Turkey and Iran Want Preferential Commercial Routine with Azerbaijan

Business Materials 4 November 2008 17:14 (UTC +04:00)

Azerbaijan, Baku, 4 November / corr Trend N.Ismayilova, I.Khalilova / Turkey and Iran stated about their intention to conclude an agreement on preferential commercial routine with Azerbaijan, the Azerbaijani Government said.

Since the beginning of 2008, the Kingdom of Norway has applied preferential commercial routine with Azerbaijan that became possible as a result of the country's inclusion in the Program on System of centralized preferences (GSP). Official Baku hopes that the United States will also take a similar step. Thereupon, the appeal for inclusion of the United States in the GSP program in the near future has already been made.

Inclusion of Azerbaijan in the GSP program, which is used with regard to developing countries, during of the country's entrance to the World Trade Organization (WTO) and bringing the national legislation in line with international trade rules is a main instrument for Azerbaijan's integration into world economy. This system enables the country to export its goods, which are defined in a list, to developed countries at low duties and even duty-free terms.

Ten countries more provide GSP along with the European Union (EU). Azerbaijan was included in the system of preferences of EU, Canada, Japan, Norway and Switzerland. However, Baku cannot use GSP programs of Australia, New Zealand and the USA at present. Of course, the United States is of great importance for Azerbaijan. Developing countries, such as Russia and Belorussia also provide the GSP. The routine of free trade is used regarding these states and there is no need of any preferences.

Meanwhile, the agreement on cooperation and mediation has already been concluded with Turkey.

"Signing of these agreements is considered more expedient after achievement of diversification of Azerbaijani export, because of being of export potential at the stage of formation in Azerbaijani non-oil sector," the Government said.

Documents have already been developed by Turkey, Iran, Georgia, Moldova, Kazakhstan, Tajikistan,

Lithuania, Macedonia, Iraq, Bosnia, Sweden, Brunei, the Philippines, Kuwait, Croatia, Cuba,

Mauritania and other countries to develop contractual and legal base on bilateral commercial and economic mutual relations of Azerbaijan.

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