Azerbaijan, Turkey to ratify Preferential Trade Agreement

The Committee on Economic Policy, Industry, and Entrepreneurship of Azerbaijani Parliament have discussed a bill on approval of the Preferential Trade Agreement between the governments of Azerbaijan and Turkey, Report informs, citing the Parliament.

Chairman of the Committee Tahir Mirkishili said that according to the data of 2019, Turkey ranks second among Azerbaijan’s foreign trade partners: “The foreign trade turnover between Azerbaijan and Turkey increased by 33% to $4.5 billion. In 2019, export from Azerbaijan to Turkey went up 36% to $2.9 billion. Azerbaijan and Turkey have had a positive balance in trade turnover. In 2019, the balance hit record - $1.2 billion. Azerbaijan invested $8.5 billion in Turkey’s economy, while Turkey invested $12.5 billion in the economy of Azerbaijan.”

It was noted that the signing of the Preferential Trade Agreement will play an essential role in the increase of Azerbaijan’s non-oil sector. The Agreement includes provisions on the reduction of quotas and duties on 15 groups of goods to zero.

Head of the Department for Trade Policy and WTO of the Ministry of Economy Khazar Bashirov gave information about the Agreement. According to him, the Agreement aims to reduce or cancel tariffs on goods, cancel para-tariffs and non-tariff obstacles, extend and promote the trade through harmonic development of the economic relations, create favorable conditions for fair competition, create a safe and predictable environment for sustainable increase of the trade.

According to the document, a Joint Committee was created. The Committee will hold a meeting at least once a year to consider the progress. The Agreement is termless and is valid until one of the sides intends to terminate it via diplomatic channels

MPs Ali Masimli and Vugar Bayramov shared their opinions about the Agreement and spoke about the necessity of the Agreement.

The MPs recommended the bill to the plenary meeting of the Parliament.