Executive Director of the Center for Analysis of Economic Reforms and Communication, Doctor of Economics, Professor Vusal Gasimli commented on the economic details of the Shusha Declaration on Allied Relations between the Republic of Azerbaijan and the Republic of Turkey. V.Gasimli noted that Shusha Declaration would let Azerbaijan benefit more from cooperation with Turkey - the 17th largest economy in the world. He said, “In 2020, with economic growth of 1.8 percent Turkey was one of the rare countries the economy of which did not shrink during the pandemic. Along with that, this year, with a growth forecast of more than 5 percent it is among the fastest-growing countries in the world. The growth rate of the Turkish economy can stimulate economic growth in Azerbaijan, which becomes more integrated with it."

Professor of economics considers that Shusha Declaration lays the foundation for long-term business expectations in Azerbaijan. “Particularly, the signing of the declaration in Shusha should be considered as an additional guarantee for the investment climate in Karabakh. The Shusha Declaration complements the intentions of global companies such as BP and Signify to invest in Karabakh and boosts the investor confidence index in Karabakh. The expansion of economic ties will also increase investment between the countries. At present, Turkey invests more in the non-oil sector in Azerbaijan, and Azerbaijan in Turkey, mainly in the energy and chemical sectors. Investments from Turkey to Azerbaijan amount to 12 billion US dollars, and from Azerbaijan to Turkey 19.5 billion US dollars.”

V.Gasimli said that great prospects are expected from the cooperation between Turkey and Azerbaijan in the field of the defense industry, which claims to be in the top ten in the world defense industry market. “With Turkey's help, Azerbaijan is gaining opportunities in the field of the defense industry in terms of exports, import substitution, and joining global value chains. At the same time, SOCAR's cooperation with TPAO, which plays an important role in Turkey's energy security, allows the fraternal countries to advance in the downstream - petrochemical field”, noted V.Gasimli. He also said that additional activities are expected to appear for future growth of trade volume after signing Shusha Declaration. As he noted, “In 2019, the share of Turkey in Azerbaijan's total foreign trade turnover was 14% which made 4.5 billion US dollars. Tensions created by the pandemic did not have a significant impact on the volume of mutual import-export operations, which developed along the rising trajectory. Thus, in 2020, the trade volume between the two countries amounted to 4.16 billion US dollars. At the same time, Turkey and Azerbaijan are taking comprehensive measures to fully assess the potential between the economies of Azerbaijan and Turkey and to achieve the target trade volume of 15 billion US. One of these measures is the Preferential Trade Agreement that came into force on March 1, 2021. This agreement will accelerate the achievement of trade targets set by the two countries through reducing tariffs on 15 groups of goods, eliminating non-tariff barriers, and increasing import-export operations between the two countries. It will accelerate the achievement of trade turnover goals.”

Moreover, V.Gusamli told that mentioning Zangezur Corridor in the Declaration is significant for both countries. “Turkey, which plans to increase exports by 15-20 percent this year alone, will use the Zangazur Corridor in economic relations with Central Asia, which has a trade turnover of 6 billion US dollars, and China, which has a trade turnover of 21 billion US dollars. The Corridor can also create opportunities to strengthen economic relations between Russia and Turkey. For export-oriented Turkey, Zangezur Corridor means diversification of routes”, said V.Gasimli.