Monday, March 26 2018 17:09
Naira Badalian

The Armenian delegation to the US followed the advice of President Trump

The Armenian delegation to the US followed the advice of President Trump

ArmInfo. The second meeting of the Armenia-US Council on Trade and Investment was held in Washington on March 19. Despite the fact that the meeting was not an extraordinary meeting, at this stage it was very relevant and extremely important - in addition to discussing the expansion of bilateral trade, economic and investment cooperation, the sides touched on the possibility of extending the GSP system, as well as import duties, by the US Congress aluminum foil in the United States. The deputy minister of economic development and investments, the head of the Armenian delegation Hovhannes Azizyan, told in an exclusive interview to ArmInfo that the system of general preferences for Armenian exporters will be prolonged, as well as what solutions the "aluminum issue" the American side offers.

 

Mr. Azizyan, a very representative delegation from the staff of the Armenian Ministry of Foreign Affairs, the State Food Security Service under the Armenian Ministry of Agriculture, the Ministry of Labor and Social Affairs of Armenia, the State Revenue Committee of Armenia departed for participation in the work of Armenia-US Council on Trade and Investment in the United States . Having  what members of the delegation did return?

The agenda of the second meeting of the Council was quite extensive.  Basically, the issues concerned the regulation of trade and investment. That is, the parties discussed not so much the mechanisms of stimulating trade and investment, as many joint activities aimed at removing technical obstacles in the sphere of trade in sanitary and phytosanitary, customs, and intellectual law. In particular, the exchange of information on the existing legal regulations in both countries, taking into account the fact that in Armenia, in connection with its membership in the EEA, a number of regulations already refer to supranational procedures. The parties agreed, through joint work, to simplify the scope of technical regulations as much as possible, and also provide the exporters of Armenia and the United States with all the necessary information regarding the documentary and procedural support of the process in accordance with the requirements of the parties. We agreed that in the event of a problem, to support exporters of Armenian small and medium-sized businesses by establishing a direct connection with government agencies or with the relevant US organization.

The parties, in particular, touched upon the issue of standardization and certification of livestock products, which will simplify the export process for Armenian entrepreneurs. American partners were invited to consider the possibility of signing an agreement on mutual assistance between the customs authorities of the two countries, in particular, to ensure the availability of information. Our main goal is to create a legal framework that is most understandable for exporters.

The Armenian delegation also touched upon the issues of improving the business environment. For Armenia, the activity of investors from the United States is important, so we tried to understand the main tasks and risks that impede the development of the process, in particular, to protect intellectual property.  Perhaps today, the volume of Armenian exports of services, especially in IT, has not reached the expected level precisely because of the risks. The Armenian side suggested considering the possibility of eliminating some restrictions on the export of goods and dual-use technologies from the US to Armenia. We think that by eliminating the requirement to license the company exporting technology to Armenia, American IT companies will be more interested in investing in Armenia's services sector.

Armenia has repeatedly stated that the use of the GSP (Generalized System of Preferences) RA capabilities in a number of countries with the highest efficiency. At the same time, the operation of the preferential system has been suspended since January 1 of the current year. Are there any hopes for an extension of the GSP preferential treatment regime?

The export of products from the RA to the United States mainly benefited from preferences within the GSP - about 97-98%. As a result, in January-December 2017, Armenian exports recorded a 70% growth and amounted to $ 68 million with a total foreign trade turnover exceeding $ 200 million. Thus, those goods that could use this regime were actually used by him for 100%. At the same time, from the end of December 2017 the GSP system was completed. In order to continue exporting goods to the United States, all countries, including Armenia, should wait for the decision to extend the regime by the US Congress, which, according to the adopted procedure, fixes the term of the preferential treatment.

To date, no decision has been taken. In this regard, the Armenian delegation addressed this issue within the framework of the session of the Trade and Investment Council, and we were assured that the decision to extend the Congress by the GSP system will be made in the near future. Economic entities that will export goods to the United States for the period from January 1, 2018 until the decision is made, will be paid paid import customs duties that are not payable under the GSP by the relevant importing companies from the United States.

According to statistics, aluminum foil traditionally holds the leading positions of Armenian exports to the US, followed by processed agricultural products, alcoholic beverages. Meanwhile, on March 23, President Donald Trump's decree on imposing a 25% import duty on steel and an aluminum import duty of 10% for purposes of "protecting America's national security" came into force on March 23, while freeing Mexico and Canada from them. Other allied countries were asked to send a request for negotiations. Nevertheless, on the night of Friday (March 23), the United States is still temporarily - until May 1, the countries of the European Union and four other allies - Australia, Argentina, Brazil and South Korea - were released from the barrage duties on steel and aluminum.

Thus, starting from March 23, the duties will apply only to half the volumes imported to the US, steel and aluminum. Armenia, represented by RusArmenal (Rusal accounts for 15% to 20% of its exports to the US market) imports aluminum foil to the US. Can the RA count on the exemption from the duty imposed by the US authorities?  In general, the import of aluminum foil in the US is subject to a fee of 5.3%.  New rates suggest an increase in costs for importers by an additional 10%. Until now, in the framework of the GSP system, Armenia exported to the US at zero customs duty. After making the decision, countries that do not enjoy preferences within the GSP will pay 15.3% - according to the scheme of 5.3% plus 10%.  Thus, in the case of Armenia, with an extension of the GSP, only an additional 10% remains.

At the same time, the decree of the US president noted the willingness to continue consultations with partners - that is, the American importing company can apply to the US authorities and ask for a cancellation of an additional 10%. At present, the mechanism of circulation has already been approved, the Armenian delegation to the United States has been provided with the necessary documents, which we, in turn, will give to the company "RusArminal". Thus, "Armenal" can, following consultations with the American partner - the importer of aluminum foil in the US, apply for the cancellation of the additional import customs duty of 10%. At least, we felt the readiness of the American side to discuss this issue. 

P.S. 

Donald John Trump - the 45th President of the United States of America, businessman and writer, wrote in his article "How to save every penny": "When buying any product or service, do not hesitate to bargain for more favorable terms. , while being one of the richest people in the world, I trade even in the most expensive, prestigious shops.The logic is simple: the more you pay for something, the greater the discount from the price the seller can make. I consider the pride that prevents to save own den Guy, a huge folly".

POST A COMMENT
Input digits     


News
Distant account opening and servicing now available at ArdshinbankDistant account opening and servicing now available at Ardshinbank
Agriculture Ministry of Armenia: In Jan-May 2018 47 beneficiaries  were provided with 81 units of agricultural machinery under state  program of subsidizing leasing Agriculture Ministry of Armenia: In Jan-May 2018 47 beneficiaries  were provided with 81 units of agricultural machinery under state  program of subsidizing leasing 
Before the season of holidays Beeline renewed the service Before the season of holidays Beeline renewed the service "Roaming  package"
VTB Bank (Armenia) launched a Claim CenterVTB Bank (Armenia) launched a Claim Center
Armenia`s Central Bank Chairman left for a working visit to Basel to  participate in BIS meeting  Armenia`s Central Bank Chairman left for a working visit to Basel to  participate in BIS meeting  
Japan offered Armenia to implement the project Japan offered Armenia to implement the project "One Village - One  Product"
Petr Mikyska: Czech companies interested in implementing investment  programs in ArmeniaPetr Mikyska: Czech companies interested in implementing investment  programs in Armenia
Armenian government discusses ways to improve competitiveness in the  sphere of air transportationArmenian government discusses ways to improve competitiveness in the  sphere of air transportation
Prime Minister of Armenia: The debt of government cottages in Kond  for drinking water will be coveredPrime Minister of Armenia: The debt of government cottages in Kond  for drinking water will be covered
Ambassador of Italy: A lot of companies have expressed intention to  invest in Armenian economyAmbassador of Italy: A lot of companies have expressed intention to  invest in Armenian economy
New opportunities for development of agro-tourism in Armenia: Rafting  tours kick off in Lori region New opportunities for development of agro-tourism in Armenia: Rafting  tours kick off in Lori region 
Company, affiliated with RPA faction head, is granted tax benefits 
Mane Tandilyan will present new bill on funded pension system in next  2 monthsMane Tandilyan will present new bill on funded pension system in next  2 months
Artsvik Minasyan is optimistic about Armenia`s economic growthArtsvik Minasyan is optimistic about Armenia`s economic growth
In the regions of Armenia, prices for apartment buildings fell by  4.8% in the first quarter of 2018, with an annual decline of 0.9%In the regions of Armenia, prices for apartment buildings fell by  4.8% in the first quarter of 2018, with an annual decline of 0.9%
Armenian Helicopters received a certificate of the aircraft operating  companyArmenian Helicopters received a certificate of the aircraft operating  company
Armenian parliament approved amendments to the tax legislation of the  countryArmenian parliament approved amendments to the tax legislation of the  country
The Armenian government will now deal with the issue of the  qualification of charitable programsThe Armenian government will now deal with the issue of the  qualification of charitable programs
The Armenian parliament adopted amendments to the law The Armenian parliament adopted amendments to the law "On funded  pension"
Minister of Agriculture held a meeting with those responsible in the  regional administrations for agricultureMinister of Agriculture held a meeting with those responsible in the  regional administrations for agriculture
Portfolio of the program of subsidizing agro-credits in the  processing sector of Armenia in 2018 amounted to 18 billion AMDPortfolio of the program of subsidizing agro-credits in the  processing sector of Armenia in 2018 amounted to 18 billion AMD
ACBA-Credit Agricole Bank has now agreed with Ardshinbank on the  project ACBA-Credit Agricole Bank has now agreed with Ardshinbank on the  project "Unified ATM network"
Compulsory component of funded pension system will become mandatory  for all citizens of Armenia starting from 1 July, 2018Compulsory component of funded pension system will become mandatory  for all citizens of Armenia starting from 1 July, 2018
Construction was the driver of economic growth in Jan-May 2018 in  Armenia while industrial sector`s growth slackened Construction was the driver of economic growth in Jan-May 2018 in  Armenia while industrial sector`s growth slackened 
Tashir Group of Companies to reduce electricity tariff for low-income  sections of population Tashir Group of Companies to reduce electricity tariff for low-income  sections of population 
Starting from August 1, 2018 Gazprom Armenia will reduce gas tariff  for socially vulnerable groups of population for one year Starting from August 1, 2018 Gazprom Armenia will reduce gas tariff  for socially vulnerable groups of population for one year 
An interdepartmental commission will be set up in Armenia to study  problems related to milk purchasesAn interdepartmental commission will be set up in Armenia to study  problems related to milk purchases
Possibility of establishing grape registry being studied in Armenia Possibility of establishing grape registry being studied in Armenia 
ADB: Armenian Ameriabank will share its long-standing experience with  Uzbek Hamkorbank within TFP Bank Twinning Program ADB: Armenian Ameriabank will share its long-standing experience with  Uzbek Hamkorbank within TFP Bank Twinning Program 
"Veolia Djur" to consider proposal on revising drinking water tariff  for socially vulnerable inhabitants 


Exchange rates
22.06.2018
RUB7.640.09
USD482.19-0.01
EUR561.806.40
GBP640.838.81
CAD363.121.33
JPY43.790.11
CNY74.41-0.11
CHF487.414.00

Experts
Rouben Indjikian: Everyone should follow the established unified and fair rules of the gameRouben Indjikian: Everyone should follow the established unified and fair rules of the game
Mher Arakelyan:  Armenia`s payment business has great prospectsMher Arakelyan:  Armenia`s payment business has great prospects
Rating-Agentur Expert RA GmbH and AmRating issued an industry report  on Armenia`s banking systemRating-Agentur Expert RA GmbH and AmRating issued an industry report on Armenia`s banking system
Igor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care ofIgor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care of
Ara Khzmalyan: Armenia is comfortable to Russian touristAra Khzmalyan: Armenia is comfortable to Russian tourist
The Armenian delegation to the US followed the advice of President TrumpThe Armenian delegation to the US followed the advice of President Trump
Outflow of population and passivity of the Diaspora pushes property prices downOutflow of population and passivity of the Diaspora pushes property prices down
Finombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and  non-creditworthy consumersFinombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and non-creditworthy consumers
Vahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distancesVahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distances
Gagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directionsGagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directions
Vitaly Nesis: Armenia is very promising from the geological point of viewVitaly Nesis: Armenia is very promising from the geological point of view
The market of OSAGO goes into virtual spaceThe market of OSAGO goes into virtual space
Ishkhan Mkhitaryan: ArCa and Mir complete the technological part of the project of interaction, business for banksIshkhan Mkhitaryan: ArCa and Mir complete the technological part of the project of interaction, business for banks
The second stage of implementation of the program for prolonging the lifetime of the power unit N2 of the Armenian NPP beginsThe second stage of implementation of the program for prolonging the lifetime of the power unit N2 of the Armenian NPP begins
Successful business is forging for years - to the jubilee of IC Successful business is forging for years - to the jubilee of IC "INGO Armenia"
Armen Shahnazaryan: The double increase in the insurance portfolio of EIAA ICJSC by the end of 2018 is quite feasibleArmen Shahnazaryan: The double increase in the insurance portfolio of EIAA ICJSC by the end of 2018 is quite feasible
Expert: Real estate market of Armenia started demonstrating weak  signs of recovery in I half-yearExpert: Real estate market of Armenia started demonstrating weak signs of recovery in I half-year
Amulsar: Ecology and РeopleAmulsar: Ecology and Рeople
GeoProMining - ten years of work for the benefit of the country, at the forefront of gold miningGeoProMining - ten years of work for the benefit of the country, at the forefront of gold mining
SolarOn will become a catalyst for the development of solar energy in  ArmeniaSolarOn will become a catalyst for the development of solar energy in Armenia

Search by date

Government Bonds

 

ISIN AMGB1029A250
Auction ID AMGB1029A250A
Date 12.05.2017
Issue date 29.10.2015
Issue volume (AMD) 50 000 000 000
Maturity date 29.10.2025
Coupon year yield 11.00%
Auction volume (AMD) 1000 000 000 - 2.000 000 000
Auction date 12.05.2017
DLS
Total amount (AMD) 1 000 000 000
Amount of the total bids (AMD) 787 200 000
Amount of the total accepted bids (AMD) 787 200 000
Cut of yield (%) 10,6447
Weighted avrage yield (%) 10,6447
Auction max  yield (%) 10,6447
Auction min  yield (%) 10,6447
Number of participants 5
ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

Commented
German bank KFW urges Armenia to build power line in the direction to  GeorgiaGerman bank KFW urges Armenia to build power line in the direction to  Georgia
Anna Chobanyan-one of most likely candidates for new Head of General  Department of Civil Aviation Anna Chobanyan-one of most likely candidates for new Head of General  Department of Civil Aviation 
IFAD confirms its readiness to develop and implement new joint programs with Armenia`s Agriculture MinistryIFAD confirms its readiness to develop and implement new joint programs with Armenia`s Agriculture Ministry
Rosselkhoznadzor asks not politicize the issue of deliveries of tomatoes from Armenia to RussiaRosselkhoznadzor asks not politicize the issue of deliveries of tomatoes from Armenia to Russia
Armenian nuclear power station has a resource for work for another 30  yearsArmenian nuclear power station has a resource for work for another 30 years
Premier: Construction of a new nuclear power plant in Armenia is one of the priorities of the new government of the countryPremier: Construction of a new nuclear power plant in Armenia is one of the priorities of the new government of the country
Gyumri programmers won on hekaton Gyumri programmers won on hekaton "Innovative ideas for tourism development"
Armenian Lori opens a large international ski resortArmenian Lori opens a large international ski resort
A number of light and alcohol industry enterprises of Armenia will be  provided with state supportA number of light and alcohol industry enterprises of Armenia will be provided with state support
Expert: The attitude of Armenian public to the nuclear power industry is demonstrated not by the promiseExpert: The attitude of Armenian public to the nuclear power industry is demonstrated not by the promise
Expert: The biggest gap in procurement legislation is the lack of an institution for accountability for its violationExpert: The biggest gap in procurement legislation is the lack of an institution for accountability for its violation
Maxim Sokolov: Russian Federation remains the main trade partner of  ArmeniaMaxim Sokolov: Russian Federation remains the main trade partner of Armenia
Russian MP: Restoring railway communication between Armenia and  Russia through Abkhazia and Georgia meets the economic interests of  Yerevan and MoscowRussian MP: Restoring railway communication between Armenia and Russia through Abkhazia and Georgia meets the economic interests of Yerevan and Moscow
Amulsar program was awarded a certificate of compliance with ICMC standards in pre-production cycleAmulsar program was awarded a certificate of compliance with ICMC standards in pre-production cycle
Expert: Subsidizing is the worst model of softening the results of price increaseExpert: Subsidizing is the worst model of softening the results of price increase
Fitch improved outlook on Yerevan`s rating from Fitch improved outlook on Yerevan`s rating from "Stable" to "Positive"
Expert: Energy component of the Armenia-EU agreement conceals big threats for ArmeniaExpert: Energy component of the Armenia-EU agreement conceals big threats for Armenia
Armenian Energy Ministry raises permissible threshold of autonomous  generation of electricity on the basis of RES to 500 kW / hArmenian Energy Ministry raises permissible threshold of autonomous generation of electricity on the basis of RES to 500 kW / h
Beeline hosted the largest this year`s "Client`s Day"
Armenian Deputy Energy Minister urged ECC members to pay more  attention to climate change and greenhouse gas emissionsArmenian Deputy Energy Minister urged ECC members to pay more attention to climate change and greenhouse gas emissions
Compensation for OSAGO shows an impressive annual increase Compensation for OSAGO shows an impressive annual increase
In Armenia, imported electric vehicles will be exempt from all types of taxesIn Armenia, imported electric vehicles will be exempt from all types of taxes
David Lokyan: The volume of own incomes of Armenian communities will grow by 10%David Lokyan: The volume of own incomes of Armenian communities will grow by 10%
Human Rights organization Human Rights organization "Driver`s Friend": ban on right-hand drive cars - nothing more than a regular business project
In Q1 2017 foreign investments in the volume of $ 1 billion were  received to the real sector of Armenian economy  with annual growth  of 36.6%In Q1 2017 foreign investments in the volume of $ 1 billion were received to the real sector of Armenian economy with annual growth of 36.6%
Ameriabank is awarded Euromoney Award for Excellence 2017 as Best  Bank of the Year in ArmeniaAmeriabank is awarded Euromoney Award for Excellence 2017 as Best Bank of the Year in Armenia
Chinchilla fur factory will be established in ArmeniaChinchilla fur factory will be established in Armenia