[Congressional Record Volume 149, Number 71 (Tuesday, May 13, 2003)]
[House]
[Pages H3996-H3997]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TURKEY'S DECADE-OLD BLOCKAGE AGAINST ARMENIA
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
Mr. PALLONE. Mr. Speaker, I come to the floor this evening to discuss
the decade-old blockade against Armenia by Turkey. This is one of the
most egregious violations of international law by Turkey, and it is one
that hardly gets any attention in the international community. I have
been encouraged, however, by two recent reports on the Turkish
blockade. The first was done by the State Department at the request of
me and the gentleman from Michigan (Mr. Knollenberg) and the second was
written by members of the European Parliament.
Last year, members of the Congressional Caucus of Armenian Issues, of
which the gentleman from Michigan and I are cochairs, identified a bill
that would grant some Turkish goods duty free status. We protested very
early about this, Mr. Speaker; and when it came time to include the
bill, we obtained assurances from the administration that they would
try to offset this provision for Turkey by pressing for Armenia's
accession to the World Trade Organization. The letter from Deputy
Secretary Armitage in this regard specifically stated, and I quote,
``The administration is pressing Turkey to restore economic, political
and cultural links with Armenia, and is encouraging Turkey to open its
border with Armenia. We believe that such action would promote the
economic development of both Turkey and Armenia.'' We were also
promised, Mr. Speaker, a report by the State Department and the U.S.
trade representative on the Turkish blockade by March 31 of this year.
Mr. Speaker, the report we received was entitled: ``The Economic
Impact of Turkish/Armenian Border Closure and Diplomatic Contacts with
Both Parties on This Issue.'' I have included a copy of this report for
the Record, Mr. Speaker. This report was only three pages long, Mr.
Speaker; but it made clear some of the administration's views on the
Turkish blockade. It stated: ``The United States has long pressed for
the opening of the border and the free flow of trade in the region.''
The report also listed various attempts that the United States has
pressed Turkey on this issue and it stated: ``Most recently the issue
was raised with Turkish officials during Secretary Powell's April 2
visit to Ankara, Turkey.''
Mr. Speaker, although members of the Congressional Caucus on Armenian
Issues are encouraged by Secretary Powell's helpful comments during a
very tense time in the Middle East, we also encourage a greater
commitment by the administration to pressing Turkey to discontinue its
incredibly damaging blockade.
The second report that I mentioned, Mr. Speaker, was coordinated with
a conference sponsored by the European Parliament and the Turkish-
Armenian Business Development Council, and it included members of the
European Parliament and business community of both Turkey and Armenia.
The title of the conference was: ``Still an Iron Curtain: Armenia-
Turkey relations, 10 years after the border was closed.''
This conference, Mr. Speaker, highlighted not only the economic
numbers that justify the lifting of the blockade but also the real
Armenian and Turkish citizens that want the decade-old interruption of
their normal life and commerce to end. The TABDC estimates that 30 to
40 percent of Armenia's GNP is lost each year solely to the border
closure. Every year the Armenian Caucus pushes for a robust level of
U.S. aid for Armenia, but these efforts to help revive the economy and
civil society are hamstrung by Turkey's insistence in joining ranks
with its belligerent brother, Azerbaijan. The State Department report
also included a 2001 World Bank report entitled: ``Trade, Transport and
Telecommunications in the South Caucasus: Current Obstacles to Regional
Cooperation.'' This report repeats what is already common knowledge,
that closed borders retard trade and development.
Mr. Speaker, it has been far too long for Armenia to suffer under the
yoke of Turkey. This is the only situation in the world where one
member of the WTO is blockaded by another. We have known for years
about Turkey's illegal blockades; but since Armenia's accession to the
WTO, Turkey's actions are egregious even more. There can be no excuse
for Turkey to continue the blockade of Armenia and still hold itself up
as a democracy, purportedly respecting the rights of all its citizens
and neighbors.
Mr. Speaker, finally, I call on the Bush administration to continue
to press Turkey hard to drop the 10 years of blockade against its
sovereign neighbor. It is crucial for the United States to be seen in
the international community as a peaceful arbitrator between enemies.
The release of this burden on the peoples of Armenia and eastern Turkey
would help the region recover from the market disruption after the fall
of the Soviet Union. For peace to prosper, for democracy to truly take
hold and for the economies of all the countries of the South Caucasus
to move forward into the 21st century, relations must be normalized
throughout the region. This region was mired in war and genocide before
the rise of the Soviet Union. It should be an imperative of the Bush
administration not to let this region slip back further economically.
United States Department of State,
Washington, DC, April 7, 2003.
Hon. Frank Pallone, Jr.,
House of Representatives.
Dear Mr. Pallone: As promised in Deputy Secretary
Armitage's letter dated September 20, 2002, regarding the
Turkey/Armenia border issue, enclosed is the State Department
Report, Economic Impact of Turkish/Armenian Border Closure
and on Diplomatic Contacts with Both Parties on This Issue.
Also enclosed for your information is the 2002 World Bank
Report entitled Trade, Transport and Telecommunications in
the South Caucasus: Current Obstacles to Regional
Cooperation.
I am pleased to note that the Administration's efforts on
Armenia's accession to the WTO were successful and that
Armenia became a member in December 2002.
We hope this information is useful to you. Please do not
hesitate to contact us if we can be of assistance on this or
any other matter.
Sincerely,
Paul V. Kelly,
Assistant Secretary Legislative Affairs.
Enclosures: As stated.
Economic Impact of Turkish/Armenian Border Closure and Diplomatic
Contacts with Both Parties on This Issue
Citing Armenian aggression against Azerbaijan during the
hostilities over Nagorno-Karabakh, the Government of Turkey
closed its border with Armenia in March 1993. Turkey took
this action following the Armenian seizure of Kelbajar, an
Azerbaijani province outside Nagorno-Karabakh. Prior to that
time, the border was open for one train a week between Kars
in Turkey and Gyumri in Armenia. The United States has long
pressed for the opening of the border and the free-flow of
trade in the region.
Azerbaijan, too, severed all economic relations with
Armenia and has refused to allow any direct trade. The trains
between the two countries had already ceased operating owing
to harassment of crews and torn-up tracks on both sides. As a
result, trade between land-locked Armenia and neighboring
markets has been distorted and Azerbaijan and Turkey have
cost the most direct transportation corridor between their
countries and the Mediterranean and Caspian Seas. Although
there has been a cease-fire and an ongoing Nagorno-Karabakh
peace process since 1944, the governments of Azerbaijan and
Turkey say they will only open their borders with Armenia
only when there is a settlement to the conflict.
The full extent of these trade distortions will ultimately
be eliminated only with the opening of both borders. However,
assuming only the Turkish/Armenian border were reopened, one
would expect: a reduction in transportation costs to and from
Armenia, an increase in Turkish-Armenian trade, and an
improved overall economic environment in Armenia and eastern
Turkey. Armenian Foreign Minister Oskanian has stated that
the border closures were among the major hindrances to
increasing export volumes and attraction of foreign
investments to Armenia. And it is true today that
transportation costs and customs duties can increase the
prices of Armenian imports and exports by as much as 100
percent and in some cases even more due to the need to ship
goods via Georgia or Iran. If the Turkish-Armenian border
were to open, some economic observers estimate that overall
transportation costs to and from Armenia might fall by 50
percent or more.
Assuming that these savings lead to lower prices, one would
expect overall trade between Turkey and Armenia, as well as
transit traffic between Armenia and Western Europe via
Turkey, to increase in real terms as
[[Page H3997]]
well. Regional trade has been declining as a result of the
border closure in recent years and unofficial reports
indicate that a reopening of the Turkey-Armenia border
would lead to enhanced trade and enable Turkey to provide
a larger portion of the nearly $1 billion worth of goods
that Armenia imports each year. Also, existing
transportation routes preclude trade in certain products,
including building stone, produce, flowers, and meats.
Opening the border would open the possibility to a
profitable trade in such goods. Placing a voltage adjuster
near the border would allow the transfer of excess
electricity generated in Armenia to the energy-poor
regions of eastern Turkey.
This increased economic activity and the improved access to
local markets would have a positive impact on the economic
environment throughout the region, especially in Armenia and
eastern Turkey. The full economic potential of the region is
unlikely to be achieved until there is a normalization of
relations between Armenia and Azerbaijan as well. The opening
of that border would enable the reopening of the railroads
from Armenia to Azerbaijan and the creation of an
uninterrupted railroad link between Istanbul and Baku and the
Mediterranean and Caspian Seas. This would lead to enhanced
trade between Turkey and the Caspian and Central Asian
regions.
The internal conditions in Armenia and throughout the
region must be prepared to take full advantage of an open
border. As stated in the World Bank's Trade, Transport and
Telecommunications in the South Caucasus: Current Obstacles
to Regional Cooperation, (attached) ``In the long run a peace
settlement will only generate widespread and sustainable
benefits, if the institutional and physical milieu is
sufficiently supportive. The realization of these potential
benefits appears highly unlikely, at present, as the current
institutional and physical milieu is anything but supportive
and offers few incentives for new development.'' The World
Bank report makes a very rough estimate of regional trade
normalization, and therefore open borders with both Turkey
and Azerbaijan. The report found that open borders with
Turkey and Azerbaijan could result in significant increases
in Armenia's exports ($269-342 million) and GDP likely would
rise up to 30-38 percent on a one-time basis. The percentage
impact on Turkey's overall trade figures would be much less,
but likely beneficial as well. It also bases its estimate on
older trade figures (1999 or earlier).
The U.S. Government has budgeted approximately $1.336
billion to fund assistance programs in Armenia, plus $218
million in surplus Department of Defense and privately
donated humanitarian commodities since Fiscal Year 1992. In
Fiscal Year 2002, all U.S. Government agencies budgeted $103
million for assistance programs in Armenia.
The Governments of Armenia and Turkey have stated that they
are willing to pursue improved relations. The U.S. Government
continues to press the Government of Turkey at every
appropriate opportunity to open the border with Armenia. Most
recently the issue was raised with Turkish officials during
Secretary Powell's April 2 visit to Ankara. The U.S.
Government also urges the Government of Armenia to continue
to raise these issues with the Turkish government. U.S.
officials brought up the subject during Foreign Minister
Oskanian's visit to Washington in February. In its role as
Co-Chairman of the OSCE's Minsk Group, the U.S. is actively
engaged in the search for a peaceful, mutually-acceptable
resolution of the Nagorno-Karabakh conflict, including the
normalization of regional trade relations, which would
stabilize the situation in the region and provide the basis
for greater economic growth in Armenia, Azerbaijan and
eastern Turkey.
On the diplomatic front, in 2002 the Armenian Government
increased diplomatic contact with the Government of Turkey.
It encouraged working-, mid-, and senior-level diplomatic
contacts with Turkey and accepted a Turkish proposal for
trilateral ministerial consultations. Armenian Foreign
Minister Oskanian held three rounds of discussions with
Turkish Foreign Minister Cem, including one that also
included Azerbaijani Foreign Minister Guliev. Following the
change in government in Turkey last summer, the Armenian
Foreign Minister also met once with the Foreign Minister of
the interim Turkish Government. The Government of Turkey
altered its stance on Armenia's WTO accession last year,
helping to pave the way for Armenia's accession in December
2002. Turkish President Sezer sent President Kocharian a
letter congratulating him on his March 5 re-election.
Drafted: CG Istanbul, Jonathan Henick; EUR/CACEN: Margaret
Pawlick; Embassy Yerevan David Gehrenbeck.
Approved: The Deputy Secretary.
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