List of Products Facing Price Increases from January 1: ICM

The article from the 'Informing Citizens' Alliance discusses the 'List of Products Facing Price Increases from January 1, 2020' as outlined by the organization.

Since January 1, 2015, Armenia has been a member of the EAEU, and the customs duties for imported products from other countries have been based on EAEU regulations. Despite negotiations allowing Armenia to gradually align previous rates with EAEU standards, customs duties on numerous products have already increased. Starting January 1, 2020, nearly all products imported from third countries will be fully subjected to EAEU customs duties.

The consequences of increasing customs rates on non-EAEU imports are already noticeable in the Armenian economy. We have repeatedly addressed the increasing prices of products every year, and now we will present which goods will see price rises starting January 1, 2020. Therefore, customs duties for 699 product categories will increase starting from that date.

Included in the list of products facing price hikes are essential goods and medications. In particular, starting January 1, 2020, customs duties will increase by 2.5-3% on certain types of meat and meat-based products, dairy, animal or vegetable fats, oils, and fats, while margarines will see an increase of 12%.

The agriculture sector will also not be spared from these increases. Importers of agricultural products, animal feeds, cereals, and cereal seeds will see customs duties rise by 3-4%, while fertilizer importers will face increases of 2.5-4%. Customs rates for baby food, yeast, and tobacco-based products will increase by 2-3%.

Healthcare will also be impacted by these increases. Imported pharmaceutical products, medicines, and antibiotics will see a price increase of 2-4%. Similarly, customs duties for chemicals, compounds, and oxides necessary for drug production will rise by the same percentage, which will reduce the competitiveness of local pharmaceutical production.

The textile industry will not avoid the chain of price increases. Customs duties for the importation of textiles, fabrics, and sewing materials from non-EAEU countries will rise by 4-6%. Rates for raw leather, non-precious metals and items made from them, copper, and copper items will increase by 3%, while aluminum and aluminum products will see a jump of 6-9%.

Price hikes are also expected in the construction sector. Customs duties for construction materials (sand, chalk, gypsum, etc.), cement, and its additives will increase by 3%.

Additionally, upon importing goods from non-EAEU countries, customs duties will increase for the following items: paints and varnishes by 2%, hygiene products and detergents by 2%, wood and wooden products by 2-8%, ceramics and metal-ceramics by 2-5%, glass and glass products by 5-6%, precious and semi-precious stones, jewelry by 6%, heating boilers, turbines, refrigerators, and freezers by 6-9%, and electric machines and appliances by 6%.

One of the most discussed products among citizens is the rising prices of vehicles. Numerous publications in the media address the price increases for imported cars under the new customs rates. The 'Informing Citizens' Alliance has also examined this issue, providing examples of how much vehicle prices will increase following the implementation of EAEU customs rates.

Thus, it can be noted that after the implementation of the EAEU customs duties, Armenia will inadvertently become a 'captive' of the products from EAEU member countries, as the increase in customs duties for imports from other countries renders them more expensive and thus less competitive. This is why Armenia's economic dependence on EAEU countries, particularly Russia, will become even more evident.

It is important to note that the customs fees collected for imported products from other countries go into the EAEU general budget, of which Armenia will receive 1.22%.