Azernews.Az

By Nigar Abbasova

Azerbaijan, which is keen to diversify its economy, sees replacing foreign imports with domestic production as one of the tools to progress toward the objective.

The recent introduction of certain changes in the import procedures of goods is also aimed at protecting the domestic production.

The changes which put certain barriers against low-priced imports covered mainly such products as vegetables, fruit, juices, construction materials. Increased customs duties are applied in reference to goods that may be fully substituted by local output.

Chairman of the State Customs Committee Aydin Aliyev said the decision was taken on the basis of certain proposals coming from different state structures, including the Customs Committee, while its main objective is protection of local output. Aliyev said that the changes will also lead to the growth in the volumes of local production.

He said that Azerbaijan currently imports poultry and other meat products, the volume, however, does not have a big share in the total volume of imports.

Azerbaijan plans to increase exports of agricultural products by entering the traditional markets with a larger volume and supplying the products to new markets.

Aliyev said that the providing food security is one of the priority tasks, while agricultural production of Azerbaijan is export-oriented. Azerbaijan is also interested in establishing green corridors with neighboring countries to remove restrictions in trade. Aliyev reminded that the document on creating green corridor was signed with Russia's Federal Customs Services.

Import substitutes are meant to generate employment, reduce foreign exchange demand, stimulate innovation, and make the country self-reliant in critical areas.

The major advantage of such policy is reduction of foreign dependency, becoming more self-sufficient and less vulnerable to adverse terms of trade, as well as acquiring resilience in the face of global economic shocks such as recessions and depressions.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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