ARMENIAN BUSINESSMEN COME TO ISTANBUL FOR INVESTMENTS
By Ercan Baysal
Zaman, Turkey
Nov 16 2006
As the reactions to French parliament’s controversial Armenian genocide
bill continue, the Turkish Industrialists and Businessmen Association
(TUSIAD) is taking the initiative to loosen tension between Armenia
and Turkey.
Members of TUSIAD and the Union of Businessmen and Manufacturers of
Armenia (UMBA) do not want France’s stance to overshadow relations so
they will come together in Istanbul. UMBA was officially invited to
the Black Sea and Caspian Industrialists Confederation Union meeting
on Nov. 27.
TUSIAD president, Omer Sabanci, and UMBA chairman Arsen Ghazarian
will also discuss their countries’ relations besides regular business
negotiations.
Kaan Soyak, the Turkish-Armenian co-chair of the Council on Development
of Economic Ties said Ghazaryan will invite TUSIAD members to Armenia
to invest in textile, energy and telecommunication sectors.
Soyak said this meeting was important for Russia and the Armenian
Diaspora:
"Turkey has become an attractive market thanks to the atmosphere
of stability. Armenians in the Diaspora want to make investments in
Turkey mostly in hotels, real estate and port sectors. They have made
their applications to our council in this regard. These issues will
be discussed during the meeting."
"Armenia is a virgin market, right now they only have relations with
Iran so we want Turkish investors there too," said Soyak and added
that this kind of commercial relationship could diffuse the tension
between the two countries.
Trade between Turkey and Armenia takes place unofficially via Iran.
According to unofficial statistics, the total trade volume between
the two countries reached $200 million dollars.
The Armenian National Committee of America (ANCA) noted the
Turkey-Armenia embargo costs about $570-720 million dollars to Armenia
every year.
If the border gates were opened, Armenia’s transportation costs would
drop by about 30-50 percent, its export volume would double and its
Gross National Product would increase by about 30-38 percent.
According to World Bank statistics, Armenia’s savings in transportation
costs would be about $6.4-8.4 million dollars, energy saving would
be $45 million and its export volume would increase by about $269-342
million dollars. In this way Armenia’s total benefit from the opening
of the border would be about $320-396 million dollars.