Armenia can increase trading with former soviet republics by cooperating with customs union : EDB research

YEREVAN, March 18. /ARKA/. Armenia can significantly advance its commercial turnover with former Soviet republics by cooperating with the Customs Union, Vladimir Pereboev, a responsible secretary of Centre for Integration Studies at the Eurasian Development Bank (EDB), declared presenting “The Customs union and neighboring states: models and instruments of mutually beneficial partnership” report. 

The report covers the complex research of the basic models and instruments of cooperation between the large integration unions and  neighboring states. 

The research refers to Armenia, Moldova and Tajikistan.

Pereboev said the close ties between the former Soviet states explain their specific partnership format. 

“Trading and economic relations continue due to former ties established in Soviet times during the planned model of economy. Local exporters are better aware of Russia’s commercial opportunities and  those of other post-Soviet states because of similarity of laws, language and mentality. Thus, trading and economic relations with some other countries, even if they are more beneficial, can fail because of inability or unwillingness to do business with them,” he said. 

The expert noted in the former Soviet republics  mutual trading rates exceed those with other countries of the world.

“Nevertheless, despite some big trading turnover, by raising their own competitiveness Armenia, Moldova and Tajikistan can increase trade volumes through cooperating with the Customs Union,” he added. 

Pereboev highlighted the increase in domestic production in an open economy can appear if local producers can compete with foreign ones.

“There are different methods to assess a relative competitiveness of countries in these or those economic sectors. Identification of compared advantages can help us to realize pluses and minuses of Customs Union integration,” he said .

He also informed Armenia has a comparative advantage over  the Customs Union in agricultural sector, whereas no comparative advantage in mineral production, chemical and wood processing industry.

The report was presented at Economic Aspects of the Eurasian Integration and Armenia conference organized by Integration and Development organization in Yerevan. Economy Minister of Armenia Tigran Davtyan, scientists, analysts from Russia, Armenia and Belarus participated in the conference on Saturday.  -0-