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Increased costs makes trade more prohibitive. It doesn't stop the trade but it wont exactly encourage it either. It also means that Turkish products being sold in Armenia are more expensive for the end user (Armenian consumer). Increased transportation costs is a barrier of trade.
The Global Competitiveness report gave Turkey and Azerbaijan much higher rankings than Armenia. Armenia has a lot of barriers to trade.
You mean Armenia buys oil and gas off Iran.
Its not as if Armenia-Iran cooperation in energy can involve distributing oil and gas to 3rd parties (except Georgia).
What can Armenia do with Iran in terms of energy distribution by themselves? Transport Iranian gas and oil to Europe and other markets via Armenian airplanes?
Turkey is Georgias largest trading partner. Azerbaijan is second. Georgia isn't well connected to the rest of the world. Georgian shipping has to pass through the Bosphorus unless they are only unloading in Bulgaria, Romania, Ukraine or Russia. Flights between Tblisi and Istanbul are the most active flights to and from Tblisi airport. People flying to and from Georgia often fly to Istanbul and then fly onwards from there.
Considering Turkey and Azerbaijan are Georgias number one and two top trading partners. Considering Turkey, Georgia and Azerbaijan cooperate greatly in transportation with the Kars-Akhalkalaki-Tbilisi-Baku railway nearing completion and there is the Baku-Tbilisi-Ceyhan oil pipeline already operational. Armenia is missing out on money making opportunities and transportation links with its neighbours. Georgia-Armenia and Georgia-Turkey/Azerbaijan relations aren't exactly in the same league as one another.
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