Armenia to Temporarily Ban Cement Imports

The government has decided to temporarily ban cement imports during its session today, January 27. The rationale behind this decision states:

“The adoption of this draft is conditioned by the need to protect the internal market and local production of a strategically important product (cement) for Armenia, as well as to align the regulations related to cement imports with the legislation of the Eurasian Economic Union.”

Article 20.1, paragraph 1, subparagraph 15 of the Law on State Duties of the Republic of Armenia, as well as Article 22, paragraph 2 of the Law on Notification of Economic Activities regarding the classification of activities has rendered the regulation ineffective since January 1, 2021, which previously restricted the import of cement from third countries to Armenia for the protection of the internal cement market.

To further protect the internal cement market from lower-priced imported cement and to develop local cement production, it is proposed to rely on the provision stipulated in Article 47 of the Treaty on the Eurasian Economic Union dated May 29, 2014 (hereinafter referred to as the Treaty), which allows EAEU member states to unilaterally apply non-tariff regulatory measures in trade with third countries.

This mechanism for restricting cement imports does not contradict the obligations undertaken by the Republic of Armenia under international treaties, and thus, the aforementioned non-tariff regulatory measures are periodically applied in EAEU member states to protect local markets by restricting the import or export of various goods. For example, by the decision of the Council of Ministers of Belarus No. 459 dated July 9, 2019, imports of Portland cement from third countries have been restricted. Kazakhstan has also temporarily banned cement imports from third countries.

It is proposed to apply these regulations temporarily in Armenia as well (the Treaty allows a maximum period of 6 months, with the possibility of further extension). The adoption of this draft will enable the marketing mechanisms to ensure the further development of the Armenian cement production sector.