Azerbaijan and Turkey, two nations with strong cultural and economic ties, have recently signed a Free Trade Agreement (FTA) that promises to expand their already flourishing trade relationship. This agreement, which was signed in 2019 and took effect in 2020, is expected to bring significant economic benefits to both countries.
The FTA between Azerbaijan and Turkey is a comprehensive agreement that covers a wide range of goods and services, including agriculture, textiles, and machinery. By eliminating or reducing tariffs on these goods and services, the FTA aims to promote bilateral trade and investment, increase competitiveness, and ultimately boost economic growth in both countries.
One of the key benefits of the FTA is that it will help to increase the volume of bilateral trade between Azerbaijan and Turkey. The two countries already have a strong trade relationship, with Turkey being one of Azerbaijan`s top trading partners. However, the FTA is expected to further increase trade volumes by making it easier and more cost-effective for businesses to import and export goods and services.
Another benefit of the FTA is that it will help to diversify Azerbaijan`s economy by increasing trade in non-oil sectors. Azerbaijan is heavily dependent on oil and gas exports, which account for around 90% of its total exports. By promoting trade in other sectors, the FTA will help to reduce Azerbaijan`s dependence on oil and gas and create new opportunities for businesses and entrepreneurs.
The FTA is also expected to have a positive impact on Turkey`s economy. Turkey is already a major regional economic power, with a GDP of over $750 billion and a diverse economy that spans multiple sectors. However, the FTA with Azerbaijan will help to create new opportunities for Turkish businesses, especially in sectors where the country has a competitive advantage.
As a professional, it`s important to note that the FTA between Azerbaijan and Turkey is also likely to have an impact on search engine rankings. The agreement is likely to generate a significant amount of news coverage and online discussion, which could boost the visibility and credibility of websites that cover the topic.
Overall, the Free Trade Agreement between Azerbaijan and Turkey is a significant development that promises to bring significant economic benefits to both countries. By promoting bilateral trade and investment, the FTA will help to create new opportunities for businesses and entrepreneurs, diversify Azerbaijan`s economy, and strengthen Turkey`s position as a regional economic power.