Table of contents introduction

Note:

¹⁾ Data of the State Customs Committee

²⁾ Statistical data-taking into account statistical estimated value of exported crude oil and natural gas registered by customs authorities, but not completed customs clearance

^*) Indices for 2010-2020 were calculated by taking into account price factor.

Foreign trade policy is one of the main parts of state policy. There are protectionist and liberal directions of foreign trade policy. The Republic of Azerbaijan is obliged to implement the maximum liberalization of foreign trade policy in terms of the current economic situation. So that:

1. All restrictions are required for the formation of real market relations in the country and the realization of full-fledged foreign economic activity.

2. Azerbaijan cannot make investment and structural changes in the economy within its capabilities, carry out the reconstruction of fixed assets and various industries, and acquire new equipment and technology.

3. The country's industrial products do not meet world standards.

4. Oil and oil products have a high weight in the export of the Republic of Azerbaijan.

If we evaluate the country's foreign trade, we can say that oil reserves are a key factor in the country's economy. As in many years, the reason for the positive balance in foreign trade in 2016 was the export of oil and oil products. The biggest threat to the Azerbaijani economy is the dependence of exports on hydrocarbon resources (86.24%) and insufficient domestic production.

The structure of imports is food products 15.49% (meat, milk, butter and other oils made from milk, fruits and vegetables, tea, wheat, vegetable and animal fats and oils, sugar, tobacco and tobacco products 1.79%, cement 0 , 21%, pharmaceuticals 2.30%, plastics and plastic products 3.30%, wood and wood products 2.22%, ferrous metals and their products 13.11%, machinery, electrical appliances, equipment and their parts are 23.60%, vehicles and their parts 9.54%, furniture and its parts 1.31%, other 27.13%. However, our country has the necessary opportunities and conditions for the production of these products.

According to the decision of the Central Bank, on February 16 and December 22, 2015, the manat, the national currency of the country, depreciated by 97% against the US dollar, and this situation can be attributed to the fall in world oil prices. However, this choice should not be the only solution to get the economy out of trouble. Because, as a result of the devaluation, foreign goods became more expensive, while domestic goods became cheaper for foreigners. In short, this situation will lead to a decrease in imports in the country, and the economy will stagnate because the level of domestic production is not at the desired level. On the other hand, enterprises that produce domestically and import raw materials will be negatively affected by rising prices.

In 2015, the President signed a decree on imported goods in order to get rid of the instability that awaits the economy as a result of further falling oil prices and revive it. According to the decision, goods imported into the country for consumption and not worth AZN 10,000 are exempt from customs duties.

When determining the direction of improving foreign trade policy, it is important to take into account the economic, technological, production and legal factors that characterize it. Taking into account the local specifics of Azerbaijan, the directions of economic development, we can summarize the directions of improving foreign trade policy as follows: Improving foreign trade policy requires harmonization of legislation in this area with international standards. In this regard, success has been achieved in the field of customs in recent years and the volume of customs revenues has increased.

Based on world experience, we can say that export-oriented mono-products and raw materials can have a number of negative effects on the country's economy. From this point of view, increasing the competitiveness of export products in our country, increasing the "technological content" is one of the main directions in improving foreign trade policy. The organization of purposeful use of natural economic resources is one of the directions of foreign trade policy. The country can stimulate the development of other areas with the proceeds from the sale of existing natural resources. One of the main directions of improving Azerbaijan's foreign trade policy is to expand cooperation within regional integration associations. In order to ensure national economic interests, market integration mechanisms must be streamlined. In this regard, trade relations with the EU and CIS countries should be expanded, and the WTO membership process should be accelerated.

It is seen that Azerbaijan pursues an open door policy against foreign investment and tries to provide the necessary favorable environment. With the exception of exceptions such as national defense, foreign investors and local investors have the same rights under the new rules. Enterprises established by foreign investors are legally recognized as Azerbaijani enterprises. For this reason, almost the same principles apply to local and foreign entrepreneurs. More broadly, reorganization of tax rates in order to ensure the development of entrepreneurship in certain regions and sectors, providing tax relief; creation of free zones; raising tax rates to ensure the protection of the domestic market (the highest customs duty is 15%); accelerating privatization; Decisions were made to simplify the visa regime and prevent unfair competition.