OPENING ARMENIAN-TURKISH BORDER TO RESULT IN REAL GROWTH OF INVESTMENTS, RA MINISTER OF ECONOMY SAYS

NOYAN TAPAN
SEPTEMBER 28, 2009
YEREVAN

YEREVAN, SEPTEMBER 28, NOYAN TAPAN. The analyses show that in case of
the normalization of relations with Turkey, direct investments in the
Armenian economy may grow by more than 50%. RA Minister of Economy
Nerses Yeritsian stated this at the discussion "The Geopolitical
and Economic Consequences of the Normalization of Armenian-Turkish
Relations and the Role of the European Union in this Process" held
within the framework of the series "European Resolution" of the Public
Television Company.

According to the minister, the normalization of relations
among Georgia, Armenia, and Turkey will make the region more
attractive. Opening the border will allow Armenia to consider the idea
of joining bigger regional projects, while the European Union and
the European Commission are ready to assist with the implementation
of such serious regional projects. N. Yeritsian noted that with the
border’s opening, Armenia will have a direct border with the EU as
Turkey is a member of the EU Customs Union and it has signed a free
trade agreement with the European Union. Armenia is also carrying
on negotiations with the aim of signing a free trade agreement with
the EU. The countries willing to use EU markets are required to make
efficient domestic reforms. N. Yeritsian underlined that the opening
of the border will accelerate the process of such reforms in Armenia.

Objecting to the minister, ARF Bureau member David Lokian said the
EU follows "thousands of standards, hundreds of procedures", and
Armenia will encounter serious problems if it is not prepared for
that. "We can only supply small amounts to Turkey because the existing
procedures do not allow us to export goods to that country," he said,
adding that since the late 1960s Turkey has been conducting a policy of
export promotion and today it has numerous instruments to suspend the
import. "We already have a disbalance with Turkey – with respect to
the closed Armenian-Turkish border and the World Trade Organization
(WTO) membership. Their average customs duties are 48.5%, whereas
ours make 14%. There are no WTO-established customs duties on 50%
of goods imported into Turkey, and the government can use a customs
duty of up to 228% in order to stop the import at the given moment,"
D. Lokian noted.

Nerses Yeritsian dismissed these objections, saying that equal
conditions are envisaged for all member states of WTO and Turkey cannot
be in a more privileged position. "These figures are impressive but
they do not represent the facts, and Armenia can also carry out a
state intervention and assistance," the minister said. He expressed
confidence that the state incentives will accelerate this process.