S. Sargsyan: Armenian economy today is more liberal and attractive

Armenian President Serzh Sargsyan and French President Francois Hollande attended today the opening of an Armenian-French business forum at Armenia Marriott Hotel. They made speeches and answered questions of forum participants, the press service of the Armenian president reports.

Serzh Sargsyan said in his speech that the economic component of bilateral relations is of special importance to both Armenia and France and that the two presidents are determined to raise economic cooperation to the level of the political dialog between the two countries.

“Such meetings are not only a means of promoting trade and economic links, but also an important platform for showing the values and principles underlying Armenia’s economic development”.

“I am sure that the existence of trust-based partnership is essential for the creation of far-reaching business links, implementation of mutually beneficial programs, and long-term investments. In this sense the Armenian and French peoples have shared a long path since the early medieval period and they had the opportunity to get to know each other and cooperate closely,” S. Sargsyan stated.
According to him, this positive experience of the past is an important basis, on which the bilateral economic ties should be expanded and strengthened.

“We in Armenia are convinced that the development of a stable and viable economy amid global challenges and limited financial resources is impossible without good governance, the rule of the law, efficient social services and a transparent and free business environment. Constant improvement of the business environment is a pillar of our economic development. With this aim we initiated large-scale economic reforms in tax improvement, foundation and registration of enterprises, investor protection and some other spheres,” the Armenian president said.

He stressed that Armenia’s decision to join the Eurasian Customs Union does not mean that the role of the EU as an important economic region declined for Armenia.

“I am sure that GSP+ status given to Armenia by European countries makes European markets more attractive to our exporters and encourages exports of Armenian goods to Europe, while Armenia’s integration into the Eurasian Customs Union creates exceptional opportunities for European investors as well - they will  have a simplified entrance into the Eurasian market, using Armenia’s economic territory because among CIS countries the Armenian economy is the closest to the European one in terms of its economic liberty and the use of market rules.

The president said the Armenian economy today is more liberal and attractive to foreign capital, which is evident from numerous indices released by international organizations.

President Sargsyan noted with satisfaction that in the past 22 years mutually beneficial cooperation between Armenia and France has developed comprehensively, resulting in a dynamic agenda and privileged relations.

He stressed that a French business community consisting of about 180 companies has become established in Armenia, including 20 big companies such as Pernod Ricard, Orange, Credit Agricole, Alcatel, Veolia, Saur, and others. In the president’s words, “this presupposes important investments that exceeded $1 billion in the past 6 years, increasing tenfold compared to the indices of the previous period”.

According to Serzh Sargsyan, yet another big French company – Carrefour hypermarket chain will enter the Armenian market soon.

“Armenia may be of interest to investors in atomic energy as well as renewable energy, especially geothermal. President Hollande and I consider it important that the business circles of our countries established mutually beneficial cooperation in various spheres of bilateral interest, particularly in pharmaceutics, agriculture, wine making, jewelry, textile industry, IT sector, precision engineering, and tourism.

Direct flights operated by French airlines, the introduction of a visa-free regime for EU citizens on January 1, 2013 and of a simplified visa regime for Armenian citizens on January 1, 2014 create extra conditions for promotion of business contacts and tourism,” S. Sargsyan said.

"We understand that in developing economies, long-term success also depends on the circumstances of business promotion. So we are prepared to encourage in every possible way the entrance of French companies into Armenian market where free economic zones are also being created,” the Armenian president said.