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Minister of State Zafer Caglayan: â€œTrade turnover between Azerbaijan and Turkey may be increased by 4-5 timesâ€ - INTERVIEW

Minister of State Zafer Caglayan: â€œTrade turnover between Azerbaijan and Turkey may be increased by 4-5 timesâ€ - <font color=red> INTERVIEW</font>

28 February 2011 10:58 (UTC +04:00)

Ankara. Mayis Alizadeh â€“ APA. Turkish Minister of State for Foreign Trade Mehmet Zafer Ã‡aglayanâ€™s interview to APA.

- You had visited Baku in March, 2010, held high-level meetings for development of economic relations between two countries, listened the Turkish businessmen there. We witnessed the decrease of Turkeyâ€™s share in Azerbaijanâ€™s foreign trade turnover from end of 1990s to beginning of 2000s. What would you say about the current level of relation?

- Unfortunately, we canâ€™t reach the top trade point between Azerbaijan and Turkey. Turkey has over $300 bln foreign trade turnover. We export more than 20 000 types of products to all countries of the world. 50% of our export is for European Countries. Our country is located in an important place: In the south-east of Caucasus, north of Africa, west of Middle East, east of Europe. Our trade turnover with Azerbaijan is approximately $ 2.5 bln. This is not fitting to these countries. This number must be increased and we can do that. I has said this when I met with your President Ilham Aliyev and PM Artur Rasizadeh: Letâ€™s sign the same free trade agreement with Azerbaijan, too, which signed between Turkey and Georgia, give customs advantages to each other in several products and increase the trade turnover. Azerbaijani brothers must invest capital in Turkey. Most of Turkish businessmen have investment in Azerbaijan and we want this to be increased. Weâ€™re really one nation. Bur unfortunately, we canâ€™t realize the advantages of being of one nation in the trade. If we try, itâ€™s not difficult to raise the trade turnover by 4-5 times. Both Azerbaijan and Turkey are exporter and importer countries. Turkey is the 16th country having great economy. Weâ€™ll hold the businessmen forum on March 16, in Istanbul. Azerbaijani Minister of Economic Development Shahin Mustafayev will attend the forum. Implementation of adopted decision will accord the interests of two countries.

- What impedes to increase the trade turnover between Azerbaijan and Turkey to the desired level?

- We donâ€™t apply visa with Azerbaijan. Our PM supports the abolishment of visa between two countries. Itâ€™s difficult for us to explain this to the world. Now, we abolish the visas with Russia, too. Our citizens can go to any country without visa. I repeat: The visa problem impedes the trade, tourism, friendship and brotherhood between two countries. Thatâ€™s why, we must abolish the visa regime, eliminate the impediments for businessmen. We decided to strengthen the economic relations with Nakhchevan after the meeting with President Ilham Aliyev, in Baku. We visited Nakhchevan, discussed the issues on establishment of free trade zone including. We need to achieve progress in this subject. We delivered our offer on establishment of free trade zone to Baku. We expect our Azerbaijani brothers to take concrete steps on these issues. If these are realized the trade turnover will increase.

- Does Turkey have special promotions for Azerbaijani investors in investment sphere? Or do Azerbaijani businessmen know any promotion for Turkish businessmen?

- Turkey has very important investment promotions. Azerbaijan also has certain promotions. If any capitalist puts a capital in any sphere he/she must know the important terms there. This includes qualitative staffs, raw material, relation wit the market that he/she will export goods there and other factors. Customs rules of the country which to be invested capital is so important. If the businessmen gets the cheap energy, manpower he will invest the capital in that country. But, when we speak about Azerbaijan, I know that, most of our businessmen invest the capital for sense of brotherhood. We obey the free trade rules in investment of capital in Turkey. The businessman who invested capital here may send his/her income to any place. A company is established in a day, in Turkey. If any Azerbaijani brother invests the capital in Turkey, he may sell the goods freely of import duties. Turkey has signed free custom contract with the EU and we sell goods to 27 countries of the EU without customs duty. Azerbaijani brother is obliged to pay customs tax when he wants to sell the same goods to these countries from Azerbaijan. At the same time, we send duty-free goods to the North Africa and Middle East countries. But Turkey will not establish any relations with Armenia until Karabakh issue is solved. Joy of Azerbaijan is our joy and sorrow of Azerbaijan is our sorrow. The countries which economies are connected only with the energy become rich when energy prices rise in the world. And when energy prices decrease, those countries become poor. Price of anything is not only rise in the world. That is why development of Azerbaijani economy is related to the development of industry and trade there. In this point, I want to note the importance of tourism. A country needs to invest capital in some industry and trade spheres for being exporter of one country. As Turkey, we are ready for everything till the end.

- In spring of last year, there occurred news that the Turkish businessmen had constraints in Baku in your meeting with them. Have those constraints been eliminated?

- I told you the reasons of capital investment by any investors: If the banking system is liberal, bureaucratic impediments are few, there is an influential justice system then the businessmen invest capital in that country. The businessmen have to be able to protect their rights in the international courts. In any case, you understand me. Turkish Republic was established in 1923. The amount of total foreign investment in our country until 2003 made $ 14.5 bln. After JDP took the government, the rules on free market economy had been started to be applied and an economic stability achieved. Any companies can send its income and investment to the world, freely. $ 90 bln capital was invested in Turkey, during past 7 years. 70% of this came from Europe. All countries in the world need foreign investment. We want Azerbaijan to become a powerful country in the region.