On May 18 the 2nd Azerbaijan-EU Business Forum was held in ADA University. The event co-organized by the Ministry of Economy, ADA University, Azerbaijan Export and Investment Promotion Foundation (AZPROMO), “East Invest” Organization and the German-Azerbaijan Chamber of Commerce, where more than 370 businessmen from food industry, agriculture, transport and logistics, tourism, consulting etc. representing the both sides attended along with the government officials.
Deputy Minister of Foreign Affairs and the rector of ADA University Hafiz Pashayev noted the significance of these events in expansion of cooperation among business circles and presentation of country’s economy worldwide. Mentioning the educational relations with EU member sates, Hafiz Pashayev put that ADA University successfully cooperates with EU educational units. In his turn, the Minister of Economy and Chairman of the State Commission for European Integration of the Republic of Azerbaijan Shahin Mustafayev noted that realization of sustainable and beneficial relations with the EU is one of the major foreign policy directions of Azerbaijan, which was built upon the Partnership and Cooperation Agreement of 1996. Azerbaijan’s inclusion into the Eastern Partnership (EaP) in 2009, visa and readmission agreements, along with energy cooperation gave way to further expansion of bilateral relations. The Minister emphasized that as our main trade partner, last year EU had 47% share in general trade turnover, while it has been 43% for the first quarter of 2016. During the last 10 years, comparison of FDIs from the EU member states directed to capital and non-oil sector to general foreign investments were 45.6% to 35%, respectively. Double taxation was eliminated with 23, agreements were reached on promotion and mutual protection of investments with 18, intergovernmental commissions were established with 14 and 2 working groups with 2 EU member states were established. Since 2012, up to 100 business forums and other events have been organized with EU. Several memorandums have been signed at the Azerbaijan-Netherlands Business Forum yesterday.
Since Azerbaijani plays an important role in provision of energy security of Europe, Azerbaijan-EU cooperation in this sphere has a strategic significance. One of the examples, in this regard, is the Southern Gas Corridor, which has been included into the priority projects list of the EU. Remembering the role of BTC pipeline, Shahin Mustafayev emphasized the TAP’s foundation ceremony that took place a day before.
The minister stated that there is a huge potential for Azerbaijan and EU member states co cooperate in investment, tourism, IT, finance, pharmaceuticals and medical equipment production, environmental protection, production of the non-oil products, packaging, export and so on.
After talking about reforms conducted in various fields, along with entrepreneurship, the Minister noted the importance of non-oil sector, diversification of economy, reduction of import-oriented profile of the economy, and favourable usage of transit routes as prioritized directions of our economy. Moreover, it was mentioned that, recently in the framework of the reforms all the inspections have been stopped in the field of entrepreneurship, licences have been dramatically reduced, customs procedures have been facilitated, regulations on financial markets have been enforced, Appeals Councils have come into existence and Coordination Council has been established on transportation issues. ASAN Service has turned to be the brand of Azerbaijan. Investment promotion is one of the main directions of the reforms so far. Resident investors, who get the Investment Promotion Document are exempt from 50% of income tax, property and land tax, VAT taken from equipment that are being imported and plus, import duties for 7 years after starting in Azerbaijan. The government provides favorable conditions for entrepreneurs to operate in industrial parks. Alat Free Trade Zone will also create new opportunities for European businessmen to do business in our country. All these mentioned factors themselves stimulate investment promotion and expansion of cooperation between business circles.
In her turn, Malena Mard, the Head of Delegation of the European Union to Azerbaijan, spoke about potentials for further cooperation between Azerbaijan and EU members.
Chairman of the German-Azerbaijan Camber of Commerce Samir Akhundov highlighted the significance of business forums and other related events in expanding the networking and cooperation among businessmen.
Ex-senator of the Parliament of the Netherlands and former president of the Parliamentary Assembly of the Council of Europe Rene van der Linden talked about rapid economic development and positive changes, stability and prosperity in Azerbaijan, and went on to note the role of businessmen in bilateral cooperation between the sides.
During the forum, B2B and panel meetings were held among businessmen on agriculture and food industry, transport and logistics, tourism and other business opportunities in Azerbaijan.