Armenian Experts Propose Creating Free Economic Zone Between Armenia

ARMENIAN EXPERTS PROPOSE CREATING FREE ECONOMIC ZONE BETWEEN ARMENIA AND GEORGIA

Noyan Tapan
Feb 12, 2008

YEREVAN, FEBRUARY 12, NOYAN TAPAN. Armenian experts attach importance
to creation of a common exonomic zone between Armenia and Georgia with
the aim of promoting economic relations between the two countries, was
stated at the February 11 presentation of the research "Armenia-Georgia
Relations. Unused Opportunities". The research was done by a group
of Armenian experts under the UNDP program on transborder cooperation
between Shirak and Samtskhe-Javakheti regions.

The head of the research group Tigran Jrbashian characterized
the current economic relations between the two countries as quite
passive. Trade turnover volumes of Georgia with Turkey or Azerbaijan
are several times as much as its trade turnover with Armenia. Georgia
is most active in Armenia’s service sector: transportation, transit
traffic, communication, tourism.

According to T. Jrbashian, the revenues of Georgia from transit
transportation of gas made nearly 41 million dollars in 2006. For
comparison, he said that goods of 54 million dollars were exported
from Armenia to Georgia during the same period.

In the opinion of T. Jrbashian, in order to overcome this disproportion
in Armenian-Georgian trade and economic relations, it is necessary
to use a mutually beneficial model of development. He said that the
creation of a common economic zone would reduce the trade restrictions
that other countries use with respect to Armenia and Georgia. It would
neutralize Russia’s restrictions on Georgian goods and the economic
consequences of Armenia’s blockade by Turkey. This approach would
also increase the opportunity of developing trade links of the two
countries with the European Union, which is in line with the EU policy
in the region. Active transborder cooperation may also contribute to
improvement of the socioeconomic conditions of border communities in
Shirak marz of Armenia and Samtskhe-Javakheti region of Georgia.

It was stated that a similar research was also done by Georgian
experts, and its presentation will be held soon. The proposals of
Armenian and Georgian experts will be submitted to international
organizations, Armenian and Georgian authorities, the appropriate
bodies for discussion.