Foreign trade of Azerbaijan (as of 2016)

The Azerbaijani president approved the measures to promote the Made In Azerbaijan brand in the world markets in October 2016. The mechanism of support of manufacturers and exporters covers all phases beginning from production to the export of goods. The export missions have been already sent to China and the UAE as part of the measures of the national brand promotion. Those trips were very beneficial. Thus, the Azerbaijani entrepreneurs will supply 500,000 bottles of wine to China a year.

Similar missions are expected to be sent to Pakistan, Afghanistan, Qatar, Germany in 2017.

The foreign trade turnover with 186 world countries amounted to $17.68 billion in 2016, or 19.46 percent less than in 2015 compared to 165 countries in 2015.

The volume of exports decreased by 28.17 percent and amounted to $9.14 billion compared to 2015. The volume of import decreased by 7.42 percent and reached almost $8.53 billion.

Azerbaijan exported 2,921 goods and imported 7,328 different goods.

2016 ended with a black ink of $610.83 million, while a trade surplus of $2.2 billion was recorded as of 2015.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in 2016.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan’s exports as of 2016 (71.14 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $6.5 billion. The cost of crude oil exports decreased by 26.64 percent compared to 2015. This is connected with a decrease in the global oil prices. Currently, SOCAR supplies oil from Azerbaijan to more than 30 countries in Europe, Asia and America.

According to the Azerbaijani State Customs Committee, as of 2016 the export of oil products from Azerbaijan decreased from year to year.

The export of oil products amounted to $409.7 million in 2016, which is by 45.51 percent less than in 2015.

Some 4.48 percent of the country’s total export volume accounted for the export of oil products in 2016.

In 2016 the export of gas from Azerbaijan decreased by 35.5 percent in physical terms from year to year.

The share of gas in the total export was estimated at 10.62 percent in 2016.

The threefold growth was observed in exports of ferrous metals in 2016. The export of ferrous metals increased up to $96.07 million or 1.05 percent of total exports in 2016.

The volume of exports of fruits and vegetables which are the basis of agricultural exports of Azerbaijan greatly increased.

The exports of agricultural products in Azerbaijan increased by 19.51 percent in 2016 compared to 2015.

According to the Azerbaijani Ministry of Agriculture, export of all agricultural products except for potatoes and onions increased for the year.

The majority (23.35 percent) accounted for the export of tomatoes and cucumbers. Walnuts and hazelnuts, cotton, tobacco were exported from the country.

Azerbaijan exported barley for the first time in 2016 and obtained $2.6 million.

The largest amount of export accounted for Italy in 2016. Thus, during this period Azerbaijan exported goods totaling $1,559.97 million to Italy which makes up 17.06 percent of a total export volume. Oil and oil products are mainly exported to this country.

Turkey ($1,132.82 million) and Taiwan $796.88 million) hold leading positions. Italy has maintained its leading position since 2008 excluding early three months. Turkey took a lead in January and U.S. in February and March 2008.

Russia ranks first on the largest import volume ($1,641.80 million) in 2016. Some 19.24 percent of the Azerbaijani imports accounted for it. Turkey ranks second - $1,881.57 million and China - third ($703.90 million).

Most of Azerbaijan’s imports or 23.6 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts. The machinery and equipment worth $2.01 billion were imported in 2016, which is by 18.18 percent less than in 2015.

The import of ferrous metals consolidated its positions in the country’s foreign trade. The share of these products in a total import volume of the country reached 13.11 percent in 2016, while this volume was 1.11 billion manat in nominal terms or by 29.51 percent less than in 2015.

Vehicles and spare parts worth $813.91 million (a share in total imports – 9.54 percent) were supplied to the country. The car imports decreased by 33.13 percent compared to 2015.

Some 5,746 vehicles were imported into the country in 2016. Some 4,991 passenger cars, 571 trucks, 96 buses and 88 special vehicles were imported. Some 926 vehicles, including 797 passenger cars were imported in December. For comparison, some 26,785 vehicles, including 23,765 passenger cars, were imported in 2015.

The import of meat and dairy products greatly increased for the reporting period.

In particular, the value of imports of meat and butter increased by over twofold and milk - by 39.44 percent compared to 2015.

The value of imports of meat and dairy products increased in connection with an increase in the customs duties for these types of goods. This decision is aimed at assisting local producers.

Main products imported to Azerbaijan

source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, the countries-non-EU and CIS members were the main trading partners of Azerbaijan in 2016. These countries formed the foreign trade turnover of Azerbaijan by 49.09 percent or $8.676 billion, while the EU countries - by 34.93 percent ($5.701 billion). Some 15.98 percent or $2.825 billion accounted for the CIS.

Azerbaijan’s exports to the EU countries amounted to $3.952 billion in 2016, or 43.22 percent of a total export volume amid a 41.47 percent decrease.

Imports from EU ($2.222 billion) decreased by 24.5 percent and amounted to 26.04 percent of a total import volume. As a result, the country had a black ink of trade balance with the EU at the level of $1.729 billion exceeding the country's total trade deficit ($0.611 billion).

The exports to the countries-non-EU and CIS members dropped by 16.94 percent - to $4.528 billion in 2016 or 49.52 percent of a total export volume, while imports - by 3.8 percent and reached $4.148 billion or 48.62 percent of the total import volume. As a result, the black ink worth $0.380 billion was observed in Azerbaijan’s trade relations with these countries.

The exports to the CIS countries for the period totaled $0.663 billion (7.26 percent of the total export volume) by increasing by 1.26 times and imports - $2.162 billion (25.34 percent) by increasing by 1.1 times. As a result, the country had a red ink in trading with the CIS countries in the amount of $1.498 billion.

During this period, about 14,055 legal and physical entities were involved in foreign trade operations, including 5,435 - legal entities and 8,620 - physical entities.

The share of public sector in exports totaled $7.22 billion, private sector – over $1.66 billion, the share of physical entities - $264.28 million.

The share of public sector in import operations amounted to $1.23 billion, the private sector – $6.81 billion, physical entities -$489.12 million.

Azerbaijan’s trade operations with foreign countries in 2016

source: Azerbaijani state customs committee