An Armenian official has highlighted the economic benefits that opening the Armenia-Turkey border would bring to the entire region, Armenpress reports.

Anushik Avetyan, Deputy Minister of Economy of Armenia, told reporters at the Margara crossing on the Armenian–Turkish land border that the reopening of the border is expected to attract investment and reduce logistical costs for businesses.

Since the first phase envisages opening the border to citizens of third countries as well as diplomats, she said the first and fastest impact would be an increase in tourist flows.

“The opening of the border with Turkey could have a quick, practical, and positive impact on the economy,” Avetyan said, noting that the services sector would be particularly positively affected.

“It is obvious that many problems arise for businesses when, as a landlocked country, two of our four borders are closed. As you know, we are heavily dependent on the Lars checkpoint, and opening the border with Turkey will help businesses in several ways. First, transport costs will decrease, supply chains will shorten, and market access will expand. Closed borders have increased logistics costs for many years, limited competition, and created major problems for Armenian producers in securing their place in the global market,” Avetyan added, stressing that opening the border with Turkey is also important from the perspective of Armenia’s export diversification agenda.

She said that opening the border would make it possible to reduce dependence on limited routes and directions, as well as to enter new markets and diversify exports.

“At the same time, expert studies show that this will have a positive impact on foreign trade, as well as on investment inflows and the investment climate. According to some expert assessments, an increase of up to 20 percent in investment flows is expected not only in Armenia but also across the region. I would like to emphasize that at this stage we are conducting a study to assess in more detail the impact that opening the borders will have on the economy, and possibly, at a second stage, to examine what interlinkages it will create and what changes it will bring for cooperation and economic development across the economies of the entire region,” the deputy minister noted, expressing confidence that shorter and more accessible logistics routes will enable Armenian producers to enter new markets, reduce dependence on a limited number of directions, and ensure faster and more flexible supply chains.

According to Avetyan, under the conditions of the unblocking of transport routes and Armenia’s proximity to the EU–Turkey Customs Union, Armenia’s export opportunities to the EU could expand, particularly in the area of industrial goods.

She noted that open borders would create benefits not only for Armenia, but for the entire region. “The activation of transit flows and the shortening of supply chains are beneficial for all parties involved. This will enhance the region’s competitiveness and attractiveness along international trade routes,” the deputy minister concluded.