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European Parliament calls Azerbaijan to diversify its economy

05 July 2012 08:34 (UTC +04:00)

APA reports that the resolution, adopted as a result of discussion of report presented by rapporteur Miroslav Ransdorf, says that the EU must build deep and comprehensive free trade areas with its eastern neighbors to help them pursue democracy and prevent conflicts in the region. MEPs urged the Eastern Partnership countries to bring their national laws into line with EU legislation.

There are several recommendations in the resolution on each country. MEPs urged Azerbaijan to diversify its economy, noting that its reliance on oil makes it vulnerable to oil price volatility. They also said the country should become more attractive to foreign investors.

As regards Armenia, MEPs voiced concern at â€œArmenia’s close links between politics and business, less than transparent tax system and poor protection for investors.â€ The European Parliament considers that conflict with Turkey kept Armenia economically isolated. Opening up Armenia’s borders will help reduce its dependence on Russia.

The signing of agreement on establishment the free trade zone between Azerbaijan and the European Union is impossible, because Azerbaijan is not a member of the WTO.