ARMENIA EXPECTS IRAN TO REMOVE TRADE OBSTACLES
Author: Khachatrian Haroutiun
Editor: Eghian Robert
Noyan Tapan News Agency, Armenia
Oct 2 2007
YEREVAN, OCTOBER 2, NOYAN TAPAN. Negotiations are underway between
Armenia and Iran with the aim of agreeing on points of the agreement
on free trade. Gagik Kocharian, the head of the Trade and Services
Department of the RA Ministry of Trade and Economic Development, told
NT correspondent that prior to signing the agreement on free trade,
the Iranian side must remove "non- tariff" technical obstacles to
bilateral trade relations.
Unlike Armenia, Iran is not a member of the World Trade Organization
and has a complex and multi-step procedure of granting permission
for import of goods – both at state and province level. According to
G. Kocharian, obstacles of this kind are the reason why the volume
of trade and investments is so limited between the two neighboring
countries. The annual amount of Iranian investments in Armenia makes
only several hundred thousand dollars, and there is an enterprise
with Armenian capital in Iran. In 2007, bilateral trade amounted to
about 164 million dollars, while the maximim amount of bilateral trade
(190 million dollars) was registered in 1996.
G. Kocharian said that the proposal to sign an agreement on free trade
was made by the Iranian side in July of this year. Iran’s foreign
minister Manucher Motaki stated on July 20 that it is envisaged to
increase bilateral trade to 500 million dollars in the coming years.
In the words of G. Kocharian, only in case of removing the "non-tariff"
obstacles, the matter may concern establishment of a really free
trade regime, which presupposes a bilateral trade regime without
customs duties. Armenia has two tariffs of customs duties – zero
and 10 percent, whereas Iran charges a so-called "trade profit"
(in addition to 5% customs duty), as a result of which levies on the
border may make up to 60% of the price of a commodity. It is likely
that an agreement on free trade or its preliminary document will
be signed during the upcoming visit of the Iranian president Mahmud
Ahmadinejad to Armenia this year.
G. Kocharian said that one of the immediate goals of the Armenian
side is to found an Armenian House of Trade in Tehran. It will an
Armenian company able to export Armenian goods to Iran and organize
their sale there.