Armenia and China have signed an agreement to simplify freight transportation, reduce road-related costs for carriers and strengthen trade and logistics cooperation between the two countries.

The document was signed during a high-level meeting on the Trans-Caspian International Transport Route in Beijing, organized at the initiative of China’s Ministry of Transport, according to Armenpress.

Kristine Ghalechyan, a member of the Armenian delegation and Deputy Minister of Territorial Administration and Infrastructure, said that the agreement introduces a special system for issuing freight transportation permits that will be recognized by both countries.

Permits will be issued for two categories: general freight transportation and special cargo, allowing carriers to operate under more streamlined procedures.

The agreement also provides for reciprocal exemptions from certain road taxes, fees and duties related to the use of public roads, in accordance with the parties’ national legislation.

However, the exemptions will not cover taxes, duties or fees imposed to compensate for road damage caused by vehicles, Ghalechyan noted.

The agreement is expected to strengthen Armenia’s role in regional transit and logistics, increase trade turnover between Armenia and China, and deepen strategic cooperation.

It also establishes the possibility of organizing regular and non-regular international passenger bus services along mutually agreed routes and through designated border crossing points.