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Part of the PEP-UNDP "Poverty and Social Impact Analysis" (PSIA) initiative, this study set out to analyze the socioeconomic impact of increased trade liberalization between Armenia and the EU within the framework of Eastern Partnership initiative. In addition to a quantitative assessment of the potential impact of trade liberalization on the economic situation and poverty in Armenia, the study involves evaluations of existing foreign trade regimes and regulatory systems. Results of the analysis reveal that a simple free trade agreement or tariff liberalization will not result in significant socioeconomic benefits for Armenia. Although the researchers find that regional economic integration of Armenia with the EU is of great importance to long-term development of the country, they also find that it could only be economically justifiable (and generate a positive social impact) if the process that leads to such integration is based on development and harmonization of the capacities of domestic producers and enterprises. Therefore, the analysts conclude and recommend that immediate priority, in terms of policymaking, should move away from trade liberalization and towards industrial development. Find out more through the following PEP working paper:

Country: 
Armenia
Project code: 
PMMA-12287
Image: 

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