ACR 105 — Assembly Committee on Jobs, Economic Development, and the Economy (Date of Hearing: September 2, 2021)
Summary
An analysis of ACR 105 (Holden, Nazarian), as amended August 23, 2021, for the hearing of September 2, 2021 before the Assembly Committee on Jobs, Economic Development, and the Economy, Sabrina Cervantes, Chair. The subject is a sister state relationship with the Province of Syunik, Armenia. The analysis describes information on the current political situation in Armenia, including a border dispute with Azerbaijan and concerns raised in a letter dated August 20, 2021, from the Consul General of the Republic of Azerbaijan to the Western United States. It states that further amendments to remove a "Whereas" relating to this dispute will be proposed during the hearing.
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“ACR 105 — Assembly Committee on Jobs, Economic Development, and the Economy (Date of Hearing: September 2, 2021).”
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ACR 105
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Date of Hearing: September 2, 2021
ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY
Sabrina Cervantes, Chair
ACR 105 (Holden, Nazarian) – As Amended August 23, 2021
SUBJECT: Sister state relationship with the Province of Syunik
POLICY FRAME: This resolution seeks the permission of the State Assembly and the State Senate to
extend an invitation to the Legislature of Syunik, Armenia, to establish a sister state relationship.
A sister state relationship is a formal declaration between two regions, states, or nations. Such an
agreement is a symbol of mutual goodwill. Additionally, it is an effort to encourage and facilitate
mutually beneficial social, economic, educational, and cultural exchanges. Both the Legislative and the
Administrative branches of the California government have the authority to establish sister state
relationships.
The analysis includes information on the origins of sister state programs, a summary of the Legislature's
sister state relationships, California's trade-based economy, and an economic profile on Armenia,
including the Syunik Province. Information is also provided on the current political situation in Armenia
relating to a military-engaged border dispute between Armenia and Azerbaijan, including concerns raised
in a letter dated August 20, 2021, from the Consul General of the Republic of Azerbaijan to the Western
United States. The bill has been amended since the submittal of this letter and further amendments to
remove a “Whereas” relating to this transborder dispute will be proposed during the hearing. Comment
12 includes a selection of legislation related to sister state relationships and California’s historic support
for Armenia and condemnation of Armenian Genocide.
SUMMARY: Memorializes the intent and commitment of the California Legislature to extend an
invitation to formalize a sister state relationship with the Province of Syunik, Armenia, for the purpose of
encouraging and facilitating economic, educational, and cultural exchanges that further promote the
prosperity of both regions and to improve the international understanding and goodwill between the
regions. Specifically, this bill:
1) Makes findings and declarations, including, but not limited to, the following:
a) For decades, California has been a refuge and home to Armenian immigrants. Notable numbers of
Armenians began arriving in California in the late 19th century. In the 1870s, a majority of
Armenian immigrants in California settled in the City of Fresno. In the City of Fresno, Armenians
flourished and made their mark on the fruit, dried fruit packaging, and shipping industries.
b) The success of the Armenian community in the City of Fresno attracted Armenians from across
the United States to move to the City of Fresno and make California their home. A study from
Stanford University revealed that in 1930, 84 percent of early Armenian settlers moved to the City
of Fresno after living 5.7 years in some other United States city. By the outbreak of World War II,
an estimated 10,000 Armenians resided in the City of Fresno, making up about 25 percent of the
county’s minority population.
c) Armenian success in agriculture led to the first and only United States-based Armenian
community about 40 miles southeast of the City of Fresno.
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d) After World War II, the Armenian community was centered in southern California, including in
the Cities of Pasadena and Glendale, and in the Boyle Heights and Hollywood neighborhoods in
the City of Los Angeles.
e) While Armenians had settled in Hollywood much earlier in the 20th century, Hollywood became
an Armenian enclave in the 1960s. This community became a refuge for Soviet dissidents in the
1970s, and in the 1980s became the ultimate destination for many post-Soviet Armenians.
f) In the 1980s, the City of Glendale became the epicenter of the Armenian community in southern
California. The City of Glendale continues to be the epicenter of the Armenian community in
southern California to this day, with Armenian shops, grocery stores, bakeries, and delis on every
major artery through the city. Significant Armenian representation on the City of Glendale’s city
council has facilitated the establishment of Armenian cultural centers, Armenian language city
voting materials, and dual immersion language programs in public schools.
g) California is home to the largest Armenian American population in the United States, and
Armenians living in California, most of whom are direct descendants of the survivors of the
Armenian Genocide, have enriched our state through their leadership and contributions in
business, agriculture, academia, government, and the arts.
h) California has taken decisive action to acknowledge the Armenian Genocide and to work towards
a more global recognition of historical facts. California recognizes the generational trauma caused
by the Armenian Genocide, and acknowledges the pain and danger of any country’s efforts to
deny the Armenian Genocide.
i) In September 2019, Governor Gavin Newsom met with Armenian Prime Minister Nikol
Pashinyan and signed an agreement to create a Trade and Services Desk in Armenia. This desk
will be used to encourage trade and investment by Californian and Armenian businesses, and will
foster economic cooperation and development by assisting entrepreneurs in connecting with their
counterparts to engage in various trade and commercial activities.
j) The Armenian Province of Syunik is the southernmost province of Armenia. It is bordered by the
Nakhchivan Autonomous Republic, the Islamic Republic of Iran, and the Republic of Artsakh or
the Nagorno-Karabakh Republic. It is also one of the original provinces of the ancient Kingdom
of Armenia.
k) On May 12, 2021, the Azerbaijani military crossed into the Republic of Armenia and moved 3.5
kilometers into Syunik Province, seizing the entirety of Sev Lake. The next day, the Azerbaijani
military breached two other sections of the border and occupied more areas of Armenia. It was
initially reported that, with Russian mediation, Azerbaijan agreed to withdraw to their pre-May 12
positions, but with two small military camps being established nearby. However, Armenian
reports suggest that many Azerbaijani soldiers remain illegally in Armenia.
2) Resolves that:
a) The Legislature, on behalf of the people of California, hereby extends to the people of the
Province of Syunik in Armenia an invitation to join with California in a sister state relationship
until January 1, 2026, in order to encourage and facilitate mutually beneficial educational,
economic, and cultural exchanges.
b) It is the intent of the Legislature through a sister state relationship with the Province of Syunik to
further promote the prosperity of both regions and to improve international understanding and
goodwill between both regions.
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c) Any sister state agreement be developed through the mutual cooperation and engagement of the
Legislature, the Legislature of the Province of Syunik, and Armenia.
d) Any sister state agreement developed will identify objectives, areas of mutual interest, a list of
potential activities, and an initial list of public and private partners that will help to advance the
purposes of the sister state agreement, including one or more entities that will serve as a facilitator
and general point of contact.
e) The Chief Clerk of the Assembly transmit copies of this resolution to the Governor of California,
the Lieutenant Governor of California, the Governor of the Province of Syunik, the Legislature of
the Province of Syunik, and each Senator and Representative from California in the Congress of
the US.
FISCAL EFFECT: None
COMMENTS & CONTEXT:
1) Origins of the Sister Programs: Sister affiliations involving the US began shortly after WWII and
developed into a national initiative when President Dwight D. Eisenhower proposed the People-to-
People Program at a White House conference in 1956. According to research on Maryland's sister
state webpage, President Eisenhower’s intention was to involve people and organized groups at all
levels of society in personal, citizen diplomacy with the hope that people-to-people relationships,
fostered through sister city affiliations, would lessen the chance of future world conflicts. Many sister
city relationships are coordinated through the nonprofit network Sister Cities International.
2) How are Sister State Programs Structured? States differ from cities in their approach to selecting
and implementing sister state relationships. Some states, such as Hawaii, require a detailed
application from the foreign state wishing to enter into partnership. The application form asks for
information on the prospective partner's economic structure, cultural resources, primary industries,
and foreign trade and investment. Applications are reviewed by the Governor of Hawaii, who refers
applications she or he supports to the Legislature for further review. The Legislature expresses their
approval through the adoption of a concurrent resolution which authorizes the Governor to proceed in
negotiating a sister state agreement with the applicant state.
One recurrent model for managing the sister state relationship is the establishment or designation of a
sister organization. Iowa, for example, has Iowa Sister State, a non-profit, volunteer organization
whose mission is to "develop and implement international programs that promote the interests of the
State of Iowa and its citizens." Activities for each of Iowa's nine sister state relationships is
coordinated through a special committee, which organizes events and exchanges.
Several states have information on their webpages regarding longstanding sister state relationships.
Michigan, as an example, has had a sister state relationship with Shiga Prefecture, Japan, since 1968,
and stills hosts several exchanges per year. For the 40th Anniversary of the sister state relationship
between Hyōgo Prefecture, Japan, and Washington state, the two governors attended several special
events including, "Kobe Day" at a Seattle Mariners baseball game, with 260 delegates from Hyōgo
attending and Governor Toshizo Ido throwing the first pitch.
Another core component of sister state relationships is education. Michigan and other states often
emphasize educational exchanges, as well as cultural exchanges. South Carolina even offers fee
waivers to foreign students from their sister states who wish to attend public universities.
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Many sister state relationships also include economic and business development priorities, as well as
cultural and educational exchanges. The Alberta, Canada, and Jalisco, Mexico, sister state
relationship focuses on enhancing the economic cooperation between the two regions. The Alberta-
Jalisco sister state relationship is guided by the initial and 13 supplemental agreements, including
agreements that support joint research funding on micro- and nanotechnology, e-health, radio-
frequency identification, and value-added food processing.
California has no formal structure for establishing, negotiating, or maintaining sister state
relationships. ACR 105 addresses this lack of structure by requiring the final negotiated sister state
agreement to include all of the following:
Objectives and areas of mutual interest;
A list of potential activities that are contemplated through the enactment of the agreement;
An initial list of public and private partners that will help to advance the purposes of the sister
state agreement; and
Identification of one or more entities that will serve as a facilitator and general point of contact
during the term of the agreement.
3) Leadership Offices of International Relations: Both the Assembly and the Senate maintain
respective offices that serve as the key point of contact for foreign relations and protocol for each
House. The California Senate Office of International Relations (SOIR) was established in 1987, and
the Assembly Office of International Relations and Protocol (AOIRP) was established in 2000.
Through these offices, Legislators find assistance in furthering strong economic and diplomatic ties
between California and the rest of the world.
Both SOIR and AOIRP host international delegations at the State Capitol, as well as facilitate and
occasionally host Member delegations to foreign countries. Over the years, SOIR has also established
special and longer term relationships between California and foreign countries, including the
California-Brazil Partnership and the California-Japan Scholars Program.
While these offices may facilitate trips and other activities with foreign countries, neither SOIR nor
AOIRP have any specific mandated duties in regards to sister state relationships.
4) Sister State Relationships in California: Although SOIR has no mandated duties relative to sister
state agreement, the office does maintain a website that is the only known source for identifying sister
state resolutions the California Legislature has approved. According to the website, the Legislature
has passed 26 resolutions expressing an interest in establishing a sister state/friendship state
relationship. Chart 1 includes a list of currently authorized sister state agreements. It is important to
note that not every resolution authorizing a sister state agreement culminates in a signed agreement.
Chart 1 ̶ California Sister State Agreement Authorizations
Country Region Legislation/ Agreement Year
Argentina Santa Fe Province Resolution Ch. 91 (SCR 6 - Monning) 2015
Australia State of New South Wales Resolution Ch. 52 (SCR 19 - Brulte) 1997
Brazil Parana State Resolution Ch. 92 (SCR 8 - Costa) 1999
Canada Province of Alberta Resolution Ch. 29 (SCR 8 - Thompson) 1997
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Guangdong Province Sister State Agreement 2014
Inner Mongolia Autonomous
China Resolution Ch. 93 (SCR 26 - Costa) 1999
Region**
Sister State Relationship Agreement and
2011
Jiangsu Province Framework Agreement on New Energy Cooperation
Resolution Ch. 66 (SCR 19 - Garamendi) 1985
Egypt Governorate of Cairo Resolution Ch. 130 (SCR 41 - Murray) 1999
El Salvador San Salvador Department Resolution Ch. 103 (SCR 81 - Hayden) 1998
Provence-Alpes-Cote d'Azur
France Resolution Ch. 135 (SCR 115 - Roberti) 1990
Region
Germany State of Baden-Württemberg SR 90 - Pan 2018
Gujarat State Resolution Ch. 13 (SCR 4 - Burton) 2001
India
Punjab State Resolution Ch. 12 (SCR 3 - Burton) 2001
Indonesia Special Province of Yogyakarta Resolution Ch. 62 (SCR 23 - Marks) 1995
Italy Umbria Region Resolution Ch. 39 (SCR 4 - Petris) 1995
Japan Osaka Prefecture* Resolution Ch. 116 (ACR 113 - Vasconcellos) 1994
State of Baja California (Norte) Resolution Ch. 46 (SCR 5 - Kelley) 1999
State of Baja California (Sur) Resolution Ch. 131 (SCR 95 - Torlakson) 2002
Resolution Ch. 70 (SCR 82 - Hueso) 2014
Mexico State of Jalisco
Resolution Ch. 148 (ACR 183 - Firebaugh) 2000
State of Nayarit Resolution Ch. 185 (SCR 81 - Lara) 2017
State of Queretaro Resolution Ch. 110 (ACR 137 - Cortese) 1988
Portugal Region of the Azores Resolution Ch. 124 (SCR 84 - Costa) 2002
Chungcheongnam-do Province Resolution Ch. 33 (SCR 54 - Marks) 1996
Korea Jeju Province Resolution Chapter 80 (ACR 42 – Chu) 2005
Republic of Korea** Resolution Ch. 97 (SCR 6 - Montoya) 1987
Altai Republic Resolution Ch. 45 (SCR 11 - Johnston) 1995
Russia Khanty-Mansiysk Autonomous
Resolution Ch. 87 (SCR 49 - Rosenthal) 1994
District
South Africa Western Cape Province Resolution Ch. 2 (SCR 42 - Murray) 2000
Spain Catalonia Region Resolution Ch. 71 (SCR 71 - Mello) 1986
Taiwan Resolution Ch. 120 (SCR 40 - Polanco) 1983
Areas marked with * denote a Cooperation Agreement
Areas marked with ** denote a Friendship State Relationship
5) Profile on Armenia: The Republic of Armenia (Armenia) was
established as an independent nation in 1991, following the break-up
of the former Soviet Union. There are 11 provinces in Armenia, with
the capitol located in Yerevan.
Constitutional changes adopted in 2015 converted the government
from a semi-presidential system to a parliamentary system. The
unicameral National Assembly (Parliament) is comprised of at least
101 seats, with members serving 5-year terms. The President is
indirectly elected to a single seven-year term by the National
Assembly through up to three rounds of voting.
While many people view Armenia as part of Europe, the CIA World
Factbook states that the country can be classified as falling within Europe, the Middle East, or both.
Armenia is a landlocked country located in Southwestern Asia, with Turkey on its western border and
Azerbaijan on the eastern. As a result of Armenia's ongoing conflict with Azerbaijan over the
separatist Nagorno-Karabakh region, Armenia has only two open trade borders –Iran and Georgia.
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Armenia’s population is comprised of just over 3 million people, who are primarily located in the
northern half of the country. Over 98% of the population are Armenian with 1.2% Yezidi and the
remaining 0.7% being a mix of other ethnicities. A majority of Armenia’s population lives in the
northern half of the country, with the population of Yerevan, the nation’s capital, being five times as
many people as the second largest city in the country. In total, 63% of the population lives in an
urban area. Nearly 60% of the land in Armenia is used for agricultural purposes.
While part of the former Soviet Union, Armenia developed a modern industrial sector, supplying
machine tools, textiles, and other manufactured goods to neighboring republics in exchange for raw
materials and energy. Since independence, Armenia has switched to small-scale agriculture, including
the production of milk, potatoes, grapes, vegetables, tomatoes, watermelons, wheat, apples, cabbages,
and barley.
Armenia’s 2019 GDP was $40.3 billion based on purchasing power parity, which ranks the economy
as 122nd in the world. Percentage of GDP by sector in 2017 was as follows: agriculture 16.7%,
industry 28.2%, and services 54.8%. Key components of GDP by end use (2017 estimates) are as
follows:
Household consumption: 76.7%
Government consumption: 14.2%
Investment in fixed capital: 17.3%
Investment in inventories: 4.1%
Exports of goods and services: 38.1%
Imports of goods and services: -50.4%
It is estimated that there were more than 1.5 million workers in the labor force in 2017.
Approximately 36.6% of employment is in the agriculture sector, 17.0% in industry, and 46.7% in
services (2013 estimate). Major areas of industrial production include: brandy, mining, diamond
processing, metal-cutting machine tools, forging and pressing machines, electric motors, knitted wear,
hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry, software, and
food processing.
According to the CIA World Factbook: “Armenia's geographic isolation, a narrow export base, and
pervasive monopolies in important business sectors have made it particularly vulnerable to volatility
in the global commodity markets and the economic challenges in Russia. Armenia is particularly
dependent on Russian commercial and governmental support, as most key Armenian infrastructure is
Russian-owned and/or managed, especially in the energy sector. Remittances from expatriates
working in Russia are equivalent to about 12-14% of GDP.
“Armenia joined the Russia-led Eurasian Economic Union in January 2015, but has remained
interested in pursuing closer ties with the EU as well, signing a Comprehensive and Enhanced
Partnership Agreement with the EU in November 2017. Armenia’s rising government debt is leading
Yerevan to tighten its fiscal policies – the amount is approaching the debt to GDP ratio threshold set
by national legislation.”
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As noted above, Armenia has only two open trade borders – Iran and Georgia – because its borders
with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively. In 2017, Armenia
exported $2.3 billion in goods, including unwrought copper, pig iron, nonferrous metals, gold,
diamonds, mineral products, foodstuffs, brandy, cigarettes, and energy. Top export markets in 2019
included: Russia (22%), Switzerland (20%), China (7%), Bulgaria (6%), Iraq (5%), Serbia (5%),
Netherlands (5%), and Germany (5%).
California exported $155.8 billion in goods in 2020. Over $6.3 million in California goods were
exported to Armenia in 2020, making the state the largest exporter to Armenia in the US. Armenia
was California’s 125th largest export market in 2020. Chart 2 shows California’s top exports to
Armenia for 2016 through 2020.
Chart 2 – California Goods Exports to Armenia, 2016-2020 (in dollars)
Item 2016 2017 2018 2019 2020
Total for All Exports $8,213,001 $6,906,115 $6,584,013 $7,973,209 $6,357,842
Special Classification Provisions, NESOI $2,633,079 $1,708,355 $1,398,641 $802,746 $1,291,963
Computer and Electronic Products $2,136,775 $2,150,209 $1,172,587 $680,624 $1,063,059
Used or Second-Hand Merchandise $1,069,497 $475,774 $365,930 $2,856,193 $885,570
Miscellaneous Manufactured Commodities $269,698 $314,006 $1,504,684 $1,473,970 $690,463
Primary Metal Manufacturing $219,462 $120,651 $132,036 $4,922,038 $440,445
Transportation Equipment $52,001 $845,366 $1,089,651 $133,556 $360,764
Source: International Trade Administration, accessed August 31, 2021
Armenia imported $3.7 billion in goods in 2917. In 2019, the largest categories of imports included
natural gas, cars, refined petroleum, broadcasting equipment, and diamonds. Key import partners in
2019 included Russia (29%), China (10%), Georgia (8%), Iran (6%), and Turkey (5%).
The US imported $68 million in goods from Armenia in 2020. Imports into California from all
nations were valued at $398.8 billion in 2020, with Armenia being the state’s 105th largest import
market. California imported the second highest in dollar value of goods ($17.6 million) from Armenia
in 2020, with Georgia importing the highest ($27.7 million). Chart 3 provides additional information
of California’s import activity with Armenia for 2016 through 2020.
Chart 3 – California Goods Imports from Armenia, 2016-2020 (in dollars)
Item 2016 2017 2018 2019 2020
Total of All Imports $9,784,532 $9,057,277 $8,264,683 $12,102,695 $17,640,270
Beverages & Tobacco Products $3,982,581 $4,070,250 $3,719,010 $4,897,951 $6,297,940
Food Manufactures $2,653,865 $2,913,986 $2,470,350 $2,781,125 $3,419,673
Miscellaneous Manufactured
$1,843,041 $975,416 $1,005,857 $2,907,268 $6,453,889
Commodities
Apparel Manufacturing Products $271,922 $296,728 $366,517 $561,066 $304,289
Fish, Fresh/Chilled/Frozen &
0 $2,200 $235,530 $251,920 $238,786
Other Marine Products
Used or Second-Hand
$258,836 $303,434 $109,715 $104,890 $161,731
Merchandise
Other Animals $113,239 $133,544 $100,778 $185,551 $104,637
Textile Mills Products $10,718 $3,083 $43,262 $35,185 $4,140
Nonmetallic Mineral Products $27,486 $54,168 $42,537 $96,296 $3,315
Agricultural Products 0 $71,772 $38,677 $51,468 $81,798
Machinery, Except Electrical $15,000 $22,773 $29,882 $61,600 $101,850
Leather & Allied Products $9,861 $25,761 $24,830 $2,756 $732
Goods Return to Canada (Exp); US
$83,624 $110,000 $24,740 $9,799 $12,031
Goods Return & Reimported (Imp)
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Plastics and Rubber Products $1,797 $19,696 $2,808 $39,413 $8,568
Printed Matter and Related
$435,925 $2,460 $14,368 $11,022 $42,423
Products, NESOI
Fabricated Metal Products, NESOI $13,500 $17,749 $9,000 $76,864 $104,280
Furniture & Fixtures 0 $1,080 $8,827 $5,500 $234,279
Source: https://tse.export.gov/stateimports/TSIReports.aspx
6) Profile on Syunik, Armenia: Syunik is the southernmost province of Armenia’s 11 provinces. It is
bordered by the Armenian province of Vayots Dzor from the north, Republic of Azerbaijan from the
west, Nagorno-Karabakh Republic from the east, and Iranian Islamic Republic from the south.
Syunik covers an area of 4,506 km² (1,739 miles²), making it the second-largest province (15% of the
total land) in Armenia, after Gegharkunik, in terms of the total area. The National Statistical Service
of the Republic of Armenia (ARMSTAT) reports the population of Syunik was 137,300 (4.6% of
population of Armenia) in 2021. i As a country, Armenia ranks 188th in the world with 2.9 million
people estimated to live there in 2021.ii
Syunik is a mountainous region, mainly covered with thick green forests. The Zangezur Mountains
occupy most of the territories of Syunik, with Mount Kaputjugh (height of 12,814.9 feet) being the
highest peak within the range. Major water basins within Syunik include the rivers of Vorotan,
Voghji, Sisian, Meghri, and Vachagan.iii
A majority (67.8%) of the population in Syunik live in urban areas (2019 data).iv The province has 6
urban and 66 rural communities. The largest urban community is the provincial capitol of Kapan,
with a population of 43,190.v The other urban centers are Goris, Sisian, Kajaran, Meghri, and
Dastakert.vi In these areas, the majority of citizens speak the modern Eastern Armenian language,
while those who live in rural communities predominately speak the classic Armenian language.vii
Syunik has a number of significant cultural and historical monuments, including the Zorac Qarer
group of monuments comprised of stone-age megalithic complexes and observatories, which is
sometimes referred to for tourist purposes as the “Armenian Stonehenge.”
According to a 2016 biodiversity report,
Syunik Province also has many unique natural
resources, including the world’s largest
sycamore relict park, which occupies 120
hectares. Some trees within the park are
hundreds of years old and reach diameters of 3
meters and the heights of 35 meters. A
significant portion of the forests are protected
by the government.
Syunik’s GDP in 2020 was $139.5 million.
Mining and electrical production are Syunik’s
primary industries. According to the same
2016 biodiversity study, Syunik has
significant mineral resources, including non-ferrous metals (copper, molybdenum, zinc, and others),
precious metals (gold and silver), and non-metal useful minerals used in construction and for
decorative stones (basalt raw materials, limestone, burnt shale marble, and granite).
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Chart 4 – Export Volumes of Armenia and Syunik, 2011-2015
2011 2012 2013 2014 2015
Armenia $489,032.3 $550,560.0 $594,392.0 $632,840.4 $705,116.8
Syunik $103,329.5 $106,332.4 $116,906.3 $113,320.5 $127,261.3
Syunik Percent
to Total Exports 21.1% 19.3% 19.7% 17.9% 18.0%
from Armenia
Source: https://biodivers-southcaucasus.org/uploads/files/5b6c35289a6d4.pdf Accessed 8-31-21
Chart 5 – Import Volumes of Armenia and Syunik, 2011-15
2011 2012 2013 2014 2015
Armenia $1,482,396.3 $1,638,843.6 $1,705,848.2 $1,735,308.6 $1,500,295.3
Syunik $36,352.4 $37,762.6 $30,964.5 $31,353.1 $28,543.9
Syunik Percent
to Total Imports 2.5% 2.3% 1.8% 1.8% 1.9%
from Armenia
Source: https://biodivers-southcaucasus.org/uploads/files/5b6c35289a6d4.pdf Accessed 8-31-21
Overall, Syunik industrial production represents 13.3% ($364.1 million in 2015) of total Armenian
industrial production. Transport represents the largest of Syunik’s service sectors, comprising 52% of
all services, followed by finance and insurance (29%) and information services (6%).
7) International Military Disputes: The jurisdiction of the Assembly Committee on Jobs, Economic
Development, and the Economy includes business development and international trade. Military and
transborder geopolitical disputes are outside the committee’s jurisdiction. Below are an articulation of
information provided to the committee and a conflict summary prepared by the US Central
Intelligence Agency (CIA).
Concerns have been raised by the Azerbaijani government as to the efficacy of certain statements in
the resolution, specifically those related to the most recent military action. The Consul General of the
Republic of Azerbaijan to the Western United States, in an opposition letter dated August 20, 2021,
describes the certain statements in the resolution as “distorted,” including “several paragraphs
targeting and dehumanizing Azerbaijan and its people.” In part, the letter also states, “On Nov. 10,
2020, the war ended with a ceasefire, in accordance with which Armenia agreed to recognize the
results of the war and retreat from additional three districts of Azerbaijan it had been occupying for
nearly 30 years. Thus Azerbaijan’s internationally recognized territorial integrity was restored, and
the U.N. Security Council resolutions were implemented. This will also allow for the now 1 million
forcibly displaced Azerbaijanis to finally return to their ancestral lands.”
Below is an excerpt of a “military note” from the CIA providing related background. Members may
wish to seek additional information on this subject should they be interested in a more comprehensive
review of the issue.
According to the CIA, “Since November 2020, Russia has deployed about 2,000 peacekeeping troops
to the area in and around Nagorno-Karabakh as part of a cease-fire agreement between Armenia and
Azerbaijan; fighting erupted between the two countries over the Nagorno-Karabakh region in
September of 2020; Nagorno-Karabakh lies within Azerbaijan but has been under control of ethnic
Armenian forces (the "Nagorno-Karabakh Defense Army") backed by Armenia since a separatist war
there ended in 1994; six weeks of fighting resulted in about 6,000 deaths and ended after Armenia
ceded swathes of Nagorno-Karabakh territory; tensions remain high, and Armenia has accused
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Azerbaijani forces of a series of border intrusions and of seizing pockets of territory including along a
lake shared by the two countries since the fighting ended.”
The California Legislature approved AJR 32 in 2014, which “encourages and supports the Nagorno-
Karabakh Republic’s continuing efforts to develop as a free and independent nation in order to
guarantee its citizens those rights inherent in a free and independent society.” The resolution further
“urges the President and Congress of the United States to support the self-determination and
democratic independence of the Nagorno-Karabakh Republic and its constructive involvement with
the international community’s efforts to reach a just and lasting solution to security issues in that
strategically important region.”
Committee staff understand that amendments will be proposed at the hearing to remove the
“Whereas” clause relating to the May 12, 2021, military action.
8) Current Trade and Investment-Related Activities: While sister state agreements are not intended
to exclusively promote cross border trade and investment, economic development is generally an
underlying consideration. California’s trade and foreign investment activities are statutorily placed
within the Governor’s Office of Business and Economic Development (GO-Biz).
The GO-Biz International Trade and Investment Office is led by a Deputy Director and staffed by a
foreign direct investment (FDI) specialist, three regional trade and investment representatives
(regional representatives), and a special advisor for international affairs and trade. GO-Biz hosts a
monthly conference call and publishes a monthly newsletter to keep connected to economic
developers, businesses involved in trade, foreign investment professionals, and members of the
consular corp.
The three regional representatives each cover one or more of the major trade regions in the world.
Trade activities in Asia are assigned to one regional representative; another trade representative covers
Europe, the Middle East, and Africa; and the third trade representative oversees Mexico and Central
and South America. While based in California, the regional representatives have the authority to
travel in order to solicit investment leads, support California businesses in regional trade shows, and
undertake other activities designed to increase export opportunities and FDI. Total funding for the
three positions in 2019-20 was $592,000: $427,000 in wages and benefits and $165,000 in operating
expenses, including $72,000 for travel. Funding for the overall International Affairs and Trade unit
within GO-Biz amounted to $992,007 for Fiscal Year 2019/2020.
In implementing its trade and foreign investment activities, GO-Biz also relies on a “service desk”
model, which is described by GO-Biz as partnering with local organizations to make physical space
available to California Trade and Investment Specialists at no cost to the state. The GO-Biz regional
representatives leverage the relationships of the service desk hosts to maintain the state’s global
presence. The state currently operates three trade service desks, including one in Yerevan, Armenia,
which was officially launched on June 21, 2021. The Armenia trade and services desk serves as a
resource to GO-Biz’ trade and investment activities throughout region.
The China Trade and Investment Network support trade and investment leads originating from within
China. Mexico is the location of California’s third trade service desk, which opened in October 2019
and now supports trade activity throughout the Americas.
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The federal Small Business Administration supports California’s trade and investment program
through its State Trade Expansion Program (STEP). In calendar year 2020, California received
$600,000 in STEP, which required a committed match of $323,076. Chart 6 provides additional
information on the seven STEP-supported international activities in 2020.
Chart 6 – 2020 California State Expansion Program Activities
Date Activity Companies supported STEP funds allocated
Jan 2020 Arab Health Show 10 $75,000
Feb 2020 Singapore Airshow 4 $24,000
Aug 2020 Chile Virtual Trade Mission 19 $21,600
Sept 2020 Colombia Virtual Trade Mission 24 $21,600
Sept 2020 Mexico Virtual Trade Mission 22 $21,600
Oct 2020 Virtual Trade Show of the Americas 6 $2,280
On-going Individual Company Export Stipends 10 $30,000
Total: 95 $196,080
Source: GO-Biz, accessed April 23, 2021
In January 2020, GO-Biz joined other trade and investment partners to launch the California Export
Training Network (Training Network) to expand the state’s exports and export training efforts. With a
goal of promoting, supporting, and increasing the number of exporters in all regions of California, the
Training Network includes over 14 organizations, including, but not limited to:
California Manufacturing Technology Consulting (CMTC)
Economic Development Collaborative (EDC), Ventura County
Fresno Center for International Trade Development
GlobalSF
Inland Empire Center for Entrepreneurship, CSU San Bernardino
International Trade Center powered by the California Community Colleges
Los Rios CCD Center for International Trade Development (now closed)
Mission College Business and Workforce Engagement
Northern California World Trade Center
Butte College Small Business Development Center (SBDC)
North Coast Small Business Development Center (SBDC)
Tuolumne County Economic Development Department
World Trade Center San Diego
The Training Network is supported by a number of business development partners, including:
U.S. Commercial Service, U.S. Department of Commerce
U.S. Small Business Administration Office of International Trade
Export-Import Bank of the United States
California Department of Food and Agriculture
California Office of the Small Business Advocate
California Small Business Development Centers
According to GO-Biz, like many foreign trade activities during COVID-19 pandemic restrictions,
some Export Training Network partners have continued to provide export-related technical assistance,
while others have had to limit support given funding and staffing impacts related to COVID-19.
Overall, GO-Biz believes that the network partners remain committed and are slowly moving back
toward normal operations. The network lost one partner during COVID-19, when the Los Rios
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Community College District’s Center for International Trade Development closed their doors in
August 2020.
In addition to the International Trade and Investment Office, GO-Biz has historically used a service
delivery model that flows across and through different GO-Biz units, depending on the business’
needs. As an example, a foreign company planning to expand in California may have initially become
acquainted with GO-Biz through an in-bound trade mission hosted by the International Trade and
Investment Office but may ultimately also be assisted by the California Business Investment Program
and the Permit Assistance Office.
9) International Affairs and Trade Development Interagency Committee: In February 2019,
Governor Newsom supplemented the statutory role of GO-Biz by issuing executive order N-19-08
which designated Lieutenant Governor Eleni Kounalakis as the Governor’s top representative for
international affairs and trade development. As part of those duties, Lieutenant Governor Kounalakis,
who formerly served as the United States Ambassador to Hungary, chairs a cabinet-level International
Affairs and Trade Development Interagency Committee (Interagency Committee). The Interagency
Committee is vice chaired by the Governor’s Chief Economic and Business Advisor Dee Dee Myers,
who also serves as the director of GO-Biz.
The executive order charges the Interagency Committee with advising the Governor and facilitating
the coordination of state activities relating to the promotion and expansion of trade, investment, and
international relations. Other members of the Interagency Committee include representatives of the
California Energy Commission, California Department of Food and Agriculture, Governor’s Office of
Emergency Services, California Environmental Protection Agency, California Natural Resources
Agency, California Transportation Agency, Visit California, and GO-Biz. The work of the
Interagency Committee is supported by the GO-Biz International Trade and Investment Office.
10) California’s Trade Economy: International trade and foreign investment are important components
of California’s $3.1 trillion economy (2019 most recent data) supporting nearly 5 million California
jobs (2020 most recent data). The importance of trade to the California economy is increasing, as
reflected in the percentage of California jobs tied to trade having more than tripled from 1992 (10.6%)
to 2020 (nearly 30.3%).
California’s largest industry sector by employment is trade, transportation, and utilities, which
encompasses everything from major retail outlets, to import-export businesses, to transportation and
warehousing. Workers in trade-related jobs earn on average 15% to 20% higher wages than jobs in
industries not tied to trade (2015 most recent data). California is second in the nation, just behind
Texas, in the number of export-related jobs (2016 most recent data).
Advances in transportation and communication technologies are encouraging the development of
previously undeveloped markets and expanding multinational business opportunities for California
firms. With more than 95% of consumers located outside the US and emerging economies
experiencing a growing middle class, accessing these global markets is key to California’s continued
economic growth. Today, four of California’s top five exports include component parts, which leave
the state to be combined and assembled into final products in foreign countries.
Chart 7, shows data of the export of goods to the state’s top six trade partners, based on origin of
movement. [Please note that federal reporting separates data from China and Hong Kong.]
California’s largest export market in 2020 was Mexico, who received over $24.0 billion in California
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products. Top-ranking export destinations not shown on the chart include Germany, the Netherlands,
and the United Kingdom.
Chart 7 – California Export of Goods, 2013-2020 (billions of dollars)
Partner 2013 2014 2015 2016 2017 2018 2019 2020
World $168.1 $173.8 $165.3 $163.2 $171.9 $178.1 $173.7 $155.8
1 Mexico $23.9 $25.4 $26.7 $25.2 $26.7 $30.7 $27.8 $24.0
2 Canada $18.8 $18.3 $17.2 $16.2 $16.8 $17.6 $16.6 $16.0
3 China $16.2 $16.0 $14.3 $14.3 $16.4 $16.3 $15.8 $15.0
4 Japan $12.7 $12.2 $11.7 $11.7 $12.8 $13.0 $11.8 $10.5
5 South Korea $8.3 $8.6 $8.6 $8.2 $9.5 $9.9 $9.1 $9.7
6 Taiwan $7.5 $7.4 $7.7 $6.9 $6.3 $6.8 $7.2 $7.3
Source: International Trade Administration, accessed 3/26/21
Between 2006 and 2020, the export of California services increased 59.8%, increasing from $422
billion to $705 billion in services. California’s largest export service sectors in 2020 included:
Other Business Services at $183.1 billion
Financial Services at $144.3 billion
Charges for the Use of Intellectual Property (not included elsewhere) at $113.7 billion
Travel Services at $72.8 billion
Telecommunications, Computer, and Information Services at $56.6 billion
Transport Services at $56.7 billion
The United Kingdom has been California’s largest service export market, having receiving $62.6
billion in services in 2020 and supported an estimated 427,000 California jobs in 2015 (most recent
data). California’s second largest service export market has been Canada, with $53.6 billion in
services in 2020 and having supported 360,000 jobs in 2015 (most recent data). Service exports from
California to Mexico ranked seventh among all countries, with $23.4 billion in services exported in
2020, and having supported 201,000 jobs in 2015 (most recent data).
In addition to exporting goods and services, the California economy benefits from foreign-owned
firms. The Federal International Trade Administration estimates that in 2015 (most recent data),
769,200 California workers have benefited from jobs with foreign-owned firms.
California has had the highest level of employment in foreign-owned firms in the nation since at least
1997. In 2015 (most recent data), jobs in California foreign-owned firms represented 5.1% of all
private sector jobs in the state, up from 4.1% in 2013. Along with employment, foreign-owned firms
own more property, plants, and equipment in California than in any other state.
11) Proposed Amendments: Committee staff understand that amendments to delete the “Whereas”
clause relating to the events of May 12, 2021, will be proposed at the hearing.
12) Related Legislation: Below is a list of bills from the current and prior sessions. Not every
authorization to establish a sister state relationship has been consummated.
a) ACR 104 (Holden) Sister State Relationship with Punjab, Pakistan: This bill memorializes the
intent and commitment of the California Legislature to extend an invitation to formalize a sister
state relationship with Punjab, Pakistan, for the purpose of encouraging and facilitating economic,
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educational, and cultural exchanges that further promote the prosperity of both regions, and to
improve the international understanding and goodwill between the regions. Status: Pending in the
Assembly Committee on Jobs, Economic Development, and the Economy.
b) ACR 100 (Alejo) Relations with El Salvador: This bill memorializes the Legislature's
commitment to work cooperatively with the Governor's Office of Business and Economic
Development on trade promotion and foreign investment activities that enhance the state's
economic relations with El Salvador, as specified. Status: Adopted by the Legislature, Resolution
Chapter 172, Statutes of 2014.
c) AJR 3 (Nazarian and Friedman) Anniversary of the Armenian Genocide of 1915–1923: This
bill memorializes the Legislature’s designation of the year of 2017 as “State of California Year of
Commemoration of the Anniversary of the Armenian Genocide of 1915–1923,” and the
designation of April 24, 2017, as “State of California Day of Commemoration of the 102nd
Anniversary of the Armenian Genocide of 1915–1923.” In addition, the Legislature calls upon the
US President and US Congress to formally and consistently reaffirm the historical truth that the
atrocities committed against the Armenian people constituted genocide. Status: Adopted,
Resolution Chapter 37, statutes of 2017.
d) AJR 32 (Gatto) The Nagorno-Karabakh Republic: This bill memorializes the Legislature’s
support and encouragement of the Nagorno-Karabakh Republic’s continuing efforts to develop as a free
and independent nation, and urges the US President and Congress to support the self-determination and
democratic independence of the Nagorno-Karabakh Republic and its constructive involvement with the
international community’s efforts to reach a just and lasting solution to security issues in that strategically
important region. Status: Adopted by the Legislature, Resolution Chapter 168, Statutes of 2014.
e) AJR 37 (Friedman) Anniversary of the Armenian Genocide of 1915–1923: This bill
memorializes the Legislature’s designation of the year of 2018 as “State of California Year of
Commemoration of the Anniversary of the Armenian Genocide of 1915–1923,” and the
designation of April 24, 2018, as “State of California Day of Commemoration of the 102nd
Anniversary of the Armenian Genocide of 1915–1923.” In addition, the Legislature calls upon the
US President and US Congress to formally and consistently reaffirm the historical truth that the
atrocities committed against the Armenian people constituted genocide. Status: Adopted,
Resolution Chapter 75, statutes of 2018.
f) HR 21 (Nazarian) Armenian Genocide and the Assyrian Genocide: This bill memorializes the
Assembly’s commendation of the extraordinary service that was delivered by Near East Relief to
the survivors of the Armenian Genocide and the Assyrian Genocide, including thousands of direct
beneficiaries of American philanthropy who are the parents, grandparents, and great-grandparents
of many Californian Armenians and Assyrians, and pledges its intent, through this resolution, to
working with community groups, nonprofit organizations, citizens, state personnel, and the
community at large to host statewide educational and cultural events and that the Assembly
deplores the persistent, ongoing efforts by any person, in this country or abroad, to deny the
historical fact of the Armenian Genocide. Status: Adopted, April 2021.
g) SB 302 (Portantino) Armenia Trade Office: This bill would have required the establishment of
an international trade and investment office in Yerevan, the Republic of Armenia (Armenia Trade
Office) by January 1, 2023. Status: Died on the Assembly Inactive File, 2019.
h) SB 515 (Scott) Armenia Trade Office: This bill would have extended the sunset date by two
years (January 1, 2008, to January 1, 2010) for the operation of the California international trade
and foreign investment office in Yerevan, the Republic of Armenia. Status: Vetoed by the
Governor, 2007. The veto message stated: “California is fortunate to be home to one of the
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largest populations of Armenians outside the Republic of Armenia, and the Armenian-American
community contributes much to our state and nation. The creation of an Armenia trade office was
prudent in 2002 when the Legislature instituted the office. Since then, the Legislature has closed
all other trade offices throughout the world and last year passed legislation mandating the
creation of a state international trade strategy. The Business, Transportation, and Housing
Agency is required to complete an International Trade and Investment strategy to recommend
priorities for state activities by February 1, 2008. Also, the state is prohibited from establishing
any new foreign office until the Legislature receives a strategy to guide the operation and
activities of the office and provides statutory authority for implementing the strategy. The State’s
involvement in foreign trade offices should be determined by the process set forth by the
Legislature last year. This bill is premature before that process is completed.”
i) SB-568 (Portantino) Public holidays and Armenian Genocide Remembrance Day: This bill
authorizes Glendale Community College to close on April 24 to observe Armenian Genocide
Remembrance Day. Status: Signed by the Governor, Chapter 648, Statutes of 2019.
j) SB 897 (Scott) Armenia Trade Office: This bill extends the sunset date allowing for the creation
and operation of an international trade and investment office, on a contractual basis, in Yerevan,
Republic of Armenia, from January 1, 2006, to January 1, 2008, and extends the reporting
deadline regarding the success of this office from March 1, 2005, to June 1, 2007. Status: Signed
by the Governor, Chapter 604, Statutes of 2005.
k) SCR 6 (Monning) Sister State Relationship with Santa Fe, Argentina: This bill memorializes
the Legislature's desire to recommit to the formalizing of a sister state relationship between
California and the Province of Santa Fe, Argentina, for the purpose of promoting economic
growth and well-being of small, medium, and large corporations and to increase their potential
trade and investment within the State of Jalisco. Status: Adopted by the Legislature, Resolution
Chapter 70, Statutes of 2014.
l) SCR 81 (Lara) Relations with Nayarit, Mexico: This bill memorializes the intent and
commitment of the California Legislature to extend an invitation to formalize a sister state
relationship with the State of Nayarit, Mexico, for the purpose of encouraging and facilitating
economic, educational, and cultural exchanges that further promote the prosperity of both regions
and to improve the international understanding and goodwill between the regions. Status:
Adopted by the Legislature, Resolution Chapter 85, Statutes of 2017.
m) SCR 82 (Hueso) Sister State Relationship with Jalisco, Mexico: This bill memorializes the
Legislature's desire to recommit to the formalizing of a sister state relationship between California
and the State of Jalisco, Mexico, for the purpose of promoting economic growth and well-being of
small, medium, and large corporations, and by increasing their potential trade and investment
within the State of Jalisco. Status: Adopted by the Legislature, Resolution Chapter 70, Statues of
2014.
n) SR 29 (Archuleta, Atkins, Portantino, and Wilk) Armenian Genocide and the Assyrian
Genocide: This bill memorializes the Senate’s commendation of the extraordinary service that
was delivered by Near East Relief to the survivors of the Armenian Genocide and the Assyrian
Genocide, including thousands of direct beneficiaries of American philanthropy who are the
parents, grandparents, and great-grandparents of many Californian Armenians and Assyrians, and
pledges its intent, through this resolution, to working with community groups, nonprofit
organizations, citizens, state personnel, and the community at large to host statewide educational
and cultural events and that the Senate deplores the persistent, ongoing efforts by any person, in
this country or abroad, to deny the historical fact of the Armenian Genocide. The resolution
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further calls on the US President and the Congress to formally and consistently reaffirm the
historical truth that the atrocities committed against the Armenian people constituted genocide and
to work toward equitable, constructive, stable, and durable Armenian-Turkish relations, as
specified. Status: Adopted, April 2021.
o) SR 31 (Borgeas) 104th Anniversary of the Armenian Genocide of 1915–1923: This bill
memorializes the Senate’s designation of the year of 2019 as “State of California Year of
Commemoration of the Anniversary of the Armenian Genocide of 1915–1923” and designates the
month of April 2019 as “State of California Month of Commemoration of the 104th Anniversary
of the Armenian Genocide of 1915–1923.” Status: Adopted, April 2019.
REGISTERED SUPPORT / OPPOSITION:
Support
None on File
Opposition
Letter submitted August 20, 2021, by the Consulate General Of The Republic Of Azerbaijan Los Angeles
(please note that the resolution has been amended since this letter was submitted and additional
amendments relating to issues raised in the letter will be proposed during the hearing)
Analysis Prepared by: Toni Symonds and Mauricio Aguilar / J., E.D., & E. / (916) 319-2090
i Integrated Biodiversity Management, South Caucasus, IBS, “Baseline Study for Sisian region of Syunik Region”, https://biodivers-
southcaucasus.org/uploads/files/5b6c35289a6d4.pdf, accessed August 15, 2021, Statistical Committee of the Republic of Armenia,
“Regional Statistics”, https://www.armstat.am/en/?nid=111 , accessed August 16, 2021, and CIA World Factbook, “Country Comparison-
Population”, https://www.cia.gov/the-world-factbook/field/exports/country-comparison, accessed August 17, 2021
ii Statistical Committee of the Republic of Armenia, “Economic and Financial Data for the Republic of Armenia”, https://armstat.am/nsdp/,
accessed August 20, 2021.
iii Integrated Biodiversity Management, South Caucasus, IBS, “Baseline Study for Sisian region of Syunik Region”, https://biodivers-
southcaucasus.org/uploads/files/5b6c35289a6d4.pdf, accessed August 15, 2021
iv Statistical Committee of the Republic of Armenia, “Regional Statistics”, https://www.armstat.am/en/?nid=111 , accessed August 16, 2021
v Integrated Biodiversity Management, South Caucasus, IBS, “Baseline Study for Sisian region of Syunik Region”, https://biodivers-
southcaucasus.org/uploads/files/5b6c35289a6d4.pdf, accessed August 15, 2021
vi Integrated Biodiversity Management, South Caucasus, IBS, “Baseline Study for Sisian region of Syunik Region”, https://biodivers-
southcaucasus.org/uploads/files/5b6c35289a6d4.pdf, accessed August 15, 2021
vii Must Go Travel, “Armenian Language”, https://www.mustgo.com/worldlanguages/armenian/, accessed August 17, 2021
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