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“Investors Want to See Strong Government Institutions in Armenia”

March 23,2013 15:50

The Canadian Ambassador to Armenia, Joan Cleburne Sloan, talks about Nagorno-Karabakh, Safarov’s extradition, and the business environment in the Republic of Armenia.

* Mr. Ambassador, considering the fact that Canada was one of the first countries that recognized the Genocide, do you think it is possible that Canada will revise its approach to the Nagorno-Karabakh issue in the short-run and will take a stronger position here?

* At this moment, I think that Canada rather strongly supports the process that is under way within the framework of the OSCE Minsk Group to settle the Nagorno-Karabakh conflict. Canada will continue to support the process within the framework of the OSCE Minsk Group. Canada will support signing a long-lasting treaty between Armenia and Azerbaijan. I don’t think that Canada will take any initiative beyond the framework of the OSCE Minsk Group and, generally, the OSCE mandate.

* Don’t you think that what happened in August regarding the extradition of Ramil Safarov by an EU member, Hungary, has substantially changed the essence of the issue? Won’t it be right, if after these developments, the OSCE Minsk Group revises its approach to the Nagorno-Karabakh conflict settlement? By the way, Tevan Poghosyan, a member of the National Assembly of the Republic of Armenia, also raised this issue during the discussion dedicated to the 20th anniversary of the Armenia-Canada relations.

* Naturally, I am not entitled to tell the European Union whether it should take certain steps regarding this issue or not. However, as I have already mentioned, Canada will support all steps taken within the framework of the OSCE Minsk Group that aim at building trust and will not support the steps that prevent the progress in this direction.

The Canadian Embassy responsible for Azerbaijan released a statement about the Safarov deal, which clearly expresses the position that this step of Azerbaijan hadn’t contributed to building trust. The statement reads: “We encourage all parties to take measures to increase trust and take constructive attitude toward the peaceful process between Armenia and Azerbaijan. Canada supports the current peaceful process within the framework of the OSCE Minsk Group, and all initiatives that aim at promoting regional cooperation.”

* Mr. Ambassador, rather strong statements were made at that time, but the fact is that he was extradited and no sanctions were taken against Azerbaijan. And this doesn’t contribute to creating an atmosphere of mutual trust in societies.

* I can say that Canada will continue to support all steps that aim at building mutual trust and will resist everything that is against it. However, I am sure that this process will continue within the framework of the OSCE Minsk Group.

* During the discussion dedicated to the 20th anniversary of the Armenia-Canada relations, you were bewildered that according to the international economic criteria, Armenia had risen from 54th to 32nd position, according to the ease of doing business index and then added: “Why doesn’t investment grow, if it is so easy to start business from the perspective of an impartial evaluator?” What concerns do you have?

* Making investment is a rather long-lasting process. The International Bank has stipulated the criteria, which one should follow to ensure an investment area, climate. Armenia should communicate with the broader world and follow the modern trends in the world. That very tendency has contributed to the fact that Armenia has improved its ranking, rising from 54th to 32nd position. However, broader communication with international business circles is very important.

* Nonetheless, during that same discussion, you made a remark that the Canadian government continued to call on the Armenian government to create a more favorable business climate. What specific offers can you make, which are the main and primary areas, in which Armenia should make reforms, in your opinion?

* An investment climate requires various elements. One of the most important ones is the legal system. The thing is that foreign investors are not sure that there is a strong legal system in Armenia. The reforms in the very legal system are among the most

important elements of improving the business climate in Armenia. If we consider the opinion polls of international organizations, Armenia has taken considerable steps, but they should be done fully and completely.

* Opposing you, Arsen Ghazaryan, the president of the Union of Entrepreneurs of Armenia, noted that there is a legal system in Armenia rather in line with the European standards; he also referred to the statement of the President of the Republic of Armenia that Armenia was ready to provide certain privileges and guarantees with a separate statute for each case, if there was big investment. Are you going to present this proposal to the Canadian government and business circles?

* It is a rather interesting idea, but Canadian investors are more attracted and interested in a transparent institutional system. They want to see strong government institutions, strong customs and tax systems, instead of instructions based on the president’s orders or statutes. If the president’s goal is to ensure transparency, use of best practices, and observance of international criteria through legislation, foreign investors will think positively about that.

Interviewed by NELLY GRIGORYAN

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