EUROPEAN COMMISSION

Brussels, 21.11.2023

SWD(2023) 367 final

JOINT STAFF WORKING DOCUMENT

The EU Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) assessment of the Republic of Armenia covering the period 2020-2022

Accompanying the document

Joint Report to the European Parliament and the Council

on the Generalised Scheme of Preferences covering the period 2020-2022

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Republic of Armenia

1.Summary assessment

The momentum of the Velvet Revolution and democratic changes of 2018 has continued in 2020-2022, although the Republic of Armenia (Armenia) faced significant challenges: the COVID-19 pandemic and the 2020 war in and around Nagorno-Karabakh. While benefitting from GSP during the period 2014-2022, Armenia made progress over time in implementation of the 27 GSP+ relevant international conventions, though concerns remained on the implementation of the related reforms. In January 2022 and after one-year transition period, Armenia graduated from GSP as the World Bank classified Armenia as an Upper Middle-Income Country for three consecutive years starting 2017. Despite the challenges mentioned above, Armenia maintained this income classification. While monitoring of GSP+ no longer applies to Armenia, many of the issues notably on labour rights and environmental and climate standards, will continue to be addressed in the implementation of the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA), which entered into force on 1 March 2021.

1.1.Priorities and Monitoring

During the 2020-2021 period, EU monitoring in cooperation with Armenian authorities focused on several priority areas, including on human rights: anti-discrimination, violence against women and domestic violence prevention, criminal justice system reform; and on anti-corruption under good governance cluster. Priorities on labour rights and environment are also relevant under CEPA and covered in the Trade and Sustainable Development chapter implementation. These include on labour: enforcement and implementation of labour standards, child labour prevention, freedom of association; on climate and environment: effective implementation of the Convention on Biological Diversity (CBD), the Cartagena Protocol on Biosafety, and the Convention on International Trade in Endangered Species of Fauna and Flora (CITES), as well as the United Nations Framework Convention on Climate Change (UNFCCC), including Armenia’s Nationally Determined Contributions (NDCs).

1.2.Human Rights

The revised Criminal Code and the Criminal Procedure Code (adopted in 2021, entered into force in July 2022) partially address several legislative gaps in compliance with international conventions including more comprehensive regulation of discrimination, hate speech, and hate crimes. These do not explicitly criminalise domestic violence, while making some steps to address it. The new legislation represents a significant improvement in the criminal justice sector, providing for a modernised and humanised system.

Progress was reported in protection against torture, notably in improving oversight of pre-trial detention, conditions in places of detention, and providing for anonymous reporting of complaints related to torture. 

At the same time, discrimination and hate speech against LGBTIQ persons remain of great concern, as well as targeted threats against human rights defenders and NGOs. The Ombudsperson and police have taken some steps to address this.

1.3.Labour Rights

Overall, Armenian authorities took steps to improve labour rights, although challenges remain. They made efforts to address the GSP+ priority issue of prevention of and protection against child labour, which will need to be further pursued.

Regarding forced labour, actions have been taken in particular for the early identification of victims of trafficking in human beings; a definition of compulsory or forced labour has been introduced in the Labour Code in October 2022. As regards freedom of association and the right to organise and collective bargaining, the Armenian Government began revising the relevant legal framework to respond to long-standing requests of International Labour Organization (ILO) supervisory bodies. The legal framework on equal remuneration remains to be fully aligned with the requirements of ILO Convention No. 100. As for non-discrimination in employment and occupation, amendments to the Labour Code of May 2023 introduced provisions to prohibit sexual harassment at work. Armenia made progress in the enforcement and implementation of labour standards by expanding the mandate and increasing the staff of the Health and Labour Inspection Body. It will be important to continue strengthening the labour inspections system.

1.4.Environment and Climate

Armenia continues to face significant challenges in implementing CITES, lagging behind on compliance with the reporting obligations and alignment of legislation (remains ranked as Category 3), including appropriate penalties. Armenia made progress in compliance with the reporting obligations under most multinational environmental agreements, but the exact extent of improvements in implementation is uncertain, as key legislation and policy documents, such as the update of the National Implementation Plan for the Stockholm Convention, are still in preparation.

As regards the UNFCCC, Armenia has updated its Nationally Determined Contribution (NDC) 2021-2030 but not developed a long-term low emission development strategy. Implementation of Armenia’s national emission reduction targets stemming from its updated NDC is yet to be seen. In terms of working on climate change adaptation, a positive step was the adoption of the National Adaptation Plan 2021-2025.

1.5.Good Governance

The authorities have continued making progress on anti-corruption, including in the implementation of the Strategy and Action Plan for judicial and legal reforms; and the drafting and implementation of the new Anti-corruption Strategy; as well as the establishment of the Anti-Corruption Committee in 2021. The first instance Anti-corruption court as well as the Anti-corruption Chamber of Cassation Court have been established and are operational since end of August 2022. These positive efforts should continue to consolidate the reforms. The drug control regime in Armenia does not raise major concerns, and drug use and drug trafficking are relatively limited.

1.6.Status of Ratification and Reporting

Armenia maintained ratification of all 27 conventions and has mostly reported according to the requirements (see Annex). Armenia made progress in compliance with the reporting obligations under Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, the Stockholm Convention on Persistent Organic Pollutants, and under the CBD and Cartagena Protocol on Biosafety. There are outstanding reports for CITES.

2.Long-term View: Armenia since Joining GSP+ in 2014 

Armenia became a GSP+ beneficiary on 1 January 2014. The country met all criteria for GSP+ entry, given it was economically vulnerable, had ratified the GSP+ relevant conventions without reservations, and the latest monitoring body reports had not identified a serious failure to implement those conventions. Nonetheless, shortcomings were detected in areas such as civil and political rights, including incompatibility of some constitutional provisions; a slow and complicated process related to the adoption of new legislation giving effect to economic, social, and cultural rights; and the rights of women and children.

Armenia made good progress over the years in addressing these and other shortcomings and consistently engaged in the GSP+ monitoring process. Armenian authorities welcomed two monitoring missions and extensively communicated with the EU on GSP+ relevant conventions via written exchanges, at high-level meetings such as Human Rights Dialogues and Trade and Partnership Committees.

In general, progress in aligning legislation and policies with international standards has been particularly strong – with only few areas still requiring attention, in particular gender equality and trade in endangered species. Key legislative reforms were carried out such as amendments of the Constitution, adoption of the new Criminal Code, of the Code of Criminal Procedure, and of various relevant policy documents. More remains to be done regarding the enforcement and implementation of the legislation and policies, which have often been hindered by capacity and/or resource constraints.

Since 2015, Armenia has achieved progress in addressing forced labour by adopting relevant laws and regulations on anti-trafficking and establishing a policy framework such as National Action Plans. As part of their implementation, training has been provided to civil servants and enforcement agencies’ staff, and information materials for officials and victims of trafficking have been developed. Support has also been provided to identified victims and some have received compensations from the state. Since 2014, the Armenian Government has made some progress in addressing child labour, e.g., through raising the upper age of compulsory education and making amendments to the Code on Administrative Offences and to the Criminal Code. Driven by extensive international support, progress was achieved especially in the areas of climate change, in setting up the infrastructure for controlling hydrofluorocarbons, and in the update of legislation to address biodiversity and biosafety. Regarding anti-corruption efforts, Armenia has made remarkable progress since 2018. Legislative changes to align the legal anti-corruption framework had already been made earlier, and enforcement and implementation of anti-corruption strategies and measures accelerated.

The EU imports from Armenia mainly manufactured goods, dominated by steel and aluminium, raw materials, beverages and tobacco. EU exports to Armenia consist of machinery and transport equipment, manufactured goods, and chemicals. According to Eurostat data, Armenia’s exports to the EU have expanded over the years, from an average €254 million during the five years preceding entry into the GSP+ arrangement in 2014 to an average €388 million since then. The trend has been especially positive since 2014. Because a sizable share of Armenia’s exports has been duty-free in the EU under the most favoured nation (MFN) clause, the combined share of GSP+ and other duty-free exports was close to 90% of Armenia’s total exports to the EU. The share of Armenia’s exports to the EU that were eligible for GSP+ preferences increased from under 40% (less than €100 million) until 2014 to 70% in 2021 (more than €300 million). Likewise, the total value of preferential imports from Armenia into the EU under the GSP+ increased, from €42 million in 2014 to €225 million in 2021, the last year of Armenia benefitting from GSP preferences.

3.Recent Developments

Following the Velvet Revolution and democratic changes of 2018, the Armenian Government has made commitments to enhance human rights and good governance and started taking legislative and other steps to implement them. However, Armenia faced challenges which delayed the reform process, mainly with the COVID-19 pandemic and the 2020 war in and around Nagorno-Karabakh, aggravated by the unprovoked and unjustified war of aggression of Russia against Ukraine. The uncertainty of the post-war situation led to political tensions and a high number of demonstrations organised by opposition groups. The snap parliamentary elections of June 2021 confirmed the mandate of Prime Minister Nikol Pashinyan and his Civil Contract party with a high margin.

On 1 March 2021, the EU-Armenia Comprehensive and Enhanced Partnership Agreement entered into force. This represents a milestone for EU-Armenia relations by providing a framework for working together in a wide range of areas: strengthening democracy, the rule of law and human rights; creating more jobs and business opportunities, improving legislation, public safety, a cleaner environment, and better education and opportunities for research. Despite the challenges, the Armenian Government reiterated its commitment to the Agreement as a blueprint for reforms, as well as the human rights and trade and sustainable development principles deriving from it.

Armenia has embarked on the process of structural reforms ensuring the rule of law and modernisation of the country, with a focus on building an open economy. Despite the challenges mentioned above, the Government has continued its reform strategy, albeit with slower pace. In particular, the authorities have reiterated their commitment to consolidate democratic governance and the rule of law, including the goal of an independent, accountable, and efficient judiciary, and the creation of a competitive business environment.

The continuing tension in relations with Azerbaijan in 2022 and 2023 pose serious challenges for Armenia. Most recently, following Azerbaijan’s military operation in Nagorno-Karabakh on 19-20 September 2023, Armenia has needed to absorb over 100,000 Karabakh Armenians who fled their homes in a mass exodus to Armenia, while addressing internal and external pressures. In this context, the EU is recognised as an important partner.

Armenia continues to be affected by the closed borders with Azerbaijan and Türkiye. The dialogue with Türkiye has brought some hope but it has not yielded tangible results. Only two land borders, with Georgia in the north and Iran in the south, remain open. This seriously affects Armenia's economic performance, hampering both imports and exports. Since Armenia is heavily politically and economically dependent on Russia, the Russian military aggression against Ukraine has led to uncertainty. On the one hand, numbers show an increase of the economic activity index of 14.5% for the first 10 months of 2022 ( 1 ), mainly due to the influx of Russian citizens and capital as well as an increase in prices of some exported commodities; on the other hand, this increase might be negatively affected by the slowing down of the economy of Russia, their major export market.

Armenia's Gross Domestic Product (GDP) ( 2 ) grew in 2021 by 5.7% following a decline of 7.2% in 2020. GDP per capita stood at €3,952 in 2021. Armenia's gross international reserves increased by 23% and stood at €2.7 billion in 2021. The Central Bank of Armenia upgraded its growth forecast upwards for 2022 from 4.9% to 12.9%. The World Bank revised its previous forecast for Armenia's GDP growth from 1.0% to 7.0% in 2022. The IMF estimated Armenia's GDP growth to have reached 12% in 2022 ( 3 ).

4.EU-Armenia Trade and GSP+

According to the classification of the World Bank ( 4 ), Armenia moved from lower middle-income country status to an upper middle-income country for three consecutive years starting in 2018. Therefore, the European Commission – in line with the GSP Regulation – removed Armenia as a beneficiary country of both GSP+ and standard GSP as of January 2022. The graduation happened after a transition period of one year to allow the country and economic operators to adapt to the revised country's status. The change in GSP status reflects Armenia’s positive economic development and integration into world trading systems. In terms of tariffs, Armenia’s exports to the EU will continue under the agreed most favoured nation tariffs of the World Trade Organization (WTO).

EU-Armenia relations are guided by the CEPA, provisionally applied since June 2018 and entered fully into force on 1 March 2021. While the CEPA does not include tariff liberalisation, it aims to further improve EU-Armenia trade by enhancing the regulatory environment for businesses. Armenian exports to the EU in 2022 (i.e., one year since graduation from GSP) increased by 32% compared to 2021, thus demonstrating that the GSP+ graduation had not had a negative impact on trade flows. This increase also encompasses products that traditionally have used duty free access under GSP+ (textiles +16%, aluminium +63%), indicating a resilience of export links.

Figures 1-4 below describe the use of GSP+ by Armenian exporters between 2019-2021 in the context of the EU's overall imports from Armenia ( 5 ). 

Armenia traditionally has had good utilisation of GSP+ preferences, throughout the whole period of benefitting from the scheme at around 96-98% (Figure 1). Over €230 million worth of goods benefitted from GSP+ in 2021, an example of a strong post-COVID-19 recovery. A large portion of Armenian imports into the EU benefit from GSP+, focused traditionally and in 2021 on iron and steel as well as base metals (Figure 3). These are also the products that incurred the most savings (Figure 4).

Figure 1: EU imports from Armenia and GSP+ utilisation rate, 2019-2021, € M

Figure 2: EU imports from Armenia by trade regime (€ million) and utilisation rates (%), 2019-2021

5.Compliance with GSP+ Obligations

5.1.UN Human Rights Conventions (Conventions 1-7)

Armenia’s National Strategy for Human Rights Protection ( 6 ) and its Action Plan 2020-2022 ( 7 ), adopted on 26 December 2019, were drafted by the Ministry of Justice in close consultations with civil society organisations (CSOs) and revised by international experts, with EU support. CSOs and the international community praised the quality and ambition of these key strategic reform documents, which address human rights in a comprehensive manner. As of 31 March 2023, according to the Armenian Government, 49% of the Human Rights Action Plan (HRAP) activities were implemented, 34% partially implemented, and 2% were in the process of implementation ( 8 ).

5.1.1.International Convention on the Elimination of All Forms of Racial Discrimination (CERD)

The last CERD periodic report on the implementation of the Convention in Armenia was published in 2017 ( 9 ). The state report for the next review was submitted in January 2022, with a 1.5-year delay, and the review is on-going.

The four largest ethnic minorities – Yezidi, Assyrians, Russians, and Kurds - are represented in the Armenian National Assembly, in accordance with Armenia's Electoral Code. During the snap elections in 2021, ballots in different languages were provided in the poll stations where ethnic minorities were registered. However, challenges remain in the way of further increasing tolerance of diversity in Armenian society and tackling discrimination against ethnic minorities.

Comprehensive anti-discrimination legislation, the draft Law on Ensuring Equality before the Law, passed several rounds of discussions and international reviews in 2020 but has not yet been adopted. It was initially introduced in a package with the draft Law on National Minorities, which was withdrawn following negative reactions from civil society. Based on their and Council of Europe (CoE) recommendations, it was decided to add a component on hate speech which can also include national minorities. Work on the draft legislation is still on-going.

5.1.2.International Covenant on Civil and Political Rights (ICCPR)

The latest periodic report on the Covenant by the Human Rights Committee was issued in 2021, covering the period from 2012 to 2021 ( 10 ). Positive aspects noted by the Human Rights Committee included legislative and policy measures taken by Armenia to advance human rights under the Covenant, while noting a series of challenges in implementation. 

Regarding freedom of expression, the Committee was concerned about reports of threats, intimidation, harassment and attacks against journalists, human rights defenders, LGBTIQ rights defenders, and environmental activists; allegations of the use of criminal provisions to hamper the activities of journalists and to restrict their freedom of expression; the increased number of civil defamation lawsuits brought against journalists and the imposition of disproportionate financial sanctions; and censorship imposed by the Government on the media in the context of the COVID-19 pandemic.

Major progress in conceptualising justice reform and the fight against corruption has been recorded. Improvements in the legislative framework have been significant and are reflected in sectoral strategies as well as in relevant laws/sub-laws aimed at the implementation of strategic priorities. Universal mechanisms for evaluating judges’ activities, integrity and assets were clarified and legal grounds regulating integrity checks introduced. The comprehensive Strategy for Judicial and Legal Reforms and Action Plan 2019-2023 ( 11 ) focus on the independence and accountability of judiciary and the independence, transparency, efficiency, and quality of judicial procedures. The Government’s future vision of the comprehensive justice sector reform is reflected in the 2022-2026 Strategy for Judicial and Legal Reforms adopted in July 2021 ( 12 ).

The adoption of a new Criminal and a Criminal Procedure Code ( 13 ), in May and June 2021 respectively and in effect from July 2022, is a significant improvement towards a modernised criminal justice system. The provisions were largely drafted in accordance with international standards, with a human-rights-based approach in each stage of a criminal case, as well as various recommendations of international institutions and experts.

5.1.3.International Covenant on Economic, Social and Cultural Rights (ICESCR)

The latest periodic report of the Committee on Economic, Social and Cultural Rights (CESCR) is from 2014 ( 14 ). The state report for the next periodic review was submitted in August 2020 and the review is still in progress.

However, as highlighted by the Human Rights Committee in their 2021 report, addressing discrimination against persons in vulnerable situations, such as persons with disabilities and national minorities, in particular children from ethnic and religious minorities, requires further policy changes, including the adoption of the draft anti-discrimination Law on Ensuring Equality before the Law.

The new Criminal Code (2021) envisages a more comprehensive regulation of discrimination, hate speech, and hate crimes. Although sexual and gender identity are not directly stated as protected characteristics, the open list provides the opportunity for law enforcements agencies to use these regulations to protect LGBTIQ persons.

Open and public discrimination on grounds of sexual orientation and gender identity remains a major issue. Throughout 2021, there was ongoing hate speech against LGBTIQ persons, especially on virtual platforms. Despite increasing violence, LGBTIQ persons are reluctant to turn to law enforcement authorities due to lack of trust, lack of proper investigation and punishment. The Ombudsperson of Armenia applied to the Police requesting information on adopted measures and highlighted the roles of the police and civil society in preventing, properly recording, and identifying such cases. The Police signed a Memorandum of Understanding with the OSCE Office for Democratic Institutions and Human Rights (ODIHR) on combating hate crimes in the framework of the Law Enforcement Training Program (TAHCLE).

On 5 May 2021, the National Assembly adopted the Law on the Rights of Persons with Disabilities following the social model for disability ( 15 ). It is also a step towards implementing the state’s commitments under the Convention on the Rights of Persons with Disabilities, which Armenia ratified in 2010.

5.1.4.Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW)

The latest periodic report of the Committee on the Elimination of All Forms of Discrimination against women (CEDAW) for Armenia is from November 2022 ( 16 ).

Domestic violence continues to be a major issue. The new Criminal Code (2021) does not criminalise domestic violence, but rather envisages committing a criminal offense by a close relative as an aggravating circumstance. However, the Criminal Code introduces criminal liability in line with several aspects of the CoE Convention on Preventing and Combating Violence against Women and Domestic Violence (Istanbul Convention) ( 17 ), which Armenia has not yet ratified. According to women’s organisations, currently Armenian courts do not find aggravating circumstances for an abuser’s liability and punishment in cases of femicide. Gender stereotypes and victim-blaming practices are common in Armenian criminal and judicial systems while dealing with femicide cases.

The Ministry of Labour and Social Affairs is implementing a five-year Gender Strategy (2019-2024) as well as a Strategy and Programme of Activities for Implementation of Policy on Ensuring Equal Rights and Equal Opportunities for Women and Men for 2019-2023. A Council of Issues on Equality between men and women has been active.

5.1.5.Convention against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (CAT)

The latest periodic report of the Committee against Torture (CAT) is from 2017 ( 18 ). The state report for the current periodic review was submitted in December 2020 and the review is still in progress.

Torture and other cruel, inhuman, or degrading treatment or punishment are explicitly prohibited by law. Specific legislative safeguards (e.g., through the adopted amendments to the Criminal Procedure Code, new 2020 Law ‘On Pardon’) are in place. Concerns remain, including as expressed by the Human Rights Committee in their 2021 report, regarding the continuing practice of ill treatment and torture, particularly in police custody, as well as with regard to mechanisms for accountability and opportunities for civic oversight of closed facilities.

The Human Rights Committee also remained concerned about reports that fundamental legal safeguards were not always guaranteed to persons in detention from the very onset of their deprivation of liberty. Progress was also reported in this area. The Parliament adopted amendments to the Law on the Police in 2020 and 2022. Armenia also procured affordable vehicles for transportation of arrested and detained persons including persons with special needs and disabilities, in compliance with international standards. According to the Armenian Government, equipment for special cells for prisoners with suicidal ideation, as well mechanism for anonymous reporting of torture, inhuman or degrading treatment are in place. These activities were part of the Human Rights Action Plan 2020-2022.

5.1.6.Convention on the Rights of the Child (CRC)

The latest periodic report of the Committee on the Rights of the Child (CRC) is from 2013 ( 19 ). The state report for the current review was due in 2019 but was submitted in 2020. The review is still in progress. The 2021 periodic report of the Human Rights Committee expressed concern about the continued practice of sex-selective abortion, trafficking, and child labour.

The Child Rights Unit under the Human Rights Defender Office/Ombudsperson is appointed as the CRC monitoring mechanism. UNICEF has been assisting the Child Rights Unit to strengthen monitoring. At the same time, the National Commission for the Protection of Children's Rights continues to be inactive.

De-institutionalisation of the childcare system is a priority in the Government Programme for 2021-2026. In April 2020, the Government approved the 2020-2023 Comprehensive Program and Action Plan on Fulfilment of the Right to Live in a Family and Harmonious Development of the Child. The program features an alternative care service network, including specialised services for children with disabilities ( 20 ).

Significant steps were taken to ensure access to healthcare for children in vulnerable situations. The Government increased the budget for childbirth and childcare allowances and removed means testing. Also, free hospital medical care was expanded for children under 18 regardless of social status, including special and difficult-to-access diagnostic tests.

Armenia is a path-finding member of the Global Partnership to End Violence Against Children since 2018. Armenia also ratified the Council of Europe's Convention on the Protection of Children against Sexual Exploitation and Sexual Abuse (the Lanzarote Convention) in September 2020 (entered into force 1 January 2021), committing to criminalise all kinds of sexual offences against children, including online, to protect the rights of victims, and to prosecute perpetrators. Despite these commitments, the law on Domestic Violence does not envisage mechanisms to support child victims of violence. Serious issues also persist with the implementation of the inclusive education reform, as most children with disabilities are effectively left out of schools.

5.2.ILO Labour Rights Conventions (Conventions 8-15)

Armenia has been improving the current Labour Code since 2018. In October 2022, the country introduced a definition of compulsory or forced labour, and in May 2023 extensive amendments ( 21 ) were adopted among others to prohibit sexual harassment at work and strengthen the protection against child labour. Work is ongoing to revise the laws on Trade Unions and on Employers’ Unions in line with ILO standards on freedom of association.

As regards enforcement, an important step has been the expansion of the mandate of the Health and Labour Inspection Body (HLIB) to exercise control over compliance with all labour laws. The HLIB has also been empowered to conduct inspections on its own initiative. Moreover, in 2020, the staff of the HLIB has been increased by 60 posts, although vacancies are not yet fully filled. These developments are expected to be examined by the CEACR later in 2023.

5.2.1.Freedom of Association and Collective Bargaining (Conventions No. 87 and No. 98)

As regards the implementation of ILO Convention No. 87 on Freedom of Association and Protection of the Right to Organise, the ILO Committee of Experts on the Application of Conventions and Recommendations (CEACR), last reiterated in its comments of 2020 ( 22 ), raised the need to amend the Law on Trade Unions to ensure that some categories of civil servants, self-employed, those working in liberal professions, and workers in the informal economy can form and join trade unions. Furthermore, concerns remained at that time around the excessively high minimum membership requirements for the formation of both trade unions and employers' organisations as well as the quorum and majority required to vote on and to call a strike and the determination of minimum services in case of a strike. In this regard, the CEACR requested Armenian Government in 2020 to make amendments to the Labour Code, the Law on Trade Unions, and the Law on Employers’ Unions. 

Concerning ILO Convention No. 98 on the Right to Organise and Collective Bargaining, shortcomings persist in the legislation that allows for unilateral termination of collective agreements in case of privatisation and/or restructuring of a company and for circumventing the representative minority trade unions for collective bargaining at enterprise level. The CEACR ( 23 ) asked the Government of Armenia to amend the relevant provisions of the Labour Code to bring them fully in line with ILO Convention No. 98.

The Armenian Government is taking steps to address gaps in compliance. In particular, work is on-going on draft laws amending the Law on Trade Unions and the Law on Employers’ Unions with a view to aligning them with requirements of ILO Convention No. 87. Moreover, the package of amendments to the Labour Code adopted in May 2023, among others, lowered the quorum needed for declaring a strike.

The 2019-2023 Decent Work Country Programme (DWCP), signed by Armenian Government and the ILO in May 2019, includes activities relating to freedom of association and collective bargaining.

5.2.2.Abolition of Forced Labour (Conventions No. 29 and No. 105)

Armenia has adopted both legislative provisions and policy measures on forced labour. In October 2022, a definition of compulsory or forced labour was introduced in the Labour Code, aimed at aligning with ILO Convention No. 29. In June 2020, the Government adopted the 6th 2020-2022 National Action Plan (NAP) on the Fight Against Trafficking in Human Beings and Exploitation. Actions included in the NAP aim to make the fight against trafficking in persons more comprehensive; consolidate the efforts of all parties involved; strengthen the capacity and qualifications of specialists; strengthen prevention; identify victims; improve support; and clarify the mechanisms of protection.

Several measures have been undertaken to implement the Action Plan. For instance, to raise awareness on the dangers of human trafficking and exploitation, several television and radio programmes were broadcasted. During the reporting period, according to the Armenian authorities, trainings were provided to at least 53 investigators, 51 prosecutors, 120 judges, 23 police officers, 22 social workers and school teachers. A new handbook for law enforcement includes information on how to identify, assess, and treat cases and work with potential victims. Support for survivors includes a programme for social-psychological rehabilitation, for which funding has doubled compared to 2019.

The CEACR in its comments of 2021 ( 24 ) welcomed the measures taken by Armenia to ensure early identification of victims of trafficking in human beings related to ILO Convention No. 29 on Forced Labour and had no comments on Armenia’s implementation of ILO Convention No. 105 on Abolition of Forced Labour, which can be seen as a positive sign. 

It will be important to pursue efforts to fight against trafficking in human beings. In 2022, a report by the Council of Europe’s Group of Experts on Action against Trafficking in Human Beings (GRETA) found that Armenia continued to be primarily a country of origin for trafficked persons, while it is also a country of destination for Armenians trafficked internally, as well as for foreign nationals, and provided recommendations to improve support to victims ( 25 ).

5.2.3.Minimum Age for Work and Worst Forms of Child Labour (Conventions No. 138 and No. 182)

Poverty significantly decreased in the last years but remains high and an underlying cause of child labour. Children working in agriculture, construction, and service provision are reported to be vulnerable to labour trafficking, but comprehensive recent data on child labour are lacking ( 26 ). A key issue underlined by CEACR in its 2021 report ( 27 ) is the need to ensure that all children, particularly those working in the informal economy or as own-account workers, can enjoy the protection afforded by Convention No. 138 on Minimum Age for work.

As part of efforts to prevent child labour, in February 2021, the Government adopted the Procedure for disclosure and direction of children left out of compulsory education, aimed at identifying such children aged 6 to 18 and ensuring their reintegration at school. Moreover, the amendments to the Labour Code adopted in May 2023 strengthen the protection against child labour by providing that children under the age of 18 can only work after the hours of compulsory education and by reducing the maximum allowed working hours for children.

As regards enforcement of child labour legislation, the Health and Labour Inspection Body has powers to perform supervisory functions and apply sanctions for the violations of labour rights, including the rights of working children. In addition, during the reporting period, according to Armenian, authorities, the Police carried out inspection visits in places of entertainment and parks with a view to preventing cases of child labour, including in its worst forms.

5.2.4.Equal Remuneration and Elimination of Discrimination (Conventions No. 100 and No. 111)

The CEACR in 2020-2022 has not assessed Armenia’s implementation of ILO Conventions No. 100 on Equal Remuneration and No. 111 on Discrimination (Employment and Occupation). Armenia’s implementation of these conventions is expected to be examined by the CEACR later in 2023.

With reference to ILO Convention No. 100, the existing legislation (Labour Code and Law on Equal Rights and Equal Opportunities for Women and Men) still needs to be amended to rightly incorporate the principle of equal remuneration for work of equal value, as requested by the CEACR in 2016. As for ILO Convention No. 111, a prohibition of sexual harassment at work has been introduced in the Labour Code in May 2023. This is a positive step, while it remains to be clarified whether all outstanding requests of the ILO supervisory bodies on the implementation of this Convention have been fully addressed. As regards enforcement, since July 2021, the Government empowered the Health and Labour Inspection Body to monitor compliance with the prohibition of discrimination defined by the labour legislation.

The Strategy and Programme of Activities for Implementation of Policy on Ensuring Equal Rights and Equal Opportunities for Women and Men for 2019-2023 includes actions along five priorities: equal participation of women and men in the field of management and at the level of decision-making; addressing discrimination based on gender in the social and economic fields; enhancing the full and effective participation of and equal opportunities for women and men in education and science; enhancing the equal opportunities for women and men in healthcare; preventing gender-based discrimination.

The gender gap in labour market participation and employment remains high. Nonetheless, Armenia improved its ranking in the 2022 Global Gender Gap index to 89th out of 146 countries (compared to 98th in 2018) ( 28 ).

5.3.UN Conventions on Environmental Protection and Climate Change (Conventions 16-23) 

5.3.1.Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES)

Armenia has challenges in implementing CITES and its national legislation remains ranked as Category 3, meaning it does not meet the requirements for the Convention's implementation. The CITES Secretariat reported that legislation is in place and in January 2020 the Government and the Secretariat reached an agreement on the legislative analysis, including possible Category 1 status ( 29 ).

The Armenian authorities expect further feedback from the Secretariat on proposed legislation and have taken some steps to address the four minimum requirements set by the CITES Secretariat. A Management and Scientific Authority, respectively the Ministry of Nature Protection and the Interagency Council, have been appointed. Trade in specimens in violation of CITES is prohibited by the Law on Fauna and amendments to the Code of Administrative Offences. Penalties for such trade are covered in the legislation on administrative and environmental offences, as well as the Customs Code. The current level of fines is low and is unlikely to have a dissuasive impact for potential offenders. The final requirement of CITES is on the seizure of illegally traded or possessed specimens, which the Criminal Code does not cover currently.

5.3.2.Waste Conventions: Basel Convention on the Control of Transboundary Movements of Hazardous Wastes, and Stockholm Convention on Persistent Organic Pollutants (POPs)

Armenia has legislation to address hazardous waste and is compliant with international reporting requirements. A Government programme (2021-2026) on environmental management is in place, including activities on waste management.

A report ( 30 ) on waste governance published in March 2020 in cooperation with the Government, mentions that the disposal of hazardous waste is subject to licensing and there are five disposal facilities for incineration of medical wastes. The same report also mentions that despite the legislative framework being relatively well developed, shortfalls are observed in its implementation. Neither the waste collection operators, nor the dumpsite operators pass through the legal procedures and most hazardous waste other than medical waste still ends up in dumpsites. Armenia is working on establishing a waste management system based on extended producer responsibility (EPR) ( 31 ).

Armenia last submitted an update to its National Implementation Plan (NIP) under the Stockholm Convention, addressing the Fifth Conference of the Parties (COP5) amendments, on 23 April 2018. The updated NIPs with new POPs listed in Stockholm Convention COP6, COP7 and COP8 have not yet been submitted to the Secretariat. A draft Law on Chemicals has been in preparation since 2018 but has not been finalised yet.

5.3.3.Convention on Biological Diversity (CBD) and Cartagena Protocol on Biosafety

Armenia complies with its reporting requirements under the CBD. In the reporting period, several draft laws were prepared, and progress on them should be monitored. The country’s challenges lie in the implementation of legislation.

The main policy documents in the area of biodiversity are the revised National Strategy and Action Plan (NSAP) on the Conservation, Protection, Reproduction and Use of Biological Diversity, and its associated Action Plan for 2016-2020, as well as the Strategy of the Republic of Armenia for Special Protected Nature Areas and the State Programme for Protection and Usage, adopted in 2014. The EU Twinning project “Strengthened protection and sustainable use of biodiversity in Armenia” (2020-2022) provided support to the NSAP revision and update in line with the CBD goals. The Ministry of Environment in 2020-2022 initiated review of several legal acts for amendments to the Laws on Special Protected Nature Areas ( 32 ).

The draft Law on Genetically Modified Organisms (GMO), along with a package of other related laws, have been finalised and made public in 2018, but have not yet been adopted. Article 285 of the draft amendments to the Code on Administrative Offences prohibits and provides for administrative liability for the violation of the biosafety rules in use of GMOs, in the form of fines.

5.3.4.Conventions on Climate Change and Protection of the Ozone Layer ( 33 )

Armenia ratified the Paris Agreement of the UNFCCC in 2017, and in 2019 the Kigali amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer and subscribed to the Global Methane Pledge. The Government has made significant progress in the last two years in monitoring and reporting on climate change. The country is compliant with reporting obligations, and has adopted its National Adaptation Plan to Climate Change.

On 5 May 2021, Armenia submitted its revised NDC 2021-2030 ( 34 ) to the Paris Agreement to the UNFCCC Secretariat. It sets the ambition of the Government to reduce greenhouse gas (GHG) emissions by 40% by 2030 compared with the base year 1990. A key component of the document is the enhanced transparency and accountability framework for tracking the implementation progress of the country’s commitments under the Paris Agreement. GHG mitigation actions mainly target the energy sector.

Armenia is on track in controlling ozone-depleting substances (ODS) in line with the Montreal Protocol. Hydroflurocarbon (HFC) levels recently increased, but the implementation of the licencing system and preparation of improved data collection on HFCs and HFC-based equipment gives confidence that Armenia’s preparations are progressing in line with the long-term schedule towards meeting commitments under the Kigali Amendment to the Montreal Protocol.

The National Action Program of Adaptation to Climate Change and the List of Measures for 2021-2025 ( 35 ) was approved 13 May 2021. The Program serves as a roadmap for ensuring the mainstreaming of adaptation and implementation of the National Action Plan (NAP) in the sector policy, regional and local development, and respective financial planning processes. As follow-up actions planned under the NAP, sectoral adaptation plans were developed: the water sector plan was approved in 2022, the drafts for agriculture, energy, health, and tourism are in the process of negotiations.

The status of the Inter-agency Coordinating Council for Implementation of Requirements and Provision of the UNFCCC, chaired by the Deputy Prime Minister, was revised in July 2021. The Council coordinates reporting on climate change and ensures coherent policies for achieving Armenia’s commitments under UNFCCC and coordination of Armenia’s NDC under the Paris Agreement; as well as the implementation of Goal 13 (Climate Action) of the United Nations 2030 Agenda for Sustainable Development. Technical cooperation is ensured through three working groups under the Council. 

The main constraints in the implementation of the UNFCCC, as raised by Armenia in their Third Biennial Update Report from May 2021, are dependence on external financing, availability of national funds to finance the continuous process linked to establishing and improving of a system for Monitoring Reporting Verification (MRV) of emissions, currently supported by EU4Climate, limited human resources and low capacity of public servants, lack of formal arrangements ensuring collection of the required data for the compiling of GHG inventory, lack of complete and reliable data on the recent changes in forest lands because of 25-year absence of nation-wide forest inventory, lack of common approach in assessing effect of mitigation measures in the energy sector.

5.4.UN Conventions on Good Governance (Conventions 24-27) 

5.4.1.International Drug Control Conventions ( 36 )

Armenia does not have a dedicated institution for the implementation of its drug policy. Rather, responsibilities are spread over several ministries, law enforcement bodies (the Police, National Security Service, and State Revenue Committee), the Prosecutor General’s Office, and agencies. To ensure better coordination among these various entities and address recommendations by the International Narcotics Control Board (INCB), the Government established an inter-agency commission chaired by the Chief of Police of Armenia. Other recommendations have also been implemented, such as the launch of drug prevention activities, and increased treatment capacities.

Some other INCB recommendations are still to be implemented, notably those to ensure that controlled substances are available for licit purposes, collect better data related to drug use, continue increasing drug prevention and treatment capacity, and consider further measures to address the stigma associated with drug use and dependence. Overall, the INCB “acknowledges the effective cooperation of the Government of Armenia in fulfilling the country’s obligations under the international drug control treaties and notes that it will continue to work closely with the authorities to facilitate the implementation of its recommendations”.

5.4.2.UN Convention against Corruption (UNCAC)

The fight against corruption has been a priority for the Armenian Government since 2018 with important legislative and policy developments taking place also during the reporting period.

The second round of the UNCAC implementation review in 2021 commended Armenia’s system of asset declarations for public officials and the requirement to publish draft laws for civil society consultation. However, the review also noted several areas for improvement, including better monitoring of the Anti-Corruption Strategy and taking further measures to address conflicts of interest of public officials (e.g., through training, codes of standard for public officials, restrictions for former public officials), prevention of corruption in the private sector, and measures to enhance asset recovery (e.g., through enhanced scrutiny of accounts of politically exposed persons, measures allowing non-conviction-based confiscations, and enhanced international cooperation).

A new investigative entity, the Anti-Corruption Committee was established in March 2021. Moreover, a specialised Anti-Corruption Court was established at the end of 2022, while the Anticorruption Court of Appeal is expected to be established before the end of 2023. Armenia’s Anti-Corruption Strategy and its Implementation Action Plan for 2019-2022 are in place, while a new anti-corruption strategy post 2023 is in development. Additionally, a Corruption Prevention Commission (CPC) created in 2019 is responsible for transparency and accountability of high-ranking officials as well as integrity checks in the judicial sector. The CPC launched a major public opinion survey in May 2022 with support from the World Bank to assist in the comprehensive assessment of causes, patterns, and consequences of corruption in Armenia’s public sector.

In addition to the institutional changes, numerous laws have been amended, aimed at strengthening the anti-corruption regime and aligning it further with UNCAC and other international standards. Key changes in 2020 are the new versions of the 2018 Law on Civil Service and the Law on Public Service, which improved the conflict-of-interest framework for public officials. The new Criminal Code (2021) introduces corporate liability for corruption, thereby aligning the domestic legislation more with international standards. The Public Procurement Law is overall compliant with international standards, with recent changes strengthening e-procurement, which now covers all contract stages. The Law on the System of Whistleblowing of 2018, according to OECD, however, fails to provide comprehensive whistle-blower protection.

The country’s score in Transparency International’s Corruption Perception Index (CPI)  echoes the development: it remained at about 35 points (out of 100, indicating no corruption at all) until 2018, and then increased to 46 in 2022. Accordingly, Armenia’s rank in the CPI improved from 105th in 2018 to 63rd in 2022 (out of 180 countries) ( 37 ), making it the world’s best performer in any year between 2012 and 2018, and 2021.

Annex: Armenia – Treaty Ratification and Reporting

(1) ()    Economic Activity Index is a monthly aggregate indicator of change in output real volume in economy.

(2) ()      https://armstat.am/en/?nid=12&id=01001  All links provided in this Staff Working Document were up to date as of 20 October 2023.

(3) ()    IMF World Economic Outlook Database October 2023

(4) ()      https://blogs.worldbank.org/opendata/new-country-classifications-income-level-2018-2019  

(5) ()    The figures are based on Eurostat data as of September 2023. GSP statistics only cover goods imported in the EU market, i.e., goods released for free circulation in the EU. The GSP statistics do not cover other EU imports, like goods imported for the customs inward processing procedure or re-imports after the customs outward processing procedure. Trade flows registered as “confidential” do not show up in the GSP+ usage figures and regime 1 normal trade; but do show up in total trade figures (regime 4). https://ec.europa.eu/eurostat/cache/metadata/en/ext_go_agg_esms.htm#conf1537195068659  

(6) ()     https://www.moj.am/storage/uploads/01Appendix_1.pdf

(7) ()     https://www.moj.am/storage/uploads/02Appendix_2.pdf   

(8) ()     The HRAP reporting was done through the EU-developed e-rights.am platform.

(9) ()    United Nations (2017). Concluding observations on the combined seventh to eleventh periodic reports of Armenia, UN Doc, CERD/C/ARM/CO/7-11

(10)

()     United Nations (2021). Concluding observations on the third periodic report of Armenia*, UN Doc. CCPR/C/ARM/CO/3.

(11) ()     https://www.moj.am/en/legal/view/article/1104

(12) ()     https://www.moj.am/storage/uploads/Strategy_Final_ENG.pdf

(13)

()      https://www.coe.int/en/web/national-implementation/-/a-new-criminal-procedure-code-of-armenia-adopted-in-line-with-council-of-europe-expertise  

(14) ()    United Nations (2014) Concluding observations on n the combined second and third periodic reports of Armenia, E/C.12/ARM/CO/2-3

(15) ()     Defining disability as the result of interaction between environmental and societal barriers and a person's health condition which hinders their full realisation of rights.

(16) ()    United Nations (2022) Concluding observations on the seventh periodic report of Armenia, CEDAW/C/ARM/CO/7

(17) ()     Including the following offences: Abortion or Artificial Termination of Pregnancy and Sterilisation and Forced Abortion or Artificial Termination of Pregnancy and Sterilisation (Articles 175-176), Mental Influence (Article 194), Physical Influence (Article 195) and Forced Marriage, Divorce or Pregnancy (Article 197).

(18) ()    United Nations (2017) Concluding observations on the fourth periodic report of Armenia, CAT/C/ARM/CO/4

(19) ()    United Nations (2013) Concluding observations on the combined third and fourth periodic report of Armenia, CRC/C/ARM/CO/3-4

(20) ()     https://www.hrw.org/world-report/2021/country-chapters/armenia

(21) ()    The amendments, in the final version adopted by the National Assembly, have not yet been discussed in detail with Armenian authorities in the relevant dialogue fora. The package of amendments to the Labour Code will also be reviewed by ILO CEACR later in 2023.

(22) ()     https://www.ilo.org/normlex-permalink/comment/en/4050014  

(23) ()     https://www.ilo.org/normlex-permalink/comment/en/4062777  

(24) ()     https://www.ilo.org/normlex-permalink/comment/en/4120580  

(25) ()     https://rm.coe.int/greta-third-evalution-report-on-armenia/1680a6b4ba

(26) ()     According to the Armenia National Child Labour Survey 2015: Analytical Report, 39,300 children (8.7% of children aged 5–17) were involved in child labour, of which a large majority (90.1%) worked in agriculture. Moreover, among them, only 5% were employees with a verbal agreement, 25% worked on their own account, and 70% were unpaid family workers. Since there has not been any national survey after 2015, a new one should be envisaged. https://www.ilo.org/ipec/Informationresources/WCMS_IPEC_PUB_28755/lang--en/index.htm  

(27) ()     https://www.ilo.org/normlex-permalink/comment/en/4116644  

(28) ()     https://www.weforum.org/reports/global-gender-gap-report-2022/in-full/1-benchmarking-gender-gaps-2022#1-1-country-coverage

(29) ()     https://cites.org/eng/parties/country-profiles/am/compliance-status  

(30) ()     AUA Acopian Center for the Environment. Waste Governance in Armenia. American University of Armenia and Life Foundation, March 2020. Available at https://ace.aua.am/files/2020/08/WGA-Report-Eng.pdf

(31) ()     https://www.unep.org/technical-highlight/armenia-strengthen-chemicals-and-waste-management

(32) ()      https://www.e-draft.am/projects/2750

(33) ()     United Nations Framework Convention on Climate Change, Kyoto Protocol to the United Nations Framework Convention on Climate Change, and Montreal Protocol on Substances that Deplete the Ozone Layer.

(34) ()     Decision of the Government of the Republic of Armenia, 22 April 2021, N 610- L; see ; see https://unfccc.int/sites/default/files/NDC/2022-06/NDC%20of%20Republic%20of%20Armenia%20%202021-2030.pdf

(35) ()     Decree of the Government of the Republic of Armenia, 13 May 2021, N 749-L; See https://unfccc.int/sites/default/files/resource/NAP_Armenia.pdf  

(36) ()    UN Single Convention on Narcotic Drugs (1961), UN Convention on Psychotropic Substances (1971) UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988).

(37) ()     https://www.transparency.org/en/cpi/2022  

(38) ()     Reservations do not apply in the ILO system, so there is no relevance to providing information on reservations under each of these conventions.

(39) ()     Reporting mandatory, but not subject to compliance procedure.

(40) ()     Idem.