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Armenian privately-owned labs complain of unfair competition

12.05.2020, 15:52
Heads of Armenian private laboratories expressed today their dissatisfaction with the government-run non-profit organizations, saying very often the latter duplicate their functions.


Armenian privately-owned labs complain of unfair competition
YEREVAN, May 12. /ARKA/. Heads of Armenian private laboratories expressed today their dissatisfaction with the government-run non-profit organizations, saying very often the latter duplicate their functions.

Speaking at a discussion convened by the parliamentary committee on economic issues, Vahagn Mnatsakanyan, a lawyer at Standard Dialogue Company, said despite the government’s stated policy of promoting and stimulating the private sector, increasing its competitiveness, eliminating obstacles, stimulating investment and ensuring full protection of capital, the reality is significantly different.

He said there are cases when private companies and laboratories, state non-profit organizations or project implementation offices work in the same field, which, by definition, should not pursue commercial goals. In fact, the picture is opposite, leading  to problems. He said this creates an unfavorable investment environment for private companies.

In his words, some government-run non-profit organizations are already providing a number of monopoly services, and actually have the right to get involved in commercial activity to the detriment of private companies.

As an example, he pointed out a draft decision of the government that would  pass state registration of food products exclusively to state-owned laboratories.

Head of the National Standardization and Metrology Body Albert Babayan noted in this connection that the draft decision does not impede the activities of private laboratories.  He said registration of food products is vested in state-owned companies across the Eurasian Economic Union, and the fears that the decision will push private laboratories from the market are unreasonable.

For her part, Deputy Minister of Health Anahit Avanesyan also expressed her disagreement with the formation of anti-competitive conditions, emphasizing that more stringent requirements are put forward to state structures.

 “If a private company can conclude agreements with several suppliers at once, the government agencies must conduct public procurement process and  if few companies participate in tenders, the process of concluding contracts is delayed,” Avanesyan said.

According to the head of the Food Safety Inspection Body Georgy Avetisyan, registration of food products is to be carried out only by state laboratories, in particular, when it comes to bioactive additives, children's and sports nutrition.

"Until now, the private sector has been engaged in registration, and state structures simply kept a register, now registration functions will also be transferred to state bodies," Avetisyan said. -0-