Azernews.Az

Azerbaijan made some progress in 2009 in the implementation of the European Neighborhood Policy (ENP) Action Plan, notably, in areas related to economic and social governance, according to the European Commission’s report published Wednesday.
"It fared comparatively well during the year despite the global financial crisis, which allowed the government to increase social spending and capital investment. Progress was also made in the aviation through the signature of the horizontal air services agreement and fight against money laundering."
The ENP Country Progress Report 2009 said, however, that only limited progress was made as regards the accession to the World Trade Organization (WTO). There was no substantial progress with respect to the protection of human rights and fundamental freedoms. Cases of intimidation of journalists and persons critical of the authorities continue to be reported as well as questionable legal proceedings against political activists, the report claimed.
It said that in 2010 further efforts are needed in the field of political dialogue and reforms, including justice sector and the strengthening of the rule of law, notably the independence of judiciary. Proper implementation of the adopted legislation in all areas, continued efforts to fight corruption, notably by enforcing the relevant legislation, would be of key importance.
The European Commission welcomed that in March 2009 an Amnesty Act was adopted covering more than for 9,000 persons, including some opposition journalists. The presidential pardon in December "covered 99 persons including journalists critical of the government", the report noted.
Regarding the Armenia-Azerbaijan Upper (Nagorno) Garabagh conflict, the EC said the dialogue for negotiating a peaceful resolution of the dispute "intensified considerably at the highest level in 2009."
On economic integration and trade, the report said the economy grew strongly by 9.3% of the GDP and inflation was 2% in 2009. EU’s trade with Azerbaijan decreased in 2009: EU exports fell by 22.1% and imports by 31.2%, as a result of the global slow-down. The EU is Azerbaijan’s main trading partner (53.7 % share in its overall trade in 2008).
Within the Eastern Partnership, the Commission is seeking "to further improve the mobility of bona fide business people, tourists, students and academics" and intends to propose launching negotiations on visa facilitation and readmission agreements, when conditions are met.
The report also said energy is the main revenue basis for the country and 99% of its total exports to the EU are hydrocarbons. Azerbaijan is committed to play a role in strengthening the EU’s energy security, in particular by supporting the development of the Southern Gas Corridor, it said.
Regarding business climate, the EC lauded the considerable reduction of the time needed for the registration of companies in Azerbaijan - from 105 days in 2004 to 10 days in 2010. In June 2009, a package of 46 amendments to the Tax Code was adopted aimed at strengthening the protection of taxpayer’s rights, strengthening tax administration, improving tax control and reducing the burden on taxpayers, including businesses.
It noted that a new anti-money laundering law was adopted in February 2009 and that a financial intelligence unit became operational under the Central Bank.
It also said the national legal framework on fight against trafficking in human beings was improved – a shelter for children victims of trafficking was opened in October and a special agency was formed. Azerbaijan signed a relevant Council of Europe convention in February 2010.
The report’s section on education says that in 2007-2009, Erasmus Mundus grants allowed 118 Azerbaijani students and academics to pursue studies in EU universities for up to three years.
The report, referred to as the neighborhood package, consisting of an overall assessment of five years of implementation of the European Neighborhood Policy (ENP), 12 country reports on developments in 2009, including one on Azerbaijan, and a sector report.
The ENP governs the relations between the EU and Azerbaijan. In 2009 the EU launched the Eastern Partnership, the Eastern dimension of the ENP framework, aiming at substantially upgrading engagement with the six Eastern neighbors. These efforts include the establishing of Association Agreements with free trade areas.*