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Armenia will be part of the Eurasian Transport Corridor connecting India to Europe via Iran
While exploring new ways to do business with Iran and grow, Armenia is working on improving connectivity by completing the puzzle of the North-South Transport Corridor.
In this new era for Iran where sanctions have been lifted, opportunities are plenty. In light of this new reality, Armenia and Iran are joining forces to explore innovative ways in which they could do business together and grow.
Iran: why invest in Armenia?
In these last couple of years, Armenia has worked hard in reforming its trade sector with the aim of becoming a promising and stable platform for doing business. Considering that Armenia can provide a fair business environment, investing in the country gives Iran the opportunity to penetrate wider markets that were previously closed to it, in the near future. These include the European Union (EU) and Eurasian Economic Union (EEU).
Armenia, which has signed the treaty to become a member of the EEU in late 2014, benefits from the free movement of goods across member countries such as Kazakhstan, Belarus, Kyrgyzstan and Russia. Armenian products also benefit from easy access into the EU market at a competitive cost. Indeed, the Generalized System of Preferences (GSP +) guarantees the preferential exportation of 7,000 Armenian products to the EU without customs issues.
The North-South Transport Corridor
Having a good infrastructure is a pre-condition for doing business in an efficient manner and a reliable environment. Bearing this in mind, Armenia has started working on a couple of projects which would cut transport costs and time. One of the most remarkable is the North-South Transport Corridor that connect Europe and Asia, which will connect the Georgia-Armenia border to the Iran-Armenia one. Two sections of this corridor were already opened in late December 2015.
The project consists of improving existing roads where possible and building new ones where needed. This will also impact the daily life of Armenian citizens as estimated travel time will be reduced by two to three hours. Besides economic and social gains, there is also a strategic aspect. Since Armenia is a landlocked country with closed borders with neighbouring Turkey and Azerbaijan, it must work towards mitigating the effects of this blockade.
There are also plans for a railroad transport corridor, and potentially a second gas pipeline.
Both Iran and Armenia are doing their best to find solutions to the issues they face today in a way that will benefit both. This is a new era for international cooperation and economic growth. To make this a reality, Armenia is working hard to build adequate infrastructure that would allow increased traffic between the two countries.
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