American analyst: Reduction of US aid to Armenia is compensated by deepening of economic cooperation
ArmInfo.Deepening of economic cooperation compensates reduction of US financial assistance to Armenia, director of the Center for Regional Studies Richard Kirakosyan said.
According to the budget recommendations of the administration of Donald Trump published on May 23 for the US Congress, the assistance to Armenia in FY18 will be reduced by 67%, decreasing from $ 20.4 to $ 6.8 million. The FY18 budget or the "New Fund of American Greatness" recommends a 29% reduction in aid overall, and 60% in Europe and Eurasia. For Georgia, it is planned to reduce financial assistance by 58%, Azerbaijan - by 90% or $ 1 million.
"Trump's desire to reduce the amount of US aid is not a surprise, it has long been known and, of course, specifically against Armenia, there are a number of factors demonstrating the lack of financial assistance provided to Armenia by the US. There are more important programs, US-Armenia agreements on Trade and Investment Framework, the Framework Agreement on Trade and Investment, the Agreement on Trade Relations, the Agreement on Encouraging Investments, and the Investment Agreement," Kirakosyan stressed.
According to him, taking into account the mutual interest in cooperation in energy, trade and investment, the implementation of the above-mentioned treaties and agreements is important and proceeds from the interests of both sides. In this light, he highlighted the strengthening of the cooperation of experts from the United States and Armenia in assessing the potential energy resources of Armenia, including shale gas in the framework of the Memorandum on Mutual Understanding on Unconventional and Traditional Energy Resources.
"Finally, Armenia, as a beneficiary country of the Generalized System of Preferences program, will enjoy the absence of export duties on a number of products exported to the US. GSP is certainly an important incentive for potential investors interested in production in Armenia for its duty-free Export to the American market," the analyst concluded.