High uncertainty of crisis in international trade

Azerbaijan ranks the 70th of 121 possible places in ranking of the World Economic Forum (WEF), reflecting the factors that facilitate the free flow of goods across national borders and to destination. Singapore and Hong Kong occupied the top two positions in the Enabling Trade Index ranking. Azerbaijan left Ukraine, Kazakhstan, Kyrgyzstan, Russia and Tajikistan behind among CIS countries.

The Global Enabling Trade Report, 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.

Transferring from five-stage customs procedure to the single-stage, introducing "single window" principle in the customs checkpoints in Azerbaijan played a significant role in the trade sphere in Azerbaijan. It makes it possible to conduct registration and provide customs declarations only by one inspector, which will increase his/her personal responsibility and will substantially reduce the time of realization of customs procedures, will contribute to reduction in the expenditure of participants in the external economic activity, and also will make possible to increase interest in the sector of entrepreneurship and will enlarge the possibilities of business development.

The cargos in transit through border that were formerly checked by the State Border Service, State Sanitary Control, State Veterinary Service, Sanitary department of the Ministry of Health, and also by the employees of the Ministry of Transport and Interior Ministry now pass only customs inspection. This made it possible to reduce the period of checking in the checkpoints from two-three days, depending on cargo, to the maximum of 20 minutes.

The need for simplification in the international commercial procedures arose in connection with an increase in foreign trade, increase in the demand for the high-speed deliveries and contemporary logistic chains, development of international trade, wide use of container transportation.

Increasing capacities of the state borders is of great importance for the state, since important part of Azerbaijan is a trade route - the Silk Road and the transport corridor North-South of Azerbaijan. As a participant of the international transport corridor and taking necessary measures aimed at improving and enhancing the efficiency of transport connections, the country promotes the growth of transit traffic, increases the efficiency of reserve capacity of the national freight transport system, encouraging their reproduction and improvement.

Currently Azerbaijan has 27 checkpoints, including nine on border with Iran, four - Turkey, eight - Georgia, and six - Russia. Foreign trade turnover of the Republic and the number of countries participating in the processes of exporting and importing with Azerbaijan increase every year.

According to the WEF, development of trade in the country is hampered on the 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, Azerbaijan does not see any need to support national production in using protectionist policy. Currently there are enough normative-legal acts to ensure development of domestic production, and in general, economic development in Azerbaijan. 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.

Today, the State Customs Committee of Azerbaijan continues measures in accordance with the requirements of the World Trade Organization, but significant reductions in tariffs, which must be carried out under such agreements, could create some difficulties for local producers. Therefore, in the reduction of customs tariffs, the State Customs Committee proposed transferring from a multi-differentiated tariff system to three-tier in order to protect domestic production.

Since 2001 the rates of 0, 0.5, 1, 3, 5, 10 and 15 percent have been functioning in Azerbaijan. As a result of reclassification, only rates of 0, 5 and 15 percent will remain. Large part of goods (raw materials and equipment) will be taxed at zero rate, and even the products which today are charged with customs duty of 0.5 percent. This is applied to the product groups (in particular, 84th and 85th group), which according to the order by the Cabinet of Ministers, are subject to VAT at zero rate during their import. They account for approximately 10-15 percent of imported goods in the Republic.

However, high uncertainty of crisis development does not give confidence that countries-leaders of rating will not change its principles of openness. Many countries 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.

High wave of the global financial crisis has affected trade. The centers of the world economy - the U.S., Europe, Japan - are already in under trade recession. In February, exports from Japan fell to record 49.4 percent compared with the corresponding period in 2008. Imports to Japan in February fell by 43 percent. Foreign trade turnover in Russia in January 2009 decreased by 40.2 percent compared with January 2008, in Ukraine reduction was 34.5 percent, in Kazakhstan - 40 percent.

Iran to receive vaccine through COVAX
Iran to receive vaccine through COVAX
Iran expects revival of JCPOA in short term
Iran expects revival of JCPOA in short term
Zarif meets with Indonesian president
Zarif meets with Indonesian president
Loading Bars
Latest
Azerbaijan eyes to speed up audit digitalization in 2021 (INTERVIEW)
GM outlined plans to allow remote work after the pandemic
Turkey replaces trade chief, appoints two new ministers after restructuring
Kyrgyzstan's population outflow decreased by 21% in 2020: statistics
Georgia 60th out of 180 countries in World Press Freedom Index
Main electricity of Natanz Enrichment Facility connected
Apple introduces new iPad Pro featuring 5G, M1 chip
Canada-U.S. border restrictions agreement extended another month
Toshiba says CVC to ‘step aside to await’ guidance over offer
Azercosmos' new platform to provide uninterrupted internet across Azerbaijan
Malta posts 1.3-bln-euro budget deficit for 2020
EU to donate 145,000 Pfizer vaccine doses to Albania
15 generals to ensure transition in Chad after death of President Deby
Indian PM rules out lockdown despite second wave of COVID-19
Turkey reports over 62,000 COVID-19 cases
Azerbaijan's import of cars from Turkey drops
Municipality of Turkey’s Agri province opens tender to buy diesel fuel
Chad leader Deby, key Western ally, killed in battle
Turkish energy company opens tender to build power plant in Istanbul city
Production of Sputnik V vaccine launched in Argentina
CBI allocates $178 m to buy COVID-19 vaccines - CBI chief
Bulk of calculations in Azerbaijan's trade turnover made via FCC - state committee
Azerbaijan limits import of meat products from several countries
Azerbaijan's Azexport portal reveals total value of export orders
Azerbaijani Finance Ministry places medium-term bonds on auction
Opportunities for partnership among SMEs expanding between Azerbaijan and Turkey
Main reason for Georgia's increase of electricity imports revealed
Prices for summer cottages, private houses increase in Baku
Number of client accounts in Azerbaijani banks increasing
Uzbekistan’s 1Q2021 export of fruit and vegetable products slightly down
Azerbaijan's National Depository Center talks another interest payment on SOCAR bonds
Karabakh suffered from Armenian occupation for nearly 3 decades - Turkish MP
Search for missing servicemen continues – Azerbaijani Military Prosecutor's Office
Armenia doesn't comply with clause of Nov.10 statement on restoration of economic and transport ties – Azernews
Support to Eastern Partnership states - key pillar for European Council, Charles Michel says
Azerbaijan joins initiative of single roaming space between Eastern Partnership countries
Turkish Airlines receives permission to operate flights to number of Uzbek cities
Kazakhstan’s KMK Munay decides against paying out dividends for 2020
Kazakhstan's revenues from maritime cargo transport surge
High freight rates significantly raise global prices of commercial ships
Central Bank of Iran allocates funds for import of vaccines
Iran's Energy Exchange announces products to be on sale on April 21
Geostat reveals Producer Price Indices for services in Georgia
Turkmenistan boosts imports of Turkish-made chemicals
Uzbekistan, France agree on deepening interaction in textile industry
Boeing CFO Smith to retire in July
Georgia increase tea import from Azerbaijan
Czech Development Agency talks projects in Georgia
Georgia sees increase in Export Price Index
Domestic Producer Price Index for Industrial Products up in Georgia
Number of oil, gas wells drilled in Iran revealed
Kazakhstan's exports to Bulgaria plummet
Iran's Esfarayen Industrial Complex to increase exports
Azerbaijani payment system to offer instant digital banking cards
Russian iron and steel works company reveals supplies of metal production to Uzbekistan
Baku Higher Oil School organized a webinar on the topic 'Higher Education and Research in the Post-COVID Period' (PHOTO)
PACE can offer support for establishment of lasting peace in South Caucasus - SecGen
Israel's government debt jumped to nearly NIS 1t in 2020
TAP’s gas deliveries for Q1 2021 disclosed
Swiss investments in Azerbaijan concentrated in non-oil sector – Swiss ministry
Azerbaijan names number of vaccinated citizens
Iran to receive vaccine through COVAX
Iran increases salaries for army personnel
Producer Price Index for Industrial Products up in Georgia
Iranian private sector to import 6 million doses of COVID-19 vaccine
Iran to implement extensive and maximum vaccination plan - President Rouhani
Budget provides continued support to Georgian economy - IMF mission
Azerbaijan confirms 2,197 more COVID-19 cases, 1,946 recoveries
Georgia sees decrease in external debt
Pakistan always supports Azerbaijan's just position - Pakistani Admiral
Bahar Azadi gold coin price still falling in Iran
Chairman of Iran Tea Organization talks about tea growing
Russia ready to help Kazakhstan in construction of nuclear power plant
Israeli journalists visit roadside inn in Azerbaijan’s Fuzuli, turned into barn by Armenians during occupation (PHOTO)
Uzbekistan taking additional measures to develop karakul sheep breeding
US company to build cannabis farm in Uzbekistan
France’s Orano to develop new mining sector in Kazakhstan
National Bank of Georgia remains focused on achieving its inflation target
Azerbaijan's International Bank discloses 1Q2021 net profit
Turkmenistan joins WIPO Patent Law Treaty
Armenia outraged by Russian PACE delegates refusal to discuss so-called "issue of POWs”
Electricity generation of Iran's hydroelectric power plants to decline
Azerbaijan's 1Q2021 polyethylene production slightly down
Russian Railways to build high-speed railway entries to Moscow, St. Petersburg by 2024
UAE central bank extends some stimulus measures until mid-2022
President Aliyev interviewed by Azerbaijan Television (PHOTO)
Important to observe int’l law to avoid such conflicts as Karabakh one in future - Chancellor of Germany
UK eases post-Brexit controls on vehicles taking goods to the EU
PayPal's Venmo launches crypto buying and selling
Iran's shares data on sale of public assets
President Ilham Aliyev attends inauguration of Azersun Shamakhi Agropark in Hajigabul (PHOTO)
Iran expects revival of JCPOA in short term
Liabilities of International Bank of Azerbaijan increase
Sinovac supplied 260 mln COVID-19 vaccine doses globally
Azerbaijan names number of foreign visitors in 1Q2021
Elbit Systems awarded $41m US Marines night vision deal
Price of wheat purchased from farmers in Iran increases
President Ilham Aliyev launches 110/35/10 Kv “Garasu” substation in Hajiqabul (PHOTO)
Baku-Tbilisi-Ceyhan’s oil transportation to Turkey down y-o-y
Kazakh oilfield construction company opens tender to buy pipes
All news