In Opinion Of Prime Minister Of RA, Yerevan Sitting Of Armenian-Geor

IN OPINION OF PRIME MINISTER OF RA, YEREVAN SITTING OF ARMENIAN-GEORGIAN INTERGOVERNMENTAL COMMISSION ON ECONOMIC COOPERATION PASSED SUCCESSFULLY AND IN ATMOSPHERE OF MUTUAL UNDERSTANDING

Noyan Tapan
Oct 16, 2007

YEREVAN, OCTOBER 16, NOYAN TAPAN. The 6th sitting of the
Armenian-Georgian intergovernmental commission on economic cooperation
was held at the Reception House of the Government of the RA on
October 15. NT was informed by the RA Government Information and PR
Department that the commission discussed issues related to execution
of the decisions taken at the previous sitting, the current state
and development prospects of the legal and contractual basis between
the sides, prospects of economic development, as well as cooperation
in energy, transport, agriculture, health care and social security,
finance, education and culture, environmental protection, tourism,
customs sphere.

The commission took notice of the information on execution of the
decisions taken at the previous sitting, noting with satisfaction that
in the indicated period the sides have done work on further promotion
of trade and economic relations between Armenia and Georgia, most
of the instructions have been carried out, while the rest are at
the implementation stage. The commission instructed the ministries
and departments of the two sides to take the appropriate measures to
ensure execution of decisions of the 5th sitting fully and to inform
the co-chairmen about results.

As for the current state and development of the legal and
contractual basis between the two countries, the commission noted with
satisfaction that during the sitting the Agreement on Administrative
Mutual Assistance in Customs Affairs and the Protocol on Order of
Cooperation in Exchange of Customs Statistical Information between
the State Customs Committee adjunct to the RA government and the
Georgian ministry of finance were signed.

The commission took into consideration that the work on the agreement
between the Armenian government and the Georgian government on air
comminication is continuing, and the foreign ministries of the two
countries, the RA Main Department of Civil Aviation, and the Georgian
ministry of economic development were instructed to brisk up the
preparatory work for signing these documents.

In connection with the protocol on making amendments in the agreement
on free trade of August 14, 1995, the foreign ministries of the
two countries, the RA ministry of trade and economic development,
and the Georgian ministry of economic development were instructed
to brisk up the preparatory work for agreeing on these documents and
their signing by late 2007.

The commission underlined the urgency of coordinating the positions
of the sides in the issue of "mutual recognition and protection of
geographic marks (names of goods’ places of origin) – in accordance
with the norms and principles of the World Trade Organization,
and instructed the Armenian and Georgian foreign ministries, the RA
ministry of trade and economic development, the Georgia ministry of
economic development to start the preparatory work on coordinating
the respective draft agreement and signing it by the governments of
the two countries. The Georgian side was commissioned to pass the
draft agreement to the Armenian side by December 1, 2007.

Procceding from the importance of solving the current problems of
the energy sector in a most comprehensive and coordinated way and
the necessity of the Armenian and Georgian energy systems’ working
in parallel, and taking into account the parallel work of power
supply system of Georgia and Russia, as well as of Armenia and Iran,
the Armenian side was instructed to prepare the respective draft
agreements and transfer them to the Georgian side by late 2007.

The sides also agreed on the tax legislation and the expediency of
signing a new intergovernmental agreement on cooperation and mutual
assistance in the fight against violations in this sphere, which
will replace the agreements signed in 1997. The RA State Tax Service
and the Georgian ministry of finance were instructed to prepare the
respective draft agreement.

The sides took into consideration the information that the Armenian
side will pass to the Georgian side the prepared draft agreements on
cooperation between the Armenian and Georgian governments in veterinary
service and plant quarantine. It was decided to instruct the foreign
ministries and the agriculture ministries of the two countries to
brisk up the preparatory work on signing of these documents.

The commission pointed out that as a result of activities of the
respective state commissions of the two sides on demarcation of the
state border between Armenia and Georgia, the sides have come to an
agreement on a border line of 150 km, and the work on the remaining
5 border sections of the total length of 75 km is underway. The
commission decided to propose that the delimitation commissions of
the two sides continue their work with the aim of reaching mutually
acceptable agreements.

It was decided to instruct the foreign and defence ministries of
Georgia to discuss (upon receiving from the Armenian side) the
draft agreement between the two countries on interstate military
transportation for needs of the armed forces of Armenia and Georgia,
and then to submit its proposals.

Discussing the issues of trade and economic cooperation between
Armenia and Georgia, the commission took notice of the fact that
bilateral external trade turnover is growing and in January-August
2007 the indices were equal to those in the year 2006.

The efficient cooperation between the chambers of commerce and
industry of the two countries was pointed out. Particularly, in 2006 an
exhibition was held in Tbilisi with the participation of the Georgian
chamber of commerce and industry and the Business Center of Assistance
to Business Women adjunct to the RA Chamber of Commerce and Industry.

The Armneian side informed the Georgian side about successful testing
of "Zenith" antihail system and expressed a willingness to provide
full information about it.

The commission took into consideration that in the indicated period
the Armenian Development Agency carried out some work on advertizing
goods of national producers and mutual supply of goods to markets of
the two countries.

The Armenian ministries of trade and economic development, finance,
transport and communication, the RA State Customs Committee, the State
Tax Service and the Georgian ministries of economic development and
finance, as well as interested ministries and departments of the two
sides were instructed to brisk up the work on further development
of trade and economic cooperation with the aim of increasing the
commodity turnover and attracting investments.

In connection with the problem of developing cooperation in tourism
sector, it was noted that this process is also proceeding successfully.

Particularly, the Armenian side took part in the annual tourism
fair CTF-2007 in Georgia in April 2007 and in the international
conference Turkom in Tbilisi on September 24-27. The sides stated
with satisfaction that in 2007, the number of tourists to Armenia
and Georgia has significantly grown.

The commission instructed the interested ministries and departments
of the two sides to continue cooperation in the tourism sector
by exchanging information and advertising material on tourism
opportunities of Armenia and Georgia, participating in exhibitions
and fairs on tourism in these countries. The sides were also told to
cooperate with the aim of attracting Armenian and Georgian investments
for construction of tourist facilities in Armenia and Georgia.

Addressing problems of cooperation in the transport sector, the sides
expressed their satisfaction over the fact that a stable growth in
motor and railway commodity transportation between the two countries
has been observed. Taking into account the fact that considerable part
of Armenian goods is transported through the territory of Georgia via
the ports of Poti and Batumi, the Armenian side proposed discussing the
opportunity to apply jointly to international financial institutions
for financing the reconstruction of Yerevan – Gyumri- Ninotsminda –
Akhaltskha – Shuakhevi – Batumi motorway, which will allow to reduce
the route of bilateral cargo transportation. The Armenian ministry
of transport and communication and the Georgian ministry of economic
development were instructed to discuss the opportunity to apply to
international financial institutions on this issue.

The commission assigned the sides to regularly exchange information
about organization of new ferry links via Poti and Batumi and to
discuss the issue of resuming regular air communication by Yerevan –
Tbilisi – Yerevan and Yerevan – Batumi – Yerevan flights. In order to
ensure continuous cargo transportation between Georgia and Armenia,
the respective departments of the two sides were instructed to develop
measures for improving the technical state of Ayrum railway station
and increasing its carrying capacity, while customs bodies were told
to discuss the issues of reducing the duration of customs functions
and developing a single coordinated principle of work.

The importance of cooperation in the energy sector was emphasized
at the sitting. The commission took into consideration that during
the meeting of the energy ministers of Armenia, Georgia and Iran in
September 29, 2006, a mutual understanding memorandum was signed,
by which the sides confirmed their willingness to continue work for
ensuring parallel operation of the power energy systems of their
countries. In connection with construction of the Armenia-Georgia 400
kv high-voltage line, it was noted that according to the decision
taken at the previous sitting of the commission, the Georgian side
started construction and repairs of this line in the territory of
Georgia. Reconstruction work in the 75 km section of the line has been
finished. The Georgian side spoke about the possibility of completing
the construction of a 18 km section by late 2008. The design of the
Armenian section of the Armenia-Georgia 400 kv high-volatge line
has been submitted for environmental examination. The appropriate
draft decision will soon be presented to the Armenian government for
discussion with the aim of determing the schedule of construction.

The commission took notice of the information that the sides have had
a number of meetings on the legal registration issue of the Ashotsk
– Ninotsminda transmission line but the issue remains unsettled due
to some difficulties. The sides were instructed to hold additional
discussions and submit proposals for solution of this issue.

For the purpose of forming an attractive investment environment
between the two sides, the commission considered it important to
bring the fiscal legislation of the sides into line with each other
and instructed the Armenian and Georgian finance ministers to set up
a joint working group with this aim by late 2007.

Issues of Armenian-Georgian cooperation in health care and social
security, education, culture, environmental protection, customs
sphere were also discussed at the sitting, with respective decisions
being made.

It was decided to hold the next – 7th sitting of the commission in
Tbilisi in 2008.

At the conclusion of the sitting, the Armenian prime minister Serge
Sargsian made a summary speech, in which he stated with satisfaction
that the 6th sitting of the commission passed successfully and in an
atmosphere of mutual understanding. He expressed confidence that the
execution of the commission’s decisions will have a great contribution
to the extension and deepening of economic and humanitarian cooperation
between the two countries.

The prime minister expressed his gratitude to the delegation members
and experts of the two sides for the work they have done and wished
them success in their further activities.

On the same day the document signing ceremony took place at the
Reception House of the Armenian government. The Armenian prime minister
Serge Sargsian and the Georgian prime minister Zurab Noghaideli
signed the protocol of the 6th sitting of the Armenian-Georgian
Intergovernmental Commission on Economic Cooperation. The Agreement on
Administrative Mutual Assistance in Customs Affairs and the Protocol
on Order of Cooperation in Customs Statistical Information Exchange
between the RA State Customs Committee and the Georgian ministry of
finance were signed. These documents were signed by the chairman of the
RA State Customs Committee Armen Avetisian and the deputy head of the
revenues service of the Georgian ministry of finance Irakli Siradze.

A joint press conference of the Armenian and Georgian prime ministers
took place after the signing ceremony.

During his working visit, the Georgian prime minister met with the
Armenian president Robert Kocharian.

The delegation headed by the Georgian prime minister Z. Noghaideli
leaves for Tbilisi on October 16.