ArmInfo.The ban on Turkish imports to Armenia should not only be extended, but also supplementedby import substitution. Chairman of the Republican Union of Employers of Armenia, economist Gagik Makaryan expressed a similaropinion to ArmInfo.
The embargo on Turkish products came into effect on January 1, 2021. On December 16, Minister of Economy Vahan Kerobyan said that, according to preliminary data, imports of products from Turkey to Armenia decreased by about 10 times in 2021. In 2020, $ 227.1 million worth of Turkish goods were imported to Armenia, and in January - August 2021, $ 21.5 million worth of goods. Import of raw materials and goods for processing is still officially allowed: building materials, knitted and cotton fabrics, natural leather.
"The fact is that from an economic point of view, the ban on the import of Turkish goods to Armenia has practically not led to the formation of favorable provisions for a local producer. And large importers, mainly bringing raw materials from Turkey for the production of goods in Armenia, were forced to spend additional funds to search for markets alternative to Turkish. Small business has also suffered, "he said.
Noting the significant moral effect of the imposition of an embargo on goods under the brand made in Turkiye, since 40% of Armenian consumers preferred clothes made in Armenia, the economist emphasized the need to transfer this effect to the economy. According to his forecasts, the latter will significantly develop the sector of production of the same Armenian textile. In other words, while maintaining the ban on imports from Turkey, local production should be developed.
Makaryan noted that many business entities have successfully managed to adapt to the new conditions on the market. And as of today it is necessary to ensure conditions favorable for organizing the production of goods in Armenia on the principle of import substitution. According to him, at the same time, next year's program of the government envisages planning for the development of some sectors of the economy. In this connection, preparatory work is already underway at the Ministry of Economy.
"Nevertheless, we have to admit that after the imposition of the embargo on Turkish imports, we have drawn small lessons and made some conclusions. There is a desire and planning, it remains to implement them as soon as possible. Reforms and development strategies do not tolerate bureaucratic red tape, requiring accuracy, specificity and quick implementation times. So far, we are far behind the rest of the world in all this. The gap, which must be made up as soon as possible," Makaryan summed up.
