Economic Relations between Turkey and Azerbaijan Will Accelerate

Economic Relations between Turkey and Azerbaijan Will Accelerate

Turkey-Azerbaijan business forum in Ankara was marked by a discussion of a number of important topics and prospects. Analyst of the Center for Analysis of Economic Reforms and Communication Amina Bayramova commented on several issues of the cooperation with Turkey.

Amina Bayramova notes that the first issue is related to increasing trading volume between Turkey and Azerbaijan. Thus, tensions that emerged due to the pandemic did not seriously affect the volume of mutual import and export operations fixed at the level of 4.16 billion USD in 2020.   It was mentioned at the forum that this figure does not reflect the real potential between the fraternal economies and both countries have significant prospects to achieve the set goal. Once the effects of the pandemic subside, mutual trade will increase rapidly and close cooperation will continue to achieve by 2023 the 15 billion USD trade turnover target, set by the heads of states. The Preferential Trade Agreement, which will come into force from March 1, will give impetus to the further growth of trade turnover between the countries. At the same time, the volume of cargo transported on the Baku-Tbilisi-Kars route doubled in 2020, which can be mentioned as an obvious example of the effectiveness of our new transport and communication projects. The construction of the railway to Nakhchivan will facilitate transportation between Azerbaijan and Turkey. Moreover, the 3+3 regional cooperation platform proposed by Azerbaijan will trigger bilateral trade relations between countries, increase the flow of tourists, and enhance the strategic importance of the Nakhchivan corridor.

At the same time, visa and passport-free travel of Azerbaijani and Turkish citizens will give a fresh impetus to all spheres of cooperation between countries, positively affect trade turnover, investments, and flow of tourist, and make our nations much closer.

Regarding investment relations, CAERC analyst considers that capital flow from Turkey is mainly directed to the non-oil sector, from Azerbaijan – to energy and chemical sector. Investments from Turkey to Azerbaijan equal 12 billion USD, and investments from Azerbaijan to Turkey are 19.5 billion USD. At present, about 2,000 Azerbaijani companies operate in Turkey, and more than 4,100 Turkish companies function in our country. Azerbaijan is the first among Asian and Caucasian countries for the number of companies in Turkey and the volume of investments. The establishment of a joint investment fund between two countries will accelerate the implementation of the tasks assigned to reach investment targets. These targets relate to the initiation of large enterprises and large projects within the framework of public-private partnership, as well as joint technology transfer and joint production. Along with all these areas, the active participation of Turkish companies in the privatization of state property will contribute to the strengthening of investment relations, which we will observe in the example of Azerlottery OJSC.

There were also discussions on the reintegration and rehabilitation of Karabakh, prospects emerging from changes in the region, and the advantages provided to Turkish entrepreneurs. The Forum participants also discussed the active participation of Turkish companies in infrastructure projects, as well as the construction of Victory Road between Fuzuli and Shusha, Toghana-Kalbajar road, and the airport in Fuzuli.  Construction works, implemented in Azerbaijan, adoption of National Priorities for Socio-Economic Development promise broad opportunities and prospects for investors.

Besides, to offer new alternatives to business representatives against the background of global economic growth slowed down because of the pandemic, there were signed agreements in such spheres as mining, textile, transport logistics, small and medium-sized enterprises, investment promotion, and architecture and design.

Given all of these opportunities, the promotion of cooperation between companies of two countries, the establishment of joint ventures, effective use of favorable geographical location, transport, and logistics will contribute to our multifaceted relations, especially in trade and investments.

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