President Serzh Sargsyan’s speech at the Armenian-Austrian Business Forum

Distinguished Businessmen,
Ladies and Gentlemen,

I cordially greet the participants and guests of the Armenian-Austrian Business Forum. During the negotiations held in the framework of President Fischer’s visit to the Republic of Armenia, among other things we have thoroughly discussed the trade and economic relations between Armenia and Austria, particularly stressing the necessity of strengthening the business ties. I am hopeful that we will be able to make the utmost of this event.

Meetings like this one provide a good opportunity to entrepreneurs to expand the existing economic cooperation as well as to preset the new areas of cooperation. There is considerable potential for the development of the existing Armenian-Austrian economic relations; in particular, the necessary legal field for the economic cooperation has already been established. In the framework of this visit, it has been augmented by two other agreements which regulate the economic area.

Before the financial and economic crisis of 2008, the turnover between our two countries was registering a considerable increase. However the crisis had a negative impact of the economic relations and unfortunately the former amount of the turnover has not been reestablished yet. From that point of view, I believe the organization of the Armenian-Austrian Business Forum was timely and justified.

I attach importance to the works of the Armenian-Austrian trade-economic and scientific-technical joint commission as an efficient platform for the discussions of the issues related to the development of economic ties. And for the breakthrough in the development of these relations, a small but active Armenian community can play a significant role.

Ladies and Gentlemen;

I also highly value the fact that Armenia has been put on the list of the priority countries for cooperation by the Austrian Development Agency. I am hopeful that joint programs in the areas of agriculture and renewable energy will be implemented soon. I would like to add that these programs are important not only for the development of our economy but also from the viewpoint of security.

Armenia has great potential for the production and export of electric power which also opens wide prospects of cooperation for the Austrian companies. Armenia is researching vigorously and uses existing opportunities in all areas of renewable energy. We are making large investments in the solar, wind and hydro energy areas. We have serious plans regarding the use of geothermal energy.

We have set a strategic goal to bring the consumption of the renewable energy up to 35 percent. Why not to use Armenia’s potential in that area?

I believe the EU collectively and Austrian individually are the partners which can encourage foreign investments in the energy sector of Armenia.

Currently, we are implementing also large infrastructure programs. We are building the North-South highway which will connect the Black Sea ports to the sea ports on the Persian Gulf. We are also planning to build the North-South railroad. Some of our European friends have already expressed desire to participate in these programs. I urge the Austrian businessmen to establish active cooperation with their Armenian partners, making thus an essential contribution to the even development of our region.

I would also like to underline the area of tourism where there are good opportunities for the cooperation development. As you know, Armenia has rich historical and cultural heritage. At the same time, Armenians are very appreciative of the cultures of other nations. Love and admiration which we have here, in Armenia toward the Austrian culture and cultural heritages of our two countries can become a pillar for the close cooperation in the area of cultural tourism and implementation of joint programs. Tourism in Armenia truly has great prospects for development. We would like to see tangible presence of the Austrian capital in this area, particularly with regard to the creation of the related infrastructure. Considering the fact that winter tourism has been traditionally developed in Austria as well as in Armenia, we can unfold efficient cooperation in this area as well.

Taking this opportunity, I would like to thank the Austrian Government for the preferential 8 million Euro loan, provided for the acquisition and installation of the stage machinery at the A. Spendiarian Opera and Ballet National Academic Theater and Aram Khachaturian Philharmonic Hall.

I would also like to speak about the free trade zones established in Armenia which too provide wide opportunities for cooperation.

A free trade zone has been established on the territories of the Mars plant and Yerevan’s scientific and research institute of mathematical machines, which will be oriented toward the production and export of high and innovative technology – electronics, precise engineering, pharmaceuticals and biotechnologies, information technologies, alternative energy, industrial design and telecommunication. I propose to consider the participation of the Austrian corporations working in these areas.

Austrian businessmen may also be interested in the agriculture, processing and canning of agricultural goods, chemical industry, mining metallurgy, banking, health care and other areas. Our relevant agencies will provide all necessary materials or probably have already provided you with the materials related to the programs and existing opportunities in these areas.

The Austrian Airlines carry out Yerevan-Vienna regular flights, which is also a very important factor for the development of economic ties and tourism.

Distinguished Entrepreneurs,

For almost two years, Armenia has been conducting negotiations with the EU on the Association Agreement. I would also like to particularly note the launch of the Armenia-EU negotiations on the Deep and Comprehensive Free Trade Agreement, which will open new prospects for the Armenian-Austrian cooperation too. These processes will result in Armenia having the utmost integrated and liberalized system of economic relations with the European Union. Armenia has already been using the EU Generalized System of Preferences - GSP+ regime. We will also sign the agreement on the facilitation of the entry visa regime which will enhance particularly contacts between medium businesses.

In addition, through the financial and expert assistance of the European structures, we are envisaging the implantation of the large-scale reforms in the tax and customs area, judicial system, easing of business procedures which only and only will make your work easier.

You have probably had opportunities and I am sure will still have to familiarize with the economic reforms going on in Armenia. However I would like to underscore that the current macroeconomic situation in Armenia is assessed as stable while the large-scale reforms conducted in different areas make the investment climate in our country more attractive and protected for the foreign investors.

The RA Minister of Economy said that this year we will have the pre-crisis GDP, he said that last year we closed with a 4.7 percent economic growth. But he forgot to tell that in the industrial area we are having a more than 10 percent growth for the second year in a row. I believe this is a fact can interest the businessmen as well.

Please be assured that all your efforts aimed at the deepening of the Armenian-Austrian trade and economic relations will remain in the focus of attention of the authorities of our two states. I am, at least, speaking for the Republic of Armenia can guarantee that the Armenian side is ready in case there are major investments, particularly if the enterprises introduce innovative production, to adopt a special law considering that particular investment and provide tax incentives, including privileges regarding the value added tax for a number of years.

Ladies and Gentlemen,

I would like to conclude at this point and wish the Business Forum productive work.