OREANDA-NEWS. May 23, 2011. Prime Minister of Belarus Mikhail Myasnikovich sees great prospects in developing cooperation with Armenia in industry, agriculture and pharmaceutics. The Belarusian Prime Minister made this statement as he met with Prime Minister of Armenia Tigran Sargsyan in Minsk.

According to Mikhail Myasnikovich, Belarus and Armenia have a great potential for cooperation in industry, using the projects of the Tractor Works, production of tractors, agricultural vehicles and buses.

“We praise the intention of the Armenian authorities to expand industrial production, infrastructure and are ready to take an active part in it,” Mikhail Myasnikovich said.

The Belarusian official stated that over the last 10 years the bilateral trade has soared 16 times. The PM stressed that the two countries have even higher potential which should be used in full. “We need to take up every measure to intensify the processes,” Mikhail Myasnikovich stressed. At present Belarus ranked third among the importers of Armenian products. “Your goods are popular in our country. We will make everything possible to boost our trade and economic relations,” the Belarusian Premier said. “Belarus supplies to Armenia engineering products as well as consumer goods, but it is not enough. We are ready to expand the supplies with a simultaneous development of their service,” he added.

Agriculture is another promising avenue of cooperation, Mikhail Myasnikovich said. “This is not only equipment but also agricultural production. We have certain problems in this area since we are located farther north. So, for example, the elite seed production can be localized in your country, and it will be working for Belarusian and for Armenian farmers,” the Belarusian Prime Minister suggested.

Belarus has a well-developed industry of road construction equipment. Armenia has big plans regarding the construction of new infrastructure facilities and urban development in general. In this connection, the Belarusian side is ready to deliver not only machines to Armenia but also to participate in the development of new road systems.

Mikhail Myasnikovich added: “I keep the issues of scientific and technological cooperation under personal supervision. Therefore, the agreements we have achieved with your country in this area before should get a new impetus. As regards the pharmaceutical industry and medicines market, here we have had a good start. We sell some medicines to Armenia and import some from your country. We could organize the whole production cycle, from designing and manufacturing to the joint sale of medicines, including in third country markets. The prospects are good. I think we can work on these issues."

Mikhail Myasnikovich believes that during the current official visit of the Armenian delegation to Belarus many issues of bilateral cooperation can be resolved and a new impetus can be given to trade, economic, cultural and political contacts. An official visit of a delegation of a friendly country is always a momentous event for us, said Mikhail Myasnikovich addressing Tigran Sargsyan.

In turn, Prime Minister of Armenia Tigran Sargsyan said that Armenia is interested in supplies of Belarusian agricultural machinery.

Tigran Sargsyan said that Armenia has not upgraded its agricultural equipment in recent years. Therefore, the country is set to develop a corresponding program and to define a clear strategy of who and how will supply agricultural equipment to the country. “This should be a strategic partnership: delivery service," he said. The Prime Minister of Armenia said that they needed the Belarusian experience in this field. Armenia is interested in the Belarusian agricultural machinery.

Another promising area of  trade and economic cooperation can be the development of an effective urban transport sector in Armenia on the basis of Belarusian buses. Currently, Armenia is also looking for a partner in this area.

The country attaches great significance to cooperation with Belarus in diamond processing. Armenia had an extensive experience in this sector, has highly-qualified personnel and tens of relevant companies. The Armenian Premier also expressed interest in developing sci-tech cooperation, and pharmaceutical production.

Belarus and Armenia have laid a foundation for long-term fruitful cooperation, Prime Minister of Belarus Mikhail Myasnikovich told reporters following his meeting with Armenian Prime Minister Tigran Sargsyan.

“We have had a discussion across the whole range of Belarus-Armenia cooperation and we are glad that our positions coincide,” the Belarusian head of Government said.

According to Mikhail Myasnikovich, the major goal of the governments of the two countries is to create an environment conducive to the expansion of the economic links. The Belarusian Prime Minister emphasized two priorities: the creation of a legal framework and the necessary infrastructure (for example, setting up trading houses).

As for the legal framework, the necessary foundation has already been laid. Several more documents were concluded following the meeting. The parties signed a protocol of the meeting of the prime ministers of Belarus and Armenia that identified the major cooperation avenues; a protocol between the Government of Belarus and the Government of Armenia on introducing amendments and addenda to the intergovernmental air service agreement of 16 November 1995. Besides, a cooperation program in physical education and sport for 2011-2012 was signed by the Ministry of Sport and Tourism of Belarus and the Ministry of Sport and Youth Affairs of Armenia. Apart from that, a cooperation agreement in emergency response and prevention was concluded between the Emergencies Ministry of Belarus and the Emergencies Ministry of Armenia.

Mikhail Myasnikovich informed that the parties decided to hold a meeting of a working group to discuss concrete projects of Belarus and Armenia in automobile and tractor making.

“Thus we have come up with a long-term plan of making our relations more efficient,” Mikhail Myasnikovich said.

Tigran Sargsyan confirmed the significant potential of the Belarus-Armenia economic cooperation. He believes that today’s meeting will give a new impetus to expanding trade and economic links between the states.

Trade and economic cooperation between Belarus and Armenia has been increasingly vibrant. The trade has been growing at a fast pace in recent years: from 2001 to 2010 foreign trade increased by more than 16 times (from USD 2.9 million to USD 47.2 million) with Belarus’ exports going up 35 times (from USD 1.2 million to USD 42.1 million). Yet, Armenia ranks second to last, namely ninth, in the trade of the Republic of Belarus with the CIS countries.

By the end of 2010, bilateral trade totaled USD 47.2 million, up 66.7% from 2009. Belarusian exports totaled 42.1 million (up 81.2%). Imports amounted to USD 5.1 million (up 0.4%). Belarus had a USD 37 million surplus in trade with Armenia.

In Q1 2011 foreign trade between Belarus and Armenia totaled USD 6.2 million, down 2.8% as compared to the same period last year. In Q1 2011 Belarusian exports amounted to USD 4.9 million (down 15%). Imports of goods from Armenia came to USD 1.4 million (up 2 times). Belarus had a trade surplus of USD 3.5 million.

Belarus remains an important trading partner of Armenia, ranking third in import among the CIS (after Russia and Ukraine), and ahead of countries such as Bulgaria, Poland, Romania, Slovakia, Spain.

Belarus’ major exports to Armenia are tires, trucks, tractors, butter, medicines, spare parts for trucks and tractors, fiberboard, plywood, furniture.

The Republic of Armenia supplies the Republic of Belarus with alcoholic beverages, medicines, siliceous earth, canned fruit, polycarboxylic acid.

By the end of 2010 Belarus raised USD 298,500 of direct investment from Armenia, up 2.2 times from 2009.

The parties have good prospects for increasing bilateral trade. In particular this applies to the supply of engineering products from Belarus: dump trucks for mining industry, tractors and trailed agricultural machinery for agriculture, passenger buses, special equipment and elevators for utilities companies, food and food products which are popular in the Armenian market.

In 2010, Armenia opened the Belarusian Trading House “The Armenian-Belarusian Trading House Ar-Be”. It presents the products by more than 150 Belarusian enterprises. The product range features about 10,000 items. Armenian Multi Group Concern is considering an opportunity of producing cognac in Belarus and opening an Armenian trading house in Minsk.

Further bilateral trade and economic relations require a transition from trade to cooperative collaboration. The two sides have already tried such form of cooperation in the pharmaceutical industry. Joint production of biologically active additives using the Armenian feedstock has been launched at the Belarusian company Minskinterkaps. The two countries are also looking into the potential of joint assembling of tractors, agricultural equipment and transformers.

The innovative part of the bilateral cooperation is also of high importance. Thus, in 2010 Belarus and Armenia developed and strengthened bilateral ties in the scientific and technical sectors aiming at mutually beneficial use of the scientific potential of the two countries. The NASB Center for Land Management develops cooperation with the Armenian agricultural companies. The implementation of the proposals of the National Academy of Sciences of Belarus to set up an Armenian-Belarusian consortium on drugs chemistry is underway. The two countries plan to establish prizes (grants) for Armenian and Belarusian scientists for joint research including an independent nomination of young scientists. Belarus and Armenia are also in talks over a creation of a joint scientific web portal in order to intensify scientific, technical and innovative cooperation.