Mr Mario Kakabadse (Tel: 022 739 5172), Mr Samer Seif El Yazal (Tel: 022 739 5459), and Ms Fatima Chaudhri (Tel: 022 739 6384). Document WT/TPR/G/379 contains the policy statement submitted by Armenia. Note: This report was drafted in English. WT/TPR/S/379/Rev.1 • Armenia - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 11 1.1 Recent Economic Developments ...................................................................................11 1.2 Main Macroeconomic Policy Developments .....................................................................13 Monetary and exchange rate policies ..........................................................................13 Fiscal policy ............................................................................................................14 1.3 Main Structural Policy Developments and Challenges ......................................................14 Business environment ..............................................................................................15 Tax reform ..............................................................................................................16 Financial sector reform .............................................................................................16 Energy sector reform ...............................................................................................16 1.4 Balance of Payments ...................................................................................................16 1.5 Developments in Trade and Investment ........................................................................18 Trends and patterns in merchandise trade ..................................................................18 Services trade .........................................................................................................20 Trends and patterns in foreign investment ..................................................................21 2 TRADE AND INVESTMENT REGIMES........................................................................... 22 2.1 Background ...............................................................................................................22 2.2 General Framework ....................................................................................................22 2.3 Policy Objectives ........................................................................................................25 2.4 Trade Agreements and Arrangements ...........................................................................26 WTO ......................................................................................................................26 Regional trade agreements .......................................................................................28 2.4.2.1 Eurasian Economic Union (EAEU) ............................................................................28 2.4.2.2 Bilateral agreements .............................................................................................29 2.4.2.3 Commonwealth of Independent States (CIS) ............................................................29 Other arrangements .................................................................................................30 2.4.3.1 European Union ....................................................................................................30 2.4.3.2 Generalised System of Preferences (GSP) ................................................................30 2.5 Investment Regime ....................................................................................................30 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 34 3.1 Measures Directly Affecting Imports ..............................................................................34 Customs procedures under the new EAEU Customs Code ..............................................34 Customs valuation ...................................................................................................35 Rules of origin .........................................................................................................36 Tariffs ....................................................................................................................37 3.1.4.1 MFN applied tariff ..................................................................................................38 3.1.4.2 Tariff concessions .................................................................................................41 Other charges affecting imports .................................................................................41 WT/TPR/S/379/Rev.1 • Armenia - 3 - 3.1.5.1 Charges exclusively applied to imports ....................................................................41 3.1.5.2 Indirect taxes .......................................................................................................42 3.1.5.2.1 VAT ..................................................................................................................42 3.1.5.2.2 Excise tax .........................................................................................................42 Import prohibitions, restrictions, and licensing ............................................................44 3.1.6.1 Legal framework ...................................................................................................44 3.1.6.2 Institutional framework..........................................................................................45 Anti-dumping, countervailing and safeguard measures .................................................46 3.2 Measures Directly Affecting Exports ..............................................................................47 Customs procedures and requirements .......................................................................47 Export taxes ...........................................................................................................47 Export prohibitions, restrictions, and licensing .............................................................47 Export finance, insurance and promotion ....................................................................48 Duty and tax concessions .........................................................................................49 3.3 Measures Affecting Production and Trade .......................................................................49 Business environment ..............................................................................................49 Standards and other technical requirements ...............................................................50 Sanitary and phytosanitary (SPS) requirements ...........................................................53 Competition policy and price controls .........................................................................56 Consumer protection policy .......................................................................................61 State trading, state-owned enterprises (SOEs), and privatization ...................................62 Government procurement .........................................................................................63 3.3.7.1 Public procurement rules coverage of state-owned firms over the review period ...........66 Intellectual property rights ........................................................................................70 3.3.8.1 Overview and institutional framework ......................................................................70 3.3.8.2 IP regime .............................................................................................................71 3.3.8.3 IP framework at the EAEU level ..............................................................................72 3.3.8.3.1 Trademarks .......................................................................................................73 3.3.8.3.2 Copyright and related rights ................................................................................73 3.3.8.3.3 Geographical indications .....................................................................................73 3.3.8.3.4 Patent rights ......................................................................................................74 3.3.8.3.5 Topographies of integrated circuits .......................................................................74 3.3.8.3.6 Trade secrets .....................................................................................................74 3.3.8.3.7 Enforcement ......................................................................................................74