Türkiye targets mutual concession-based free trade agreement with Azerbaijan - official

[ad_1] BAKU, Azerbaijan, December 26. Türkiye targets to attain a free commerce settlement with Azerbaijan primarily based on mutual concessions and creating broader alternatives, the Chief Commerce Counselor of the Turkish Embassy in Azerbaijan, Gulizar Yavas, mentioned at an occasion held in Baku at the moment on the subject "Entry to the Turkish market: export, authorized, and sensible elements," Development experiences.

She famous that, general, the power sector accounts for a big a part of the roughly $8 billion commerce turnover between Azerbaijan and Türkiye.

"Because the Turkish aspect, our need is that the present bilateral relations, alliances, and brotherly ties between our nations be realistically mirrored in commerce and investments.

The primary activity of each workplaces is to develop cooperation on this space, and all our duties proceed on this path. At present, there is no such thing as a free commerce settlement between Türkiye and Azerbaijan. Though discussions are ongoing, there's a preferential commerce settlement that's at present in power. Throughout the framework of this settlement, the listing, which initially included 30 merchandise, was later expanded to 50 merchandise. The primary a part of the listing is agricultural merchandise. The calls for of the Azerbaijani aspect had been additionally centered primarily on agricultural merchandise. Furthermore, some industrial merchandise had been additionally included within the listing.

Throughout the framework of the particular settlement on Karabakh, there is a separate listing of merchandise that may be imported by Türkiye with unilateral concessions, tax reductions, or zero customs duties. Since this can be a particular settlement, it's unimaginable to seek out it in open sources," she defined.

Moreover, she recalled that the twelfth assembly of the Joint Intergovernmental Fee on Financial Cooperation between Azerbaijan and Türkiye was held in Baku.

"A 110-item motion plan was signed at that assembly. This plan, along with protecting the work performed within the earlier interval, additionally defines the objectives for the following 12 months. It envisages cooperation instructions and particular measures in power, training, commerce, and different fields.

Because of this as cooperation between the 2 nations expands in transport, power, and different fields, it's anticipated to have a constructive influence on commerce turnover as a result of this cooperation additionally covers uncooked materials provides, investments, and commerce in providers. Commerce is not restricted to items, however commerce in items and providers is taken into account collectively," Yavas famous.

The embassy official emphasised the very excessive curiosity in Azerbaijan from Türkiye.

"Since I took workplace, we've obtained 12 enterprise delegations in simply 5 months. Considered one of them was a delegation from the Istanbul Chamber of Trade (ISO). Roughly 70 % of Turkish manufacturing is carried out by these industrialists. Final month, they visited Azerbaijan with a delegation of about 150. This group introduced collectively Türkiye's largest traders, industrialists, exporters, and importers.

Lots of them mentioned that they had been visiting the Azerbaijani market for the primary time. This additionally reveals that Azerbaijan is changing into an more and more engaging market. Because the curiosity of Turkish businessmen will increase, it is inevitable that Azerbaijani entrepreneurs will even enhance their curiosity in cooperation with Türkiye as a result of these relations must be primarily based on long-term and sustainable cooperation, not short-term purchases and gross sales.

Our workplaces are attempting to help entrepreneurs from each nations in establishing these relations and fixing present issues. We think about it vital to create joint mechanisms for this function. On December 1, this problem was additionally mentioned on the assembly with Minister of Economic system of Azerbaijan Mikayil Jabbarov, and the institution of a technical working group was proposed. The purpose is each to develop bilateral funding and commerce relations and, if essential, to discover alternatives for joint cooperation in third nations," she introduced.

Yavas famous that, in accordance with observations, Azerbaijan's manufacturing and export potential, particularly within the agricultural sector, coincides with the areas that Türkiye protects the most.

"By way of industrial merchandise, value competitors with China stays a major problem for each Azerbaijan and Türkiye. For this motive, it's typically tough to acquire any value benefit in mutual commerce. Türkiye has a Customs Union settlement with the European Union, and inside this framework, customs duties on many merchandise for 27 nations have been zeroed. Because of this merchandise getting into the Turkish market from Azerbaijan must compete with merchandise from these nations beneath zero duties. At the identical time, Türkiye additionally has quite a few free commerce agreements with Egypt, Morocco, and different nations.

Our purpose is to attain a free commerce settlement with Azerbaijan primarily based on mutual concessions and creating broader alternatives.

Such accords present a extra expansive array of benefits in comparison with preferential commerce pacts. Nonetheless, there are a selection of points that sectors and authorities businesses of each nations should agree on for this.

The preliminary discussions started in 2024 and moved to the technical part in 2025. If the principle negotiations start in 2026, it is going to be doable to attain important progress on this long-term course of. There are critical concessions unilaterally supplied by Türkiye, particularly relating to the reconstructed areas, together with Karabakh. Important benefits have been created for the export of merchandise produced in Karabakh to the Turkish market," she concluded.