You're reading: Azerbaijan sees no economic benefit in joining Customs Union, Common Economic Space

Azerbaijani President Ilham Aliyev does not see the economic benefit of his country joining the Customs Union or the Common Economic Space (CES).

“We are disposed to active mutual interaction with as many countries
as possible. Economic integration depends on the justification. In
integration into the Customs Union and CEX we don’t at this pint see
benefits for ourselves. On the other hand, Azerbaijan’s economic
condition is rather stable, we have sufficient forex reserves, economic
diversification, economic self-sufficiency, and are rich in natural
resources. If we see a real benefit then we can join any association,
for us there is no taboo in that,” Aliyev said during a Russia 24
television interview on Monday.

An example of economic justification would be that Azerbaijan has not
become a member of the World Trade Organization, “although they are
actively calling us there,” Aliyev said.

The president said he thinks 2012 was a successful year for the
Azerbaijani economy. “We were able to diversify the economy. Growth in
the oil-sector was at the level of around 10%, of inflation at around
1%, and in real incomes at over 10%. Unemployment decreased to 5.2%, and
the poverty level to 6%. Combined investments in the economy amounted
to $22 billion, of which a large part was internal investment,” he said.

Aliyev added that at the present time the main priorities for
Azerbaijan are ensuring that the economy is competitive and reducing
unemployment. “Judging from this huge potential the agro-industrial
complex has, export potential in this sector is very great. In a year,
two at most, we will move to the full satisfaction of food product needs
with domestic production. Then will begin a move to the external
market,” he said.

Among the priorities, the president said, are also information and
communications technology, comprehensive industrialization, which will
“let us completely eliminate dependence on the oil sector.” “All these
plans are to have been realized by 2020,” he said.

Azerbaijani companies are now actively investing abroad, Aliyev said.
“In Turkey we are implementing projects with $17 billion in
investments. Also, we are an active presence in Georgia, in Ukraine, and
have begun investing in Switzerland and Romania. There are plans for
major investment projects in Russia, as well, and we have already begun
that process. This is investment in real estate, in stocks, in
agriculture, and agricultural processing,” the president said.