YEREVAN, NOVEMBER 25, ARMENPRESS. Iran has a population of over 80 million. The Iranian market is attractive for Armenia.

Ambassador Extraordinary and Plenipotentiary of Armenia to Iran Artashes Tumanyan gave an interview to Iranian Jaam-e Jam daily newspaper over Armenia-Iran trade turnover, business ties and economic relations.

“Armenpress” presents his interview:

-Are there any exact statistics on the trade turnover between the two countries?

-The trade turnover volumes between the two states are extremely modest and in recent years have not undergone major changes. The annual trade turnover volume with small deviations was over 300 million USD. Moreover, the import of goods from Iran to Armenia always prevailed in the total volume.

-Over a month ago exhibition of Armenian goods and services was held in Iran, what was the aim of it?

-Taking into account the low level of mutual awareness of the businessmen of the two states and the great demand of coordinated information, by the initiatives of the Armenian Embassy and the assistance of the Armenian Ministry of Economic Development and Investments, a memorandum of understanding was signed on the cooperation between the Armenian Development Fund and Tehran’s International Exhibitions Center. As a result over 100 Armenian companies presented their goods and services in Tehran on October 5-8, 2016.

-How do you see the future of trade-economic ties of the two states?

-Discussions were held between the Iranian and Armenian companies, they got acquainted with each other’s capabilities, certain preliminary agreements were reached. The Iranian media widely covered that exhibition, as well as there were numerous reports on Armenia-Iran economic relations, prospects of economic cooperation between the two states.

-According to you, what are the preconditions for the development of trade ties of the two states?

-Armenia and Iran have established stable economic relations which have development tendencies. The process of establishing joint infrastructures is positively developing. But the process on making investments in each other’s states by the business entities is slowly moving forward. As for the bilateral trade level, it is far from being satisfactory, and there are certain objective and subjective reasons for that.

-Can you please specify?

-The sides are not sufficiently aware of each other, they are not familiar with the legislative norms, the business environment and etc. The existing trade regimes also play an important role, which do not promote business activity.

-Is it possible to provide promoting conditions through preferential trade?

-It is not a coincidence that the EAEU-Iran talks on the establishment of preferential trade regimes kicked off and currently are in process. Armenia is one of the initiators and active participants of those talks. We hope new trade rules will be adopted that will contribute to the development of trade relations.

-Are Armenian traders interested in the Iranian market, if yes, which directions of the Iranian economy are attractive for them?

-Iran has a population of over 80 million, and of course, this market is attractive for Armenia. We have already stated that the import of Iranian goods to Armenia prevails in the trade turnover of the two states, whereas the entrance of the Armenian products to Iran is strictly limited.

-What limitations the talk is about?

-It is connected with the features of the Iranian customs and trade regulations (higher customs fees, complex procedures of non-tariff regulation and etc.).

-Let’s return to the attractive sides of the Iranian economy for the Armenian traders, which are they?

-I think regardless of the existing difficulties, it is necessary to make efforts and intensify cooperation in various sectors (high technologies, engineering services, communication, agriculture, tourism and etc.).

-What role do the elimination of visa, the direct flights between the sides and the road communication with each other play for the development of trade?

-The elimination of visa regime between Armenia and Iran first of all talks about the high-level mutual political trust, moreover, the decision on visa elimination was made by the initiative of the Armenian political leadership, that was accepted by the Iranian side with a great readiness. This fact positively contributed to the tourism and trade relations. In 2016 Yerevan-Tehran flights became more frequent.

-What can you say about the importance of the transit of the two states?

-The transit of the Iranian products through Armenia’s territory will enable to enter Georgia and Black Sea countries, a path that can be a reliable alternative to the transfer of goods conducted through Turkey’s territory. The transit of Armenian products through Iran supposes an exit to the Persian Gulf and flow of goods in the opposite direction.

-In your opinion what are Iran’s advantages for attracting foreign investments?

-First of all the Iranian rich natural resources and certain developed branches of the economy, as well as the great professional potential are attractive for foreign investors. The country has a special state body on investments protection and regulation. A number of free trade zones are operating in Iran. Nevertheless, it is important to state that after the elimination of sanctions, a great flow of investments to the Iranian economy is still not realized, which, is most likely, related with certain internal and external factors.

-What are Armenia’s advantages for foreign investments?

-Certain preconditions exist in Armenia for attracting foreign investments. The talk is about the legislative guarantees and certain structural changes. The customs and tax legislation norms are quite beneficial, Armenia is a member of the World Trade Organization, it is a part of the Eurasian Economic Union (EAEU). Certain free trade zones operate in Armenia. According to “Doing business 2016” report, Armenia is ranked 35th among 189 countries, and according to the report by the Canadian Fraser Institute, Armenia is ranked 18th in economic freedom rating among 159 countries.

-What banking relations exist between Armenia and Iran?

-The Armenian banking system is in compliance with the contemporary international standards and the foreign investors can beneficially use it. The Iranian “Mellat” bank operates in Armenia. It is important to state that after the elimination of sanctions against Iran, there are still certain obstacles that hinder the cooperation of banking systems of the two states. I think the difficulties will be overcome within a time and there will be opportunities for productive cooperation.