Foreign trade turnover

Gaining independence by Azerbaijan stimulated the growth of economic as well as foreign trade relations with the neighboring countries and also with the countries of the world. Measures in the field of foreign trade made foreign trade sector in the country one of the leading branches of economy and led to the expansion of foreign trade relations. The free economy in the country, development of private sector, both the political and economic influence of the republic and a favorable geographic location created a great opportunity for increase in the volume of external trade relations and its range.

At present, the interest in the products produced in Azerbaijan is increasing in the world market and number of countries receiving these goods is also increasing. Likewise changes occurred in the structure of foreign trade, as well as the composition of its trading partners has changed, too. Thus, if the number of the country\'s trade partners in 1997 was 84, in 1999 was 121 countries, at present, their number was about 150.

Previously, if Azerbaijan\'s main trading partners were the CIS countries, but now this ratio changed in favor of the European Union. Among the CIS countries Azerbaijan has the big trade turnover with Russian Federation. This country\'s share in trade turnover with Azerbaijan is 50%. In comparison with other CIS countries, the reason that Russia has a big superiority is availability of the big market for agricultural products of Azerbaijan in this country. Economic-commercial relations existed between Azerbaijan and Russia in the past also plays a major role in the increase of this turnover.

Recently, particularly after large-scale investments of foreign oil companies in the oil sector of Azerbaijan the role of the European Union countries in our country\'s foreign trade turnover has began to increase. This tendency especially is visible after launching of the Baku-Tbilisi-Ceyhan oil pipeline.

Azerbaijan had joined the Generalized System of Preferences of the European Union, the United States, Norway, Canada, Turkey, Switzerland and Japan, which allows duty-free access or low duties on goods of Azerbaijani origin in these markets.

In addition, the Republic of Azerbaijan signed the agreement on free trade with Russia, Kazakhstan, Ukraine, Moldova, Belarus, Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan. Only in agreements signed with Russia and Kazakhstan alcoholic drinks and tobacco products were exempted from the free trade regime.

Location of Azerbaijan in intersection of Asia and Europe at a very favorable geographical place creates conditions for the establishment of the main part of the foreign trade turnover with countries of these continents. 67.8% of export-import operations in 2011 were with Europe, 22.6% were carried out with the countries of the Asian continent. It is observed that the share of Italy, Russia, France, USA, Germany and Turkey is great in foreign trade turnover. Thus, 26.4% of the foreign trade turnover in 2011 was with Italy, 12.8% with  France, 7.8% with Russia, 6.7% with the USA, 4.8%  with Turkey, 4 % with Ukraine, 3.8% with Germany.

In foreign trade turnover Italy is leader with 35.2% in export and  Russia with 16.8% in imports.

As country economy developed the import-export structure is enriched. In recent years, the list of the most important exported goods increased. If 1218 kinds of goods were exported in 2003 from Azerbaijan, in 2011 this figure increased to 2082. The main part of the goods exported to foreign countries is mineral products, including crude oil and oil products. In addition, from non-oil products food products, precious metals and articles thereof, plastics, rubber and articles thereof, chemical products, pearls, precious stones and metals, articles thereof, textile materials have been exported. At the same time, among foodstuff exported from Azerbaijan tea, vegetable fats and oils, margarine, sugar, pasta, canned fruits and vegetables also have a special weight.

One more point showing the economic power of the country is beginning of the country to become the main exporter in electric power sector. Creation of new generation capacities, expansion of infrastructure opportunities already turned Azerbaijan to exporter of the electric power. Among countries with whom Azerbaijan carries out electric power sales and exchanges are Russia, Iran, Georgia and Turkey.

Investments made in agriculture by the state purposefully already are yielding its fruit. Thus, in comparison with previous years the import of some agricultural products in our country decreased. This means that the ability of the agricultural and food products produced in the country to meet the demands of the population was increased.

One of the attractable facts is that if in1995 the share of food products imported to the country comprised 41.6 per cent in foreign trade turnover but according to results of 2010 year, this indicator was equal to 18.6 percent. It is not accidental. Because of special measures are carried out in the country in this field, important state programs are adopted. In this regard, “The State Program on reliable provision of the population with food products for years 2008-2015 in the Republic of Azerbaijan” approved on August 25, 2008  is of particular importance.

And among the imported goods vehicles and their parts, electrical equipment, land, air and water transport facilities, food commodities, precious metals and articles thereof, chemical products, furniture and its parts, pharmaceutical products are dominated.

A new period since 2002 with sustainable social - economic development, ending of the period of transition to market economy and occupation by the country the deserved place in the international labor division led to growth of country\'s foreign trade turnover.

At present, crossing 85 per cent of the private sector share allows to expand the volume of trade turnover with foreign countries. Thus, the competitive commodities produced in private sector of Azerbaijan get more buyers in foreign markets. The structure of production, determination of directions of investment, meeting the requirements of foreign and domestic demand besides having a positive impact of the acceleration of economic growth, as well creates a wide range of opportunities for the reduction of dependence on imports.

The composition of the foreign trade turnover in the last 10 years has been changed much. Thus, the goods produced in new production areas gradually forcing out similar foreign products sold on the domestic market and even in some cases, they were sent for export.

During 2003, the volume of trade transactions carried out by the resident and non - residents of the republic with 129 countries was 5217881.0 thousand dollars. During this period 1218 title of the goods were exported and 5266 title of goods were imported. 

During 2005 the volume of trade transactions carried out with 137 countries was 8547276.0 thousand dollars. During the year 2102 titles of goods were exported and 5740 kinds of goods were imported, positive balance on export-import operations was 146483.6 thousand dollars.

In 2006, the volume of trade transactions carried out with 140 countries has been 11637208.6 thousand dollars. 2242 kinds of goods were exported, 5935 kinds were imported, positive balance on export-import operations was 1107016.9 thousand dollars.

In 2007, the volume of trade transactions carried out with 138 countries has been 11766862.9 thousand dollars. 2454 kinds of goods were exported, 6755 kinds of goods were imported, positive balance of export-import operations was 349735.9 thousand dollars.

During the year 2008 the volume of trade transactions carried out with 141 countries by the resident and non-residents of republic has been 54919697.3 thousand dollars. During this period, 2127 kinds of goods were exported and 5893 kinds were imported, positive balance on export-import operations was 40592761.4 thousand dollars.

According to the results of 2010, foreign trade turnover of Azerbaijan made 27.924 billion of dollars. The volume of exported goods was 21.324 billion and imported goods of $ 6.599 billion. Positive balance in foreign trade turnover was 14.725 billion of dollars. 2186 kinds of goods were exported and 6057 kinds were imported in Azerbaijan.

In 2011 foreign trade turnover of Azerbaijan increased for 29.92% compared to 2010 and comprised 36.326 billion of dollars. The volume of goods exported from country made 26.57 billion of dollars, which is 24,39% higher than the  indicators of 2010. Import volume was equal to 9.755 billion of dollar. This was more than 47.81%.from figure of 2010. In year 2011 a total 2082 kinds of products exported from Azerbaijan and 6233 kinds have been imported. Positive balance in trade turnover was equal to 16.814 billion of dollars.

A number of necessary measures being implemented at the state level, ensuring the rights of all individuals and legal entities on import and export of strategic products, and the work done in the direction of the prevention of monopoly, the proper determination  of the marketing of the internal market, simplification of customs relations, foreign trade liberalization, as well as creation of favorable  investment climate set the ground for future increase of the volume of foreign trade turnover.