OPEN BORDER WITH TURKEY WOULD MAKE ARMENIA EXPORTING COUNTRY: BUSINESSMAN

/ARKA/
September 23, 2009
YEREVAN

Vazgen Safarian, chairman of the Union of Armenian Commodity Producers,
argued Tuesday that the open border with Turkey would transform
Armenia from an importing country into an exporting one.

"If our goal is to become a developed country we should work to make
Armenia a country that exports its goods and the open border with
Turkey will push Armenian producers to seek foreign markets and to
improve the quality of their goods,’ he said, warning, however, that
after the border is open, Armenia’s economic relations with Turkey
will not be on a par.

To substantiate he cited the latest figures reflecting Turkish-Armenian
trade in 2008 when Turkish imports to Armenia amounted to $269 million.

Turkey sells to Armenia mineral resources ($38 million), bituminous
materials ($40.4 million), knitted fabric and garments ($50 million)
cables and many other produces. Armenian exports to Turkey last
year- ferrous metals, electricity, metal scrap, aluminum and lather-
totaled $1.8 million.

According to Vazgen Safarian, this disparity is the result of the
closed border and lack of diplomatic relations between the two
countries.

"The priority task of the government is to encourage domestic
producers. This is why our organization has developed a strategic
development concept encouraging Armenian producers w hich we are going
to send to the government’s consideration,’ he said, adding that if
the border opens Armenia can sell $220 million wroth electricity to
Turkey annually.

According to official figures, Armenia’s trade with Turkey in
the first seven months of 2009 slashed by 28% to $86.7 million
year-on-year. Armenian exports to Turkey plummeted by 50.1% to $539,800
(0.2% of all Armenian exports). Turkish import to Armenia fell by 27.8%
to $86.2 million. At the same time import from Turkey’s territory
fell by 23.1% to $76 million.