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Seda Hergnyan

Armenia-Georgia Trade Nose Dives in 2018; Drop in Armenian Copper Exports a Big Reason

Recent data released by Armenia’s Customs Service supports the claim made Armenian Prime Minister Nikol Pashinyan, at a recent meeting with Georgian President Salome Zurabishvili, that trade between the two neighboring countries has the potential for substantial growth.

The claim is realistic because trade between the two countries dropped by 42.9% in 2018 in comparison to 2017.

The trade volume was a mere US$ 141.6 million last year, a drop of $106.4 from 2017.

Armenian exports to Georgia dropped from $155 million to $71 million. Armenian imports from Georgia dropped from $93 million to $70 million.

Surprisingly, Georgia was one of Armenia’s top 10 trading partners prior to 2018 and one of the few countries with which Armenia had a positive trade balance.

Copper Exports to Georgia Drop

A large share of the trade decrease can be attributed to the drop in Armenian copper ore exports to Georgia. In 2017, copper comprised one half of Armenian exports to Georgia. Armenian production of copper, and consequently its exports of the ore, decreased in 2018. In 2017, Armenia exported some 80 tons of copper ore, valued at $90 million, to Georgia. In 2018, only 2.2 tons, valued at $8.8 million, were exported to Georgia.

Last year, Armenian exports of copper ore dropped for the first time in ten years.

Armenia exports some 500 items to Georgia.

In 2018, tobacco products (cigars, cigarettes, cigarillos) overtook copper ore as the leading export item.

Armenia exported $13.5 million in tobacco products to Georgia in 2018, a slight drop from the $14.8 million it exported in 2017.

Armenia’s second largest export item to Georgia is comprised on glass containers, bottles and ampoules. In 2018, Armenia exported $10.4 worth of these items to Georgia, up from $7.7 the previous year.

Given Armenia’s closed border with its eastern neighbor, Georgia also serves as an important trading link to Turkey.

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