WB reveals directions for expanding Turkiye-Azerbaijan preferential trade

Preferential trade agreement (PTA) between Turkiye and Azerbaijan, beyond expanding market access to goods, could cover other areas, e.g., promote investment, job-creation, growth, trade in services, Report informs referring to a survey by the World Bank (WB).

An extended PTA could also cover other products that Azerbaijan is producing and/or exporting to other destinations, including manufacturing products.

“In addition, a deeper PTA could go beyond tariffs, to cover provisions related to services trade, investment, intellectual property rights and domestic regulation, which are not currently covered by the agreement,” the WB noted.

Signed on February 25, 2020, the PTA entered into force in March 2021. The agreement covers the mutual reduction of customs duties on imports of a relatively small number of mostly agricultural and food products.

Turkiye provides mostly duty-free market access to around 15 products produced in Azerbaijan, including some varieties of cheese, grapes, plums, palm, black tea, tomatoes, cucumbers, preparation of fruits, apple juice, and wine. In some cases, exports of these products are subject to an annual quota.

In turn, Azerbaijan provides tariff-free market access to also about 15 Turkish products, including processed cheese, sunflower seeds, chewing gum, chocolate products, food preparations, biscuits, and tomatoes. All these exports are subject to yearly quotas.