Ankara and Azerbaijan to Deepen Economic Ties
The Ankara City Council will cooperate with the Azerbaijani Embassy in Türkiye to enhance bilateral relations. The collaboration is intended to strengthen cultural, economic, and social exchanges between the two capitals.
- The bilateral trade volume reached nearly $8 billion recently, with both nations aiming for a medium-term target of $15 billion. This goal is supported by the Preferential Trade Agreement, which came into force on March 1, 2021, eliminating tariffs on 15 product categories to facilitate freer trade. - Investment flows are substantial and reciprocal, with Azerbaijani investments in Turkey reaching $21 billion and Turkish investments in Azerbaijan hitting $18 billion. A key player is Azerbaijan's state oil company, SOCAR, which has invested over $18.5 billion in Turkey over 17 years and plans an additional $7 billion for new petrochemical facilities. - Energy infrastructure forms the bedrock of the economic partnership, highlighted by the Baku-Tbilisi-Ceyhan (BTC) oil pipeline and the Southern Gas Corridor for natural gas. The Trans-Anatolian Natural Gas Pipeline (TANAP), a core component of the corridor, is crucial for the energy security of both Turkey and Europe. - The relationship was elevated to a strategic alliance with the Shusha Declaration, signed on June 15, 2021. This agreement solidified cooperation across military, economic, and trade sectors, including measures to create mechanisms for the free movement of goods. - Turkish companies are central to the reconstruction of the Karabakh region, with contracts valued at over $5 billion. These projects span major infrastructure, including highways, industrial parks, and agricultural enterprises like the $100 million "Dost Agropark" agropark. - A new 110-point action plan signed in late 2025 aims to further integrate the two economies. Key initiatives include exploring a full Free Trade Agreement, creating joint industrial training centers, and enhancing cooperation in public procurement, banking, and tourism. - Strategic transportation projects like the Zangezur and Middle Corridors are expected to significantly boost trade by improving connectivity. These routes aim to provide Turkey with faster access to Central Asia and enhance the role of both nations as key transit hubs in global trade.
