Against the backdrop of expanding political dialogue between Azerbaijan and Armenia, the initiation of mutual trade between the two countries has also come to the fore. Following the shipment of oil products from Azerbaijan to Armenia, the export of Armenian-made goods to the Azerbaijani market is now being discussed.
Modern.az reports that Armenian Foreign Minister Ararat Mirzoyan stated in an interview with his country's Public Television that information about Azerbaijani companies purchasing products from Armenian companies will be disclosed in the coming days. The minister said that this would make Azerbaijan-Armenia trade reciprocal.
MP Vugar Bayramov stated that during the meeting between Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan within the framework of the Shanghai Cooperation Organization summit, opportunities for expanding economic ties, especially mutual trade, were also discussed:
“At the meeting, the restoration of economic and trade relations between the two countries and existing potential opportunities were reviewed. The parties welcomed the continuation of steps in this direction. This indicates that trade turnover between Azerbaijan and Armenia may increase.”
According to the MP, after the restoration of economic ties, the trade turnover between the two countries exceeded 18 million dollars. In the first seven months of the current year, this figure amounted to 17.4 million dollars.
Vugar Bayramov stated that as the Center for Economic and Social Development, they have investigated possible import and export directions between Azerbaijan and Armenia. The results of the investigation have been submitted to the relevant institutions:
“Based on the theory of comparative advantages, the import and export opportunities of various products have been evaluated. For this, product prices were compared, and transportation costs were also taken into account. Potential trade products include industrial, food, and chemical industry products.”
The MP noted that cooperation opportunities in the energy sector are also high. According to him, fruit juices and other food products can also be included in mutual trade. In Azerbaijan's possible imports from Armenia, food products and raw materials may have a special share.
"Fish, vegetables, drinks and metal products will be sold"
Natig Jafarli, chairman of the REAL party and economist, told our website that intergovernmental working groups of Azerbaijan and Armenia have held meetings on trade relations and mutual product lists have been submitted.
According to him, agricultural and fish products, alcoholic and non-alcoholic beverages dominate the list submitted by the Armenian side:
“Among the products that Armenia can sell to Azerbaijan are agricultural goods, river and lake fish, alcoholic and non-alcoholic beverages. Ore-mining products, iron ore, aluminum and copper also dominate the list. Most likely, negotiations will mainly be conducted over these products.”
The economist emphasized that political agreement alone is not enough to start mutual trade. Separate mechanisms must be created for bank transfers, product insurance, logistics, certification, and customs procedures.
“It is too early to talk about mutual tax and customs concessions. This requires interstate agreements. A peace treaty must be signed, diplomatic relations established, and embassies opened,” said Natig Jafarli.
"The sale of Armenian products in the local market may affect prices"
Natig Jafarli did not rule out that the entry of Armenian products into the Azerbaijani market could affect the prices of some products in the future.
He noted that in recent years, the production and export of vegetables, river and lake fish, including freshwater fish, have increased in Armenia. The entry of these products into the Azerbaijani market could expand supply.
However, the economist does not consider it realistic that Armenian products will have a significant impact on prices in the Azerbaijani market in the near future:
“This is possible. However, such a prospect is not yet visible in the very near future. First of all, the necessary legal and financial infrastructure for trade must be created.”
Thus, in the initial stage of possible trade, agricultural and fish products, alcoholic and non-alcoholic beverages, raw materials, iron ore, aluminum, and copper can mainly be imported from Armenia to Azerbaijan. However, for this to become a factor affecting sustainable trade and prices, it will depend not only on political agreements but also on the formation of banking, insurance, customs, and logistics mechanisms.
