Freedom of trade in Armenia is generally respected. Tariffs are not high, with the Most Favoured Nation (MFN) average applied rate of 6%, but tariffs are higher for agriculture goods and foodstuffs. Non-tariff barriers, such as technical, sanitary and phytosanitary standards, still pose obstacles to free trade. The use of reference prices during custom clearance was recently reduced, but custom procedures remain non-transparent and prone to corruption, while custom clearance and inspections take a lot of time. Those procedures have recently been improved through a reduction in use of reference pricing, but manipulation with goods` classification and demands for pre-payment of custom duties still prevail. Armenia has been a member of the World Trade Organization (WTO) since 2003. It has
signed the Trade Facilitation Agreement, and requirements for categories A and B have been put in place. Armenia joined the Eurasian Economic Union (EEU) in 2015, which granted Armenian goods easier access to EEU markets and vice versa, as well as more opportunities for Armenian migrant workers through their preferential treatment. However, this also entailed changes in trade policy, by increases in tariff rates and new regulatory requirements for imported goods, in order to comply with the existing regulation of the EEU. In November 2017, Armenia signed a Comprehensive and Enhanced Partnership Agreement with the European Union. This treaty will not affect customs or tariffs rates, however, but it will, over time, align Armenian regulatory system and standards with the EU. Main problems facing Armenian involvement in foreign markets are geographical and political: the mountainous terrain provides only a limited number of routes suitable for transportation of goods, and most of them are closed because of the political confrontations with Azerbaijan and Turkey. The only open borders are those with Georgia and Iran, but they lack good infrastructure. That significantly burdens international trade, by imposing high freight costs. Main Armenian trade partners are the Russian Federation and the European Union, which combined cover one half of its international trade.