Latvia eager to create joint production in Azerbaijan Investment
Latvia’s textile manufacturers are keen to create joint production in Azerbaijan to further export products to the CIS countries.
Head of the Association of Textile Producers and Exporters of Azerbaijan, head of Gilan Textile Park Mehriban Akhundova told Trend that currently, negotiations are underway, adding that Latvia’s underwear manufacturers interest in it. "It is currently unprofitable for them to enter CIS markets because of existing customs duties and taxes for the European countries," she added.
Given that Azerbaijan has bilateral agreements on the free trade zone with the CIS countries, joint production of finished products in Azerbaijan will be exempt from customs duties to these countries, Akhundova believes.
“The negotiations have already been held with the Association of Latvian Lingerie Manufacturers and perhaps, the corresponding agreements will be achieved this autumn,” she said.
She went on to say that Azerbaijani textile products are in great demand abroad and “Made in Azerbaijan” brand is gaining popularity not only in Turkey, but also in the CIS and Baltic countries.
“Presently, there are domestic textile products in Azerbaijan’s trade houses in Latvia, Russia, Turkey, Ukraine, and Belarus. The products produced at the Baku Textile Factory and Gilan Textile Park are available at those trade houses,” she mentioned.
Latvia considers Azerbaijan an important partner in the field of transit and logistics in the South Caucasus region.
Priority areas of cooperation between the two countries include joint investment projects, effective use of international transportation corridors, education, agriculture, construction, tourism and health.
The trade turnover between the countries in the first half of the year amounted to $15.1 million, $1.1 of which fell to the share of the export of Azerbaijani products, according to the State Customs Committee of Azerbaijan.