ON PAR WITH THE "OLD WORLD"

Increasing exports are one of the primary indicators of economic growth. In this sense Azerbaijan's economic achievements can be seen in trade figures: according to data from the State Statistics Committee, from 2003-2013 exports increased by 670 per cent, reaching34.7bn dollars.

Importantly, not only quantitative indicators, but also the qualitative structure of trade turnover is increasingly yearly. In particular more goods are being produced by the non-petroleum-related sectors of the economy, thus generating interest abroad, particularly in the Old World. It must be said that the largest share of this export for some time now goes to the countries of the European Union - this year the figure was 52.31 per cent. More and more companies from the developed countries of Europe are expressing their willingness to invest in joint projects with Azerbaijan.

The German Account

Cooperation with Germany plays a special role in Azerbaijan's increasing volume of trade. Suffice it to say that from 2005-2013 the volume of trade between the two countries increased by approximately 750 per cent. 

While this was going on, interesting changes were taking place in the structure of trade between the two countries. While in 2005 88 per cent of the volume of trade came as imports from German and only 12 per cent went out as exports from Azerbaijan, whose trade deficit was 221.5m dollars, in 2013 the picture was completely different. According to statistics from the Azerbaijani Ministry of Economics and Industry, the volume of trade between Azerbaijan and Germany stood at 2.2bn dollars last year, with imports into Azerbaijan making up 38 per cent, and exports to Germany the remaining 62 per cent. As a result the trade surpluswith Germany in the past year stood at 533.7m dollars. OverallGermany's share of Azerbaijan's total trade reached 6.3 per cent, making up 7.7 per cent of imports and 5.6 percent of exports. It should be noted that Germany is among Azerbaijan's top trading partners in both exports and imports

If one wishes to ask what kind of goods make up these sizeable changes in the structure of trade, the answer is simple. According to information from the German foreign ministry's website, Azerbaijan's exports to that country mainly consist of "black gold." The agency's figures go on to say that Azerbaijan is the seventh-largest supplier of petroleum to the German energy sector. In turn Germany exports automobiles, iron and steel, and equipment to Azerbaijan.

Despite the stable development of trade relations between the two countries, the possibilities for further growth are far from exhausted: at recent meetings of officials and businessmen, both sides noted potential new directions for growth. 

According to Azerbaijani Minister of Economics and Industry Sahin Mustafayev, a total of sixty-seven contracts have been signed between the two countries in various spheres, including the economy. From 2009 to 2014 nearly 200 entrepreneurs and young management specialists took professional courses in various German cities. Germany's experience in professional education will be used at the Sumqayit chemical industrial park. According to Samir Valiyev, who is co-chairman of the Azerbaijan-Germany High Level Working Group for Trade and Investment andchief of staff of the Azerbaijani Ministry of Economics and Industry, German has invested 760 million dollars in Azerbaijan's economy, with 177 German companies currently operating in the country as contractors on various projects. 

Here it should be noted that many German energy companies have a long-term interest in oil and gas exploration in Azerbaijan. In turn Azerbaijani investors might take an interest in Germany's machine-building industry, IT, and agriculture, among other areas. What is important is that the two countries have set up an effective, fruitful means of cooperation. 

British prospects

Azerbaijan is also successfully expanding its trade relations with another leading economy of the Old World - Great Britain. If a look at the statistics shows that the volume of tradebetween the two countries from 2005-2013 increased by 467 per cent, standing at 1.8bn dollars in 2013. The structural changes in trade are much more interesting. In 2005 only 1.1 per cent of the trade volumebetween the two countries consisted of Azerbaijani exports to Britain, while in 2013 this figure was already 27 per cent. Britain took fourteenth place among importers of Azerbaijani products in 2013. Exports to Great Britain made up 2.02 per cent of Azerbaijan's total exports, while English imports made up 12.5 per cent of all imports into Azerbaijan. 

With these current growth rates, both sides are committed to developing economic relations even further. Days ago British prime ministerial trade envoy and House of Lords memberRichard Spring, Baron Risby, made an official visit to Baku. At a meeting with Azerbaijani President Ilham Aliyev the two expressed their satisfaction with the level of bilateral ties between Azerbaijan and Great Britain, stressing that these ties are sure to expand in the future. 

Lord Richard Spring took part in a forum on the development of cooperation between Azerbaijan and Great Britain. As the Azerbaijani ambassador to Great Britain Tahir Tagizada stated at the forum, great opportunities lay not only in the petroleum sector, but also in other areas of the economy. Lord Springalso noted that more than 300 British companies are represented in various branches of the Azerbaijani economy. Taking into account the high level of trade between the two countries reached this year, it was proposed that a joint commission for the expansion of mutual economic ties be set up. 

As we see, Azerbaijan is gradually realizing its export potential, confidently including the non-petroleum-sectors of its economy while developing business relations with European business circles.