The Golos Armenii paper points out the pros and cons of Armenia joining the Customs Union and the Eurasian Union. Russian Vice Prime Minister Igor Shuvalov states that joining the Eurasian Economic Union would require Armenia to start talks with the World Trade Organization about compensation for partner states. Joining the Eurasian Union means adoption of a common customs fee implemented in Russia, Belarus and Kazakhstan. The customs fees are higher than the ones in the WTO. Armenia has been a member of the WTO for over 11 years and its customs fees have totaled 0-10%. Armenia was initially supposed to negotiate the problem with the WTO on behalf of the Customs Union. It was later confirmed that Armenia will discuss the issue independently from the integration organization. The article says that rising customs fees would be a setback to liberalization of the Armenian economy and the openness rating.
The benefits the Eurasian Economic Union could offer include a new regime of entering and leaving CIS countries (except the ones that have not joined the Customs Union and the Common Economic Space). Thus, it will be easier for Armenian labour migrants to work in Russia.
Russian President Vladimir Putin said at the Saint-Petersburg Economic Forum that Russia will develop a strategy by autumn to replace imports. Later, the president ordered the government to list the goods Russia will purchase only in countries of the Customs Union and the Eurasian Union by September 1, 2014. The goal is to reduce imports of such products from non-members of the Eurasian Union to 20% by 2017. In other words, Armenian manufacturers are getting an opportunity to partake in Russian state purchase tenders.
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Georgian Deputy Minister for Economy Mikhail Janelidze has described th benefits Georgia will gain from the EU Association Agreement in an interview with the Business Georgia portal. He emphasized that Georgian businessmen could expect preferences in trade and exports. The main advantage is the lifting of customs fees for all Georgian products. Georgia has already been given preferences for certain products. However, they do not affect wine, fruit or natural juices.
According to Janelidze, there is no threat of European imports flooding the market, because Georgia has already opened its market to EU products and there would be no changes in this aspect.
Concerning the quality of products, Janelidze noted high exports of wine, mineral water, nuts, juice and canned food to Europe. This means that the products meet European quality standards. Other sectors will need time to implement the standards. For example, the government will need to organize European-level tests for honey before exporting it to the EU.
The deputy minister reminded that there were marketing obstacles for exports. The Georgian government will have to help Georgian businessmen solve that problem.
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The Azerbaijani government will start a new round of talks in Geneva in late June to join the WTO. The Region Plus weekly paper says that the country is reluctant to join the organization. President Ilham Aliyev spoke up for the protection of national manufacturers and the Azerbaijani market earlier this year: “First of all, we need to create the necessary conditions for our farmers and companies. If we open our market and give access to low-quality, cheap products, local manufacturers will die out, farmers will suffer losses. When Azerbaijani agriculture and industry get dominated by export-oriented products, we will become a member of the WTO, but we will see whether invitations for us to join it would be as persistent or not.”
According to Deputy Foreign Minister Mahmoud Mamedguliyev, heading the negotiating group, opening the market to foreign manufacturers could slow down diversification of the country’s economy. He believes that exports of agricultural products should consider other markets, for example, the Arab markets. Arab states are interested in agricultural cooperation because they lack fertile lands and import 90-95% of their agricultural products. Azerbaijan will have lot more problems finding its place in the European market.
The negotiations on joining the WTO, started in 2004, continue. Azerbaijan is holding bilateral talks with 15 countries and the EU. Protocols have already been signed with some of them. Azerbaijan will have at least 7-8 meetings, including meetings with representatives of the U.S., China, Brazil and Canada.
Azerbaijan wants to keep fees at the highest possible level to protect its manufacturers. Azerbaijan does not want to join the WTO as a developed state. It will limit access to subsidies amounting to 5% of agricultural output. The figure would total 10% for a developed state.
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The Ingushetia paper informs that the Russian Ministry for Regional Development has analyzed the potential of Ingushetia for formation of the region’s investment passport. The republic has realized several large-scale projects last years. It has built a mill with an output of 2,400 tons of grain a day and an 80,000-ton grain elevator in Karabulak. The mill was built for 5.24 billion rubles. 331 people were given jobs at the facility. A skiing center worth 90 billion rubles was built in Jeyrakh. A multi-functional business center and the A-class Artis Plaza Hotel worth 90 billion rubles were opened in Magas, employing 20 people.
23 investment projects are being realized. A Daewoo bus factory will be opened. Construction of a farm for processing 10,000 tons of turkeys a year has started in the Malgobeksky District. A factory for production of 40,000 polyethylene water pipes and other facilities are under construction.
Ingushetia sent 4 more investment projects for consideration at the Russian Ministry for Regional Development in 2013. The ministry’s working group for improvement of investment attractiveness of the region is studying the projects.
Caucasus domestic and foreign political events in the local press (June 23-29)The Golos Armenii paper points out the pros and cons of Armenia joining the Customs Union and the Eurasian Union. Russian Vice Prime Minister Igor Shuvalov states that joining the Eurasian Economic Union would require Armenia to start talks with the World Trade Organization about compensation for partner states. Joining the Eurasian Union means adoption of a common customs fee implemented in Russia, Belarus and Kazakhstan. The customs fees are higher than the ones in the WTO. Armenia has been a member of the WTO for over 11 years and its customs fees have totaled 0-10%. Armenia was initially supposed to negotiate the problem with the WTO on behalf of the Customs Union. It was later confirmed that Armenia will discuss the issue independently from the integration organization. The article says that rising customs fees would be a setback to liberalization of the Armenian economy and the openness rating.The benefits the Eurasian Economic Union could offer include a new regime of entering and leaving CIS countries (except the ones that have not joined the Customs Union and the Common Economic Space). Thus, it will be easier for Armenian labour migrants to work in Russia.Russian President Vladimir Putin said at the Saint-Petersburg Economic Forum that Russia will develop a strategy by autumn to replace imports. Later, the president ordered the government to list the goods Russia will purchase only in countries of the Customs Union and the Eurasian Union by September 1, 2014. The goal is to reduce imports of such products from non-members of the Eurasian Union to 20% by 2017. In other words, Armenian manufacturers are getting an opportunity to partake in Russian state purchase tenders.* * *Georgian Deputy Minister for Economy Mikhail Janelidze has described th benefits Georgia will gain from the EU Association Agreement in an interview with the Business Georgia portal. He emphasized that Georgian businessmen could expect preferences in trade and exports. The main advantage is the lifting of customs fees for all Georgian products. Georgia has already been given preferences for certain products. However, they do not affect wine, fruit or natural juices.According to Janelidze, there is no threat of European imports flooding the market, because Georgia has already opened its market to EU products and there would be no changes in this aspect.Concerning the quality of products, Janelidze noted high exports of wine, mineral water, nuts, juice and canned food to Europe. This means that the products meet European quality standards. Other sectors will need time to implement the standards. For example, the government will need to organize European-level tests for honey before exporting it to the EU.The deputy minister reminded that there were marketing obstacles for exports. The Georgian government will have to help Georgian businessmen solve that problem.* * *The Azerbaijani government will start a new round of talks in Geneva in late June to join the WTO. The Region Plus weekly paper says that the country is reluctant to join the organization. President Ilham Aliyev spoke up for the protection of national manufacturers and the Azerbaijani market earlier this year: “First of all, we need to create the necessary conditions for our farmers and companies. If we open our market and give access to low-quality, cheap products, local manufacturers will die out, farmers will suffer losses. When Azerbaijani agriculture and industry get dominated by export-oriented products, we will become a member of the WTO, but we will see whether invitations for us to join it would be as persistent or not.”According to Deputy Foreign Minister Mahmoud Mamedguliyev, heading the negotiating group, opening the market to foreign manufacturers could slow down diversification of the country’s economy. He believes that exports of agricultural products should consider other markets, for example, the Arab markets. Arab states are interested in agricultural cooperation because they lack fertile lands and import 90-95% of their agricultural products. Azerbaijan will have lot more problems finding its place in the European market.The negotiations on joining the WTO, started in 2004, continue. Azerbaijan is holding bilateral talks with 15 countries and the EU. Protocols have already been signed with some of them. Azerbaijan will have at least 7-8 meetings, including meetings with representatives of the U.S., China, Brazil and Canada.Azerbaijan wants to keep fees at the highest possible level to protect its manufacturers. Azerbaijan does not want to join the WTO as a developed state. It will limit access to subsidies amounting to 5% of agricultural output. The figure would total 10% for a developed state.* * *The Ingushetia paper informs that the Russian Ministry for Regional Development has analyzed the potential of Ingushetia for formation of the region’s investment passport. The republic has realized several large-scale projects last years. It has built a mill with an output of 2,400 tons of grain a day and an 80,000-ton grain elevator in Karabulak. The mill was built for 5.24 billion rubles. 331 people were given jobs at the facility. A skiing center worth 90 billion rubles was built in Jeyrakh. A multi-functional business center and the A-class Artis Plaza Hotel worth 90 billion rubles were opened in Magas, employing 20 people.23 investment projects are being realized. A Daewoo bus factory will be opened. Construction of a farm for processing 10,000 tons of turkeys a year has started in the Malgobeksky District. A factory for production of 40,000 polyethylene water pipes and other facilities are under construction.Ingushetia sent 4 more investment projects for consideration at the Russian Ministry for Regional Development in 2013. The ministry’s working group for improvement of investment attractiveness of the region is studying the projec
