ARMENIAN BUSINESSMAN CONCERNED OVER DOMESTIC PRODUCTION

Information-Analytic Agency NEWS.am
Sept 22 2009
Armenia

A concept worked out by the Union of Home Producers will be submitted
to the finance and budgetary commission of the Public Council of
Armenia, Chairman of the Union Vazgen Safaryan told reporters today. He
pointed out that the concept provides for a number of measures to
protect local producers’ interests and enhance competitiveness in
case the Armenian-Turkish border is reopened.

"We must be not only a consumer, but also producer and exporter
country. It must become our principal strategy," Safraryan said.

Safaryan presented some of the Union’s initiatives. "Low-interest
and long-term credits to local producers must become one of the first
steps. Second, customs bans on products that can be manufactured in
Armenia," he said.

The Union proposes revision of Armenia’s tax and tariff policy. "When
gas tariffs are too high (imported at U.S. $154, sold to the population
at U.S. 266) the water price rises as well. The result is that the
cost of production is higher than on other markets, but our products
are not competitive. If this policy is not revised, cheap Turkish
products will flood the Armenian market, and the local producers will
go bankrupt," Safaryan said.

In this context he pointed out the importance of creating conditions
for developing domestic production.