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ITC by CountryReportArmenia05/12/2014
ITC by country - Armenia 1
Table of Contents1. Country / Territory Brief
2. People and Economy
2.1 People
2.2 Economy
3. Trade Performance
3.1 General Trade Performance
3.2 Sector Trade Performance
4. Trade Strategy and Policy
4.1 Trade and Development Strategies
4.2 Domestic and Foreign Market Access
4.3 Trade Facilitation
4.4 Business and Regulatory Environment
4.5 Infrastructure
5. ITC and the Country/Territory
5.1 ITC Projects
5.2 Events
5.3 ITC Contacts
6. Trade Information Sources and Contacts
6.1 Trade Information Sources
6.2 Trade Contacts
This is a pdf version of the captioned country contents in the intracen web site of the International Trade Centre. This documentwas generated on 05.12.2014. For the latest information about ITC's work and the country, please refer to www.intracen.org ©International Trade Centre 2014
ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts of this documentmay be freely reproduced, with due acknowledgement of the source. Permission should be requested for more extensivereproduction or translation. A copy of the reprinted or translated material should be sent to ITC.
ITC by country - Armenia 2
1. Country / Territory Brief
Armenia is a small, landlocked nation in the lower Caucasus Mountains that shares borders with Turkey, Iran, Georgia, andAzerbaijan. Armenian trade is characterized by a significant trade deficit driven by a reliance on energy and advancedmanufacturing imports, mainly from Russia. The majority of exports meanwhile are comprised of metals and low-value productsdestined for Russia and a few select European markets. A member of the WTO since 2003, Armenia has expanded its traderelations through PTAs with Europe and the US and by participating in the CIS free trade agreement. Although it was negotiatingan association agreement with the EU, Armenia has instead decided to pursue further integration with its CIS partners throughthe Russia-Belarus-Kazakhstan customs union. Despite significant progress and potential, Armenian trade is still hampered byweak competitiveness, low productivity, limited financial access, cumbersome regulatory and business environments, andunderdeveloped physical, institutional, and quality management infrastructure.
ITC by country - Armenia 3
2. People and Economy2.1 People
Total population(growth rates per annum) 2,977,488 in 2012 (-0.1%)
Population density(people per sq. km ofland area)
105 in 2012
Female population 49.3% in 2012
Population below 15years of age 20.8% in 2012
Urban population 64.1% in 2012
Population living below$1.25 a day at purchasingpower parity (PPP)
1.3% in 2012
Ranking in the HumanDevelopment Index (HDI) 87 out of 186 in 2012
Evolution of the HumanDevelopment Index (HDI)
Source: United Nations Development Programme Human Development IndicatorsNote: The Human Development Index measures the overall development of a nation and ranges from 0 (low level ofdevelopment) to 1 (highest level of development). The United Nations Development Programme (http://hdr.undp.org)provides a detailed explanation. ITC Regional group refers to ITC definition
Health Life expectancy at birth (years) (74); Mortality rate, under-5 (per thousand live births) (16.4) in2012
Education 29 out of 191 in 2012
Income level N:A.
Inequality 47 out of 191 in 2012
Poverty 101 out of 191 in 2012
Gender 89 out of 191 in 2012
Sustainability N.A.
ITC by country - Armenia 4
2.2 Economy
Added value per sector(current US$ and % of GDP)
Sector added value2004 2008 2012
US $ %GDP US $ %GDP US $ %GDP
Agriculture 808 24.7 1,902 18.4 N.A. N.A.
Industry 1,347 41.1 4,502 43.5 N.A. N.A.
Manufacturing 485 14.8 1,031 10 N.A. N.A.
Services 1,121 34.2 3,934 38.1 N.A. N.A.
Source: World Bank World Development Indicators (WDI)
Note: Added value is US$ terms are expressed in million, GDP US$, and"6,976 to be read 6'976"
Evolution of GDP(constant 2005 US$)
Source: World Bank World Development Indicators (WDI)
Note: ITC calculations based on the World Bank WDI
Evolution of GDP per capita(constant 2005 US$)
Source: World Bank World Development Indicators (WDI)
Note: ITC calculations based on the World Bank WDI
ITC by country - Armenia 5
Aid Dependency(Official Development Assistance/GrossNational Income)
Source: World Bank World Development Indicators (WDI)
Note: ITC calculations based on the World Bank WDI. Regional grouprefers to ITC definition
Remittances as a Share of GDPRemittances as a Share of GDP
2004 2008 2012
Remittance ($ millions) 435 1,053 N.A.
Remittance (% GDP) 1215 902.7 N.A.
Source: World Bank World Development Indicators (WDI)
Note: ITC calculations based on World Bank WDI, IMF BOP statistics,and "6,976 to be read 6'976"
ITC by country - Armenia 6
3. Trade Performance3.1 General Trade Performance3.1.1 Evolution of Trade Ratio to GDP - Goods
3.1.2 Evolution of Trade Ratio to GDP - Services
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3.1.3 Evolution of Total Trade
3.1.4 Trade Map
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3.1.5 Export and Import by Leading Destination - Export
3.1.6 Export and Import by Leading Destination - Import
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3.1.7 Evolution of Exports and Imports by Destination - Export
3.1.8 Evolution of Exports and Imports by Destination - Import
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3.1.9 Total Export Growth
Source: ITC, calculations based on ITC’s Trade Competitiveness Map data.Note:Graph shows decomposition of the country’s export growth in value terms by diversification pattern over the indicatedperiod.
3.1.10 Marginal Export Growth
Source: ITC, calculations based on ITC’s Trade Competitiveness Map data.Note:Graph shows decomposition of the country’s export growth in value by structural driving effects over the indicated period.Values are in US$ thousands.
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3.1.11 Composition of Trade in Services - Export
3.1.12 Composition of Trade in Services - Import
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3.1.13 Evolution of FDI
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3.2 Sector Trade Performance3.2.1 Sectoral Diversification in Products - Export
3.2.2 Sectoral Diversification in Products - Import
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3.2.3 Sectoral Diversification in Destinations - Export
3.2.4 Sectoral Diversification in Destinations - Import
Sectoral diversification in origin for Armenia's imports
Sector
Sector'simportgrowthin value(% p.a)2009-2013
Share of top 3supplying
countries insector’s imports
List of the top 3 supplying countries
2009 2013 2009 2013
Unclassified products 40.8 % 90.7 % 95.9 % Austria ; United States ofAmerica ; Italy
Switzerland ; Austria ; UnitedArab Emirates
Minerals 16.7 % 72.4 % 74.7 % Russian Federation ; Romania ;Bulgaria
Russian Federation ; Romania ;Iran (Islamic Republic of)
Textiles 16.1 % 64.2 % 69.2 % Turkey ; China ; Italy Turkey ; Italy ; China
Clothing 11.7 % 75.7 % 63.9 % China ; Turkey ; Italy China ; Turkey ; Italy
Leather products 10.9 % 78.1 % 78.0 % China ; Italy ; Turkey China ; Italy ; Turkey
Chemicals 9.3 % 33.6 % 29.5 % Turkey ; Russian Federation ;Iran (Islamic Republic of)
Turkey ; Russian Federation ;Germany
Fresh food 8.9 % 54.1 % 50.3 % Russian Federation ; Brazil ;India
Russian Federation ; Brazil ;United States of America
Processed food 8.2 % 60.6 % 57.1 % Russian Federation ; Ukraine ;Brazil
Russian Federation ; Ukraine ;Brazil
Wood products 8.0 % 41.6 % 41.5 % Turkey ; Russian Federation ;Georgia Turkey ; China ; Georgia
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3.2.5 Sectors by World Demand - Export
3.2.6 Sectors by World Demand - Import
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3.2.7 Trade Performance Index
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4. Trade Strategy and Policy4.1 Trade and Development Strategies
Year Strategy name Sector
2010
UNDAF Armenia 2010-2015The United Nations Development AssistanceFramework analyses the current social andeconomic...
2008
Sustainable Development Program - Armenia 2008-2021The PRSP summarizes the results achieved throughthe first PRSP and it...
Agriculture
2006
National Sericulture Development PlanThe plan aims at restoring the production of silk inArmenia. It...
Silk
2002
Armenia Trade Diagnostic StudyThe document provides an overview of the currenteconomic situation in Armenia,...
Gold, Jewelry, Semi-precious stones, InformationCommunication Technology, Grain, Fruits, Vegetables,Meat,...
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4.2 Domestic and Foreign Market AccessOverview: Trade Policy and Business Environment
INDICATOR, UNITS RANK/132 SCORE
Domestic Market Access The pillar assesses the level and complexity of a country’s tariff protectionas a result of its trade policy. This component includes the effective trade-weighted average tariffapplied by a country, the share of goods imported duty free and the complexity of the tariff regime,measured through tariff variance, the prevalence of tariff peaks and specific tariffs, and the numberof distinct tariffs.
12 5.83
Foreign Market Access The pillar assesses tariff barriers faced by a country’s exporters in destinationmarkets. It includes the average tariffs faced by the country as well as the margin of preference indestination markets negotiated through bilateral or regional trade agreements or granted in the formof trade preferences.
34 3.45
Tariff rate (%) This indicator is calculated as a trade-weighted average of all the applied tariff rates,including preferential rates that a country applies to the rest of the world. The weights are the tradepatterns of the importing country’s reference group (2012 data). An applied tariff is a customs dutythat is levied on imports of merchandise goods.
39 2.76
Complexity of tariffs , index 1-7 (best) This indicator is calculated as the average of the followingindicators: Tariff dispersion, Specific tariffs and Number of distinct tariffs. See description of eachindividual indicator for more details. Prior to averaging, values for each indicator were transformed toa 1–7 score, using the min-max method.
40 6.46
Tariffs dispersion (standard deviation) This indicator reflects differences in tariffs across productcategories in a country’s tariff structure. The variance is calculated across all the tariffs on importedmerchandise goods, at the 6-digit level of the Harmonized Schedule.
10 4.77
Tariffs peaks (%) This indicator is the ratio of the number of tariff lines exceeding three times theaverage domestic tariff (across all products) to the MFN (most-favoured nation) tariff schedule. Thetariff schedule is equal to the total number of tariff lines for each country. These tariffs are revised ona yearly basis.
37 0.42
Specific tariffs (%) This indicator is the ratio of the number of Harmonized System (HS) tariff lines,with at least one specific tariff, to the total number of HS tariff lines. A specific tariff is a tariff ratecharged on fixed amount per quantity (as opposed to ad valorem)
83 1.65
Number of distinct tariffs This indicator reflects the number of distinct tariff rates applied by a countryto its imports across all sectors.
82 166.00
Share of duty-free imports (%) Share of trade, excluding petroleum, that is imported free of tariffduties, taking into account MFN tariffs and preferential agreements. Tariff data is from 2013 or mostrecent year available and imports data is from 2012
34 68.98
Tariffs faced (%) This indicator is calculated as the trade-weighted average of the applied tariff rates,including preferential rates that the rest of the world applies to each country. The weights are thetrade patterns of the importing country’s reference group (2012 data). A tariff is a customs duty that islevied by the destination country on imports of merchandise goods
62 5.41
Index of margin of preference in destination markets, 0-100 (best) This indicator measures thepercentage by which particular imports from one country are subject to lower tariffs than the MFNrate. It is calculated as the average of two components: 1) the trade-weighted average differencebetween the MFN tariff and the most advantageous preferential duty (advantage score), and 2) theratio of the advantage score to the trade-weighted average MFN tariff level. This allows capturingboth the absolute and the relative margin of preference.
17 57.75
Source : World Economic Forum, Global Enabling Trade Report 2014
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4.3 Trade Facilitation
Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)
Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)
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4.4 Business and Regulatory Environment
Multilateral Trade Instruments
Abstract
The Trade Treaties Map tool is a web-based system on multilateraltrade treaties and instruments designed to assist trade supportinstitutions (TSIs) and policymakers in optimizing their country's legalframework on international trade
Instrumentratified : 99 / 266 instruments
Ratificationrate : 37.2%
Weightedscore : 48.2/100
RatificationRate Rank
WeightedScoreRank
In World : 87 / 193 88 / 193
In Region : WesternAsia 7/ 9 7/ 9
InDevelopmentlevel :
Transitioneconomy 24/ 28 24/ 28
Graph
Presents a visual illustration breaking down a country’s ratification levelaccording to various categories and compares it to the world average.
Instruments ratified Click here for a full list and more details about thesemulti-lateral trade instruments
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4.5 Infrastructure
Indicator Value Rank/148
Quality of overall infrastructure How would you assess general infrastructure (e.g.,transport, telephony, and energy) in your country? [1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in theworld] | 2012–13 weighted average.
3.71 73
Quality of roads How would you assess roads in your country? (1 = extremelyunderdeveloped; 7 = extensive and efficient by international standards) | 2010, 2011. 3.68 74
Quality of railroad infrastructure How would you assess the railroad system in yourcountry? (1 = extremely underdeveloped; 7 = extensive and efficient by internationalstandards) | 2010, 2011.
2.60 64
Quality of port infrastructure How would you assess port facilities in your country? (1 =extremely underdeveloped; 7 = well-developed and efficient by internationalstandards). For landlocked countries, this measures the ease of access to portfacilities and inland waterways | 2010, 2011.
3.05 113
Quality of air transport infrastructure How would you assess passenger air transportinfrastructure in your country? (1 = extremely underdeveloped; 7 = extensive andefficient by international standards) | 2010, 2011.
4.53 61
Individuals using Internet (%) Internet users are people with access to the worldwidenetwork. 111.91 61
Mobile telephone subscriptions/100 pop According to the World Bank, mobile cellulartelephone subscriptions are subscriptions to a public mobile telephone service usingcellular technology, which provides access to switched telephone technology.Postpaid and prepaid subscriptions are included. This can also include analogue anddigital cellular systems but should not include non-cellular systems. Subscribers tofixed wireless, public mobile data services, or radio paging services are not included.
39.16 79
Fixed broadband Internet subscriptions/100 pop: The International TelecommunicationUnion considers broadband to be any dedicated connection to the Internet of 256kilobits per second or faster, in both directions. Broadband subscribers refers to thesum of DSL, cable modem and other broadband (for example, fiber optic, fixedwireless, apartment LANs, satellite connections) subscribers.
6.75 70
Source: World Economic Forum, Global Enabling Trade Report 2014
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5. ITC and the Country/Territory5.1 ITC Projects5.1.1 Current projects
No Current Projects Found!5.1.2 Recent projects
No Recent Projects Found!
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5.2 Events5.2.1 Upcoming events
No data
5.2.2 Recent events
No data
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5.3 ITC Contacts
Armen ZARGARYAN
Regional Trade Promotion Adviser
+41 22 730 0431
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6. Trade Information Sources andContacts6.1 Trade Information SourcesThis section provides a list of country specific print and online publications on trade-related topics, including both ITC andexternal sources.
6.1.1 ITC publications
Identifying Export Potential Among Selected Central Asian CIS Member Countries
Are Consumers Driving Markets ? : Contending with Buyer Power
Paper presented at ITC World Export Development Forum : 'Consumers, Ethics and Environment', Montreux, Switzerland, 8-11October, 2008 - focuses on the relationship between import policies and the market in...
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Information Technology: Country Profile-Export Potential: Armenia
Study focusing on information technology (IT) sector in Armenia - reviews country's general economic environment and itsnational export diversification policy; gives overview of Armenia's exports and imports, as well...
Countering NTB's/Supply Side Constraints by Small & Marginal Producers from Developing Asia : Exports as Vehiclefor Poverty Reduction
Paper presented at ITC World Export Development Forum : 'Bringing down the Barriers - Charting a Dynamic ExportDevelopment Agenda', Montreux, Switzerland, 8-11 October, 2007 - presents different case studies...
Promotion and Development of Export-Oriented Joint Ventures Between Developing Countries and the Republics ofthe Commonwealth of Independent States
Compilation of papers presented at workshop organized by ITC in collaboration with Academy of Foreign Trade, in Moscow, 7-11 October 1991 - gives overview on joint ventures activities and their...
6.1.2 Selected printed information sources2008 The Guide to the Armenian Information Technology Companies2003 Armenia: Poverty Reduction Strategy Paper and Joint World Bank-IMF Staff Assessment2005 Europe and CIS's Telecommunication/ICT Markets and Trends2007 Trade Facilitation in Selected Landlocked Countries in Asia
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2000 Electronic Commerce for Transition Economies in the Digital Age: Forum Proceedings2003 Trade Finance for Small and Medium-Sized Enterprises in CIS Countries2011 Situation mondiale de l'alimentation et de l'agriculture2012 Transition Report2003 Tacis Regional Cooperation: Strategy Paper and Indicative Programme 2004-20062010 Trade Policy Review : Armenia2006 - Welter F ... [et al.] Enterprising Women in Transition Economies2007 - Sergi B S; , eds. Industries and Markets in Central and Eastern Europe2000 Best Practice in Business Incubation2002 Towards a Knowledge-Based Economy: Armenia2011 Development in Eastern Europe and the South Caucasus : Armenia, Azerbaijan, Georgia, Republic of Moldova andUkraine2004 Armenia Competitiveness Assessment : Final Report1998 Trade and Investment Complementarities among the South-Western Member Countries of ESCAP1994 Sources of European Economic and Business Information. - 6th ed2007 - Tanic, Stjepan Enabling Environment for Agribusiness and Agro-industry Development in Eastern Europe and CentralAsia2002 International Practice in Technology Foresight2003 Women's Entrepreneurship in Eastern Europe and CIS Countries2004 Access to Financing and ICT for Women Entrepreneurs in the UNECE Region2014 Emerging Europe Monitor: Russia & CIS2008 Unleashing Prosperity : Productivity Growth in Eastern Europe and the Former Soviet Union2006 Enterprises in the Caucasian Countries in Transition : Experience in Armenia, Azerbaijan and Georgia2008 Perfil de la Industria Paraguaya de Software2009 Characteristics of Malaysia's Animal Feed Market2014 Perspectives on Global Development 2014: Boosting Productivity to Meet the Middle-Income Challenge2010 Mobilizing Aid for Trade for SPS-Related Technical Cooperation in the Greater Mekong Sub-Region2010 Leather Garments in the EU2006 Overview of the Current State of Organic Agriculture in Kenya, Uganda and the Republic of Tanzania and theOpportunities for Regional Harmonization2007 Export Diversification and Value Addition for Human Development : Addressing the Impact of the Agreement on Textilesand Clothing Expiration on Cambodia2006 - Ruffing, Lorraine Deepening Development Through Business Linkages2012 OECD Economic Surveys: Chile2005 - Magder, D Egypt after the Multi-Fiber Arrangement: Global Apparel and Textile Supply Chains as a Route for IndustrialUpgrading2006 Bangladesh: Furniture Export Market Sector Brief2012 Cotton Contamination Surveys, 2001 - 2003 - 2005 - 2007 - 2009 - 20112006 - Boutou, Olivier Management de la sécurité des aliments : De l'HACCP à l'ISO 220002006 Trading up : Economic Perspectives on Development Issues in the Multilateral Trading System2004 Perfiles de mercado para productos bolivianos en los mercados de Argentina, Brasil, Chile, Colombia, Ecuador, México,Paraguay, Perú, Uruguay y Venezuela2010 Vietnam: Oilseeds and Products2007 Organic Farming in the Czech Republic: 2007 Yearbook2007 - Gibbon P; Bolwig S Economics of Certified of Organic Farming in Tropical Africa: A Preliminary Assessment2006 The Relationship of Third-party Certification (TPC) to Sanitary / Phytosanitary (SPS) Measures and the InternationalAgri-Food Trade; Case Study: Guatemala- with Emphasis on Food Safety2007 - Ismail F Mainstreaming Development in the WTO : Developing Countries in the Doha Round2009 Market Report. Focus on the Nordic Market - Fresh Fruit and Vegetables2001 - Karlöf, Bengt Benchlearning : Good Examples as a Lever for Development2003 - Martin W; Pangestu M, eds. Options for Global Trade Reform : A View from the Asia-Pacific
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2010 L'industrie sri lankaise du textile-habillement2000 - Hauber, Christiane Formation, Prevention & Determination of Cr (VI) in Leather
6.1.3 Selected online information sourcesGender Virtual LibraryInterfaxSmall and Medium Entrepreneurship Development National Center of Armenia (SME DNC of Armenia)Armenian Development Agency (ADA)Armenian Apparel and Textile IndustryCentral and Eastern Europe Business Directory (CEEBD)Interstate Statistical Committee of the Commonwealth of Independant StatesMade in Armenia DirectExhibitions of RussiaBlack, Caspian Seas and Central Asia Silk AssociationArmenia. Business Support CenterEurasianetRussian Union of Exhibitions and Fairs (RUEF)Export Directory of the Republic of ArmeniaGeorgian National Investment AgencySPYUR - Company Register of Armenia
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6.2 Trade Contacts
Official Name Address City PhoneNumber Fax Number Email Website
Armenian Arts and Crafts Arshakouniats 42/1 Yerevan 374 10 447007
http://www.art.am
Business and CommunityDevelopment
1 Charents street,1st Building, Yerevan
374 10574778;574964
+374 99 57 4778
http://www.bsc.am
Chamber of Commerce andIndustry of Armenia 11 Khanjyan Str. Yerevan +374 10
560184+374 10587871
http://www.armcci.am
Armenian Development Agency 17, Charents Street Yerevan+374 10570170 ext110
+374 10570170 ext207
http://www.ada.am
Union of Manufacturers andBusinessmen of Armenia
Tigran Metsi Ave.,Building 20/2 Yerevan +374
10540715+37410540715
http://umba.info.am/
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