Economic Potential and Prospects of the Joint Declaration by the President of the Republic of Azerbaijan and the Prime Minister of the Republic of Armenia

On 8 August, 2025, in Washington D.C., the United States of America, in the presence and active moderation of US President Donald Trump, the signing of the joint Declaration took place, which is the preliminary document for peace and reconciliation. The Declaration stated the readiness of the parties to end military conflicts and develop positive economic and political relations, recognizing the sovereignty, territorial integrity and jurisdiction of Armenia and Azerbaijan.

This document will bring peace to the South Caucasus and to the region, including the wider region, which includes the countries of Central Asia, China, India, Russia, Turkey, Iran and Europe. 

Considering that the foreign trade of these countries and the United States together amounts to about 22 trillion US dollars, if even 10% of this trade is carried out through the “Trump Route for International Peace and Prosperity” (TRIPP), the countries of the wider region will earn hundreds of billions of dollars over the years. Armenia, with its geographical location, will become a hub on this route and will acquire the role of an important platform in the field of exports, first of all for Armenia itself.

The signing of the Declaration took place thanks to the decisive and rapid steps of the US President, who was able to explain to the leaders of the two countries the importance of peace and economic cooperation, and thereby convince them to end the military conflicts that have lasted for about 35 years.

Besides the United States, it should be noted that other countries, including the European Union, Russia, Iran, and the EAEU countries (especially Kazakhstan as well), also played a positive role in the processes of shaping the Declaration. The President of the Republic of Kazakhstan, Kassym-Jomart Tokayev, has repeatedly provided opportunities for negotiations in Kazakhstan for the Foreign Ministers and leaders of Armenia and Azerbaijan. In addition, during various conferences and meetings, President Tokayev has consistently emphasized the need to end conflicts and sign a peace treaty.

It is welcoming, that the day after the signing of the Declaration, on August 9, the President of Kazakhstan Tokayev, welcomed the initialing of the peace treaty and the cessation of military conflicts.

 Countries around the world are constantly competing to develop their economies and gain a place in world trade. To achieve this goal, sometimes they lead to military conflicts, but it is necessary not to go through military means to form competitive economies, but to do this in peacetime; in other words, make effective competitiveness an important prerequisite for economic success, thanks to which the GDP per capita in each country will be as high as possible. Such interest is naturally shared by regional countries, the US, Europe, Russia, Central Asian countries, including Kazakhstan. There are countries whose exports exceed imports, in some countries they are equal, and in more countries the exports are inferior to imports. These are indicators representing the level of competitiveness.

Therefore, the countries of the world, assessing the importance of the signed Declaration for the international economy and trade, welcome and congratulate the signatory countries and express their support.

We also congratulate the Prime Minister of the Republic of Armenia and his team on the signing of this important document, as well as the Armenian people and the peoples of the region. We also express our gratitude to the President of Kazakhstan Tokayev for the consistency and support he has shown in this regard in recent years. It is important to note that different countries of the world are expressing their support, which do not contain any traces of jealousy.

Thus, summing up the Declaration signed on August 8, we express hope that the other forthcoming documents to be signed will further strengthen peace and economic cooperation in the South Caucasus and in the region. To this end, ensuring the diversification of Armenia's economy and industrialization from the perspective of ensuring large future trade flows becomes important.

 

Gagik Makaryan,

Doctor of Technical Sciences,

Head of the Center for Socio-Economic Development,

President of the Armenian-Bulgarian Chamber of Commerce and Economy