Azerbaijan leaves over 50 countries behind on index of involvement in international trade

Business Materials 27 August 2009 14:38 (UTC +04:00)

Azerbaijan, Baku, August 27 / Trend I. Khalilova /

Azerbaijan holds 70-th place of 121 possible places in rating of the World Economic Forum (WEF), reflecting easiness of goods transportation across the border. Singapore and Hong Kong became leaders. Azerbaijan left Ukraine, Kazakhstan, Kyrgyzstan, Russia and Tajikistan behind among CIS countries.

Index of involvement in the international trade, calculated by WEF, is based on several factors. These factors include access to domestic and foreign markets, administrative infrastructure at the border, the efficiency of customs work and others. Azerbaijan has a favorable business climate. So the country with an index of 4.68 held the 46-th place. The situation is well with access to the domestic market (the 52-th place, the index - 4.07). According to the World Bank and IFC, Azerbaijan was announced a country-reformer N1 in 2009. It was connected with great changes to improve the business climate and facilitate the business terms.

According to the WEF, development of trade in the country is hampered on a category 'customs efficiency'. Therefore the country has held the 103-th palce (index -2.91), though the maximum rate of import customs duties in the country hits 15 percent.

However, high uncertainty of crisis development does not give confidence that countries-leaders of rating will not change its principles of openness. Many countires have used protectionism. If this process gets out of control, the whole world trade will collapse. It will inevitably lead to the second Great Depression. Meanwhile, Azerbaijan does not see any need to support national production in using protectionist policy.

"At present, there are enough normative-legal acts to ensure development of domestic production, and in general, economic development in Azerbaijan," the State Customs Committee said.

Azerbaijan is not wiling to take this action because such a policy, on the one hand, promotes development of national production and protection of domestic producer, but on the other hand, can lead to stagnation in the economy, strengthening of monopolies and reduction of national goods competitiveness.

WEF hopes that barriers to access the market access will be reduced in the process of joining the WTO. Azerbaijan continues to hold active negotiations to join the WTO. Azerbaijan has already held VII round of meetings with the organization's member-countries.

According to the World Bank, 17 countries of the G-20 have introduced new protectionist measures by spring 2009. The USA with its anti-crisis campaign "Buy American" was among the first.

Do you have any feedback? Contact our journalist at: [email protected]