Bilateral trade between Turkey and Armenia, while officially halted for years as a result of the closing of the border, is now facing a revival, this time through the efforts of business circles.

The route from Kars, one of Turkey’s eastern cities, to Gyumri, Armenia’s second-largest city, was the most important route of the Caucasian trade before 1993.

The Kars-Gyumri trade route, which is referred to as the Silk Road of Caucasians, had its throne snatched by Georgia’s port city Batumi due to the Nagorno-Karabakh dispute between Azerbaijan and Armenia. As Turkey closed its border gates with Armenia in 1993 due to the war, the Kars-Gyumri trade route lost its importance.

The Armenian economy was hit hard due to the closed border gates, while Turkey’s eastern cities such as Kars faced stagnation in commercial life. After all these negative developments, Turkish and Armenian businesspeople are quietly seeking a path to revive commercial relations. Turkey’s pioneering companies have entered the Armenian market via Batumi by “hiding” their names.

Revival of trade:

“At the onset of the 1990s, it was not allowed to make trade between Turkey and Armenia over Georgia, but this has been possible in the last four years,” Gagik Makaryan, executive director of the Union Of Manufacturers and Businessmen (Employers) Of Armenia, or UMB(E)A, told Hürriyet Daily News & Economic Review last week.

At the start of this year, talks with the Turkish Industrialists’ And Businessmen’s Association, or TÜSİAD, have started to revive the commercial relations between the two countries, he said. Many firms already take an active role in the Armenian market, Makaryan said, declining to name any. “The companies do not want to be named and we show respect to their approach,” he said.

It is possible to speed up the trade between the two countries without waiting for the border gates to open, Makaryan said, suggesting the creation of a trade zone at the points close to the border. “The initiative may be the export of agricultural and animal products. This way, the financial burden on the businessmen of the two countries may decline while taking the first commercial step.”

In the near future, there may also be cooperation with Turkey on textiles, Makaryan said, adding that talks were still ongoing on the issue.

Eyeing the European market:

One of the basic concerns of businesses in Armenia is that Turkey may have a say in the market following the opening of border gates between the two countries. However, Makaryan said such fears were unfounded. “The projects have already been prepared and there will not be any distress for any side.”

The Armenian economy was hit hard in the first years of the closing of the gates, Makaryan said. “Not only Armenia, but also the eastern cities of Turkey had their share of distress. But we have managed to survive despite everything, and we’ve sought new solutions. We have achieved developing our trade with the European Union and the United States. And we now export many products,” he said.

In recent years, Armenia started exporting to the EU with a symbolic customs duty, Makaryan said, adding that Turkish businessmen may also benefit from the advantage if the borders were opened. Unveiling his project, he said: “By making products with Armenian labels, Turkish firms may benefit from low customs duty in the EU market. Many Turkish firms have warm prospects toward this issue.”

Nearly 1,000 Armenian businesspeople are members of the UBM(E)A. The taxes collected from these entrepreneurs constitute 75 percent of the Armenian national budget, Makaryan said. The body also has a department aiming to develop relations between Turkish and Armenian businesspeople. For the department, Arsen Ghazaryan is the person in charge in Armenia while brothers Kaan and Noyan Soyak are in charge in Turkey.

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