June 15, 2001

Dear guests,

On behalf of the Armenian Government, I am pleased to welcome the participants of the 2001 Armenian Products Expo in Glendale, California, held under the auspices of the Armenian American Chamber of Commerce. The Armenian products and companies represented here come from various sectors of the economy, and show the growing potential of the Armenian economy.

The people of Armenia, with their strong sense of national cohesion and identity, draw upon the lessons of their ancient history for inspiration and guidance as they are establishing a democratic society based on the rule of law and upon a free-market economy anchored firmly within a framework of international trade.

Modern Armenia is a strategically important country located at the crossroads of Europe and Asia. One of the few young democracies in this region, Armenia looks back on more than 2,500 years of its history with pride and reflection. The Armenian culture today reflects many ideas and influences that have swept across this region in the millennia past. In 2001, Armenia celebrates the 1700th anniversary of accepting Christianity as its state religion - the first country to have done so. Although insulated by its terrain and without access to sea, the Armenians have never felt isolated from the rest of the world. It is this cosmopolitan outlook that drives forward the current trends in the development of a new Armenia.

There are many industries and areas of commercial interest in Armenia, both in the "new" and "old" economies, such as software development and information technology, tourism, mining, agribusiness and food-processing, energy and construction.

Armenia's number one treasure and natural resource remains its people. Armenia has a significant advantage in that it has a 5-million-strong Diaspora dispersed all over the world. The Diaspora was born of mass exodus - a vivid testimony to our historical tragedy, the 1915 Genocide in the Ottoman Empire. Yet, as a result of eighty years of evolvement, the Diaspora is the major source of investment and the expertise for the Republic of Armenia. The close ties between the Diaspora and the Republic of Armenia provide additional opportunities for business partnerships, joint ventures and trade with Armenia.

Since independence in 1991, Armenia is laying a foundation for a modern, democratic government and a free market economy. A legal and regulatory framework for private sector development is steadily being put into place. The tax legislation was simplified and overhauled last year. Political reforms are under way, and an increasing number of private businesses have already changed the economic landscape.

Armenia, with its highly educated and inexpensive labor force, maintains a liberal trade regime, and is on track to become a WTO member in the very near future. Armenia seeks political solution to Nagorno Karabakh conflict by peaceful means and expanded regional integration, recognizing its potential for the economic development of the whole region.
The success of any modern economy is not independent of the degree to which it is integrated into the international trade patterns. Armenia's foreign trade volume has grown steadily since independence, and the exports have shown a strong growth in the last two-three years. The U.S.-Armenia bilateral trade has grown exponentially in the last few years. As the saying goes, it is better to see once than hear a thousand times: so, this expo will demonstrate the products exported from Armenia and companies that have successfully done business in Armenia. I hope that these positive trends will continue and the foreign trade and investment flows to Armenia will increase.

There are many areas of the Armenian economy with good investment prospects. It is symbolic that this event comes only a month after a successful investors conference in New York City. The New York conference highlighted the potential for trade and investment in Armenia. The 2001 Glendale Expo will demonstrate what the Armenian industry is capable of producing, and I am convinced of its success. We hope that this forum and the Glendale Expo will be just the first steps in securing the long-term prosperity of Armenia and the larger South Caucasus region.

I wish success to all the participants of this trade show. I am confident we will see more events like this in the future.

Thank you.