Brexit not to affect Azerbaijan-UK trade and economic relations
The UK’s withdrawal from the European Union (Brexit) will not affect the country's trade and economic relations with Azerbaijan, British Ambassador to Azerbaijan Carol Crofts told Trend.
The UK’s withdrawal from the European Union (Brexit) will not affect the country's trade and economic relations with Azerbaijan, British Ambassador to Azerbaijan Carol Crofts told Trend.
Impending withdrawal of the United Kingdom (UK) from the European Union (EU),called Brexit a portmanteau of "British" and "exit", led many political analysts into shock, as majority of them predicted a different outcome of the vote, taking into account the fact that the ruling Conservative party of the country at that time officially opposed withdrawal from the EU.
Currently, the entire world is attentively following the situation thinking of the way this decision may affect other trade partners of the UK.
Carol Crofts stated that the economic ties between the states are expanding, adding that work is being carried out to strengthen cooperation in such areas of the non-oil sector as agriculture, tourism, IT etc.
"We have the next meeting of UK-Azerbaijan Joint Intergovernmental Commission in April, during which we will have many discussions on how we can cooperate and decide in which sectors the support might be needed," Crofts noted.
The ambassador also noted that the Trade Envoy, Baroness Emma Nicholson, who will be in Baku on February 20 at a meeting of the Southern Gas Corridor Advisory Board (SGC), will hold discussions on cooperation in this sphere.
The last meeting of the commission was held on December 14-15, 2017 in Baku. Based on the results of the meeting, a protocol was signed reflecting the issues of further expansion of cooperation in the fields of economy, trade, investment, industry, tourism, energy, education, culture and other directions.
Earlier, head of energy, trade and investment department of the British embassy Steve Smith said that the next meeting of the intergovernmental commission may be devoted to energy, including renewable energy, as well as healthcare, agriculture, e-government, environment, education, retail and aerospace industry. Currently, the program and the possible venue of the meeting are being specified.
Azerbaijan accounts for 75 percent of the economic potential of the South Caucasus being the largest investment and economic partner of the United Kingdom in the region. The total amount of investments of British companies in the country exceeds $ 27 billion. Most of the investments made by UK companies account for the oil and gas sector of Azerbaijan, but negotiations are underway to expand cooperation in the non-oil sector.
According to the data of the State Customs Committee of Azerbaijan, the trade turnover with the UK in 2018 amounted to $ 525.2 million, which is 46.5 percent more than the same indicator of 2017. At the same time, exports of Azerbaijani products accounted for $ 261.4 million
So, around 100 British companies operate in Azerbaijan. As an example, British Petroleum which invests a lot in economy of Azerbaijan, or EY (Ernst and Young) accounting firm which noticeably increases employment and creates favorable conditions for highly qualified labor force.
Carol Crofts also underlined that the UK is ready to cooperate with Azerbaijan in the financial sector and help the country to become a financial center of the region.
Moreover, the idea of turning Baku into a financial center, if not global, then regional, is not new. It was discussed at the end of the last century, and then at the beginning of the 2000th.
As head of the Financial Market Supervision Chamber of Azerbaijan Ibrahim Alyshov said, the creation of the association will help simplify access to financial services in the region, as well as stimulate the development of the financial market. He then noted that Azerbaijan is taking steps to become a regional financial center.