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.

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