Export support proposed for EU, UK, Canada

PanARMENIAN.Net - The Armenian government has proposed expanding its state export promotion program by extending it to the agricultural sector.

If adopted, businesses exporting Armenian-origin crops to the European Union, the United Kingdom, and Canada will also be eligible for reimbursement of customs duties paid in the importing country, Factor.am reports.

Under the current regulations, this support applies only to products from the manufacturing industry.

The Ministry of Economy noted that agricultural exports involve significant risks due to the perishable nature of the products, special transportation requirements, phytosanitary standards, and additional costs.

According to the ministry, customs duty reimbursement will increase the competitiveness of Armenian agricultural products in international markets, stimulate production growth, and contribute to the diversification of export destinations. The draft initiative was prepared by the Ministry of Economy.

The government has also approved a support program for the export of greenhouse-grown fresh fruits, vegetables, and flowers.

At a government meeting, Deputy Economy Minister Arman Khojoyan stated that compensation rates have been established for the export of certain products. Specifically, exporters will receive 770 drams per kilogram of strawberries, 275 drams per kilogram of tomatoes, 400 drams per kilogram of peppers, and 37 drams for each exported flower.

Beneficiaries of the program include Armenian-resident legal entities, individual entrepreneurs, and private individuals who exported the specified products between June 1 and July 1, 2024.

To receive compensation, exporters must submit export-related documentation and invoices to the Ministry of Economy.

According to Khojoyan, more than 4,250 tons of vegetables and strawberries, as well as around 10 million flowers, are expected to be exported in June under the program. He emphasized that the support measure is planned for a one-month period, with the possibility of later revision.

Foreign Minister Ararat Mirzoyan said Armenia is continuing discussions with partner countries to reach agreements on certain customs preferences for imports as well. In his view, such arrangements could help Armenian producers enter new markets.

Deputy Prime Minister Mher Grigoryan added that any agricultural product produced in Armenia and meeting proper quality standards should be exported regardless of artificial restrictions that emerge in foreign markets. He said the government is prepared to launch additional support programs if necessary, taking into account seasonal factors and market demand.

“I do not see any problem and believe the same decision should also apply to fruits, brandy, wine, and mineral water. Any market where our producer can export should remain open for exports,” Grigoryan said.

Mirzoyan also proposed focusing state support instruments on producers that comply with international standards and have obtained the necessary certifications. He stressed that adherence to quality standards is particularly important for securing competitive positions in European markets. The deputy prime minister agreed with the proposal and added that the government is also considering options for expanding existing customs-duty reimbursement programs.

Russia has imposed restrictions on the import of Armenian products. In particular, imports of Jermuk mineral water, flowers, and certain alcoholic beverages from Armenia have been banned. Restrictions have also been applied to several agricultural products, including tomatoes, cucumbers, and strawberries. Since June 2, Russia has restricted the import of cherries, apricots, peaches, plums, grapes, and other stone fruits from Armenia, as well as their transit to other Eurasian Economic Union member states. From June 3, Russia additionally restricted imports of eggplants, potatoes, and dried fruits originating from and exported by Armenia.