Turkey-Azerbaijan trade volume: expected to exceed the target of $15 billion

DEIK Turkey-Azerbaijan Business Council President Akat said, “The trade volume between Turkey-Azerbaijan is around $4.5 billion. The heads of state have a target of $15 billion.”

DEIK Turkey-Azerbaijan Business Council President Selcuk Akat participated in the meeting series titled “Business Diplomacy Journey” initiated in cooperation with the Economy Journalists Association (EGD) and the Foreign Economic Relations Board (DEIK). In his speech, he said that they maintain their relations with cooperating institutions and organizations in Azerbaijan and organize online meetings due to the epidemic.

Reminding that the victory of the Azerbaijani army in Nagorno-Karabakh was celebrated with a ceremony, Akat said, “The epidemic was brought under control. However, when the citizens poured into the squares due to the victory celebrations, the number of Covid-19 cases increased significantly. Strict measures started to be implemented in the country again. Although the restrictions are felt more in the field of retail and food and beverage, large companies and industrial organizations continue to work.”

Stating that Azerbaijan is an economy of approximately $50 billion, Akat continued:

“Azerbaijan has a population of nearly 10 million. Most of its citizens live abroad. Azerbaijan has a foreign debt of several billion dollars. We can even call it a political foreign debt. Because it is a country that does not need to borrow much. Azerbaijan is a strong and stable economy with its assets in the oil fund. Oil prices are also advancing in Azerbaijan’s favor. Azerbaijani oil is sold a little above the normal price due to its quality.

Azerbaijan has completed almost all of its infrastructure investments. After 1991, it renewed its infrastructure and superstructure. Frankly, there was no new and big project in Azerbaijan for Turkey recently. But with the victory of Karabakh, a new era started. Karabakh has a size corresponding to 20$ of Azerbaijani territory. Nothing has been done there for 30 years. Major investments are planned for Karabakh to reach the level of development of other lands of Azerbaijan as soon as possible. In this sense, Azerbaijan’s growth engine will be Karabakh after today. “

Akat stated that Turkish construction companies are doing business everywhere, “It is our duty to work in Karabakh. For the development of Karabakh, we should see the work of Turkish companies not as a job, but as a duty.”

“The biggest project in the coming period: to deliver the gas in the Caspian to the world with TANAP”

Selcuk Akat said that Azerbaijan is making great efforts for the growth of sectors other than oil.

Stating that there are two important points in the realization of the Baku-Tbilisi-Ceyhan Oil Pipeline project, Akat said, “The part of the transportation of Azerbaijani oil to the Mediterranean and to the international market makes the project important. More importantly, the whole world accepts Turkey and Azerbaijan to cooperate in such a big project.”

Akat, regarding the oil and natural gas reserves estimated to be found in the Caspian Sea, “The connection of the reserves in the Caspian Sea to TANAP will be the most important issue of the next period. Azerbaijan and Turkmenistan have agreed on the borders and gas reserves in the Caspian. Delivering the gas in the Caspian to the world with TANAP will be the biggest new project in the coming period.”

Akat said that with the Baku-Tbilisi-Kars railway and the transition corridor from Nakhichevan to Azerbaijan, there will be a decrease in shipping prices in the coming period.

“After reaching $15 billion, an FTA should be made between the two countries in order not to experience a decrease”

Turkey-Azerbaijan Business Council President Akat stated that the trade volume between Turkey and Azerbaijan is around $4.5 billion and said, “The heads of state have a target of $15 billion. We are close to one-third of the target. I think we will reach the target, and even surpass it, with the investment potential in Karabakh in the next period. After catching $15 billion, a Free Trade Agreement (FTA) should be made between the two countries in order not to experience possible decreases. “

On the other hand, it has been reported that DEIK, which continues its commercial diplomacy activities with 146 business councils to improve foreign economic relations, will hold an online meeting every Tuesday with the participation of the business council presidents.

Source: AA / Translated by Irem Yildiz

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