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The decision to fail joining the CU will deprive Armenia from a favorable opportunity

April 25,2014 14:46

The Chairman of ANC Economic and Environmental Affairs Committee, Vahagn Khachatryan, is convinced that Armenia’s statement to fail joining the Customs Union is Russia’s desire. Recall that it has already been officially stated that Armenia will not join the CU, but will immediately constitute a part of the Eurasian Economic Union.

Because it is envisaged that since 2015, the Customs Union will cease to operate and will become a Eurasian Free Economic Area. “It was the desire of Russian representatives to immediately pass to the Eurasian Union, that is to say, it is the next level of integration,” said Mr. Khachatryan. According to him, Armenia’s tax policy has advantages, we are in a milder field and entering into the CU we can use this circumstance and have a competitive product in the market. “But, now, we are depriving ourselves of this opportunity, because the Eurasian Union ideologists better understand what it means to have a country in the union, which has advantages over you. Armenia would have become a transit country, in which we could have become a collection point for China or other countries manufacturing affordable products in terms of the price, but now we deprive ourselves of this opportunity. It would cause a growth in prices. Having about three times less living standards and more slowly growing economy, it will put us in a worse situation than to Russia, which in result of having high living standards, is paying higher wages and a pension.”

Mr. Khachatryan also explained the difference between the Eurasian Economic Area and the CU. According to him, the CU was not in favor of Russia. “Now, there is a war between Belarus and Russia, Kazakhstan and Russia, because, for instances, in Kazakhstan, the excise tax to alcohol and tobacco is lower than in Russia. And, it brings to the fact that the Kazakh goods are going to Russia. And Russian producers say, what you are doing, we had closed our border with high customs duties to promote the domestic manufacturing, you deprive us of the opportunity, and give it to Kazakhstan and Belarus. What is the difference for us: the European countries, or them?

Therefore, Russia passes to the second level: the Eurasian Union, in which, the member countries will be deprived of free economic policy, but the main player is Russia, it will be the dictator of the rules of the game, and will dictated based on its interests.”

Aprine SIMONYAN

 

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