April 2020
Solidarity, coordination and action: what we need to fight COVID-19 and protect the economy The world is facing an extraordinary challenge from the outbreak of COVID-19. The pandemic poses a severe threat to the health and wellbeing of citizens and the global economy with harmful consequences for all parts of society. AmChams in Europe, the umbrella organization for 45 AmChams from 43 countries across Europe and Eurasia, fully support governments’ efforts to tackle the pandemic and mitigate its effects. The mobilization of resources has been unprecedented, and we need continued leadership to address the impact of the crisis on society. We call on our governments to focus on: 1) Solidarity – We are all in this together. Increased sharing of resources and information among our countries and globally is critical to address the pandemic successfully. Now is the time to demonstrate the values we share in Europe, across the Atlantic and with the rest of the global community. 2) Coordination – Governments need to enhance coordination across borders and within alliances to ensure a consistent and harmonized approach to the crisis but also to start setting the foundations of the economic recovery. Cooperation at the regional and global levels is vital as governments put together initiatives to protect our economies, and ultimately the livelihood of citizens. 3) Action – We need bold action to ensure access to critical goods and services we all depend on. In particular, the movement of goods across borders must be unimpeded. Much-needed goods rely on integrated supply-chains for production before they can be delivered to individuals and businesses. AmChams in Europe are committed to doing all we can do to mobilize our member companies and our networks to support the economic recovery. We are coordinating with our colleagues across the European region and globally to put forward recommendations for a strong and sound economic recovery for the prosperity and wellbeing of all our citizens and businesses.
About AmChams in Europe AmChams in Europe serves as the umbrella organization for 45 American Chambers of Commerce (AmChams) from 43 countries throughout Europe and Eurasia. In Europe we represent the interests of more than 17,000 American and European companies employing 20 million workers and accounting for more than $1.1 trillion in investment on both sides of the Atlantic. As the bilateral voice of American and European companies, AmChams in Europe works to communicate the importance of the transatlantic economy in both Europe and the United States. For a full list of members, please see below or click here. AmChams in Europe AmCham Albania AmCham Armenia AmCham Austria AmCham Azerbaijan AmCham Belgium AmCham Bosnia and Herzegovina AmCham Bulgaria AmCham Croatia AmCham Cyprus AmCham Denmark AmCham Estonia AmCham to the European Union AmCham Finland AmCham France AmCham Georgia AmCham Germany AmCham Gibraltar AmCham Greece AmCham Hungary AmCham Ireland AmCham Israel AmCham Italy AmCham Kosovo
AmCham Latvia AmCham Lithuania AmCham Luxembourg AmCham Macedonia AmCham Malta AmCham Moldova AmCham Montenegro AmCham the Netherlands AmCham Norway AmCham Poland AmCham Romania AmCham Russia AmCham Serbia AmCham Slovak Republic AmCham Slovenia AmCham Spain AmCham Sweden AmCham Switzerland AmCham Turkey (ABFT) AmCham Turkey (TABA) AmCham Ukraine British American Business
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HARVARD BUSINESS REVIEW PRESS LIVE VIRTUAL EVENT: MARKETING IN A TURBULENT CONTEXT WITH TATARKLUBBEN AmCham Armenia in collaboration with Tatarklubben, an exclusive business club, started Webinars series with Harvard Business Review Press published authors and editors, as well as web presentations by global thought leaders. During this pilot project AmCham Members were able to participate in the series of virtual events with recently published authors and editors, who gave a powerful understanding on new ideas, trends, and forces shaping the business world long before they enter the mainstream during this turbulence, and all FREE! On 3 April, 2020 1st Event on Marketing in a Turbulent Context with Mr. Mathew Sweezey from Salesforce took place. In a world of infinite noise and instant access consumers have reformed their decision-making processes to fit this new reality. Reaching this new consumer requires a new idea of marketing, and brands who have embraced this revolution are achieving 10X results. Acclaimed marketing futurist and Harvard Business Review Press author, Mr. Mathew Sweezey shared the new research from 11,000 brands and showed how high performing marketing organizations are breaking through and how to navigate our current situation to come out on top.
HARVARD BUSINESS REVIEW PRESS LIVE VIRTUAL EVENT: WHAT’S YOUR PROBLEM? On 23 April, 2020 2nd event took place on WHAT'S YOUR PROBLEM? To Solve Your Toughest Problems, Change the Problems You Solve. The coronavirus has turned everyone into problem-solvers, at work and at home. But were we and our people solving the right problems? According to Mr. Thomas Wedell-Wedellsborg, author of the just-published book “What’s Your Problem?” from Harvard Business Review Press, 85% of companies say their people too often jump into solution mode. As a consequence, we waste our much-needed energy on the wrong things. The answer is reframing. In his seminal book, Wedell-Wedellsborg shares a method for solving the right problems that he has honed through his work with clients such as Cisco, Microsoft, Citigroup, and the Wall Street Journal. Crucially, the method can be used quickly – an imperative for the present moment, as nobody has time to waste. A new way of thinking that just might save your business – or as former Google CEO Mr. Eric Schmidt put it, “If you want the superpower of solving better problems, read this book.”
AMCHAM MEMBER FINARM AND NATIOANAL ASSEMBLY MEMBERS INITIATIVE FINARM and Mr. Artak Manukyan and Mr. Varazdat Karapetyan, National Assembly of Armenia Members continue their successful and productive cooperation. As a result of such a cooperation on 14 April, 2020 the team introduced the draft law on stipulating amendments and addenda to the Law of Armenia on “Currency regulation and currency supervision”. It is envisaged to clarify: • that coupon payments on foreign currency denominated bonds admitted to trading in regulated market can be done in the same foreign currency, • the possibility to make payments on repo contracts and financial derivatives in the same foreign currency in which the liability was assumed. It is expected the National Assembly can discuss the proposed amendments already in Q2,2020 and, hopefully, adopts it.
AMCHAMS IN EUROPE WEBINAR - THE COVID-19 CRISIS AND ECONOMIC RECOVERY – HOW IS BUSINESS ACROSS EUROPE AND EURASIA RESPONDING TO THESE CHALLENGES? On 29 April, 2020 First virtual live event took place on Microsoft Teams with the leaders of five AmChams in Europe, from countries in a range of stages and with different approaches to tackling the crisis and economic recovery. We plan to continue this series to share further initiatives, stories, and intelligence from others in our network. This webinar was organized by AmChams in Europe, the network which unites 45 American Chambers of Commerce from 43 countries across Europe and Eurasia. These Chambers represent the interests of more than 17,000 American and European companies employing 20 million workers. We are working together and with our national governments during this crisis to share intelligence, information and best practices. You can watch the full record of webinar by clicking here.
DID YOU KNOW?
Free Economic Zone Free economic zones (FEZ), also known as free economic territories (FETs), are territories specifically designated for trade and commerce activities that are taxed differently. This includes lighter tax rates and no exporting restrictions to the international markets, to encourage economic activity in the country. Each country has its own FEZ rules, depending on factors such as the country of export. Currently the Republic of Armenia has three operating Free Economic Zones. •
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The first FEZ was launched in 2013. “Alliance” free economic zone is oriented to the production and exports of high and innovative technologies in the field of electronics, precision engineering, pharmaceutics and biotechnologies, information technologies, alternative energy, industrial design and telecommunications as well as in the fields producing goods not produced in Armenia. The second FEZ type is “MERIDIAN” free economic zone, which is specialized in jewellery, stones cutting and watchmaking. The most recently established FEZ in Armenia is in the “Meghri” free economic zone. It is oriented to the sphere of agriculture, manufacturing, electricity supply, trade, transportation and economy storage, professional and technical activity, culture, tourism, entertainment and recreation.
FEZ grants the organizers and the operators with the following incentives: No customs charges and non-tariff regulation measures applied to the export of goods, no VAT for delivering services and supplying goods in FEZ territory, no property taxes on public and industrial buildings and structures owned or leased within FEZs, tax-free profit to legal entities and no income tax for sole proprietor acting as operators or organizers of FEZs. FEZs offer a unique opportunity for entrepreneurs and businesses to export goods with a special reduced tax burden. It encourages economic activity within the country and in the international market.
MORE FUNDING FROM THE AMERICAN PEOPLE TO HELP ARMENIA FIGHT COVID-19 More funding from the American people to help Armenia fight COVID-19! The U.S. Government, through USAID, has committed an additional $600 000 to Armenia to support the country’s response to COVID-19. These funds will build on the $1.1 million support announced in April. to prepare laboratory systems • to activate case-finding and event-based surveillance • to support technical experts for response and preparedness • to bolster risk communication as well as to develop other related fields.