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The European Neighbourhood Partnership Instrument

for the Republic of Armenia

European Union Advisory Group to the Republic of Armenia

Annual Progress Report 2011 01 March - 31 December 2011

The project is financed by the European Union The project is implemented by United Nations Development Programme

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The contents of this document are the sole responsibility of the EU Advisory Group and can in no way be

taken to reflect the views of the European Union.

LIST OF CONTENTS

I. LIST OF ABBREVIATIONS ........................................................................................................ 3

II. EXECUTIVE SUMMARY ............................................................................................................ 5

III. INTRODUCTION ........................................................................................................................ 6

IV. JUSTICE, LIBERTY AND SECURITY ......................................................................................... 6

1. Justice and National Security ....................................................................................................... 6

2. Law Enforcement ........................................................................................................................ 7

3. Migration ..................................................................................................................................... 7

4. Integrated Border Management ................................................................................................... 8

V. DEMOCRACY AND HUMAN RIGHTS ........................................................................................ 9

1. Human Rights ............................................................................................................................. 9

2. National Assembly and Prime Minister’s Office .......................................................................... 10

VI. DEEP AND COMPREHENSIVE FREE TRADE AREA .............................................................. 11

1. Trade Policy .............................................................................................................................. 12

2. Technical Barriers to Trade (TBT) .............................................................................................. 12

3. Sanitary and Phytosanitary Sector (SPS) ................................................................................... 13

4. Intellectual Property Rights (IPR) ............................................................................................... 13

5. Customs Administration ............................................................................................................. 14

VII. HORIZONTAL ISSUES ............................................................................................................ 15

1. Public Administration Reform ..................................................................................................... 15

2. Diplomatic School ...................................................................................................................... 15

ANNEX 1: LIST OF STAFF ............................................................................................................... 16

ANNEX 2: KEY EVENTS AND MEETINGS ....................................................................................... 20

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I. LIST OF ABBREVIATIONS

ANPEPCSF Armenian National Platform of the Eastern Partnership Civil Society Forum

CRA Customs Reform Agenda

CTP Customs Twinning Programme

CWG Customs Working Group

DHR Democracy and Human Rights

DCFTA Deep and Comprehensive Free Trade Area

DG SANCO European Commission Directorate General for Health and Consumers

DG TRADE European Commission Directorate General for Trade

EaP Eastern Partnership

EIN European Ideas Network

ENP European Neighbourhood Policy

EP European Parliament

EPP European People's Party

EU European Union

EUAG European Union Advisory Group

EURONEST PA EU-Neighbourhood East Parliamentary Assembly

HRDO Human Rights Defender’s Office

IBM Integrated Border Management

IBM Strategy AP Integrated Border Management Strategy Action Plan

IOM International Organisation for Migration

IPA Intellectual Property Agency

IPR Intellectual Property Rights

IRP Institutional Reform Plan

JLS Justice, Liberty/Freedom and Security

MoA Ministry of Agriculture

MEP Member of European Parliament

MFA Ministry of Foreign Affairs

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MoE Ministry of Economy

MoJ Ministry of Justice

MP Member of Parliament

MS Member States

NA National Assembly

NSC National Security Council

NSS National Security Service

OECD Organisation for Economic Co-operation and Development

PCC Parliamentary Cooperation Committee

PMO Prime Minister’s Office

QI Quality Infrastructure

RA Republic of Armenia

RA NA National Assembly of the Republic of Armenia

RA PM Prime Minister of the Republic of Armenia

SMS State Migration Service

SPS Sanitary and Phytosanitary Issues

SRC State Revenue Committee

SSFS State Service for Food Safety

TAIEX Instrument for Technical Assistance and Information Exchange

TBT Technical Barriers to Trade

VF&RA Visa Facilitation and Readmission Agreements

WTO World Trade Organisation

YPP Young People’s Parliament

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II. EXECUTIVE SUMMARY

“The EU Advisory Group will continue to help Armenia change by supporting and accelerating reform

activities prioritised by the Armenian government.” Traian Hristea, EU Ambassador to the Republic of

Armenia, 14 December 2011

In line with the European Neighbourhood Policy Action Plan, the EU Advisory Group supports the Republic

of Armenia in the implementation of its political and economic reform agenda. During 2011, it focused on

supporting the development of legislation, strategies and action plans, bringing them into line with EU

standards. The group provided practical policy advice on the implementation of reforms across sectors as

well as on cross-cutting issues such as public administration and closer integration with the EU.

Furthermore, to help achieve policy reforms, it promoted and assisted with the utilisation of relevant EU

technical assistance and financing instruments.

The activities of the EU Advisory Group contributed to the major milestones reached in EU-Armenia

relations over the past year. In the Justice, Liberty and Security (JLS) sector, the group reviewed how EU

recommendations on JLS reforms were being applied and provided advice on the government’s JLS reform

strategy and action plan. By commenting on the concept for the state regulation of migration and supporting

the introduction of an integrated border management system, the group helped pave the way for an EU-

Armenia Mobility Partnership and the European Union’s decision to launch negotiations on visa facilitation

and readmission agreements.

In terms of the Democracy and Human Rights (DHR) situation in Armenia, the EU Advisory Group assisted

the National Assembly and other political institutions to gradually improve the involvement of civil society in

the political decision making process through public hearings and other EU best practices. The ongoing

integration process of Armenian political parties into their EU political families was supported and led to an

observatory status for three parties in the European People’s Party in February 2012. The Advisory Group

helped to strengthen EU-Armenia dialogue with its parliamentary track, which gave advice to the National

Assembly about enhancing its role in the EURONEST PA. As a result, the head of the Armenian delegation

became co-chair of the EURONEST PA Working Group on Rules of Procedure, together with the head of

the parliamentary delegation from Azerbaijan. By providing clear recommendations on the Human Rights

Protection Strategy and by further building the capacity of the Armenian Human Rights Defender Office, the

group also helped to strengthen the protection of human rights in the country.

Last but not least, the European Union’s decision to launch negotiations towards a Deep and

Comprehensive Free Trade Area (DCFTA) with Armenia was facilitated by the EU Advisory Group. The

group defined a two phase approach to DFCTA negotiations, which effectively foresaw the need to first

implement a set of pre-negotiation measures before tackling issues more relevant to the negotiations

themselves. Furthermore, it coordinated and provided strategic advice on draft concepts and legislation

related to Armenian quality infrastructure, enforcement of intellectual property rights, food safety and the

customs clearance process.

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III. INTRODUCTION

The European Union is seeking closer relations with the Republic of Armenia – a relationship that, through

increased dialogue, goes beyond current cooperation and moves towards gradual economic integration and

deeper political ties. Ultimately, these efforts could result in Armenia’s participation in European Union

policies and programmes and pave the way for enhancing the living standards and the mobility of Armenian

citizens. To turn this vision into reality, the Armenian government has embarked on a path of reforms – a

process that has been supported by a group of European high-profile advisers since 2009.

Over the past three years, the EU Advisory Group has assisted Armenia in shaping and implementing an

ambitious reform agenda and helped the country to meet international commitments. The group’s

international and national experts provide the Armenian government and other national authorities with

tailored policy advice on legal, democratic, economic and institutional issues. More indirectly, other political

bodies, social partners and civil society organisations, also benefit from this support.

The EUAG ensures that the Armenian authorities have direct access to best practices and reform

experiences from the European Union. It serves to strengthen the policy-making process by helping the

government to consult civil society, formulate policies and ensure effective policy implementation. The

group also assists Armenian institutions by facilitating the effective use of the EU’s Comprehensive

Institution Building (CIB) programme and other tools of technical assistance such as Twinning, TAIEX and

SIGMA. It also contributes to the implementation of the European Neighbourhood Policy Action Plan by

stimulating dialogue between national authorities and the European Commission's services.

Policy advice provided by the EUAG is directed at the following three core areas:

Strengthening respect for human rights and fundamental freedoms and enhancing democratic

structures;

Supporting reforms in the field of Justice, Liberty and Security;

Enhancing the economic integration of Armenia into the European Union's internal market.

Activities carried out between 1 March and 31 December 2011 in these three areas is detailed below.

IV. JUSTICE, LIBERTY AND SECURITY

In the Justice, Liberty and Security sector the EU Advisory Group has focused on supporting Armenia’s

reforms in Justice, integrated border management, law enforcement and migration. In these areas, the

group has closely cooperated with the National Security Council (NSC) Staff, the Ministry of Justice (MoJ),

the Police, the State Migration Service (SMS) and the Armenian Border Control authorities.

1. Justice and National Security

The Armenian National Security Council Staff represents the political body that coordinates cooperation

between the relevant Armenian and European institutions. Together with the Ministry of Justice, it also

drives and shapes reforms in the Armenian JLS sector.

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In the past year, the EUAG’s support to NSC Staff focused on the development of the “Strategy to

Accelerate reforms in the Republic of Armenia within the Framework of the EU Eastern Partnership” and

the related “List of Activities for 2012-2013 Ensuring the Implementation of the EU-Armenia ENP Action

Plan”. A second set of activities focused on providing support to the MoJ in its preparation and follow-up of

the JLS Sub-Committee Meeting between the Armenian government and the European Commission, held

in Brussels on 14 July 2011. Prior to the meeting, participants were provided with a EUAG policy paper

comparing European Commission recommendations on JLS reforms with actual progress achieved to date.

As a result, the European Commission registered notable progress in the reforms and encouraged Armenia

to press on, particularly with reforms related to justice and mobility. In the months that followed – in addition

to other strategic and legal advice provided on various dossiers – the EUAG reviewed and commented on

the new draft of the Justice Reform Action Plan for 2012-2016 prepared by the Ministry of Justice.

The EUAG further advised key beneficiaries on the development of the Institutional Reform Plans (IRPs),

which are a key pre-requisite for implementing the Comprehensive Institution Building (CIB) programme in

Armenia. Other, more ad-hoc activities that were aimed at improving future international coordination

included support to NSC Staff on a review of sectoral national strategy and support to the MoJ on the

mapping of donor activities in the areas of migration and Policy.

2. Law Enforcement

EUAG activities in the area of preventing and fighting against organized crime had only begun in

September 2011. Following an initial needs assessment and gap analysis, the group helped the Police to

prepare a National Action Plan to Fight Organised Crime. Based on EUAG recommendations, a closed

meeting routine was established; it convenes three times a year and gathers middle management officials

involved in the struggle against serious crimes. In addition, the EUAG assisted the Police in its evaluation of

needs for short-term expertise and TAIEX/Twinning instruments.

3. Migration

Regarding migration, EUAG support focused on reaching international standards and achieving more

sustainable human development in Armenian migration policies. The Armenian authorities took important

decisions in 2011, which will ultimately allow for improved legal migration, labour mobility, and return

opportunities as well as for the effective prevention and control of illegal migration: the “Policy Concept for

the State Regulation of Migration in the Republic of Armenia” and the Action Plan 2012-2016 for the

implementation of the concept were approved by the Armenian government and an EU-Armenia Mobility

Partnership was signed. Both steps were facilitated by the EUAG and consequently played a key role in

influencing the EU Council’s decision to open negotiations on visa facilitation and readmission (VF&RA)

agreements in February 2012.

The EU-Armenia Mobility Partnership was signed on 27 October 2011 in Luxembourg at the Justice and

Home Affairs Council. Ten EU member states (Belgium, Bulgaria, the Czech Republic, France, Germany,

Italy, the Netherlands, Poland, Romania, and Sweden) participate in this partnership, which is a flexible and

non-legally binding framework for the movement of people. It is expected to enhance Armenia’s ability to

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manage migration and inform, integrate and protect migrants and returnees, as well as boost its capacity to

curb irregular migration and human trafficking.

The EUAG assisted the relevant Armenian institutions to establish the partnership as well as to set up a

coordination and management structure for its implementation. Relevant documents, including the “Joint

Declaration on a Mobility Partnership between the European Union and Armenia” and the “Action Fiche for

a Global Initiative on Mobility Partnership”, were thoroughly assessed and a detailed plan of activities in the

migration sector was drawn up with the State Migration Service (SMS) and the Ministry of Foreign Affairs

(MoFA). Advisory comments on the National Action Plan for the Implementation of the State Regulation

Policy Concept Paper on Migration in the Republic of Armenia (2012-2016) were also provided.

The upcoming negotiations on visa facilitation and readmission agreements will provide visa facilitation –

but not visa liberalisation – for Armenian citizens. The list of suggested visa facilitations include the

simplification of documentary evidence in support of the visa application, the possibility of issuing multiple-

entry visas with a long validity period, the waiving/reducing of the handling fees for specific categories of

travellers, set deadlines for processing visa applications, as well as possible visa exemptions for holders of

diplomatic passports. In addition, the agreements will ease visa requirements for travellers from Armenia in

return for implementing agreed mechanisms for the readmission of irregular migrants. The negotiation of

readmission agreements will facilitate the return of nationals staying without authorisation on the territory of

the EU or Armenia.

The EUAG has directly contributed to the launch of negotiations by issuing a comparative analysis of

Georgian and Moldovan Visa Facilitation arrangements and providing the Armenian migration authorities

with a policy paper summarising key topics to be taken into account during the negotiations. The EUAG

also commented on drafts of the related National Action Plan on Migration Management.

Finally, the EUAG helped to organise a Mobility Partnership Conference in Yerevan on 8 December 2011,

which was aimed at raising awareness about the partnership in Armenia. Supporting awareness campaigns

such as this conference has become an important activity of the group – there is a clear need to foster

realistic expectations amongst Armenian citizens and civil society by informing them about the impact and

the limits of the partnership and the VF&RA agreements.

4. Integrated Border Management

The outcome of negotiations on the visa facilitation and readmission agreements will also depend on

progress made in the introduction of an integrated border management (IBM) system. The EUAG therefore

supported the NSC Staff and Armenian border control authorities throughout 2011 in their implementation

of the “Action Plan and Timetable for Implementation of Border Security and Integrated State Border

Management Strategy of the Republic of Armenia (2011-2015)” – a policy that will help free movement,

boost economic growth and improve border security.

Recommendations were provided to the NSC Staff and the Eastern Partnership IBM Flagship Initiative

Panel on how to ensure further EU support through the EaP Flagship Initiative on IBM. The EUAG reviewed

the RA plans for reconstruction of border infrastructures on the border with Georgia and elaborated a

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proposal on the development of integrated border management and the reform of Armenia’s customs and

tax sector (“Enhancing EU Support for the Implementation of the RA IBM Strategy Action Plan and the

Customs Reform Programme”).

V. DEMOCRACY AND HUMAN RIGHTS

Regarding Democracy and Human Rights, the EU Advisory Group has endeavoured to bolster the stability

and effectiveness of political institutions that aim to guarantee democracy, transparency, dialogue and the

rule of law in Armenia. The participation of political institutions in regional and EU cooperation initiatives has

been encouraged primarily within the framework of the European Neighbourhood Policy and the Eastern

Partnership. The EUAG’s priority in its work on human rights was the strengthening of respect for human

rights and fundamental freedoms, in compliance with international commitments undertaken by Armenia.

1. Human Rights

Activities focused on strengthening the Armenian Human Rights Defender in two ways: raising awareness

of the institution and its role; and building the capacity of the institution. The Human Rights Defender was

also advised on how to strengthen the institution’s role in the United Nations Treaty Bodies process. The

EUAG furthermore supplied the NSC Staff with specific comments on the new National Strategy for Human

Rights Protection and supported the National Assembly’s Standing Committee on Protection of Human

Rights and Public Affairs in legislative processes.

Throughout 2011, the EUAG advised the Human Rights Defender institution as it prepared and carried out

regional visits to four Armenian marzes (administrative regions). In November 2011, the Human Rights

Defender met with non-governmental organisations, regional government bodies (marzpetarans) and local

town administrations in the regions of Kapan, Yeghegnadzor, Gyumri and Ijevan. The purpose of the visits

was to raise awareness about the role of the Human Rights Defender and his activities in the regions as

well as to discover the most pressing problems of each Armenian region. During the meetings, discussions

about the possibility of opening Human Rights Defender representations in these regions were held and

rural citizens were given the opportunity to consult the Human Rights Defender about particular complaints.

The EUAG participated in all the visits; it encouraged discussion about how civil society and the Human

Rights Defender can better cooperate and showcased the best practices of such cooperation from EU

states.

In Yerevan, the EUAG helped the Human Rights Defender institution to organise two public conferences: a

media freedom forum, which resulted in the establishment of an Expert Council on the Protection of

Freedom of Expression, and a civil society forum, which strengthened cooperation between civil society

organisations and the institution for the effective protection and promotion of human rights.

In order to increase the capacity of the Human Rights Defender institution, the EUAG contributed to

developing a long-term vision (Strategy of the Human Rights Defender’s Office 2011-2017) and the annual

action plans for 2011 and 2012. Specifically, the group assisted with a staff training needs assessment and

then helped to design a comprehensive training programme for 2012. The EUAG also followed up on the

Twinning project “Support to the Office of the Human Rights Defender” by taking the responsibility to

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achieve targets that had not been reached at the end of that project. Finally, with the aim of further

strengthening the institution, the Human Rights Defender was encouraged to submit applications for TAIEX

Expert Missions.

2. National Assembly and Prime Minister’s Office

Parliamentary reform and interaction with civil society have been the mainstay of activities directed at the

National Assembly and the Prime Minister’s Office. The EUAG has also assisted in the approximation of the

National Assembly (NA) to EU institutions and the increased involvement of the NA in the Eastern

Partnership’s EURONEST Parliamentary Assembly (PA). Significant developments included the Armenian-

Azerbaijani co-chairmanship of a working group and the first-ever EURONEST meeting outside the EP

premises (in Yerevan). At the same time, Armenian political parties have been helped in their efforts to be

integrated into their respective European political families.

Advice to the Armenian Prime Minister was primarily related to the deepening of the EU-Armenia dialogue

and his office was supported in its preparations for four high-level missions to European institutions and

various political fora. One tangible result of this was that the Armenian government and the European

Commission signed a joint declaration on 29 April 2011, in which the European Commission welcomed

Armenia’s reform efforts and the Armenian government expressed its commitment to pursue the political

orientations of the European Neighbourhood Policy. The contribution of the EUAG towards the preparation

of a future EU-Armenia Association Agreement was explicitly mentioned in the document. The group also

promoted and assisted six high-level visits of officials from various EU institutions to Armenia including,

amongst others, the President of the European Parliament (EP) and the EP Co-President of the

EURONEST PA. The visits were aimed at strengthening the institutional ties between the RA NA and the

EU, at promoting the integration of RA political parties into their respective EU political families and at

encouraging Armenia to be more involved in the EURONEST PA. Another achievement was the RA

request for the EP to deploy an observation mission ahead of the upcoming Parliamentary elections.

Advice to the National Assembly concentrated on increasing the parliament’s social legitimacy by involving

civil society more genuinely in the legislative process. The aim was to improve the understanding of the role

and functions of the consultative mechanism that is common across the EU and to promote public

discussion with civil society. Following EUAG recommendations, the Armenian National Platform of the

Eastern Partnership Civil Society Forum and the Armenian Young People’s Parliament were involved in the

annual meeting of the EU-Armenia Parliamentary Cooperation Committee. The Committee adopted, for the

second year running, a Joint Declaration1, openly stating the main challenges that Armenia is facing ahead

of further EU integration as well as key priorities for EU-Armenia cooperation. The National Assembly was

also advised to sign a Memorandum of Understanding between its delegation to the EURONEST

Parliamentary Assembly and the Armenian National Platform of the Eastern Partnership Civil Society

Forum – a document that defines the responsibilities of both sides and make this the first real attempt to

1http://www.europarl.europa.eu/document/activities/cont/201111/20111115ATT31540/20111115ATT31540

EN.pdf

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include civil society into the parliament’s legislative work. Further steps included public hearings on a

number of legislative dossiers, which were jointly organised by the NA and the EUAG.

The overall efficiency and stability of the parliament was increased through training of and consultations

with key staff – they were informed about the best practices of parliamentary processes in the European

Parliament. The EUAG arranged three training sessions and study visits to the European Parliament for six

parliamentarians and one NA civil servant in order to provide them with hands-on knowledge about

parliamentary procedures and EU affairs. Although some progress has been made, it must be stressed that

raising awareness in the NA about the need for deep parliamentary reform – including greater political

debate, more interaction with government and better civil society participation – remains a substantial

challenge.

In order to deepen EU-Armenia dialogue through its parliamentary track, advice was given to the National

Assembly on its role in the EURONEST PA. The Armenian delegation was assisted in negotiations on

dossiers such as the main report of the EURONEST Standing Committee on Political Affairs. Furthermore,

following EUAG recommendations, the head of the Armenian delegation became co-chair of the Working

Group on Rules of Procedure along with the head of the parliamentary delegation from Azerbaijan, making

this the only international political body in which the two countries share such a leading role. At the political

level, Armenian parties that had applied for integration into their respective EU political families were

supported in their efforts. This ongoing integration process of Armenian political parties into their EU

political families led to observer status membership for the Republican Party of Armenia, the Rule of Law

Party and the Heritage Party in the European Peoples’ Party in February 2012. This clearly had a positive

effect as the implementation of the EU-inspired reform programme was accelerated due to enhanced

political presence, inevitable cultural spillover as well as commitments undertaken by the parties.

Finally, when the EP President came to Armenia in May 2011 and when the EP Vice President visited in

September 2011, the EUAG advised the NA President to raise the issue of inviting a European Parliament

Observation Mission to monitor the Armenian parliamentary elections in 2012 as a step towards ensuring

full compliance with international standards. Both the EP President and EP Vice President were briefed

beforehand about the political situation in the country. As a result, a written request for such a mission was

submitted by the NA President to the EP President’s office.

VI. DEEP AND COMPREHENSIVE FREE TRADE AREA

"The opening of free trade negotiations marks a turning point in our trade relations with Armenia. We are

entering a new phase that will bring our economic ties to a new level of depth and ambition. The EU is

Armenia's first trading partner and a deep and comprehensive free trade area will enable closer economic

integration of Armenia with the European Single Market thereby helping to boost economic growth in the

country." Karel De Gucht, EU Trade Commissioner, 20 February 2012

On 20 February 2012, the EU decided to launch negotiations towards a Deep and Comprehensive Free

trade area (DCFTA) with Armenia, which will be an integral part of the Association Agreement that aims to

bring Armenia economically and politically closer to the EU.

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The DCFTA will help to significantly expand future trade relations beyond the scope of the current

cooperation that has been in force since the Partnership and Cooperation Agreements of July 1999. The

upcoming negotiations will cover matters that have become crucial to a modern, transparent and

predictable trade and investment environment. The negotiations will not only address conditions of market

access but also focus on approximating the regulatory framework in order to enabling closer economic

integration of Armenia with the EU.

This major step in economic cooperation between the EU and Armenia has been made possible by the

EUAG’s sustained efforts of the past three years. Amongst other activities described in more detail below,

the EUAG significantly contributed to the positive outcome of the EU-Armenia Trade Sub-Committee

Meeting on 29 June 2011, after which the European Commission co-chair spoke of a “new impetus” in

relations. Nevertheless, despite this renewed enthusiasm, it also became evident that at the time quite a

number of specific actions and measures had yet to be implemented in order to convince the EU to launch

the DCFTA negotiations.

In its support to the DCFTA, the EUAG primarily cooperates with governmental bodies that are coordinated

by the Ministry of Economy (MoE) and that work on trade and trade-related issues. Specific topics covered

included technical barriers to trade, sanitary and phytosanitary issues, trade facilitation and customs

administration, as well as the protection of intellectual property rights.

1. Trade Policy

In close cooperation with the European Commission’s Directorate General (DG) Trade, the EUAG has

assisted the Ministry of Economy throughout 2011 to prepare for the launch of DCFTA negotiations by

helping it to coordinate a successful follow-up to the EU-Armenia Trade Sub-Committee Meeting. The

EUAG policy paper laying down a two-phase approach towards DCFTA negotiations took a strategic

approach: it suggested a set of pre-negotiation measures to be taken in a first phase and then measures to

be implemented after the start of and during the negotiations of a second phase.

EUAG activities also included support via the effective deployment of other EU technical assistance and

advisory services. It has contributed to a programming exercise of the EU Delegation, which sought to

identify government institutions that could possibly derive substantial benefits from Twinning in view of their

DCFTA-related mandates and their demonstrated absorption capacity. Various TAIEX and Twinning

proposals of the ministry were further assessed and assistance was provided to existing TAIEX missions

and workshops. In order to raise awareness about Armenia’s ongoing reform actions and reform needs, the

EU Delegation received support in their briefing of the European Commission’s DG Trade and other

concerned services.

2. Technical Barriers to Trade (TBT)

Technical barriers to trade refer to technical regulations, minimum standards and certification systems

which may result in the erection of barriers when trading goods and services. While first-rate technical

regulations and standards are essential for avoiding TBT – they define the specific characteristics of a

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product, such as its size, shape, design, functions and performance, or the way it is labelled or packaged –

TBT are generally caused by the differential application of technical regulations, standards and certification

systems between domestic and foreign suppliers.

Removing and avoiding TBT is a key element in the DCFTA negotiations. In view of EÙ best practices, the

EUAG has reviewed and provided comments on Armenian draft laws on metrology, accreditation,

standardisation and technical regulations in order to prevent the introduction of new technical barriers. The

laws were finally adopted by the government on 17 November 2011, with most of the EU input taken on

board. The laws were approved by the Armenian President on 5 March 2012.

The EUAG also contributed to the implementation of a strategy and action plan for the reform of Armenia’s

quality infrastructure (QI). Advice was provided on how to legally ensure the objectivity, impartiality and

accountability of QI institutions, with a key recommendation being the introduction of management boards

to oversee the work of the institutions. Furthermore, building on the EUAG gap analysis from 2010, a

framework of criteria and benchmarks for Armenian QI infrastructure was developed. While it is evident that

all the criteria mentioned there cannot be met at this stage, the framework will allow policy makers and

implementing agencies to further specify gaps and prioritise actions to be taken in 2012.

3. Sanitary and Phytosanitary Sector (SPS)

In line with international and EU standards, advice on sanitary and phytosanitary issues, i.e. food safety

and animal and plant health measures, is provided to the Armenian State Service for Food Safety, which is

under the direct supervision of the Prime Minister. The EUAG has assisted the ongoing SPS reform

process in order to ensure the effective implementation and enforcement of relevant legislation as well as to

improve the practical performance of the food and feed safety control system.

Based on input provided by the European Commission’s DG Sanco, recommendations regarding the

Armenian food safety strategy and related action plan were made, most of which were incorporated when

the strategy was adopted by the RA government on 17 November 2011. Furthermore, the EUAG has

helped to identify gaps in draft legal acts that regulate phytosanitary issues and proposed amendments on

the registration of producers, importers and processors, the use of “plant passports” and requirements for

plant health checks at border inspection posts. Advice recently centred on the development of the

Armenian food safety laboratory capacity, on a laboratory needs assessment and on the development of a

laboratory network.

4. Intellectual Property Rights (IPR)

It is acknowledged that culture, science and innovation flourish when reforms are targeted at securing an

effective and enforceable system for IPR protection. Such a system is expected to improve Armenia’s

investment environment and its ability to compete in a knowledge-based global economy. In addition, an

effective enforcement system will be crucial for public health and safety, consumer protection and market

competition.

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The political commitment in this area has led to the establishment of an Observatory on Counterfeiting and

Piracy, a government body comprising members from public and private sectors. The EUAG assisted this

observatory as well as the Armenian Intellectual Property Agency (IPA) and the Ministry of Economy in the

enforcement of IPR legislative reforms. It also contributed directly to institutional reforms of IPR

enforcement authorities such as the Police, Customs and the judiciary.

On 10 June 2011, the Armenian government adopted an ambitious IPR strategy in line with policy advice

previously provided by the EUAG. The strategy, amongst others, introduced ex-officio powers, created a

Customs IPR unit and allowed for better allocation of court cases. In addition, assistance was provided to

the implementation of a database on IPR-related judicial acts and the setting up of a customs register, to

which 28 companies have already requested trademark registration. Progress in the area of IPR was

subsequently acknowledged by the EU-Armenia Trade Sub-Committee in June 2011 although concerns

remained about customs enforcement. The EUAG consequently analysed the Armenian Customs Code on

border enforcement of IPR in detail and identified short-falls and potential amendments.

Policy papers directed at the IPA were drafted on the reform of current copyright legislation, the reform of

how the existing authors’ copyrights collective management society is governed, and the establishment of

such a society for performers and phonograph producers. In addition, a benchmarking paper was drafted

that compares the state of play in IPR enforcement in Armenia, Georgia and Moldova.

Together with the enforcement of IPR legislation, awareness-raising measures play an important role in

establishing an effective IPR regime. In 2011, the EUAG published a leaflet (in English and Armenian) on

the hazards of counterfeiting and piracy, organised a series of public workshops to contribute to a better

understanding of IPR issues in civil society and held IPR symposia targeted at judges and court clerks.

5. Customs Administration

In 2011, the EUAG has played an important role in ensuring the harmonisation and simplification of

customs legislation and in strengthening cooperation between customs and other agencies, especially

those working at the border. The group also helped to modernise the system for determining the customs

value of imported goods, a critical element in the DCFTA negotiations.

To enhance the customs clearance process, the EUAG advised the State Revenue Committee (SRC)

about how to reduce and simplify paperwork, rationalise procedures and expand the scope for the

submission of electronic declarations. Statistics on the use of the transaction value method were gathered

and shared with the EU Delegation as well as the European Commission and, as a next step, policy papers

will be provided in 2012. In order to further raise awareness on customs issues among businesses and civil

society, a public seminar was jointly organised with the NSC Staff on customs reforms.

The EUAG also supported the drafting of a comprehensive and integrated “Implementation Plan for Reform

Programmes Related to Customs Issues 2012-2015”, which was based on EU blueprints and international

best practices. A key recommendation of the EUAG was that a Customs Working Group (CWG),

comprising representatives of the Ministry of Finance (MoF) and the SRC, be set up. The working group is

now in place and will coordinate the customs reform agenda and offer advice to relevant institutions.

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VII. HORIZONTAL ISSUES

1. Public Administration Reform

One of the priorities for relations between Armenia and the European Union is the strengthening of

democratic structures and the rule of law. An important aspect of this is regulating how ministries and

agencies function. Last year, public administration reform reached a new stage with the adoption of a

Public Service Law. Indeed, further reform is required to improve the efficiency, effectiveness, and

openness of the public service system and bring it closer to European standards – i.e. make it more citizen-

orientated, more accountable and more transparent.

The EUAG has worked closely with the Prime Minister’s Office (PMO) since the second half of 2011 to

enhance the functioning and transparency of the Armenian public administration system. Priority steps for

reform have been identified and discussed in ongoing dialogue with the Armenian authorities. The PMO

was specifically advised on its anti-corruption efforts with a review of draft government resolutions on the

publication of asset and income declarations of high-ranking public officials. At the same time, NSC Staff

were assisted in the drafting of a concept paper on territorial development, subsequently adopted by the

government. Finally, the EUAG liaised with OECD Sigma to ascertain the scope of future work to be done

regarding the implementation of a strategy on civil service reform.

2. Diplomatic School

The Armenian government’s desire to strengthen its capacity for political dialogue and cooperation on

foreign and security matters stood behind the foundation of the Diplomatic School in February 2010. The

school helps to build a modern diplomatic service – primarily by improving the recruitment and training of

diplomatic staff. The setting up of the school was supported by the European Union and other international

organisations.

In 2011, the EUAG assisted the Ministry of Foreign Affairs to further develop the curriculum of the

Diplomatic School and recruit distinguished international and European experts as lecturers. A needs

assessment was also carried out in close cooperation with the beneficiary and resulted in the decision that

EUAG support to the school will only be needed in the short-term; in the future, the school will be assisted

by the EU through other instruments such as the European Commission’s EuropeAid framework contracts.

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ANNEX 1: LIST OF STAFF

International Staff

No Name Position E-mail Address

1 Antti Hartikainen (FI) Team Leader ahartikainen@euadvisorygroup.eu

2 Goran Pucar (HR) Project Manager gpucar@euadvisorygroup.eu

3 Catherine Durieux (FR) Policy Advisor to the National Security Council (NSC) cdurieux@euadvisorygroup.eu

4 Eleonora Vergeer (NL) Policy Advisor on Migration evergeer@euadvisorygroup.eu

5 Kevin Carty (IE) Policy Advisor on Law Enforcement Bodies kcarty@euadvisorygroup.eu

6 Eduardo Lorenzo Ochoa (ES) Policy Advisor on Strengthening Democratic Structures elorenzo@euadvisorygroup.eu

7 Dalia Zukauskiene (LT) Policy Advisor on Human Rights dzukauskiene@euadvisorygroup.eu

8 Willem van der Geest (NL) Policy Advisor on Trade Policy wvandergeest@euadvisorygroup.eu

9 Alfonso Calles Sanchez (ES) Policy Advisor on Intellectual Property Rights (IPR) acalles@euadvisorygroup.eu

10 Richard Wheatley (UK) Policy Advisor on Technical Barriers to Trade (TBT) rwheatley@euadvisorygroup.eu

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11 Thomas Hempenstall (IE) Policy Advisor on Customs thempenstall@euadvisorygroup.eu

12 Viktors Grapmanis (LV) Policy Advisor on Sanitary and Phyto-sanitary (SPS) Issues vgrapmanis@euadvisorygroup.eu

13 Lidija Necajeva (LT) Policy Advisor on Phyto-sanitary Issues lnechayeva@euadvisorygroup.eu

14 Carl Ulbricht (UK) Policy Advisor on Public Administration Reform culbricht@euadvisorygroup.eu

15 Frank Van den Bossche (BE) Advisor to the Prime Minister’s Office on Communications fvandenbossche@euadvisorygroup.eu

16 Frank Schneider (DE) International Communications Expert fschneider@euadvisorygroup.eu

National Experts

1 Karen Azaryan National Expert on Technical Barriers to Trade (TBT) kazaryan@euadvisorygroup.eu

2 Haykanush Parsamyan National Expert on Justice, Liberty and Security hparsamyan@euadvisorygroup.eu

3 Marine Fidanyan National Expert on Intellectual Property Rights (IPR) mfidanyan@euadvisorygroup.eu

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Business Unit

1 Lusine Sargsyan Human Resources Assistant lsargsyan@euadvisorygroup.eu

2 Inna Galoyan Communications Officer igaloyan@euadvisorygroup.eu

3 Mariam Daldabanyan Finance Officer mdaldabanyan@euadvisorygroup.eu

4 Irina Makaryan Finance Assistant imakaryan@euadvisorygroup.eu

5 Aram Arekhtsyan IT Assistant aarekhtsyan@euadvisorygroup.eu

6 Lilit Gasparyan Junior Associate lgasparyan@euadvisorygroup.eu

7 Anzhela Sargsyan Junior Associate asargsyan@euadvisorygroup.eu

8 Syuzan Ghardyan Interpreter/Administrative Assistant sghardyan@euadvisorygroup.eu

9 Arpenik Ghahriyan Interpreter/Administrative Assistant aghahriyan@euadvisorygroup.eu

10 Mariam Chakhoyan Interpreter/Administrative Assistant mchakhoyan@euadvisorygroup.eu

11 Anna Boshyan Interpreter/Administrative Assistant aboshyan@euadvisorygroup.eu

12 Araik Manukyan Driver/Clerk amanukyan@euadvisorygroup.eu

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13 Levon Harutyunyan Driver/Clerk lharutyunyan@euadvisorygroup.eu

Trainees

1 Lyudvig Vardanyan Trainee to the JLS Pillar lvardanyan@euadvisorygroup.eu

2 Vahe Sargsyan Trainee to the DCFTA Pillar vsargsyan@euadvisorygroup.eu

3 Zinaida Muradova Trainee to the Democracy & Human Rights Pillar zmuradova@euadvisorygroup.am

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ANNEX 2: KEY EVENTS AND MEETINGS

Date Event Description

14 March 2011

28 June 2011

28 September 2011

14 December 2011

5th EUAG Advisory Board Meeting

6th EAUG Advisory Board Meeting

7th EUAG Advisory Board Meeting

8th EUAG Advisory Board Meeting

At the EUAG Advisory Board Meetings (ABMs), the work of the

group was assessed and future activities and fields of advice were

discussed and agreed upon.

The EUAG Advisory Board consists of high-level representatives

from Armenian state institutions, the European Commission, the

United Nations Development Programme and the EU Advisory

Group.

The 5th, 6

th and 7

th ABMs were co-chaired by Artur Baghdasaryan,

Secretary of the National Security Council, and Raul de

Luzenberger, EU Ambassador to Armenia. The latter was replaced

in the 8th ABM by the new EU Ambassador Traian Hristea.

20 May 2011 EUAG/NSC Joint Seminar on

Intellectual Property Rights Enforcement

The seminar was the first of a series of regular joint EUAG/NSC

seminars on reform progress in Armenia. It was aimed at reforms in

the Intellectual Property Rights (IPR) sector and informed

participants that progress has been achieved in terms of IPR

legislation, the increasing role of the IPR specialised unit of the

police, the licensing of software in certain sectors, and, last but not

least, the collection of authors’ remuneration.

12 October 2011

EUAG/NSC Joint Seminar on

Customs Issues

The seminar addressed the issue of reform in the Armenian

Customs Service and helped to promote dialogue between

participants and officials on issues relating to trade facilitation,

including the Customs clearance process and the availability of

simplifying procedures.

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4 November 2011

Closed Meeting on

Organised Crime

The closed meeting was an opportunity for all Armenian

investigative practitioners in the organised crime sector to examine

and discuss the challenges and opportunities that relate to their

operational cooperation and intelligence exchange and identify

ways to further enhance this cooperation.

17 to 24 November 2011 Human Rights Defender

Regional Consultations

The EU Advisory Group supported the organisation of the Human

Rights Defender’s visits to four Armenian marzes (regions). The

purpose of the visits was to raise awareness among the rural

population about the role of the Human Rights Defender and his

activities as well as to discover the most pressing problems in each

Armenian region.

23 to 25 November 2011 Symposia on

Intellectual Property Rights

The symposia gathered key IPR stakeholders, including judges,

prosecutors and police officers, with the aim of facilitating dialogue

and raising awareness on ongoing reforms in the field of IPR.

13 December 2011 Public Hearing on the

draft Human Rights Protection Strategy

The aim of the public hearing was to present the Draft National

Strategy on Human Rights Protection to representatives of civil

society, international organisations and state authorities.