US-Armenia Sign Trade and Investment Framework Agreement

ANCA Welcomes Signing, Urges Negotiations for a New US-Armenia Double Tax Treaty

WASHINGTON—Following years of Armenian-American advocacy and U.S.-Armenia diplomacy,  Armenian Foreign Minister Edward Nalbandian and Assistant U.S. Trade Representative Daniel Mullaney on May 7 signed the U.S.-Armenia Trade and Investment Framework Agreement (TIFA), a bilateral accord long sought by the Armenian National Committee of America (ANCA), the American Chamber of Commerce in Armenia, and Armenia-based U.S. businesses to expand economic relations between the two countries.

Assistant U.S. Trade Representative Dan Mullaney and Armenia Foreign Minister Edward Nalbandian signing the U.S.-Armenia Trade and Investment Framework Agreement (TIFA)
Assistant U.S. Trade Representative Dan Mullaney and Armenia Foreign Minister Edward Nalbandian signing the U.S.-Armenia Trade and Investment Framework Agreement (TIFA)

This agreement establishes a United States-Armenia Council on Trade and Investment to discuss bilateral trade and investment and related issues, and to examine ways to strengthen the trade and investment relationship between the two countries.

Following the official signing of the agreement, Mullaney told reporters, “Today’s agreement provides a vehicle for deepening and broadening U.S.-Armenia trade and investment relations.  I look forward to the United States-Armenia Council on Trade and Investment helping to unlock opportunities for workers, farmers, service providers, manufacturers, and consumers in our two countries.”

During a meeting with Mullaney immediately after the signing of the accord, Armenian President Serge Sarkisian noted that he was confident that the forthcoming $250 million investment by Contour Global in Armenia’s energy sector would be the largest U.S. investment in Armenia to date, and will set an example for broader trade opportunities in the future.

ANCA Executive Director Aram Hamparian welcomed the accord, noting, “Today’s signing of the TIFA represents a major step forward in U.S.-Armenia economic relations—the creation of jobs, the fostering of hope, the creation of opportunities in both countries.  At a broader level, it is a stepping stone to even greater cooperation.  We would like to see, for example, the U.S. and Armenia begin negotiating a Tax Treaty.  Double taxation on U.S. and Armenia firms is a hindrance to the growth of economic relations, a deterrent to potential investors from either side, and needs to be removed.”

The ANCA has launched an online advocacy campaign that urges Treasury Secretary Jack Lew to begin preparations for a U.S-Armenia Tax Treaty and alerts members of Congress about the benefits of such an accord.  To take action, visit http://www.anca.org/trade.

In a letter sent this week to U.S. Trade Representative Michael Froman urging the TIFA signing, ANCA Chairman Ken Hachikian outlined 10 practical benefits of putting in place this government-to-government platform for dialogue on the growth of bilateral trade and investment.  These benefits include:

– Improving the investment climate, identifying priority growth areas, and building trade capacity

– Addressing regional trade issues, including the special hardships faced by Armenia due to the blockades imposed on its borders by Turkey and Azerbaijan

– Streamlining customs systems, and increasing the transparency of governmental processes related to imports and exports

– Discussing the effectiveness of current programs in Armenia of the U.S. Export-Import Bank, Overseas Private Investment Corporation, and U.S. Trade and Development Agency

– Expanding agricultural trade and investment

– Growing the level of trade in services, including banking, insurance, and tourism

– Promoting diasporan trade and investment, with a special focus on expanding Armenian-American trade and investment partnerships with Armenia

– Improving Armenia’s use of U.S. Generalized System of Preferences benefits

– Addressing any outstanding problems in the area of intellectual property rights

– Exploring ways to deepen future U.S.-Armenia trade and investment

Hachikian’s complete letter is available at http://www.anca.org/assets/pdf/Obama_tifa_letter.pdf.

Assistant U.S. Trade Representative Dan Mullaney meeting with Armenia’s President Serge Sarkisian following the signing of the U.S.-Armenia TIFA
Assistant U.S. Trade Representative Dan Mullaney meeting with Armenia’s President Serge Sarkisian following the signing of the U.S.-Armenia TIFA
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4 Comments

  1. This is great and welcoming news. I hope and pray that TIFA will not merely be a piece of paper, but tangible results will be accomplished, that will help improve Armenia’s economic development.
    Next step the U.S.- Armenia Tax Treaty”, which should resolve obstacles to investments in Armenia.
    Thanks to all who worked diligently to have TIFA signed. Great accomplishment.
    Vart Adjemian

  2. long overdue, there is no reason why Armenia can not be a good trading partner with the US, Russia and Iran, Turkey had the chance but lost the opportunity to be a big player,

  3. This is a great step forward. Hopefully other countries will follow this lead and the entrepreneurial spirit of Armenians will shine.

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