By Azernews

By Leman Mammadova

Azerbaijan and Uzbekistan are improving investment climate that will create good opportunities for the businesses of both countries to realize their trade potential.

There is a positive dynamic in the sphere of economy and trade between Uzbekistan and Azerbaijan, said Uzbek ambassador to Azerbaijan Sherzod Fayziyev at a diplomatic reception in Baku on the occasion of the Independence Day of Uzbekistan.

He highlighted the visits of Azerbaijani Ministers of Economy and Agriculture, Shahin Mustafayev and Inam Karimov, to Uzbekistan.

“As part of the visits, round tables were held with the participation of official and business circles of the two countries, B2B meetings were held in the fields of ICT, construction, agriculture, electrical industry and transport,” Fayziyev said.

In his words, these visits and events played important role in future economic activities.

“In particular, a large number of contacts between business circles of Uzbekistan and Azerbaijan followed the visits. As a result, the  trade turnover between Azerbaijan and Uzbekistan increased by 72 percent in January-July 2019,” Fayziyev added.

Last year, the trade turnover between Azerbaijan and Uzbekistan increased by 46.5 percent and reached $44 million.

Today, Uzbekistan supplies vehicles, non-ferrous metals, pharmaceuticals, fertilizers, electrical and mechanical appliances, agricultural products to Azerbaijan. In turn, Azerbaijan exports mechanical equipment, confectionery, various organic and chemical compounds, tanning and coloring extracts to Uzbekistan.

Fayziyev is convinced that the establishment of close and trusting relations between Baku and Tashkent is based on deep historical roots, common national traditions, language and culture.

“I am sure that the existing mutual interest in building ties in the economy, trade, transport, humanitarian areas, as well as upcoming contacts at the highest level, will bring our peoples closer and strengthen fraternal relations,” he said.

Fayziyev also noted that based on its potential, Uzbekistan has carried out extensive work in recent years, including the transition to a real market economy, creation of the widest opportunities for the development of entrepreneurship and private property, the implementation of fundamental reforms in agriculture.

He stressed that all this together contributed to the growth of attractiveness of Uzbekistan for business circles of foreign countries.

Bilateral relations between Uzbekistan and Azerbaijan, established in 1995, are developing in accordance with Strategic Partnership Declaration, signed in 2004 between the two countries.

The intergovernmental commission, established in 1997, also plays a major role in the development of bilateral economic relations.

In 2011-2015, bilateral agreements were reached in various spheres, in particular, in promotion and mutual protection of investments, exemption from double taxation, economic cooperation, free trade, customs cooperation etc.

So far, more than 110 documents have been signed between Azerbaijan and Uzbekistan. At present, over 30 companies with Uzbek capital operate in transit, trade, industry and service sectors in Azerbaijan.

Transport projects implemented in the South Caucasus are of great importance for Uzbekistan in terms of Central Asia-Europe trade routes.