ACCORDING TO VARDAN AIVAZIAN, IT IS NECESSARY TO "ASSUME A POSITION" BEFOREHAND IN ORDER TO COMPETITIVE IN CASE OF POSSIBLE OPENING OF ARMENIAN-TURKISH BORDER

Noyan Tapan
June 23, 2009

YEREVAN, JUNE 23, NOYAN TAPAN. A work entitled "The Trade and
Economic Problems of Reopening the Roads between Armenia and Turkey"
was presented at the ARF Kristopor Mikaelian Center on June 23. The
representatives of the National Assembly factions and the economists
present at the discussion considered the ARF Bureau’s initiative as
a praisworthy and valuable one.

Chairman of the NA Standing Committee on Economic Issues, member of
the Republican Party of Armenia Vardan Aivazian said that naturally,
the Armenian-Turkish border will open sooner or later, and taking
into account the fact that Turkey uses instruments for promotion and
regulation of its economy and exports, the executive and legislative
power of Armenia and its economic entities "should assume a position
both in the good and bad sense in order to be competitive".

According to him, when joining the World Trade Organization, the two
countries assumed different obligations, including the one on customs
duties: Turkey may establish a customs duty of up to 50% for some
goods, whereas Armenia may establish a 15% customs duty at the maximum.

In the words of the same committee’s deputy chairman, member of
"Prosperous Armenia" faction Vardan Bostanjian, the Armenian economy is
quite vulnerable: for example, the domestic market is not protected
despite the existence of the respective laws. Besides, Armenia’s
imports exceed more than four-fold its exports, which shows that
"the country is not inclined to boost production".

In the opinion of economist Andranik Tevanian, regardless of
whether Armenia’s legislation will be improved or not, in case of
the possible opening of the border, the country’s economy will be
seriously jeopardized as it has a monopolistic and oligarchic nature
and is based on "the persons united with the authorities".