How does lobbying work?

AUA, March 11, 2019

Elina Markaryan Public Affairs and Communication DirectorCoca-Cola Hellenic Bottling Company Armenia

What is Lobbying?

Definition:

“Lobbying, persuasion, or interest representation is the act of attempting to influence the actions, policies, or decisions of officials in their daily life, most often legislators or members of regulatory agencies.”

Purpose:

To communicate with the government about a group's desires. It allows government officials to understand which issues the taxpayers in their jurisdiction are interested in, and allows the group to express opinions on individual, timely topics.

Among the major goals of AmCham:

Contribute to the enhancement of US - Armenia business and trade relations

Contribute to the improvement and establishment of a competitive, transparent, free, and fair business and investment climate in Armenia

Engage and contribute in the reforms agenda of the Government of Armenia

Advocate for the further growth of Foreign Direct Investments into Armenia

Guard and protect business interests of AmCham members

American Chamber of Commerce in Armenia

Facts about AmCham:

Operates in Armenia since 2000130+ members from all business segments A totally independent and self-financed business associationCovers all sectors of Armenian economy

AmCham closely cooperates with:

U.S. Embassy in YerevanGovernment of ArmeniaPrivate businesses and business associationsInternational financing and donor community International and local non-governmental organizations.

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AmCham Members

AMCHAM APPROACH

Quarterly AmCham Board meetings with the U.S. Ambassador to Armenia; AmCham platform for U.S.Ambassador’s annual/farewell speech ; Joint events to improve business environment and attractforeign investments to the country (Franchise Conference, Career and Job Fair), Trade and InvestmentFramework Agreement

STRONG PARTNERSHIP WITH THE U.S. EMBASSY IN ARMENIA

CONSTRUCTIVE DIALOGUE WITH THE

GOA

Membership meetings with US and GoA high-level officials; sectorial meetings and targeteddiscussions; AmCham’s presence in Public Councils under the RA Ministry of Finance, State RevenueCommittee; on the Board of Business Armenia, SME DNC, 7 representatives in the Committees of PublicCouncil

PARTNERSHIP WITH MEMBERS, COLLABORATION WITH OTHER

ASSOCIATIONS AND INTER. ORGS

Partnership with AmCham Members, establishment of Working groups or ad-hoc round-tables; Jointevents and dialogue with other association on specific topics to have “one-voice” approach; AmChammembers participation at donors’ and other associations’ events

AMCHAM “SAY” IN THE REFORMSAMCHAM ADVOCACY TALKS

65+Sectorial & membership conferences, round-table

discussions, meetings, and events on advocacy

Background

Excise Tax Introduction

On November 2, 2018, the media published announcement of the Chairman of the State Revenue Committee (SRC) informing that sweet drinks may be included in list of excisable goods.

The initial proposal on excise tax:

• The cold beverages with a high sugar level are planned to be included in the list of excisable goods. Such drinks having a sugar level upper than 5% per 100 ml and will be considered dangerous to life or health and will be classified as excisable.

• 10% of excise tax will be imposed per 1 liter of the product invoice price.

• Sugar substitutes can also fall under this excisable classification.

Case study: Coca-Cola Hellenic Bottling Company

Presentation of Socio-Economic Impact Study Testimonies; independent impact study

February 28, 2019, Yerevan

Coca-Cola Hellenic Armenia has presented the results of an independent Socio-Economic Impact Study (SEIS) that summarizes and evaluates the Company’s activity for the period of 2015-2017. This study, conducted by KPMG Armenia LLC, identifies the economic, social and environmental impacts of the Coca-Cola System in Armenia, covering main directions and spheres of the company investments, as well as the impact of thereof.

29.5 billion AMD total GVA contribution15.6 billion AMD payments to the state budget 112.4 billion AMD attribution to community development over 2300 total employment contribution over just 3 years

Press conference March 6

Producers of carbonated drinks are worried that after the increase of the sugar tax the prices for all carbonated drinks are going to rise.

Participants:

Coca-Cola Hellenic Bottling Company Armenia “Jermuk International Pepsi-Cola Bottler” LLC “Hay Cola” LLC“Kilikia” LLC

“We are open for a dialogue with the Government; in fact, we have already initiated it on our side. We believe that working together, taking into account our experience and deep knowledge of the market and its operations, we will be able to mitigate the negative economic and social consequences of this draft and will come up with a legislation that doesn’t result in distortion of the field”, remarked Christoph Speck, General Manager of Coca-Cola Hellenic Armenia.

Q&A

Thank you!