ARMENIAN-TURKISH TRADE: IMPORTS BEAT EXPORTS HOLLOW
Albert Khachatryan
news.am
Feb 12 2010
Armenia
Armenia’s imports from Turkey have been snowballing over the recent
years, but it would be too much to speak of both states’ equal foreign
trade turnover. Figuratively speaking, it has been a game with only one
goal. In 2009, Turkish exports to Armenia exceeded Armenian exports to
Turkey 149 times. This is typical of the whole period of post-Soviet
Armenia’s trade relations with Turkey.
Last year, Turkey’s exports to Armenia, though showed a decrease of as
much as 33.6%, totaled U.S. $178m. Armenia’s exports to Turkey were,
however, merely symbolic, less than U.S. $1.2m.
The present state of the Armenian industry does not seem to be the
reason for hope for anything better in Armenia’s trade relations
with other countries. Raw materials, (ferromolybdenum and copper
concentrate), re-imported cut diamonds, Armenian brandy, and aluminum
foil constitute the lion’s share of Armenia’s imports.
Looking through the statistical table showing Armenia’s exports
to other states, one will see that that Turkey’s imports of almost
all Armenian products are equal to zero. Of course, Armenia exports
something to Turkey. In 2008, Turkey imported 300 kg of synthetic
rubber, and 400kg of paper and paper items from Armenia – a derisory
amount in terms of money. Armenia’s exports of unwrought furs and
wrought leather totaled U.S. $1.5m and of aluminum articles, U.S.
$170,000 – comparatively high figures.
Besides oil and oil products, machinery and equipment, pharmaceutical
products, dye stuff, ferrous materials, rubber and other products
constitute a large share of Turkey’s imports. The country’s industry
needs raw materials and semi-finished products. This actually accounts
for Turkey’s "import geography" – Saudi Arabia, Russia, a number
of European countries, as well as China and the United States. Like
Armenia, Turkey has a strongly negative foreign trade balance.
Turkey’s balance of trade deficit is expected to reach 22.579bn liras
(about 5,700bn AMD).
The Turkish Central Bank forecasts economic growth of 3.9% and an
inflation rate of 7.5% this year. Since inflation actually means a
higher consumer price index, the prices for the products imported to
Armenia may rise as well. Armenia’s imports from Turkey are mainly
shoes and clothing, plastic items and household appliances — the
commodities Armenia would abundantly supply to the "Soviet" market.
Armenians are tolerant and they do not make distinctions between
countries of origin. Evidence thereof is Turkish goods abundantly
supplied to the Armenian market, which are in demand in the country. A
relatively low price, along with a relatively high quality, accounts
for the high demand for the goods.
It is noteworthy that, for the present, all the talks about Armenian
exports to Turkey are about electricity, flour and other products
without the inscription "Made in Armenia" on them. We can only guess
at whether this "preselection" is pure coincidence or other factors
account for it. In any case, an opinion is often expressed that the
Turkish authorities just imposed a ban on the import of Armenian
products.
A number of Armenian industrial enterprises, first of all the Nairit
plant and the Vanadzor chemicals plant, have a potential for exporting
their products to Turkey. However, despite repeated attempts, the
enterprises are not operating at full capacity.
Specifically, the Vanadzor chemicals plant mastered the production of
fertilizers a few years ago, but the pilot production proved to be the
first and the last stage. Experts, however, say real preconditions
are available for the export of fertilizers to the eastern regions
of Turkey, which border on Armenia.
From: Emil Lazarian | Ararat NewsPress