U.S. ENVOY ARGUES FOR TURKISH-ARMENIAN BORDER OPENING

argues-for-turkish-armenian-border-opening/
Feb 12th, 2010

YEREVAN (RFE/RL)-The U.S. ambassador in Yerevan, Marie Yovanovitch,
claimed on Friday that Armenia would draw substantial economic benefits
from the possible opening of its border with Turkey and most Armenians
seem to realize that.

Reiterating Washington’s strong support for the Turkish-Armenian
normalization, Yovanovitch said Armenia’s heavy dependence on Georgian
transit routes carries an "enormous risk" that was highlighted during
Georgia’s August 2008 war with Russia. The resulting disruption
of vital cargo supplies to the landlocked country underlined the
importance of having an open border with Turkey, she said.

"The benefits [of border opening], I think, are clear to Armenia,"
Yovanovitch told a panel discussion in Yerevan on Turkish-Armenian
cross-border commerce. "An end to geographic and economic isolation;
expanded export opportunities, especially for the depressed communities
near the border; opening of the new transport routes that would reduce
transport costs; easier access to Armenia for Turkish goods; increased
competition and choice for Armenian consumers, a higher quality of
Armenian products … and new export routes for Armenian products."

The diplomat continued to make the case for opening borders, claiming
that Armenian exporters would also gain access to Turkey’s large and
highly protected market. "In addition, with Turkey and the European
Union linked by a customs union agreement for trade purposes, an open
border with Turkey would put Armenia on a border of Western Europe,"
she said.

Yovanovitch also spoke of what she called significant political and
economic benefits of border opening for Turkey. "Turkish companies
would have new export markets in Armenia, and by establishing
operations here they could take advantage of favorable export tariffs
to Russia and other CIS countries at the same time as they create
employment for Armenians," she argued.

The remarks reflect the view of not only the U.S. government but also
the International Monetary Fund and the World Bank and other lending
institutions. Senior IMF and the World Bank officials believe that a
positive impact of border opening on Armenia’s recession-hit economy
would be felt as early as this year.

Armenian, economists, however, assert that-border commerce with Turkey
would actually damage the domestic economy. They say it would flood
the domestic market with cheap Turkish consumer goods and thereby
hurt many Armenian manufacturers.

Yovanovitch said she found such concerns legitimate but added that she
believes the Armenian government can minimize possible "short-term
shocks" resulting from the normalization of Turkish-Armenian
relations. "Opening the border between Armenia and Turkey will require
adjustments," she said. "But I’m confident that the long-term benefits
to both countries and the region far outweigh any short-term economic
impacts."

Yovanovitch also stood by her view that most Armenians support
rapprochement with Turkey, despite an unprecedented wave of opposition
against the agreements by most Armenians in Armenia and its far-flung
Diaspora.