 
  WORLD TRADE  
ORGANIZATION  WT/REG173/1 
27 July 2004 
 
 (04-3238) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN ARMENIA AND MOLDOVA 
 
 
 The following communication, dated 17 June 2004,  is being circulated at the request of the 
Delegation of Armenia. 
 
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AGREEMENT 
BETWEEN THE GOVERNMENT OF REPUBLIC OF ARMENIA AND 
THE GOVERNMENT OF REPUBLIC OF MOLDOVA ON FREE TRADE 
  The Government of Republic of Armenia  and the Government of Republic of Moldova , 
hereafter referred to as the Contracting Parties,   
Striving  to develop trade and economic coopera tion between Republic of Armenia and 
Republic of Moldova based upon e quality and mutual benefits,  
 
Based  upon the sovereign right of each state to  conduct its independent foreign economic 
policy,  
 
Aiming  at fostering economic activities, provid ing full employment, increasing productivity 
and rational use of resources,  
 
Striving  to promote harmonious development and gr owth of world trade, elimination of  
barriers in its development,  
 HAVE AGREED  as follows:  
 
Article 1 
 
1. Contracting Parties shall not apply customs duties, taxes and charges having equivalent 
impact on exportation and/or importa tion of goods originating from the customs territory of one of 
Contracting Parties and destined for the custom s territory of the other Contracting Party.  
 Special cases of application of this trade re gime between the two countries to commodities on 
the basis of the agreed nomenclature shall be fo rmalized by annual documen ts, which shall be an 
integral part of this Agreement.  
 
2. For the purposes of this Agreement, and for its effective term, goods originating from the 
territories of Contracting Parties shall be deemed to be: 
(a) Completely produced in the territory of Contracting Parties or;  WT/REG173/1 
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 (b) Having been processed on the territory of  Contracting Parties by utilizing raw 
materials and components of third country origin, whose classification under the Harmonized System of Commodity Description and Coding changed in at least one of the first four digits due to this processing;  
(c) Produced with the use of raw materials a nd components listed in "b" above provided 
that their total cost does not exceed a fixed proportion of the export price of 
commodities sold.  
 Detailed rules on establishing commodity origins shall be coordinated by Contracting Parties 
and included in a document that shall become an integral part of this Agreement.   
Article 2 
 
 Each Contracting Party shall not:   
- directly or indirectly impose any internal taxes or charges on commodities covered by 
this Agreement, in excess of correspondi ng taxes and charges imposed on similar 
commodities of domestic production or of third country origin;  
 - apply any special limitations or conditions to commodities covered by this Agreement, 
in excess of limitations or conditions applie d under similar circumstances to similar 
commodities of domestic production or of third country origin;  
 
- apply rules to warehousing, reloading, st orage, and transportation of goods that 
originating from the territory of the other C ontracting Party, as well as to payments and 
payment transfers, other than those applie d in similar situations regarding goods of 
domestic production or of third country origin.  
 
Article 3 
 
 With the goal to maintain existing ties a nd implement essential for both countries trade and 
economic relations, on the basis of mutual agreemen t indicative lists can be compiled of goods and 
services which are items of mutual export and have paramount importance.  
 
 The said indicative lists will be agreed by competent bodies of the Contracting Parties within the timeframe and for the effective period establishe d on mutual agreement and will be formalised by 
a separate protocol, as a rule, annually.   
Article 4 
 
 Contracting Parties in their mutual trade shall refrain from discriminatory measures, introduction of quantitative restrictions or simila r measures for exportation and/or importation of 
goods within the framework of this Agreement.   
 Parties may introduce unilaterally quantitative r estrictions only within reasonable limits, and 
for a strictly defined time period.    These restrictions shall be of exceptional natu re and may only be applied in cases of sharp 
deficit in the balance of payment.  
 
 A Contracting Party which applies quantitative r estrictions under this Ar ticle shall provide the 
other Contracting Party, if possible, in advan ce with full information on the main reasons for  WT/REG173/1 
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 introduction, forms and expected terms of applica tion of the abovementioned restrictions, whereupon 
the consultations shall be set.    Introduction of quantitative restri ctions under this Article shall be formalized in a separate 
protocol.  
 
Article 5 
 
 All settlements and payments related to the trade/economic cooperation between the Republic 
of Armenia and Republic of Moldova shall be carri ed out according to the agreement between en the 
authorized banks of the Contracting Parties.  
 
Article 6 
 
 Contracting Parties shall on a regular basi s exchange information on laws and other 
regulations related to economic activity, including tr ade, investment, taxation, banking and insurance 
and other financial services, on transport and customs issues, including customs statistics.  
  Contracting Parties shall inform each other without delay on any changes in the national 
legislation, which may influence im plementation of this Agreement.  
 
 Authorized bodies of the Contracting Parties shall coordinate the way to exchange such 
information.   
Article 7 
 1. Contracting Parties shall endeavour to establish a common customs tariff applied to trade with 
the third countries and to this purpose have agreed to conduct regular consultations.  
2. Contracting Parties shall inform each other on existing customs tariffs and all exceptions 
thereto.  
Article 8 
  Contracting Parties shall consider incompa tible with the purposes of this Agreement any 
unfair business practices and shall not allow a nd eliminate the following methods thereof:  
 
- agreements between enterprises, decisions ma de by the associations of enterprises, and 
general methods of business practices aime d at hindering or limiting competition or 
disrupting the competitive environment in the territories of the Contracting Parties;  
 - actions by means of which one or a few enterprises use their dominant position, 
limiting competition within the entire territory of the Contracting Parties or a significant part thereof.  
 
Article 9 
 
 For the purposes of applying measures of ta riff and non-tariff regulation in the bilateral 
economic relationships, statistical information exchange, and for carry ing out customs procedures, the 
Contracting Parties will use the unified, nine-dig it Commodity Nomenclature of Foreign Economic 
Activities (CN FEA), based upon the Harmonized Commodity Description and Coding System and 
Combined Tariffs and Statistics Nomenclature of the EEC. For their own needs Contracting Parties 
may expend this Commodity Nomenclature be yond the nine digits if necessary.   WT/REG173/1 
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  Introduction of the reference Commodity Nomencla ture is carried on a mutually agreed basis 
through the existing representations in the relevant internati onal organizations.  
 
Article 10 
  Contracting Parties agree that the adherence to the principle of freedom of transit is the major 
condition for achieving goals of this Agreement a nd a substantial element in the process of their 
integration into the system of interna tional division of labour and cooperation.  
  Thereupon each Contracting Party shall provide  unimpeded transit through its territory for 
goods originating from the customs territory of the other Contracting Party or third countries and 
destined for the customs territory of the other Cont racting Party or any third country, and shall supply 
exporters, importers, and carriers with all faciliti es and services available and necessary for ensuring 
transit on terms not worse than those granted to na tional exporters, importers, or exporters, importers 
or carriers of any other third state.  
 
 Contracting Parties shall conclude a special agreement on transit.   
Article 11 
 
 This Agreement shall not impede the right of an y of the Contracting Par ties to take generally 
accepted in the international practice measures whic h it considers necessary for protecting its vital 
interests or which are undoubtedly necessary for compliance with intern ational agreements to which it 
is or intends to become a party, if these measures relate to:   
- information affecting the interests of national defence;  
 
- trade in arms, munitions and military equipment;  
 - research or production related to the defence needs;  
 - supply of materials and equipment used in nuclear industry; 
 
- protection of public morali ty and public order;  
 - protection of industrial and intellectual property;  
 
- gold, silver, and other precious metals and stones; 
 - protection of human, animal and plant life.  
 
Article 12 
  With the goal of pursuing coordinated polic y of export control in relation to the third 
countries Contracting Parties shall conduct regular c onsultations and take mutually agreed measures 
for creation of effective system of export control.   
Article 13 
 
 Provisions of this Agreement shall replace the provisions of agreements concluded earlier by  
the Contracting Parties insofar as the latter are incompatible or identical with the former.  
  WT/REG173/1 
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 Article 14 
 
 Nothing in this Agreement shall prevent, C ontracting Parties from establishing relationships 
which do not contradict the goals and terms of this Agreement with the states which are not parties to 
this Agreement and with their associati ons and internationa l organizations.  
 
Article 15 
 
 Disputes between Contracting Parties related to interpretation or application of provisions of 
this Agreement shall be resolved by means of negotiations.  
 
 Contracting Parties shall endeavour to avoid conflicting situations in mutual trade.    Contracting Parties establish that claims and disputes between economic entities of both 
countries resulting from interpretation or implementation of commercial contracts or transactions, in 
case they cannot be settled amicably on the basis of consultations and nego tiations and unless agreed 
otherwise, will be the exclusive co mpetence of arbitration tribunals (permanent or ad hoc) established 
in the territory of Contracting Parties or the territory  of the third states specified by the Parties having 
signed the contract.    The latter can also define the applicable s ubstantive law, norms and procedures as well as the 
premises for the hearing of the case.  
  Each Contracting Party shall assure in its terr itory effective means to recognise and enforce 
arbitration awards.   
Article 16 
 
 To achieve the goals of this Agreement a nd to elaborate recommendations for developing 
trade and economic cooperation between the two c ountries, Contracting Parties have agreed to 
establish a joint Armenian-Moldavian commission which will have its meetings at the request of one 
of the Parties in the Republic of Armenia and Republic of Moldova.  
 
Article 17 
 
 Contracting Parties have agreed that th e Republic of Armenia may establish its trade 
representation in the Republic of Moldova, and Republic of Moldova may establish its trade 
representation in the Republic of Armenia. The legal status of these trade representations, their 
functions and residence will be agreed by the Contracting Parties separately.   
Article 18 
 
 Any state may accede to this Agreement on te rms and conditions whic h would be agreed 
between the acceding state and the Contracting Parties.  
 
Article 19 
 
 This Agreement becomes effective upon ex change of notices of completion by the 
Contracting Parties of intra-state proced ures necessary for its entry into force.  
  This Agreement will become invalid after tw elve months from the date, when one of the 
Contracting Parties notifies the other Contracting Pa rty in writing of its desire to terminate this 
Agreement.  WT/REG173/1 
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  This Agreement after its termination shall apply to the contracts among the enterprises and 
organizations of both countries, concluded, bu t not implemented during the period when the 
Agreement is in force.    Done in the City of Ashgabat, on December 24, 1993 in two originals, each in Armenian, 
Romanian, and Russian, all texts being equally authentic.  
  For the purpose of interpretation of the provisions  of this Agreement the text in Russian shall 
have prevalence.   
 The Agreement came into force on December 21, 1995. 
  
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