Armenia is a small, landlocked nation in the lower Caucasus Mountains that shares borders with Turkey, Iran, Georgia, and Azerbaijan. Armenian trade is characterized by a significant trade deficit driven by a reliance on energy and advanced manufacturing imports, mainly from Russia. The majority of exports meanwhile are comprised of metals and low-value products destined for Russia and a few select European markets. A member of the WTO since 2003, Armenia has expanded its trade relations through PTAs with Europe and the US and by participating in the CIS free trade agreement. Although it was negotiating an association agreement with the EU, Armenia has instead decided to pursue further integration with its CIS partners through the Russia-Belarus-Kazakhstan customs union. Despite significant progress and potential, Armenian trade is still hampered by weak competitiveness, low productivity, limited financial access, cumbersome regulatory and business environments, and underdeveloped physical, institutional, and quality management infrastructure.