Armenia

50 %
50 %
Information about Armenia
News-Reports

Published on May 7, 2008

Author: Petronilla

Source: authorstream.com

AGRICULTURE AND TRADE POLICIES OF THE REPUBLIC OF ARMENIA:  AGRICULTURE AND TRADE POLICIES OF THE REPUBLIC OF ARMENIA Country review in the perspective of facilitation of trade in agricultural products Structure of the presentation:  Structure of the presentation Main characteristics and the role of the agro-food sector Agro-food sector policies Trade policy Trade in agricultural products Legislative and institutional framework Trade facilitation issues Main characteristics and the role of agro-food sector (General ınformatıon about the country) :  Main characteristics and the role of agro-food sector (General ınformatıon about the country) Landlocked mounaınous country sıtuated ın the southern part of Asıa. Borders wıth Azerbaıjan (east), Georgıa (north), Iran (south), Turkey (west). Terrıtory 29743 sq. km. Agrıcultural land 14000 sq. Km. Populatıon 3.2 mıllıon, of whıch rural populatıon 36 per cent. Capıtal: Yerevan. Main characteristics and the role of agro-food sector (Some relevant macroeconomıc characterıstıcs):  Main characteristics and the role of agro-food sector (Some relevant macroeconomıc characterıstıcs) Lımıted market. Hıgh level of ımportatıon (dependency on ımports). Foreıgn trade as per cent of GDP was 16 per cent ın 2002 Hıgh unemployment. Main characteristics and the role of agro-food sector (Structure of GDP by main sectors) :  Main characteristics and the role of agro-food sector (Structure of GDP by main sectors) Main characteristics and the role of agro-food sector (Share of agro-food sector in GDP, in per cent):  Main characteristics and the role of agro-food sector (Share of agro-food sector in GDP, in per cent) Main characteristics and the role of agro-food sector (Employment by main sectors) :  Main characteristics and the role of agro-food sector (Employment by main sectors) Agro-food sector policies (the reform process) :  Agro-food sector policies (the reform process) Comprehensive reform with high speed of land privatization started in 1991 70 per cent of agricultural land in private hands. Very fragmented land ownership with an 1.3 ha land plots. 335000 farms! Liberalization of prices and of trade. Good in short term for solving food security issues. Privatization of agro-processing industry, and the development of relevant market instruments were well behind the land privatization. Problems for agricultural and rural development in mid to long term perspective. Role of agriculture in the whole economy has been high, as other sectors suffered more. Agro-food sector policies (domestic support policy) :  Agro-food sector policies (domestic support policy) Budgetary constraints Application of wide tax privileges in agriculture Budgetary allocations are mainly directed to measures fitting under the “green box” (WTO) irrigation network financial and communication infrastructure pest and disease control training and extension services upgrading seed and livestock quality inspection for health and safety purposes Agro-food sector policies (domestic support policy):  Agro-food sector policies (domestic support policy) Measures fitting under the “amber box” (WTO) Tax privileges (the VAT exemption) Provision of low interest rate loans Water subsidies Seed loans (currently not in place) Provision of input and investment subsidies Agro-food sector policies (WTO commıtments):  Agro-food sector policies (WTO commıtments) Commitments Binding tariffs at 15 per cent level, except for few products Binding export subsidization at zero Binding the level of AMS at zero level, i.e. Armenia will be required to keep its “amber box” subsidization only to the de minimis level The de minimis level of support with respect to product specific and non-product specific support will be 10 per cent until 31 December 2008, and 5 per cent beginning on 1 January 2009 Armenia will remove the existing exemption from the value added tax on domestic agricultural products sold by producers and on sales of veterinary products from 1 January 2009 Agro-food sector policies (WTO commıtments):  Agro-food sector policies (WTO commıtments) Implications Specifics of Armenia’s agricultural sector The commitments are very limiting by nature, and would have negative economic and social effects Limitation with respect to export promotion Limitation with respect to state support Difficulties related to the implementation of “Green” and “Blue” box support measures Possible negative consequencies related to the change of the VAT regime (legal, administrative, economic, social) Non-trade issues Ongoing developments under the WTO, and the experience of WTO Members Trade policy (the reform process):  Trade policy (the reform process) Market reform started in 1991. Freedom to conduct foreign trade activities. Liberalization of trade and diversification of foreign economic relations in an environment of fair competition as essential elements of foreign trade policy. Accession to the WTO as confirmation of Armenia’s commitment to liberalization and integration to the world economic system. Development of a network of multilateral and bilateral trade and economic agreements. Trade policy (trade agreements):  Trade policy (trade agreements) Agreements within CIS – the Treaty of Economic Union; Free Trade Agreements with CIS countries; the agreement for creation of common agricultural market. Black Sea Economic Co-operation Organization. The PCA with the European Union. Other trade and trade related agreements. Trade policy (trade regime):  Trade policy (trade regime) Liberal trade regime with 0 and 10 per cent customs duties on imports of goods, and no duties on exports. Specific duties applied only for few products (tobacco and tobacco products, alcohol and alcoholic beverages) No restrictions on importation of goods, except those applied for health, safety, security and environmental reasons. No quantitative restrictions. Specific (fixed) customs fee (complıance wıth GATT Artıcle VIII). Two internal taxes applied to imported and domestic products – VAT and excise tax. Trade in agricultural products (trends in foreign trade performance):  Trade in agricultural products (trends in foreign trade performance) Major shifts occurred in foreign trade flows as a result of free competition. Shift from FSU countries to European, Near East countries, the USA and others. CIS - 26 per cent of total exports and 24.9 per cent of total imports in 2001. The EU – 26 per cent of total exports and 29 per cent of total imports in 2001. GSP granted. EUR 9.2 million of preferential imports to the EU, with 54.6 per cent utilization rate. For agro-food products total exports comprısed EUR 710000, wıth EUR 115000 preferentıal exports. Iran – 9.6 per cent of total exports and 8.9 per cent of total imports in 2001. The USA – 15.2 per cent of total exports and 9.6 per cent of total imports in 2001. Trade in agricultural products (trade performance by major partners):  Trade in agricultural products (trade performance by major partners) Trade in agricultural products (trade performance by major partners):  Trade in agricultural products (trade performance by major partners) Interestıng to note: There ıs relatıvely even dıstrıbutıon of ımports of agro-food products among the maın partners, whıle exports maınly go to CIS countrıes. Thıs ıs common for other CIS countrıes. Reasons for thıs: - qualıty and standards - non tarıff barrıers Trade in agricultural products (trade in agro-food products by major partners):  Trade in agricultural products (trade in agro-food products by major partners) Trade in agricultural products (exports of agro-food products by major partners):  Trade in agricultural products (exports of agro-food products by major partners) Trade in agricultural products (imports of agro-food products by major partners):  Trade in agricultural products (imports of agro-food products by major partners) Trade in agricultural products (trade in agro-food products by major products):  Trade in agricultural products (trade in agro-food products by major products) Imports – 2002 Live animals and products of animal origin – 13.1 % Products of plant origin – 37.4 % Oils and fat of animal and plant origin – 8.9 % Ready food products – 40.6 % Exports – 2002 Live animals and products of animal origin – 4.5 % Products of plant origin – 1.5 % Oils and fat of animal and plant origin - 0 Ready food products – 94 % Legislative and institutional framework (the reform process):  Legislative and institutional framework (the reform process) Comprehensive legislative and institutional activities within the framework of market reform. Considerable achievements in the legislative reform process. Compliance with WTO. Legislation allows for free international competition in trade. There are issues to be addressed with respect to law enforcement and law interpretation. There is also a need for further legislative work, especially with respect to secondary legislation. Legislative and institutional framework (enforcement and implementation):  Legislative and institutional framework (enforcement and implementation) KEY concepts and issues at the current stage of reform Law enforcement Institutional development Effective and clear division of tasks Capacity building Unified interpretation of laws Education of parties in the society Transparency Legislative and institutional framework (enforcement and implementation):  Legislative and institutional framework (enforcement and implementation) Specific issues related to customs matters Customs valuation issues Issues related to the simplification of customs procedures – one window concept Issues related to the simplification of customs procedures – the example of overlapıng lısts for agrıculturalproducts The need to have a single inquiry point Legislative and institutional framework (enforcement and implementation):  Legislative and institutional framework (enforcement and implementation) Specific issues related to standards and conformity assessment Alignment of standards with the internationally accepted rules Separation of public and private tasks Separation of rule making from enforcement and control Lack of qualified human resources (e.g. for development of standards and technical regulations) The need for modernization of laboratories Legislative and institutional framework (enforcement and implementation):  Legislative and institutional framework (enforcement and implementation) Food safety and food control Alignment of standards with the internationally accepted rules The need to base food control on risk analysis The need to streamline food control activities The need to monitor disease and hygiene situation throughout the whole production chain, instead of doing it only at the end of the marketing chain The need to strengthen the capacity and the powers of inspectors The need to have laws on general market control and product liability The need to expand the use of HACCP system Trade facilitation issues:  Trade facilitation issues Transparency, due process and predictability In general the lack of transparency and frequent and sudden changes of rules and regulations governing foreign trade may create delays and additional costs for traders and may give room for discretionary practices. Availability of information through publication of regulations and guidelines relating to procedures and requirements is important for ensuring transparency and unified interpretation of laws. !!! Guıdelınes shuld be bındıng for the authorıtıes as well. !!! Enquiry point on customs procedures, and the use of single window concept would ease customs procedures for traders (e.g. Agrıbusıness Development Centre). Publication of new laws and regulations in advance would make the trade predictable. Ensuring independent review of customs decisions. Simplification of procedures and reduction of data and information required. Trade facilitation issues:  Trade facilitation issues Non discrimination and the use of least trade restrictive measures All traders and consignments shall be treated uniformly and impartially. Procedures shall be the same for different modes of transport. Requirements shall be kept to the minimum that is needed to ensure the safety, security and streamlined flow of goods and services. Trade facilitation issues:  Trade facilitation issues Free transit Blockade by Turkey and Azerbaijan is harmful for all trade partners in the region Difficulties faced by businesses during the transit through Georgia Trade facilitation issues:  Trade facilitation issues Technical barriers to trade & sanitary and Phytosanitary measures Requirements shall be kept to the minimum that is needed to ensure the safety, security and streamlined flow of goods and services. The use (harmonızatıon) of international standards shall be encouraged Co-operation with respect to mutual recognition of certification results Trade facilitation issues:  Trade facilitation issues Regional co-operation is essential for: Streamlining and harmonization of customs and administrative procedures and documentation. Development of customs and transport information system. Capacity building and human resources development. Trade facilitation issues:  Trade facilitation issues Institutional development and capacity building: The need for regional co-operation. The importance of technical assistance by international organizations and donor countries. It is essential that the countries, which expect to get a technical assistance, are able to clearly identify and substantiate their needs for the assistance.

Add a comment

Related presentations

Related pages

Armenia - Wikipedia, the free encyclopedia

Armenia lies in the highlands surrounding the mountains of Ararat. There is evidence of an early civilization in Armenia in the Bronze Age and earlier ...
Read more

Armenia – Wikipedia

Armenia, vielfach für Armenien, steht für die Regionen: Armenia minor, Kleinarmenien; Armenia maior, Großarmenien; Armenia (Provinz), römische Provinz
Read more

Armenien – Wikipedia

Für kurze Zeit wurde Armenien nun als Provinz Armenia in das Römische Reich integriert, bereits nach wenigen Jahren aber wieder aufgegeben.
Read more

Armenia travel guide - Wikitravel - Wikitravel - The Free ...

Armenia is the only country remaining from 3,000 year old maps of Anatolia. It became the world's first Christian country more than 1,700 years ago in 301 ...
Read more

Armenians - Wikipedia, the free encyclopedia

Armenians (Armenian: հայեր, hayer) are an ethnic group native to the Armenian Highlands. Armenians constitute the main population of Armenia and the ...
Read more

Arménia – Wikipédia, a enciclopédia livre

Armênia-Brasil www.armenia.brasil.nom.br; Armenica.org. História da Arménia (em inglês e sueco) A Country Study: Armenia (em inglês).
Read more

Armenia - Lonely Planet

Few nations have histories as ancient, complex and laced with tragedy as Armenia (ՀԱՅԱՍՏԱՆ). And even fewer have a culture that is as rich and...
Read more

Armenia - New World Encyclopedia

Armenia prides itself on being the first nation to adopt Christianity as its official religion. A former republic of the Soviet Union, today Armenia is ...
Read more

ARMENIA Information

Choose your tour agency, matching by price, service even by name! LIST OF AGENCIES
Read more

Armenia - Wikipedia

Republica Armenia, sau Armenia (armeană: Հայաստան, Hayastan, Հայք, Hayq), este o țară în Caucazul sudic, între Marea Neagră și Marea ...
Read more