Prime Minister of Armenia: Armenia does not support state protectionism

2009-03-13 19:12:00

ArmInfo. Armenia does not support state protectionism. The government
policy aims to overcome the temporary difficulties in the country that
originated for quite objective reason, Prime Minister of Armenia Tigran
Sargsyan told media Friday.

He said protectionism for a long period of time leads to negative
consequences. In future, when global economy will overcome the crisis,
it will be possible to speak of changes in Armenia’s policy. Only in
this case it will be possible to speak of minimizing government
guarantees and providing state loans. `That is why the current measures
should have temporary nature’, T. Sargsyan said. He underlined that
many states have resorted to protectionism being aware of its
harmfulness. In particular, car industry is in question, which enjoys
state support. `Such measures are taken also in Armenia and it is
difficult to call these measures protectionism. It is assistance in
overcoming temporary difficulties by combined efforts’, the premier
said.

As regards the recall of the bill on amendments to the Law on Customs
Duty by the government, the premier explained that the national dram
devaluated by 20% whereas the law provides for a 10-15% growth of the
customs duty on a series of imported commodities. This devaluation is
an impetus for development of the country’s export potential and
creates favorable conditions to stiffen the local competition. `The
developments will show if the government will return to this bill or
not’, the premier said. He underlined that the increase of the customs
duties will have temporary character and will apply to the commodities
produced in Armenia. Thus, this government measure aims to support
local producers. If the customs duty rises by 15%, local producers will
grow their capacities to 30%, the premier said.