Armenia's Economic Pulse

[Haykakan]

Re: Armenia's Economic Pulse

The Microsoft agreement sounds promising. I do not want Armenia in the cigarette business not because of economic reasons. I just do not want her to be associated with this industry because of moral and health reasons. Plus as you said it is a declining industry. If we made cigars I would not mind as much and there may be higher margins in this market but cigarettes are killers no matter how you look at them.

[Mher]

Re: Armenia's Economic Pulse

The Microsoft agreement sounds promising. I do not want Armenia in the cigarette business not because of economic reasons. I just do not want her to be associated with this industry because of moral and health reasons. Plus as you said it is a declining industry. If we made cigars I would not mind as much and there may be higher margins in this market but cigarettes are killers no matter how you look at them.

I totally understand what you're saying, but we're not in the position to pick and chose when it comes to the current economic realities of Armenia. The fact is that these companies are created desperately needed jobs and bring revenue to the country. My primary issue is with the massive smoking rates in Armenia. Get those down with strict legislature and public awareness campaigns, and I hardly care about what choices people in Syria and Iraq are making. The fact is its a product that has a massive universal market and the prices of cigarettes made in Armenia are a tiny fraction of top brand names. There's much room for growth with the massive market in Iran and Russia which has the single highest smoking rates in the world.

[Haykakan]

Re: Armenia's Economic Pulse

I totally understand what you're saying, but we're not in the position to pick and chose when it comes to the current economic realities of Armenia. The fact is that these companies are created desperately needed jobs and bring revenue to the country. My primary issue is with the massive smoking rates in Armenia. Get those down with strict legislature and public awareness campaigns, and I hardly care about what choices people in Syria and Iraq are making. The fact is its a product that has a massive universal market and the prices of cigarettes made in Armenia are a tiny fraction of top brand names. There's much room for growth with the massive market in Iran and Russia which has the single highest smoking rates in the world.

I also appreciate your point of view. Yet the very things you are concerned about will only get worst as this industry grows in Armenia. How likely are the Armenian people to reduce smoking as that sector becomes more and more powerful in that country. We have seen how the powerful tobacco lobby kept the USA under its spell for many decades, hell they even advertised to kids with their kamel line. The effect of tobacco on Armenia has been and continues to be devastating. Just go to any cemetery and look at the dob and dod of the dead and you will start to get some idea of the damage this industry has done to our people. The more powerful this industry gets in Armenia the less likely Armenians will be to stop smoking.

[Federate]

Re: Armenia's Economic Pulse

I totally understand what you're saying, but we're not in the position to pick and chose when it comes to the current economic realities of Armenia. The fact is that these companies are created desperately needed jobs and bring revenue to the country. My primary issue is with the massive smoking rates in Armenia. Get those down with strict legislature and public awareness campaigns, and I hardly care about what choices people in Syria and Iraq are making. The fact is its a product that has a massive universal market and the prices of cigarettes made in Armenia are a tiny fraction of top brand names. There's much room for growth with the massive market in Iran and Russia which has the single highest smoking rates in the world.

Completely agree.

[Haykakan]

Re: Armenia's Economic Pulse

ARMENIAN FIRMS SEEK END TO US TREATY VOID

Tax-news.com
May 21 2015

by Mary Swire

The Armenian National Committee of America has welcomed the signing
of the US-Armenia Trade and Investment Framework Agreement (TIFA)
but has said that a renegotiated double tax agreement is a priority in
order to fully realize the two nations' bilateral trade and investment
potential.

The TIFA was signed on May 7 and was immediately welcomed by the
House Foreign Affairs Committee Chairman Ed Royce (R - California) and
Congressional Armenian Caucus Co-Chair Frank Pallone (D - New Jersey).

Pallone said "the Trade and Investment Framework Agreement signed
between the Republic of Armenia and the United States represents
our shared commitment to mutual prosperity. With this agreement, I
am certain that the United States and Armenia will continue to focus
on our shared trade and investment interests. Armenia has always been
a proud ally of the United States and I am pleased that we have made
progress that will support workers in both of our nations."

The ANCA welcomed the move and called for further expansion of
US-Armenia economic relations through the negotiation of a bilateral
treaty ending double taxation on businesses and investments. In a fact
sheet shared with Congressional leaders, the ANCA outlined the benefits
of a US-Armenia tax treaty, as well as the costs of the status quo,
of having "an outdated an obsolete Soviet-era agreement."

The fact sheet pointed out that a US-Armenia double tax treaty would
establish a clear legal framework for investors and individuals that
have business activities in both jurisdictions, preventing double
taxation and facilitating the expansion of economic relations. It
said the lack of a working US-Armenia double tax treaty hinders the
growth of US-Armenia economic relations, creating legal uncertainty
that deters investment and diverts investment flows.

The outdated forty-year-old 1973 US-USSR tax treaty is recognized by
the US but not Armenia. The fact sheet says, even by 1970s standards,
the Soviet tax treaty was a limited agreement between two hostile
superpowers. "Its current legal status remains unclear and its terms
are inadequate to the needs of present-day US-Armenia relations. While
investors have found ways to adjust to its inadequacies, the existing
system of foreign tax credits and deductions is not consistent with
any accepted tax or accounting system," the ANCA said.

It added that "negotiating a double tax treaty between the US and
Armenia should be relatively straight-forward. It would be, in great
measure, an 'off the shelf' treaty, not requiring a great deal of time
or effort to research, tailor, negotiate, or implement. A US-Armenia
double tax treaty would likely largely follow the US Model Income Tax
Convention of 2006, updated by more recent features of US tax treaty
policy such as provisions for mandatory arbitration."

http://www.tax-news.com/news/Armenian_Firms_Seek_End_To_US_Treaty_Void____68135.html

[Federate]

Re: Armenia's Economic Pulse

New greenhouses in Armenia growing vegetables for the local market and export to Russia. The Russians recently banned food imports from Europe. With the Customs Union and the previously mentioned fact, this is our time to seize the opportunity.

In the meantime, I've read that Armenian food products are reaching Russian supermarkets more and more lately from Armenians in Moscow. Here's one.

[Haykakan]

Re: Armenia's Economic Pulse

New greenhouses in Armenia growing vegetables for the local market and export to Russia. The Russians recently banned food imports from Europe. With the Customs Union and the previously mentioned fact, this is our time to seize the opportunity.

In the meantime, I've read that Armenian food products are reaching Russian supermarkets more and more lately from Armenians in Moscow. Here's one.

I have been seeing some Armenian products in my area also. The Arshav brand of canned/jarred fruits and veggies. I am going to try to introduce some made in Armenia wines to stores here as well.

[Federate]

Re: Armenia's Economic Pulse

I have been seeing some Armenian products in my area also. The Arshav brand of canned/jarred fruits and veggies. I am going to try to introduce some made in Armenia wines to stores here as well.

One way to introduce Armenian alcohol is to send sharply dressed people into liquor stores and asking the employees/managers if they have Armenian products. Do this over and over again and they may notice there's a demand and will order. The sharply dressed part is to create the illusion that it's people with high disposable income demanding it so they will buy a lot.

[Shant03]

Re: Armenia's Economic Pulse

Lots of Armenian products here in the US lately, i've seen a large variety of areni wines in stores all over CA including San Diego and San Francisco.

[Zeytun]

Re: Armenia's Economic Pulse

IT Industry news:
-Microsoft Corporation pledged to step up its contribution to Armenia’s burgeoning information technology sector on Tuesday with a new regional software development center to be opened in Yerevan soon.

http://www.azatutyun.am/content/article/27038160.html

- D-Link Facility Launched In Armenia:
highlighting the rapid growth of Armenia’s information technology (IT) sector, D-Link Corporation, one of the world’s largest manufacturers of computer networking equipment, inaugurated its newly constructed research and development center in Gyumri on Monday.

http://massispost.com/2015/05/d-link-facility-launched-in-armenia/

- IT field one of the main areas of the governments plan:

http://armenpress.am/eng/news/806899/it-field-is-one-of-the-main-areas-in-the-government%E2%80%99s-plan-armenian-pm.html