Azerbaijan’s accession to Customs Union seen as distant prospect

By Aynur Jafarova
A senior official of Russia's Public Chamber said in Baku on October 10 that if Azerbaijan joins the Eurasian Customs Union -- a body comprising Belarus, Kazakhstan and Russia -- this will most likely be done jointly with Turkey.
Sergey Markov, deputy chairman of the working group on international cooperation and public diplomacy of the Russian chamber, told journalists that the focus of Azerbaijan's economy on energy does not require its involvement in the Customs Union. However, it would be extremely beneficial for Turkey with its strong manufacturing economy -- including the development of the light industry, agriculture and other sectors -- to participate in such a union, he said.
"Therefore, it seems to me that even if Azerbaijan does join the Customs Union, it would do so jointly with Turkey and this will not happen any time soon because of the nature of the Azerbaijani economy," Markov said.
According to him, Azerbaijan's interest in joining the Customs Union will be expressed somewhat later.
Russia will actively develop the Customs Union project as it is beneficial both for Russia and the economies of other countries. Markov cited two main reasons for the benefit of the Customs Union. First, large markets develop more rapidly and are more resistant to the global economic crisis. Secondly, the development of high-tech production requires large markets which are more attractive for investment.
"Undoubtedly, we will advertise, attract and offer (accession to the Customs Union). However, we will not push anyone into this alliance," Markov said.
The Customs Union was established in 2010 between Russia, Kazakhstan and Belarus. The purpose of the organization is to form a single customs territory within which no customs duties or economic restrictions are applied. The single economic space of the Customs Union started operating on January 1, 2012.
Kyrgyzstan, Moldova, Syria, Vietnam and New Zealand have expressed willingness to accede to the Customs Union.
Azerbaijan, along with Uzbekistan and Turkmenistan, did not join the new Treaty on the Free Trade Area, signed on October 18, 2011 by the heads of governments of eight CIS member countries.
Experts believe that Azerbaijan could join the Russian-backed
organization on one condition. If Russia accelerates resolving the
Armenia-Azerbaij
Some economic experts say that Azerbaijan's joining the Customs Union is not beneficial as the share of Western countries in Azerbaijan's economic turnover amounts to 85 percent, while that with the CIS countries is 15 percent.
Azerbaijan pursues a balanced policy in the region. So, several experts have suggested that Azerbaijan use the British model of joining the group: Azerbaijan becomes a member of the Customs Union, but keeps its rights to make independent decisions on domestic, foreign and energy policy as well as economic and tariff policy toward third countries.
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