After Armenia’s withdrawal from the European Union's Generalized System of Preferences Plus (GSP+) in January 2022, the government is preparing new mechanisms to support exporters.
The GSP+ system previously allowed the duty-free or reduced-tariff export of over 6,000 types of Armenian goods to EU countries, according to Armenpress.
Armen Yeghanyan, Head of the Industrial Policy Department at the Ministry of Economy, stated that the new support tools aim to mitigate the negative impact of losing preferential tariffs and enhance the competitiveness of Armenian products in the European market.
The Ministry of Economy has published a draft decision on the government portal e-draft, outlining a program to compensate for customs duties on exports. Initially, support will target producers in select sectors, excluding the mining industry and metal concentrates.
Particular attention will be given to the textile industry, which has faced significant challenges since the GSP+ system ended. Economy Minister Gevorg Papoyan emphasized the sector’s struggles and the need for targeted assistance.
Armine Varshamyan, Head of the Light Industry Department at the ministry, highlighted that business representatives cite the cessation of GSP+ benefits and logistical issues as the primary barriers to export growth.
