weighted score 4.3 · nine dimensions
Country Risk Profile
Armenia
Sourcing risk, regulatory exposure and audit intelligence for Armenia-origin supply chains.
Forced & child labour
3
Low systemic risk. ILO forced labour conventions ratified. No ILAB listings. Small manufacturing base limits large-scale exposure.
Worker rights & FOA
4
ILO C087 and C098 ratified. Trade unions permitted but weak. Labour inspection capacity limited. CEPA reform commitments in progress.
OHS & audit transparency
4
OHS framework exists but enforcement uneven. Audit infrastructure developing. CEPA harmonisation with EU norms ongoing.
Food & product safety
4
Food safety standards improving under CEPA alignment. EAEU technical regulation framework applies in parallel, creating dual-standard complexity.
Environmental & regulatory
4
Mining sector (copper, molybdenum) carries environmental compliance risk. Limited EUDR commodity exposure. Environmental enforcement improving but capacity constrained.
Governance & anti-corruption
5
TI CPI 2025: 46/100. Post-2018 revolution governance reforms ongoing. Judiciary independence improving but corruption remains in procurement and public services.
Tariff & preferential access
5
GSP+ provides preferential EU access. EAEU membership creates tariff complexity. No DCFTA with EU. EAEU and EU membership aspirations structurally incompatible.
Non-tariff barriers
5
Dual regulatory environment (EAEU technical regulations and CEPA EU approximation) creates compliance complexity. Standards harmonisation incomplete.
Supply chain traceability
5
Small economy aids traceability in principle. IT sector well-documented. Mining and agricultural supply chains less transparent. Improving under CEPA commitments.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Low direct forced labour risk. Armenia has ratified ILO C029 and C105. No ILAB listings for Armenian goods. Small economy with limited large-scale manufacturing reduces systemic forced labour exposure.
- Worker rights
- ILO C087 and C098 ratified. Trade unions exist but membership is low. Labour inspections have improved under CEPA reform commitments but enforcement capacity remains limited for a country of 2.8 million.
- Migration dynamics
- Armenia is a net emigration country. Significant diaspora in Russia, France, and the US. Post-Nagorno-Karabakh conflict (September 2023), over 100,000 ethnic Armenians fled to Armenia, creating short-term labour market and social service pressure.
- OHS standards
- Occupational health and safety framework exists but enforcement is uneven. CEPA commitments include labour standard harmonisation with EU norms. Audit transparency is moderate.
EU Regulatory Exposure
EU Regulatory Exposure
- CEPA with EU
- Comprehensive and Enhanced Partnership Agreement (CEPA) in force since March 2018. Provides a framework for political association and economic integration but does not include a deep and comprehensive free trade area (DCFTA).
- GSP+ status
- Armenia benefits from GSP+ preferential tariff access to the EU, contingent on ratification and implementation of 27 international conventions covering human rights, labour, environment, and good governance.
- EU membership process
- Armenia formally applied to begin EU membership process in January 2025 as part of its Western pivot. This is at an early stage and faces significant structural barriers, including continued EAEU membership.
- EUDR exposure
- Limited EUDR exposure. Armenia is not a significant producer or exporter of EUDR-regulated commodities (cattle, cocoa, coffee, oil palm, rubber, soya, wood).
Logistics & Supply Chain
Logistics & Supply Chain
- Landlocked geography
- Armenia is landlocked with closed borders with Turkey and Azerbaijan. Primary trade corridors run through Georgia (Poti/Batumi ports on the Black Sea) and via Iran. Logistics costs are elevated relative to coastal competitors.
- Transit options
- Georgia-Armenia corridor is the primary EU-bound route. Road and rail connections to Georgian Black Sea ports. Iran southern corridor provides alternative but faces sanctions-related complications for EU-bound goods.
- IT & services exports
- Armenia's growing IT sector (Yerevan tech hub) exports services rather than physical goods, reducing logistics friction for the fastest-growing segment of the economy.
- Trade facilitation
- CEPA includes trade facilitation provisions. Customs modernisation ongoing but border crossing times remain longer than EU or Turkish benchmarks.