Minister offers Turkey new format of economic cooperation
Azerbaijan has invited Turkish companies to establish joint ventures in various fields in a bid to deepen the economic interaction between the strategic partners.
Agriculture Minister Heydar Asadov voiced the offer during the Azerbaijani-Turkish Business Forum in Baku on February 23.
Asadov stressed that the Azerbaijan-Turkey relations in the agro sector should be transformed from the segment of export-import operations to the joint production of agricultural products.
“Last year, Turkey exported agricultural products worth $ 100 million to Azerbaijan. This is a good indicator of the bilateral relations, but the time has come to move to a new level of relations between our countries. It would be useful to set up joint ventures for agricultural production,” the minister said, stressing that the country is ready to create all necessary conditions for Turkish businessmen.
“We have established the necessary legal framework, and the reforms have significantly improved the business environment in the country. Only the desire is needed to develop our relations, and not only in the field of agriculture,” he said.
Recalling that Azerbaijan is now actively developing the pharmaceuticals field, the minister pointed to possibility of establishing joint ventures in this area. “We have created a number of pharmaceutical factories, and I invite Turkish companies to invest in this sector,” said Asadov.
Azerbaijan plans to gradually replace foreign imports with domestic production and switch to the economic policy of import-substitution, as well as increase competitiveness of local production. Last year, Azerbaijan exported agriculture production worth $426 million, recording an increase of $73 million or 20.7 percent as compared to the figure of 2015.
Turkey’s Minister of Food, Agriculture and Livestock Faruk Celik, addressing the forum, mentioned that Turkey is Europe's largest center for the production of agricultural products.
“Given Turkey and Azerbaijan's geographical position it is possible to imagine the outcome of our cooperation [in the agro sector],” he said.
The volume of trade between Turkey and Azerbaijan in agricultural products does not correspond to the existing potential, according to Celik.
“The figure is only $ 120 million. We should increase this level and expand the range of export products,” he said.
Turkey will open its representative office in Azerbaijan for the development of agriculture, Asadov said at a press conference following the meeting.
“The office will operate under the Turkish Embassy in Baku. A special representative - Advisor to Minister of Food, Agriculture and Livestock of Turkey Faruk Celik will be appointed. The representative will be responsible for further development of relations between our countries in the sphere of agriculture," Asadov said.
Celik earlier told Trend that Turkey urges the country’s businessmen to invest in Azerbaijan’s agriculture, mentioning that Turkey wants Azerbaijan to become a country fully self-sufficient in the agricultural production.
"We know that Azerbaijan has been actively investing in the development of agricultural production lately. Companies with Turkish capital are also involved in these projects and they provide Azerbaijan with the know-how used in Turkey’s agricultural sector," the minister said.
He added that Azerbaijan, thanks to its fertile land, will be able to significantly reduce dependence on imports of agricultural products, if investments are provided and necessary measures are implemented.
The minister stressed that Turkey is constantly looking for new export markets, regardless of their size and remoteness. "The recent crisis in Russian-Turkish relations has created problems in the agricultural export of Turkey. But it became a lesson for us to diversify our export markets. Nowadays, Turkey’s agricultural sector is the largest one in Europe, and the Turkish agricultural production’s value is $59.4 billion,” he said.
Hailing the fact that Turkey exports 1,680 names of agricultural products worth $17 billion to 192 countries, the minister said these figures are not sufficient and a lot can be done together with Azerbaijan.
Previously, Deputy Agriculture Minister Ilham Guliyev said that Azerbaijan and Turkey can jointly enter markets of third countries.
“Azerbaijan has access to the markets of Central Asia and Russia, while Turkey has access to the markets of Europe and the Balkans. In this regard, Azerbaijan and Turkey are going to jointly enter markets of the third countries” he said at the 8th meeting of Azerbaijan-Turkey Agricultural Executive Committee in Baku on February 22.
Trade turnover between Azerbaijan and Turkey amounted to $1.67 billion in January-September 2016, according to the State Customs Committee of Azerbaijan. The countries plan to bring the volume of trade turnover to the level of $15 billion in the coming years.