Thursday, February 25 2016 19:52
Alina Hovhannisyan

Head of EU Delegation to Armenia says it is high time for Armenia to replace "horse" with "car"

Head of EU Delegation to Armenia says it is high time for Armenia to  replace "horse" with "car"

ArmInfo. Armenia is not even on halfway to the European standards. As to the development of small and medium-sized enterprises - the number of the employed in the field and its share in GDP - the country ranks below the average European indicators. Piotr Switalski, the Head of the European Delegation to Armenia, made such remarks talking to ArmInfo's correspondent.  The diplomat believes that Armenia's new strategy is a big progress for the country, but it is necessary to step up efforts towards its implementation. Armenia needs to hurry to reach those who have replaced "horse" with "car" yet long ago. 

 
Ambassador Switalski said the economic growth rates in Armenia are low in the context of cooperation with the European Union member-countries. The diplomat believes that the real sector needs SME stimulation, as it should be the major direction in the strategy of economic growth. The diplomat believes that Armenians are very clever and enterprising people with creative mind. Experience shows that in Europe the countries like Armenia have been progressing through providing a wider area for activity, more freedom and protection and more access to financial resources to the business community. If an Armenian businessman is provided with all this, he will make a serious progress and the economy of Armenia will just 
gain from it, Piotr Switalski said. 
 
He said the EU market is very attractive to Armenia in the light of the current crisis. He addressed the official data of Armenia's exports saying, "Export to the European Union countries have increased almost by 50%, while export to the countries of the Eurasian Economic Union decreased by 34%." At the same time, Piotr Switalski urged the country to use the possibilities opening with the GSP+ more efficiently. "The country can greatly benefit from GSP+," he said. However, to do this, the Government of Armenia needs to promote the private sector and trade very efficiently.
 
Armenia joined the GSP (Generalised Scheme of Preferences) on Jan 1 2009. Initially the scheme involved 167 countries, including Armenia, Georgia, and Azerbaijan and was designed for 3 years.  On Jan 1 2014, Armenia shifted to GSP+ - a component of the EU Generalised Scheme of Preferences ('GSP') for developing countries.  It offers additional trade incentives to developing countries already benefiting from GSP to implement core international conventions on human and labour rights, sustainable development and good governance.  Last year, export to EU totaled 273 million dollars, of which 90 million were via GSP+ scheme.
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