The recent statement by the Azerbaijani President that the country "must forget oil and gas" and focus on the development of other sectors of the economy became a signal and impetus for new efforts for the economic diversification of the country. Enhanced international cooperation with traditional partners in technologically advanced Europe, which includes Germany, is in this sense one of the most promising directions in the development of the non-oil industry. In the German city of Dusseldorf a conference on the prospects of the development of German-Azerbaijani economic relations has finished. A discussion of the specific areas of economic cooperation between the two countries took place with the organizational support of the Eastern Committee of the German Economy, the Trade and Economic Chamber of North-Rhine Westphalia, the state investment agency NRW Invest, the Agency for Foreign Economic Relations of the State of North Rhine-Westphalia NRW International, the German-Azerbaijani Forum and the Embassy of Azerbaijan in Germany. Pharmaceuticals, mechanical engineering and chemical industries were on the agenda.
"In recent years, ties with Azerbaijan have become particularly important in Germany. This country stands out for its stability and economic development, it is a profitable partner for the German economy. Azerbaijan is interested in Germany, not only in economic terms but also politically. It is a country with different neighbors, which is in a very difficult region. And, in my opinion, it serves as a stabilizing factor in an unstable region, competently building its relations with Russia and European countries, particularly Germany, with great success," the chairman of the German-Azerbaijan Forum, Hans Eberhart Schleyer, said.
"The Committee on Eastern European Economic Relations has been engaged in the creation and support of trade and economic relations between Germany and the Eastern countries, in this respect, also the countries of Eastern Europe, Central Asia and the South Caucasus for the past 60 years. At a time when we are seeing a return of military components to our region, the sanctions, the occupation – all those things that are familiar to us through the Cold War, it is necessary to direct the economic bridges, not destroy them. The relationship of Germany and Western Europe to Azerbaijan has a long history – at least since the end of the 19th century, when the Nobel brothers were conducting business in Baku. Since then, Azerbaijan and Baku have been of significant value for foreign companies. At this stage we are with our Azerbaijani partners tightly discussing cooperation in the field of pharmaceuticals. Engineering is also acquiring a new value. During our last trip we could to ascertain that Azerbaijan is willing to shed its image as an oil supplier and turn into a diversely advanced industrial country.
Of course, we have also big projects and prospects in the energy sector, in the transit of gas, particularly the ‘Southern Corridor’ project, which will connect the Caspian region to Europe," the director of the Eastern Committee of the German Economy, Professor Rainer Lindner said.
According to him, "the world is going through difficult times, and it seems to be entering a period of chaos. These days we have seen the emergence of new conflicts in the region, including our nearest neighbor, Azerbaijan. We are deeply concerned about the conflict in the Middle East, the Black Sea region, as well as in the east of Ukraine and in Russian-Ukrainian relations. The events in Eastern Europe are worrying. In this regard, forums such as this are extremely important for the discussion of new investment projects. Azerbaijan is the central state of the South Caucasus, the number one country in the region in terms of money invested in it. The volume of German-Azerbaijani trade from January to August this year increased by 7%, a positive sign, and we hope to maintain this trend."
The Azerbaijani ambassador to Germany, Parviz Shahbazov, expressed the view that the numerous crises and conflicts in various regions of the world have a negative impact on the development of international trade relations: "My country cannot ignore the impact of international armed conflicts, political and economic crises in neighboring countries and regions. Despite this, the Azerbaijani economy is failing in this difficult time to maintain its growth. GDP growth in Azerbaijan amounted to 3.7% for the first 9 months of this year, despite the fact that Azerbaijan is an oil exporter, the price of which has more than halved. Azerbaijan is an important trading and economic partner in the South Caucasus: in 2014 German-Azerbaijani trade turnover amounted to 3.3 bln. dollars, which accounted for 82% of the total volume of trade in Germany with the South Caucasus. The high purchasing power of the Azerbaijani market, the demand for know-how and modern technology and constantly growing investment climate in Azerbaijan has converted it into a country attractive for business operations and investment."
However, according to the diplomat, "the Nagorno-Karabakh conflict and the occupation of Azerbaijani land is an inhibiting factor for Azerbaijan. In spite of this, Azerbaijan continues to develop and work towards a peaceful settlement of the conflict. We are confident that soon the conflict will be resolved in the framework of the sovereignty and territorial integrity of Azerbaijan. We also look forward to a more active role of Germany in the settlement of the problem within the framework of the German presidency of the OSCE in 2016."
The State Secretary of the Ministry of Economy, Energy, Industry, Medium-sized Enterprises and Handicraft of North Rhine-Westphalia, Gunter Hortetski, said that two months ago he visited Azerbaijan as part of a large business delegation: "The trip was a landmark and turning point in terms of our economic cooperation with Azerbaijan.The state of North Rhine Westphalia is represented in the Azerbaijani market, particularly with such companies as e.ON, supporting strong partnerships with SOCAR and implementing projects in the region. Many companies from the territory of NRW benefit from the dynamic development of Azerbaijan's economy. NRW is economically the most highly-developed land of Germany, 15.5 percent of all German exports are produced on the territory. NRW exported to Azerbaijan goods worth 118 million euros in 2014: machinery, parts and chemical products. NRW wants to intensify economic relations with Azerbaijan and to use the full potential of cooperation. The government of NRW monitors criticism of Azerbaijan and understands that this criticism is not justified in all cases. I am confident that intensive trade and related personal contacts will also contribute to the further opening of the country and will refute the grounds for criticism in its address."
The Deputy Minister of Economic Development, Niyazi Safarov, said that Azerbaijan is interested in the development of Germany, as well as Germany in the development of Azerbaijan: "Today Azerbaijan carries out serious work to improve the business environment. Azerbaijan is an important player in ensuring European energy security, and as an oil and gas producer and as a transit country, and as the initiator and sponsor of various projects. Azerbaijan supports the diversification of trade and economic relations with Germany, this intention was repeatedly expressed, and now it is time to put this intention into practice. The country is industrializing, it has preserved macroeconomic stability and created the necessary investment climate and maximally simplified bureaucratic procedures for business, the number of licenses required has been reduced to a minimum. This is a good foundation for the further expansion of German-Azerbaijani economic relations. We are very interested in cooperation with Germany in three areas: pharmaceuticals, mechanical engineering and chemistry. And we are very serious about the development of this cooperation, for this there is the necessary support of the Azerbaijani leadership and the government. The Azerbaijani side is ready to create the necessary ‘road map' for cooperation with Germany in these areas.
