Azerbaijan’s development concept to improve its access to European markets
By Gulgiz Dadashova
Azerbaijan sees the future in the diversification of the economy to eliminate dependence on the oil and gas sector, Head of the European Union (EU) delegation to Azerbaijan Roland Kobia said at the conference "International Trade Law in the Caucasus and Central Asia: between regional integration and globalization" in Baku on May 30.
"This vision of Azerbaijan is supported at the highest level, as the President approved the development concept "Azerbaijan 2020: A Look into the Future" with a very ambitious agenda. All this will create more favorable conditions for access of Azerbaijan's non-oil products to European markets," Kobia said.
The key strategic vision of the concept is to take into consideration the existing opportunities and resources to achieve sustainable economic growth and social prosperity in Azerbaijan, ensure effective state governance, rule of law and complete exercise of all human rights and freedoms, and reach a development stage characterized with an active status of civil society in the country's public life.
Kobia went on to say the cooperation between the EU and Azerbaijan has increased significantly over the past few years and the EU is the number one trading partner of Azerbaijan.
According to him, the EU sees great potential for expanding cooperation with Azerbaijan.
"The negotiations on visa facilitation between Europe and Azerbaijan are in the final stage. Cancellation of the administrative barriers in obtaining visas will also positively impact trade. The trade relations between the EU and Azerbaijan are developing and deepening. We are also improving the legal framework governing these relations," he said.
The EU and Azerbaijan are maintaining relations under the Partnership and Cooperation Agreement, which was signed in 1996 and came into force in 1999. In 2009, the EU passed a decision to sanction negotiations on the conclusion of bilateral association agreements of Azerbaijan, Georgia and Armenia with the organization. These agreements will be a new practical instrument to replace the bilateral action plans.
Kobia noted that Azerbaijan joined the Generalized System of Preferences "GSP +" program of the EU.
"In my opinion, the country successfully takes advantage of granted preferences. You can see it on the example of how Azerbaijan has changed in such a short period of time. This important economic tool gave Azerbaijan a further opportunity to enter the European market. The Program "GSP +" was completed in the country in 2012, but we decided to extend it for another two years," he said.
According to Kobia, trade is an important element of regional stability and security.
"We should not forget that Azerbaijan is in the state of war, that part of the country is occupied. This is not good for trade, for the country and for the entire regional integration. The EU supports the efforts to establish peace and stability in Azerbaijan and the region," Kobia said.
WTO is opportunity for Azerbaijan
The EU strongly supports the efforts of Azerbaijan to join the World Trade Organization (WTO), Roland Kobia said.
Kobia said that the EU backs Azerbaijan in the framework of the Eastern Partnership and there is an opportunity for negotiations on a broader trade agreement with Azerbaijan.
"The challenges that we face is that Azerbaijan is not yet a WTO member. Association Agreement is the the deepest form of international cooperation that the EU can offer," he said.
The EU and Azerbaijan are maintaining relations under the Partnership and Cooperation Agreement, which was signed in 1996 and came into force in 1999. In 2009, the EU passed a decision to sanction negotiations on the conclusion of bilateral association agreements of Azerbaijan, Georgia and Armenia with the organization. These agreements will be a new practical instrument to replace the bilateral action plans.
Kobia went on to say that the WTO membership is not a challenge, but an opportunity for Azerbaijan.
"The country has been in talks on the WTO membership since 1997, and this process is still ongoing. We understand that Azerbaijan should continue to support the local market. We are aware that now the admission of Azerbaijan to the WTO would bring the country more disadvantages than benefits. This means that local producers will be required to meet the standards of the WTO," Kobia said.
"We believe that the country will join the WTO in the foreseeable future not because we want to believe it, but because we believe that it is in the interests of Azerbaijan," he added.
According to the WTO procedures, around 13 rounds of negotiations must be held to join this organization. Azerbaijan is at the ninth stage of the consultations. The next round of negotiations on Azerbaijan's accession to the WTO will be held in early June.
Azerbaijan is holding bilateral negotiations with the United States, Japan, Brazil, Ecuador, Sri Lanka, Norway, India, South Korea, Taiwan Province of China, Canada, Switzerland, Honduras and the European Union
Negotiations with Turkey, Oman, United Arab Emirates, Georgia and Kyrgyzstan have been completed and protocols were signed. The country is in the process of signing the protocol with Moldova and China.