AmCham Lobbying for Better Business Environment

Interview reprinted from the European Times at: http://www.european-times.com/publications

The American Chamber of Commerce in Armenia (AmCham), established in 2000, has made a long-term commitment to a county, which it believes has significant potential but which still faces a number of challenges. AmCham Armenia has 80 member companies from many countries which are active in a wide range of sectors.

 

While AmCham cannot address Armenia’s larger economic challenges by itself, it plays an important role in Armenia’s economic development through its promotion of international business standards, transparency and rule of law.

David Atanessian, President, explains that AmCham is trying to do its part to ensure a more attractive business environment in Armenia. He says, “We would like to see a specific forum to deal with tax and customs issues rather than just commenting on them after new tax and customs rates are introduced.”

 

Need to upgrade legislation

 

“The biggest challenge of doing business in Armenia is the country’s customs legislation,” David Atanessian believes. He says, “Customs rates can change drastically since customs officials can interpret legislation arbitrarily which results in unfair over-taxation of importers and consequently increases the cost of doing business. Customs authorities continue to negatively appraise the value of imported goods for taxation purposes based not on invoice value but on higher reference values of its own design. We encourage the government to eliminate this approach.”

 

In spite of the challenges, Armenia offers a number of attractions for investors, including easy procedures for starting up a company, skilled labour, and growth opportunities in several sectors, including banking and financial services, information technology and tourism.

 

David Atanessian believes that Armenia should focus on strengthening its ties with the EU. He says, “European values are similar to Armenian, and in order to compete with EU nations we need to bring Armenia’s educational system and business environment in line with EU standards. We need to create appropriate conditions locally, encourage and engage the Armenian Diaspora in Europe and globally to focus more on developing Armenia.

 

One priority for AmCham is an open border between Armenia and Turkey. AmCham Armenia was one of the first local business chambers to sign a joint statement with AmCham Turkey calling our governments to establish diplomatic relations and open borders.

 

Overall, AmCham believes strongly in Armenia’s future. David Atanessian concludes, “Armenia presents a challenging environment, but also significant business opportunities. I am proud of the AmCham members who have established business operations in Armenia by bringing so much needed knowledge and expertise to this emerging market. I am confident that the roster of leading US and EU firms doing business in Armenia will only grow with AmCham’s active support.”