Reasons for Decline of US-Armenia Trade

The bilateral relations between the Republic of Armenia and the United States have always been distinguished by their multifaceted and unique nature. For instance, the US has been the major donor country for humanitarian aid to Armenia since 2004. The assistance provided by that country by years has even exceeded the 50 million USD threshold, making up 73% of the total humanitarian aid received from all the countries.

Nevertheless, the economic relations between Armenia and the USA do not stand out by being close. Moreover, as statistical data show, the trade between the two countries has continuously declined during the recent years. The factors accounting for such a decline are mentioned below.

Exports

According to published statistical data, the exports from Armenia to the US dropped by 26.8% in 2016, reaching 38.7 million USD compared to the previous 52.9 million USD. As a result, the US has become Armenia’s 11th largest partner country in terms of exports, with just a 2.2% share in total exports from Armenia.

As can be seen from the figure above, exports to the US continuously grew during 2008-2011, almost doubling over three years. However, the export volumes started to drop since 2014, reaching 38.7 million USD from the previous 87.5 million USD. The reason for such a sharp change of trends can be found in the study of the export commodity structure. Thus, in the export commodity structure from Armenia to the US, the largest share belongs to “aluminum and items made from it” commodity group, which made up about 90% of total exports for some years.  Thus, the total volume of exports to the US largely depends on the changes in volumes and prices of this single commodity group.

As a consequence, the approximately 109% increase in international prices for aluminum resulted in doubling of exports to the US. Nevertheless, in spite of the continuous growth in prices for aluminum since 2015, the exports from Armenia to the US have not returned to their previous level. It can be claimed that the reason for that may lie in the GSP+ preferential customs regime granted to Armenia by the EU since 2014. Unlike the already existing GSP regime, this new regime, among other products, gives customs privileges for export of aluminum to the EU. As a result, the Armenian businessmen who export aluminum have been reoriented towards European markets (Germany, Poland, Netherlands, and etc.), considering the logistics and customs advantages of those countries over the US.

Imports

As it is expressed in the attached figure, similar decline tendencies have been observed in the imports from the US to Armenia. In 2016, 73 million USD worth commodities were imported from the US to Armenia, which is less than the figure recorded in the previous year by 31.8%. As a consequence, the US has become Armenia’s 12th largest partner in terms of imports, having a 2.2% share in the total imports.

On the other hand, unlike exports, the import commodity structure from the US is more diversified. Largest import commodity groups include meat and its sub-products (17%), ground transportation means (15%), nuclear reactors (13.5%), as well as optical devices (11%). In case of all these commodity groups, the EAEU customs tariffs are noticeably higher than the tariffs in Armenia before EAEU membership, which has made American products artificially uncompetitive, contributing to the sharp decline in imports from the US since 2015.

Andranik Manukyan

“Union of Informed Citizens”

Armenia in the Eurasian Economic Union and disappointed citizens

Netgazeti , Georgia,
28 Aug 17
Armenia in the Eurasian Economic Union and disappointed citizens
Armine Avetisyan
[Armenian News note: the below is  translated from Georgian]
Two years have passed since Armenia joined the [Russian-led] Eurasian
Economic Union [EEU]. What benefits has our country gained from the
membership in the union and which expectations have our citizens
fallen short of?
Government notes Armenia's achievements as EEU member
To discuss the issue, a round table was even held in Armenia, where
Armenian Deputy Prime Minister and International Economic Integration
and Reforms Minister Vache Gabrielyan said that over the past two
years, Armenia's resources had increased and prices on imported goods
had decreased. Armenian Economic Development and Investment Mistier
Suren Karayan said that as a result of two years of Armenia's
membership in the EEU, trade turnover of the aforementioned
organisation's member states was increasing every year. He presented
the data of 2016.
According to the EEU data, in 2016, Armenia's exports to the EEU
countries increased by 53 per cent, making Armenia the leader
according to the production growth rate.
Independent experts disagree
However, independent experts insist that the true picture is
different. In 2015, when Armenia joined the EEU, economic growth
decreased by 3 per cent and it was only the country's national debt
that increased.
In 2014, the national debt amounted to 4.4bn dollars. In 2015 and
2016, it amounted to 5.08bn and 5.8bn. According to forecasts for
2017, the national debt is going to amount to 6.3bn dollars and make
54 per cent of the GDP.
"Becoming a member of the EEU was a political step, not economic. From
the economic point of view, the organisation proper is at the forming
stage and it is too early to speak about achievements. Before joining
the organisation, its member states did not even try to unite or take
joint efforts. They have made no such attempts after joining it,
either. This was just Russia's attempt to restore the former Soviet
Union, gathering former Soviet countries around it, no more, no less,"
economist Mesrop Arakelyan told the Netgazeti [website].
In his opinion, compared to 2016, relatively dynamic processes have
been noticeable in the Armenian economy anyway.
"In 2016, the war delivered a severe blow to the Armenian economy. The
damage caused by Azerbaijan was really substantial and it ruined [the
Armenian economy]. Our economy has just begun to revive. Indeed,
compared to 2016, 2017 has been much more positive from this point of
view. However, compared to previous years, we are still in a dire
situation."
Expert explains difference between EEU, EU
According to Arakelyan, any union, be it Eurasian or European, should
be organised in such a way that its member states should
unconditionally cooperate in the sphere of foreign trade. This
cooperation will make it possible to speak about economic growth. The
EU ensures connections of the kind. However, I cannot say the same
about the EEU.
"Sixty per cent of the foreign trade of European countries is
conducted within the EU. Due to close relations, they can import local
products to neighbouring countries, conducting trade and sales there.
In the EEU, this showing does not exceed 25 per cent. This implies
that we cannot sell our products to the EEU member states. However, we
can conduct trade in third countries."
EEU not to be blamed - economist
According to economist Babken Tunyan, low economic showings are not
linked to Armenia's membership in the EEU and they have nothing to do
with this.
"We are witnesses of a paradoxical phenomenon. When Armenia's economic
showings are positive, public sector employees directly link this to
the EEU. When they are negative, they either make no comments on this
or make illogical statements. The same applies to the opposition. When
we get low figures, they link this to the EEU, and so forth. In actual
fact, our connection with the Russian market has deep roots. Economic
factors and the problems Russia is facing are our problems. Sanctions
imposed on Russia make an impact on us, too," Babken Tunyan said.
And if economists carry out a professional analysis of the situation,
citizens of Armenia speak about their experience:
Ordinary Armenians dissatisfied with EEU membership
"The EEU is the area of great opportunities. However, political games
do not allow us to gain benefits. It would be better if the union
could really work. However, our dreams have failed to come true,"
38-year-old citizen of Armenia Karine Harutyunyan said.
Karine lives in the settlement of Bagratashen [near the Georgian
border] [square brackets as published]. Bagratashen is one hour away
from Tbilisi and three hours away from Yerevan. For many years now,
local residents have been going shopping to the regions of
neighbouring Georgia, which are adjacent to the border. As Karine put
it, two years ago, when Armenia joined the EEU, she was sure that
Armenia would soon become economically strong.
"I have never strived for Europe. Similar to my friends, I said that I
preferred the EEU, as borders with its member states were nearer. I
thought that it would be easier to import or export goods. However, we
are still facing problems. At that time, they said that by entering
the EEU, we would be able to conduct trade with neighbouring Georgia.
However, at present, thousands of problems have emerged, causing
hindrances. Earlier, we used to go to [the Georgian village of]
Sadakhlo [near the Armenian border], to buy household products there
and bring in some [products] to sell here. This time, I was able to
bring only six water melons."
As from 1 July 2017, the new requirements introduced by the EEU
Commission came into force. According to them, without customs
formalities, only 5 kg of phytosanitary products can be imported to
the territory of the European [Eurasian] [square brackets as
published] Union. Such products are fruits and vegetables.
Those, who live near the Armenian-Georgian border and used to bring
products from Georgia for many years to run small businesses, say that
they now feel bewildered, facing major problems. The thing is that
they can no longer engage in trade, which was their only source of
income.
In protest, on 25 July, residents of Bagratashen staged a rally near
the [border] crossing point, temporarily blocking the road to Armenia
for trucks. By doing so, they tried to show their dissatisfaction.
In response to the protest, the customs service chose not to come out
to with the protesters. In their interview to Netgazeti, the agency
people said that they obeyed only the law. Members of the [local]
community are not the only people dissatisfied with [Armenia's]
membership in the EEU. In Yerevan, one can come across a lot of people
saying that membership of the union has not brought them any changes
for the better.

Yerevan’s Nairit Chemical Plant Still Burning

17:14,


Clouds of acrid black smoke continue to plume from Yerevan’s Nairit chemical plant.

The fire was reported at around 2 p.m. today.

Two firefighters, with respiratory problems, have been taken to hospital.

Armenia’s Ministry of Emergency Situations says that the fire is under control.

Authorities on the scene have yet to say what caused the fire at the debt-ridden Soviet-era chemical giant that now stands idle.

Berdimuhamedov meets with Prime Minister of Armenia

AKI Press. Kyrgyz Republic

Aug 25 2017

Berdimuhamedov meets with Prime Minister of Armenia

10:52, , 278

AKIPRESS.COM – President of Turkmenistan Gurbanguly Berdimuhamedov met with Prime Minister of Armenia Karen Karapetyan in Erevan on August 24, the press service of the president said.

Karapetyan congratulated Berdimuhamedov on the success achieved at the top-level talks in Erevan that opened a new page in the history of the relations of the two states.

Berdimuhamedov said the top-level meeting in Erevan was fruitful and the outcomes  will contribute to enhancing cooperation between the two states.

President of Turkmenistan and the Prime Minister of Armenia exchanged the views on the current status and prospects of the intergovernmental cooperation given the priorities of the social and economic development of the two states. They also touched upon the ways to diversify the trade and economic partnership.

The parties underlined the significance of the Intergovernmental Turkmen-Armenian Commission.

Karapetyan said Armenian businessmen are ready to explore the Turkmen market.

Music: Evening of Ukrainian music was held in Yerevan House-Museum of Sergey Parajanov

ARMINFO News Agency, Armenia
 Monday
Evening of Ukrainian music was held in Yerevan House-Museum of Sergey Parajanov
 Yerevan August 21
Alina Hovhannisyan. On August 19, an evening of Ukrainian music was
held in the Yerevan House Museum of Sergei Parajanov. In a close
circle of friends of the Ukrainian Diaspora in Armenia, the vocal
ensemble "Dnipro", which turned 20 this year, performed a number of
folk songs under the artistic direction of Nune Aroyan. During the
music program, Ukrainian writer Mikhail Kotsyubinsky - "A Writing
Board", sounded a famous song from the cult film by Sergei Parajanov
"Shadows of Forgotten Ancestors" on the motives of the same story.
"I am very happy that we managed to organize such a wonderful evening
today," Zaven Sargsyan, director of the museum house, said in his
welcoming speech, noting that he was a longtime admirer of Ukrainian
music. He noted that Sergei Paradzhanov was the person who could unite
around him people of different nationalities, in particular Armenians,
Georgians, Ukrainians, Russians, etc. "This is exactly the feature
that is extremely necessary in our days and which can exclude enmity
", Z. Sargsyan stressed.
For her part, the head of the NGO "Federation of Ukrainian Armenians"
Anna Harutyunyan noted that Paradzhanov was a close person for her.
Having Armenian-Ukrainian roots, Mrs. Harutyunyan's childhood passed
in Tbilisi, in the same area where Sergey Josifovich lived. She noted
that S. Parajanov united people with his love, creativity, and,
despite all the difficulties that he had to go through, he remained a
cheerful person. "I like the phrase that Sergey Yosifovich said about
himself most of all:" I am an Armenian who was born in Tbilisi, who
was imprisoned in the Ukrainian prison for Ukrainian nationalism, "A.
Harutyunyan cited.
At the evening there were also official guests, including employees of
the Embassy of Ukraine in Armenia. "I've been in Armenia for more than
a month and I want to say that I'm just delighted with the Armenian
people," said Taras Yakovenko, advisor to the Ambassador of Ukraine to
the RA for cultural issues. Expressing gratitude to Mr. Sargsyan for
the initiative in organizing the evening of Ukrainian music, the staff
of the Embassy of Ukraine noted that the Museum really has a special
spirit. "Sergei Parajanov was and remains the cultural bridge that
unites Ukraine and Armenia," he stressed.
It is noteworthy that both the members of the Ukrainian community and
the Armenians attended the event in the House-Museum of Sergei
Parajanov, who attended the event with the aim of getting closer to
Ukrainian culture.
To remind, by the decision of the Armenian government in 1988 the
museum of S. Parajanov was founded in Yerevan. The earthquake in 1988
delayed construction, and the museum was opened only in 1991. The
basis of the meeting is more than 600 works of Parajanov. Now, the
museum's collection consists of about 1,400 exhibits.

Armenian students win 8 medals at International Math Olympiad

Panorama, Armenia

Aug 8 2017

The teams of the Yerevan State University (YSU), American University of Armenia (AUA), and the Russian-Armenian University (RAU) took part in the Annual International Mathematics Competition (IMC) in Blagoevgrad, Bulgaria held from July 27 – August 6, 2017.

As the ministry of science and education reported in a release, overall 331 participants from 71 universities participated in the competition, where the Armenian teams won two gold, two silver, and two bronze medals.

According to the source, the Yerevan State University was represented by 4 participants, with two of them – Albert Gevorgyan and Vazgen Mikayelyan, claiming gold medals, while Avetik Karagukyan and Gevorg Mnatsakanyan won silver medals. The Olympiad was held both in the individual and team competition.

In the individual competition Albert Gevorgyan was placed the 15th, the YSU team took the seventh place in the team competition which is unprecedented result for the university.

Other Armenian students – Artyom Kosyan of the American University and Hrachya Kocharyan of the Slavonic University claimed bronze medals.

According to the release, the Israeli Nation team was declared the winner of the Math Olympiad, followed by teams of St. Petersburg State University and Moscow Institute of Physics and Technology.

Head of the company: The number of Zangi subscribers exceeds 1.5 million and continues to grow

ARMINFO News Agency, Armenia
August 4, 2017 Friday
Head of the company: The number of Zangi subscribers exceeds 1.5
million and continues to grow
Yerevan August 4
Naira Badalyan. At this stage, 1.5 million users installed the Zangi
application and their number continues to grow. The director of the
company Vahram Martirosyan said to the Prime Minister of Armenia Karen
Karapetyan. August 4, Prime Minister visited the office of the leading
IT company - Zangi, got acquainted with the company's activities, as
well as with development programs.
Vahram Martirosyan informed the head of the government that through
the proposed communication system of the new generation of Zangi,
users can use free voice and video calls (live video calls with a
resolution of 720p), exchange messages, files and other information.
The application, created by Armenian IT specialists, allows to
establish a connection at a low speed Internet connection. In
addition, Antiblocking technology, developed on the basis of
artificial intelligence, provides users with communication in
countries with restrictions on messengers.
Since 2016, as Martirosyan noted, the company has moved to a new stage
of development. In particular, it has acquired 20+
Business-To-Business (B2B) partners from 12 countries of the world.
Today the company participates in the creation of infrastructures on a
national scale. In 2017 the company took part in the exhibition Mobile
World Congress. Now it is preparing to participate in the largest
telecommunications exhibitions in the world in London - Capacity
Europe and Dubai - GITEX.
Prime Minister Karapetyan noted the importance of developing the IT
sphere. He stressed that the consistent development of the sphere will
be at the center of the attention of the government of the republic.
According to him, the executive body is ready to discuss proposals and
programs aimed at the growth of the IT sphere with a view to their
implementation.
The application Zangi (Armenian analogue Skype, Viber, WhatsApp) was
launched in 2012, but work on it was conducted since 2009. Today,
Zangi allows you to make calls, send and receive messages, make video
calls from all smartphones and tablets running on iOS and Android
operating systems.
Earlier, Karen Karapetyan repeatedly stressed the importance of the
consistent development of technological education in our country,
stressing that the sphere of IT can become the driving force of
economic progress. According to the estimates of the Ministry of
Economic Development and Investments, the IT sector of the economy in
the end of 2016 provided about 6% of Armenia's GDP. At the same time,
as the Executive Director of the Union of IT Enterprises (UITE) of
Armenia Karen Vardanyan stated in an interview with ArmInfo
correspondent, the IT sphere of the Republic can annually provide
45-50% growth. He noted that in recent years, on average, the IT
sector of Armenia provides 20-25% of annual growth, with a turnover of
$ 500 million.

Sports: Aslanian Takes MVP Honors as Armenia Wins the U16 Division C Women’s European Championship

Armenian Weekly

GIBRALTAR (FIBA)—Anna Aslanian kept growing game-to-game, and her triple-double in the finals secured her the most valuable player (MVP) honors, paving the way for Armenia’s 63-44 win over Malta in the 2017 FIBA U16 Women’s European Championship Division C finals.

Aslanian leads the way for Armenia. (Photo: FIBA)

Aslanian takes home the trophy after averaging 17.4 points, 16.2 rebounds, 3.6 block,s and 3.6 assists per game for the gold medal winner, Armenia. She scored in double-digits in every single game, including a monster performance in Armenia’s win in the final versus Malta on July 29, with 22 points, 31 rebounds, and 12 blocks.

The entire team from Malta had six blocks throughout the Championship. Aslanian saved twice as many just for the Final outing, finishing the game with 22 points, 31 rebounds, 12 blocks and sevan assists. She almost singlehandedly outrebounded Malta, who had 39 rebounds.

Aslanian’s performance gave her a 57 player efficiency rating, and she had a nice supporting cast in Kristina Melikyan and Ani Hovhannisyan. Melikyan collected 17 points, Hovhannisyan had 16, as Armenia played superb defense in the second half and held Malta to just 19 points after the break.

Malta struggled with their shooting percentage, connecting on 19-of-79 shots from the field. With such a poor shooting performance, they could not make their 18-7 edge in steals count. Michaela Zammit Cordina was their lone ranger in double figures with 15 points.

Joining Aslanian in the All-Star Five in the tournament are Mariam Okropiridze, Agnesa Rrahmani, Mireya Benitez Lopez, and Michela Zammit Cordina. Okropiridze had 32 points for Georgia in the Third-Place Game, hitting 6-of-13 from the great beyond, and her tournament averages were 19 points and six assists per outing.


Armenia & Georgia develop relations based on common interest, Nalbandian and Janelidze exchange letters

Armenpress News Agency , Armenia
 Monday
Armenia & Georgia develop relations based on common interest,
Nalbandian and Janelidze exchange letters
YEREVAN, JULY 24, ARMENPRESS. Armenian foreign minister Edward
Nalbandian and his Georgian counterpart Mikheil Janelidze, Vice Prime
Minister, minister of foreign affairs, exchanged messages on the
occasion of 25th anniversary of establishment of diplomatic relations
between Armenia and Georgia, the foreign ministry told ARMENPRESS.
In his message, the Minister of Foreign Affairs of the Republic of
Armenia mentions that the twenty five years are just a drop in the
bucket of the centuries-old chronology of our two nations. However, in
the modern history of the two countries, that have regained their
independence, this past quarter of a century defines an important
phase of establishing and enhancing interstate friendly relations, a
period that has been filled with significant achievements and
successes.
Edward Nalbandian stresses, that Armenia is determined to exert joint
efforts in further strengthening and developing the relations based on
this traditional ties, adding that it will be possible to make full
use of the existing opportunities in a more efficient manner, once the
whole potential of our bilateral relations is explored. The Foreign
Minister of Armenia highlighted that Armenians of Georgia play a
significant role in strengthening the traditionally friendly
Armenian-Georgian relations and serves as a bridge between our two
countries.
Concluding the message Foreign Minister of Armenia expresses the
confidence that through effective cooperation the Ministries of
Foreign Affairs of Armenia and Georgia will continue to make their
important contribution to the development of relations between the two
countries.
Foreign minister of Georgia notes that over the last two decades,
since regaining the independence, Georgia and Armenia have developed
relations, based on mutual understanding and common interests.
Minister states, that two countries have already achieved a
significant progress in various directions, with many more
opportunities ahead.
Mikheil Janelidze commends the existing relations between two people
and close ties between the two countries fully comply with the
traditional friendship between two nations and are based on solid
historical foundation and the mutually shared principles of freedom
and democracy.
Foreign Minister of Georgia emphasized with satisfaction the close and
effective cooperation of the Ministries of Foreign Affairs of Georgia
and Armenia, and confirms the readiness to undertake all the necessary
efforts to further strengthen our cooperation in bilateral and
multilateral formats.