ARMENIA EXPECTS SUPPORT FROM EASTERN PARTNERSHIP

Polish Market
2009-08-18

We continue a survey of Poland’s economic ties with countries further
East with these remarks on Polish-Armenian relations by Andrzej
Szmitke, First Secretary at the Polish Embassy in Yerevan.

Despite the fact that Armenia is one of the smallest Commonwealth of
Independent States markets, Polish companies express rising interest
in it, evidenced in a steady upsurge in trade. In 2007 it amounted
to around USD 18,5 mln rising to all of USD 36 mln in 2008 due to a
substantial increase in Polish exports.

The situation is bound to deteriorate slightly in 2009 due to the
economic crisis though cooperation prospects for future years are
definitely excellent. Poland is viewed in Armenia as a manufacturer
of high quality products and Polish merchants as reliable cooperation
partners.

The principal items in Polish exports to Armenia include food,
alcoholic beverages and tobacco products, furniture, medicines,
cosmetics and machines and devices (refrigerators, stoves, water
heaters and hydraulic products). Imports from Armenia comprise almost
entirely synthetic rubber, ferromolybdenum and aluminium foil.

Transport costs from Poland to Armenia are on the high side,
largely due to distance and the closed Turkish frontier. Even so,
Polish companies are searching for areas where cooperation can be
developed. Polska Mennica (Polish Mint) S.A. has cooperated for
many years with the Central Bank of Armenia in producing coins and
medals. The number of Polish tourists visiting Armenia is increasing,
also through Polish travel agencies. The first efforts are underway
for Polish contractors to enter the Armenian market with the purpose
of modernising production plants, changing equipment and technologies.

Official initiation of the Eastern Partnership took place when
Poland was acting in Armenia in the name of the Czech Republic
during that country’s EU Presidency. Armenia is placing much hope
in the Eastern Partnership, with both the authorities and society
expecting that initiative to result in modernising the country and
assist Armenia in moving closer to Europe. EU experts will act as
advisors implementing reforms in Partnership areas. Close cooperation
should also cause Armenia’s trade with the EU to become more effective,
e.g. by reducing customs duties on 6400 products within the EU’s GSP+
(Generalised System of Preferences) and starting negotiations on a
free trade treaty.