RUSSIAN EXPERT: OPENING OF ARMENIA-TURKEY BORDER TO MAKE ARMENIAN EXPORTS CHEAPER
Today.Az
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July 24 2009
Azerbaijan
Opening of the Armenia-Turkey border will reduce cost of Armenian
exports specifically that of mining products, Transition Economies
Institute expert Lev Freinkman said.
"Opening of Armenia-Turkey border will have more positive impact
rather than negative," he said.
The expert said one of the possible advantages is that it will make
exports specifically that of the mining goods cheaper and will open
Turkey’s market for Armenian electricity and building materials.
"Turkey has larger, competitive and attractive market," the expert
said.
There are also two disadvantages for the Armenian market from the
opening of the border. First, agriculture in Armenia’s agriculture
faces hard times because of the blockade which could end as soon as
transport becomes cheaper.
Secondly, there is a risk that the government "will be so pleased
at opening of the border that it will not think about other things",
he said.
At the same time Freinkman is confident that opening the border is
not the solution to all problems of the Armenian economy.
"Railways and open borders are not enough without de-monopolization
of economy and addressing high cost of doing business in Armenia,"
he said.