[Congressional Record (Bound Edition), Volume 145 (1999), Part 18]
[House]
[Page 26562]
[From the U.S. Government Publishing Office, www.gpo.gov]



                    U.S.-ARMENIA ECONOMIC RELATIONS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
  Mr. PALLONE. Mr. Speaker, I rise this evening to discuss some of the 
recent developments in the relationship between the United States and 
the Republic of Armenia in the economic sphere.
  Mr. Speaker, the people of Armenia and their elected leaders 
recognize the importance of making the transition from direct aid from 
the United States and other donor countries to greater self-sufficiency 
and economic integration with their neighbors. Of course, for the 
latter to occur, the neighboring countries, including Turkey and 
Azerbaijan, have to move away from their policy of hostility, 
nonrecognition and blockades of Armenia. Indeed, Mr. Speaker, U.S. 
policy should be geared towards encouraging Turkey and Azerbaijan to 
enter into regional cooperative agreements with Armenia. The U.S. can 
also help Armenia achieve greater economic success by promoting greater 
bilateral trade and investments between our two countries.
  Mr. Speaker, I was recently joined by four of my colleagues with whom 
I took part in the congressional delegation to Armenia last August in 
seeking support for a Commerce Department trade mission to Armenia. We 
are currently circulating a letter amongst our colleagues in the House 
urging Commerce Secretary William Daley to undertake the trade mission. 
During our bipartisan congressional delegation to Armenia which also 
included stops in Nagorno Karabagh and Azerbaijan, we had the 
opportunity to meet with American investors who are seeking to expand 
U.S.-Armenia trade and investment ties. We also saw firsthand the 
efforts that Armenia is making to privatize its economy.
  The effort to promote investment and privatization in Armenia 
received a major boost earlier this month when the Overseas Private 
Investment Corporation, OPIC, approved an $18 million investment 
projection in Yerevan, Armenia's capital. The OPIC loan was made to 
investors from Massachusetts, California and Florida, who won a 
competitive bid for privatization of the Armenia hotel complex in 
Yerevan. The twin goals are both to promote positive local development 
effects in Armenia and to create U.S. exports and jobs.
  In announcing the agreement which coincided with Armenia's Prime 
Minister Vazgen Sargsian's successful visit to Washington. OPIC 
President and CEO George Munoz noted that Armenia has established a 
market-oriented economy with liberal trade legislation. Mr. Speaker, 
projects like this which benefit both the U.S. and the host country are 
what OPIC was designed for.
  Mr. Speaker, I also want to emphasize my strong support for the 
extension of Normal Trade Relations, NTR, between the United States and 
Armenia. Since NTR was first extended to Armenia effective April 7, 
1992, it has continued in effect under annual presidential waivers 
based on the determination that the country is in compliance with the 
Jackson-Vanik law. Jackson-Vanik was adopted in 1974 as a means of 
getting the Soviet Union to comply with freedom of immigration 
criteria. Although Armenia is obviously an independent State now 
because it was formally under Soviet domination, it came under Jackson-
Vanik and Jackson-Vanik still applies.
  In 1997, the President determined that Armenia was in full compliance 
with Jackson-Vanik, removing the need for future waivers, although the 
trade status remains subject to the terms of the Jackson-Vanik 
amendment which must be certified by the President. This extension of 
NTR can also be subject to congressional approval.
  Mr. Speaker, the administration has advised the Committee on Ways and 
Means that Armenia is among those countries, along with Georgia and 
Moldova, that may accede to the World Trade Organization in the future. 
To enhance trade and investment between Armenia and the United States, 
the extension of unconditional Normal Trade Relations between the two 
countries may require legislation stating that Jackson-Vanik should no 
longer apply to these countries.
  Mr. Speaker, American investors representing a wide range of 
industries and services have begun establishing a relationship with 
counterparts in Armenia. Armenia has adopted or is in the process of 
developing laws to facilitate international investment and foreign 
ownership, as well as the legal and financial institutions to foster 
these types of relationships. The Armenian government has unveiled 
plans to further promote investment via the creation of the Armenian 
development agency, ADA.

                              {time}  2310

  The main mission of the ADA is to provide one-stop shopping services 
for potential investors.
  Mr. Speaker, Armenia has another unique advantage: A large Diaspora 
community in the United States, over one million strong, eager to 
participate in the national rebirth of Armenia, is seeking 
opportunities to promote Armenia's economic development.
  As the U.S. seeks to establish partnerships with emerging nations in 
strategically located regions, nations that
share our values of political and economic freedom, Armenia stands out 
as an important country with which to develop close ties in the 
political, diplomatic and cultural areas and, as I have said tonight, 
also in the economic sphere.

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