Armenia, United States Expected to Sign Trade and Investment Treaty
Civilnet
The United States and Armenia are close to signing a Trade and Investment (TIFA) Treaty, according to U.S. Ambassador to Armenia Richard Mills.
During a Tuesday news conference, Mills said that the signed deal will result in “more opportunities for trade and business” between the two countries.
Once the trade treaty is reached, Armenian President Serzh Sargsyan will sign off on it. Sargsyan is in Washington, D.C., this week for the National Commemoration of the Armenian Genocide Centennial.
“We are very pleased that progress is being made towards the signing of the TIFA agreement,” said Mills adding that the treaty will result in “more opportunities for trade and business” between the United States and Armenia. “I can assure you that the relationship between Armenia and the United States is very strong. President [Barack] Obama thinks this relationship is very important.”
The news of the imminent TIFA agreement was warmly greeted by the Armenian National Committee of America (ANCA), the American Chamber of Commerce in Armenia, and various Armenia-based U.S. businesses.
“This week’s TIFA signing – a longstanding ANCA policy priority – represents a constructive, concrete expression of our commitment to generating good jobs, inspiring real hope, creating sustainable growth, and building economic opportunity both in Armenia and here in America,” said ANCA Chairman Ken Hachikian. “We want to thank all those in our community, in Congress, and – of course – in both the U.S. and Armenian governments who helped bring this agreement into being.”
Hachikian added that he hopes the TIFA treaty will lay the groundwork for a full-fledged free trade agreement in the future.
In a May 5 letter addressed to Ambassador Michael Froman, United States Trade Representative, Hachikian outlined the importance of both the U.S. and Armenia to sign the treaty. He cited Armenia’s good standing in the World Trade Organization and ability to produce a “modern, market-oriented” economy despite the ongoing economic blockades by Turkey and Azerbaijan. The letter also highlighted Armenia’s high ranking on the Wall Street Journal/Heritage Foundation Index of Economic Freedom as one of the freest economies in the former Soviet Union.
Armenia ranks 52nd on the Heritage Foundation’s Index of Economic Freedom as a “moderately free” economy. It’s ranking is ahead of larger, more developed countries, including France, Portugal and Turkey.
Hachikian also highlighted Armenia’s partnership with the U.S. in the Organization for Security and Cooperation in Europe (OSCE) to bring a lasting peace to the Nagorno-Karabakh conflict and in various military interventions, including operations in Iraq, Afghanistan, and NATO peacekeeping efforts in Kosovo.
“President Barack Obama, during his campaign for office, pledged that his administration would ‘help foster Armenia’s growth and development through expanded trade and targeted aid, and by strengthening the commercial, political, military, developmental, and cultural relationships between the U.S. and Armenian governments,’” Hachikian wrote in the letter. “The establishment of a TIFA would be a concrete expression of the President’s commitment and a meaningful contribution to the trade and investment relationship between two friendly nations.”
Hachikian said the TIFA treaty would benefit Armenia in the following ways:
- Improving the investment climate, identifying priority growth areas and building trade capacity
- Addressing regional trade issues, including the special hardships faced by Armenia due to the blockades imposed on its borders by Turkey and Azerbaijan
- Streamlining customs systems, and increasing the transparency of governmental processes related to imports and exports
- Discussing the effectiveness of current programs in Armenia of the U.S. Export-Import Bank, Overseas Private Investment Corporation, and U.S. Trade and Development Agency
- Expanding agricultural trade and investment
- Growing the level of trade in services, including banking, insurance, and tourism
- Promoting Diasporan trade and investment, with a special focus on expanding Armenian American trade and investment partnerships with Armenia
- Improving Armenia ’s use of U.S. Generalized System of Preferences benefits
- Addressing any outstanding problems in the area of intellectual property rights
- Exploring ways to deepen future U.S.-Armenia trade and investment
“This accord has long been a priority of the Armenian-American community [and] long been a priority of the ANCA,” said Hamparian in a video statement. “It is one step forward toward fostering hope, creating jobs and generating opportunity in both Armenia and here in the U.S.”
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