Development of foreign trade and customs relations in the republic of Azerbaijan

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Development of foreign trade and customs relations in the republic of Azerbaijan

R.A. Guliyev

Развитие внешнеторговых и таможенных отношений Азербайджанской Республики

Гулиев Рофат Али оглы

При выходе из состава СССР Азербайджан, как и все союзные республики, столкнулся с проблемой организации самостоятельной системы внешнеэкономических связей с зарубежными странами. Важнейшим условием интеграции Азербайджана в мировую экономику являлось проведение гибкой политики в выборе стран -- торговых партнеров, усиление взаимодействия с региональными союзами. В итоге, Азербайджан занял достойное место во многих международных организациях -- ООН, Организации Экономического Сотрудничества, Всемирной Таможенной Организации и т. д. Перевод экономики Азербайджана на рыночные отношения обусловил необходимость гибкой экономической политики и возрождения таможенной структуры как важного инструмента государственного регулирования внешнеэкономической деятельности.

Со многими таможенными органами стран СНГ, Европы, Азии, Америки и Африки были выстроены тесные двусторонние отношения в области таможенного контроля.

Ключевые слова: внешнеэкономические связи, двусторонние соглашения, таможенная политика, Давос, СНГ, ВТО.

Azerbaijan, like all the union republics, when leaving the USSR, faced the problem of organizing an independent system of foreign economic relations with foreign countries. The most important condition for integration of Azerbaijan into the world economy was a flexible policy in the choice of countries -- trading partners, strengthening of cooperation with regional unions. As a result, Azerbaijan took a worthy place in many international organizations -- the UN, the Organization for Economic Cooperation, the World Customs Organization, etc. The transition of the Azerbaijani economy to market relations necessitated a flexible economic policy and the revival of the customs structure as an important tool for state regulation of foreign economic activity. Close bilateral relations have been established in the field of customs control with many customs authorities of the CIS countries, Europe, Asia, America and Africa.

Keywords: foreign economic relations, bilateral agreements, customs policy, Davos, CIS, WTO.

foreign trade azerbaijan

Introduction

The role of economic factor [Zonova, 2005. Pp. 54--62.] in the history of diplomacy, and economic dimension of diplomacy in the implementation of the independent and efficient foreign economic policy of each state has been shown in the scientific literature [Degtjarev: 2010]. We trace a historical example of this in the experience Starting the customs policy of Russia in northern Azerbaijan (19th -- early 20th centuries) [Guliyev, 2014. Pp. 75--79], of foreign economic and trade relations of the Azerbaijan Democratic Republic (1918--1920), which was in power for only 23 months [Guliyev, 2008. Pp. 69--77], and the Azerbaijan SSR with the Ottoman state, Iran, England, the United States, France, Italy, Georgia, Central Asia (1920--1991) [Guliyev, 2016, pp. 134--143]. After the loss of independence of the ADR in 1920, all foreign economic relations were the monopoly of the USSR. All economic relations of Azerbaijan conditionally took place within the USSR [Guliev. Pp. 168-174]. Economic diplomacy is implemented in a more advanced and balanced way in the experience of the Republic of Azerbaijan [Emir-Iljasova, 2006]. The main goal is to show the role of economic diplomacy in the effective establishment of Azerbaijan's foreign trade relations during the years of independence.

Discussion

As it is known, after the collapse of the USSR, the presence of flaws and errors in the establishment of economic relations in the post-Soviet republics increased social tension, caused a decrease in people's living standards, and at the same time limited economic and financial opportunities. Necessary goods were not bought in barter operations of strategic goods and the needs of the population were not met. In 1991, the turnover in the economy of Azerbaijan amounted to only 12.2 million rubles (at domestic prices), 744 thousand rubles of which were exports. Azerbaijan's foreign economic relations at that time were 16.7 times less than in Soviet times Azerbajcan Respublikasy Djovlst Arhivinin Baki filiali [Baku branch of the State Archive of the Republic of Azerbaijan]. Folder of documents of the Azerbaijan Customs Administration for 1992, F. 126, desc. 2, case 70, p. 41..

In 1991--1993, the economy of the Republic of Azerbaijan was in the position of an exporter of cheap raw materials in the foreign market. For the non-reversibility of the national currency, some foreign participants of economic activity were making deals that harmed the economic interests of the state. For the first time, such deals were conducted on the sale of oil and cotton raw materials. The main place among the imported products was occupied by foodstuffs and medicines. The main export was oil products, cotton, ferrous and non-ferrous metals and other strategic products [Ahmedov, Eyva- zov, 2003. Pp. 40--44].

Ensuring the economic security of the Republic of Azerbaijan, preparing a strategy for economic development, and implementing strategic goals such as strengthening state control over import-export operations depended, first of all, on the balance of relations with international economic power centers. The necessary prerequisites determining the ways of development were the following:

Existence of political, economic and financial stability within the country;

Existence of laws guaranteeing the protection of foreign investments and the creation of a mechanism for the operation of these laws;

Creation of banks that meet international legal norms;

Bringing the most modern and advanced technology to the country;

Restoration and improvement of transport infrastructure (automobile, railway and shipping);

Reduction of taxes imposed on exported goods, and the complete exemption of some of the imported goods from taxes;

Stopping the sale of strategic products by individual organizations;

Efficient use of foreign currency, centralization of export of goods that bring foreign currency Azerbajcan Respublikasinda ticaretin tenzimlenmesi sa- hesinde elave tedbirler haqqinda Azerbajcan Respublikasi Prezidentinin 23 ijul 1999-cu il tarixli Fermani [Decree of the President of the Republic of Azerbaijan dated July 23, 1999 On additional measures in the field of trade regulation in the Republic of Azerbaijan [«Azerbaijan» newspaper], 1999, July 24, p. 1..

In the development of economic diplomatic relations, the assessment of the financial and economic situation of the states by international economic organizations and the provision of assistance and recommendations when necessary are of great political, economic and practical importance. They held discussions at the Confederation of Great Britain Industrialists on February 22, 1994, at international conferences on September 13, 1994 in Baku on the topic of “The strategy of entrepreneurship and reconstruction of economy” and at the Adam Smith Institute on the topic of “Investment opportunities in Azerbaijan” on November 29, 1995, in London. In his speeches, the President of the Republic Heydar Aliyev, speaking about the tasks facing the Azerbaijan state in the field of integration of the country's economy into the world economic system, announced his intention to create a wide space for entrepreneurship, initiative and freedom in the economy [Guliyev, 2015].

The “Contract of the Century” signed on September 20, 1994 was an important achievement of Azerbaij an in the field of economic diplomacy. Due to it, the Baku-Tbilisi-Ceyhan (BTC), Baku-Sup- sa, Baku-Novorossiysk oil pipelines, which are of great economic importance for the region, were restored. These pipelines were of great significance in the establishment of economic and trade relations of the Republic of Azerbaijan. They stimulated the direction of a significant part of the revenues from the oil sector to the non-oil sector, the development of economic projects for the creation of large-scale industrial areas, and the prospective development of the agricultural sector.

The USA, Italy, Israel, Germany, Great Britain, Turkey, Russia, China, Romania, Poland, Hungary, the Netherlands, Kazakhstan, Ukraine, Georgia, South Korea, Japan, Iran and Moldova were among the main partners of the Republic of Azerbaijan in economic diplomacy. Azerbaijan also tried to strengthen cooperation within the Commonwealth of Independent States (CIS), to develop relations with these countries on a bilateral basis in economic, political, legal and humanitarian fields, and to establish a free trade regime.

Investigations show that the identification of strategic partners is of great importance in the effective establishment of foreign economic relations of the Republic of Azerbaijan. One of such strategic partners is the neighboring Russian Federation. Economic relations of Azerbaijan with Russia have a rather long history and cover almost all import and export areas of the republic. In foreign trade, both countries are part of a single economic space; these countries are united by common technology and production cooperation. Given the strong influence of Russia in the South Caucasus, Azerbaijan's foreign policy pays special attention to the northern direction, which is of great importance. Azerbaijan, which is making efforts to reduce tension and create a good neighborly climate in the region, is a supporter of further improvement of mutually beneficial cooperation with Russia in the economic, political, social and cultural spheres. As a result of such a constructive position, we can talk about the positive trends that appear here, first of all, about the “warming” of relations, expressed in mutual visits of the presidents, about the agreement between Azerbaijan and Russia on the division of the Caspian Sea into national sectors, as well as about cooperation, which covers various areas, including ensuring the security of both parties. Since 1996, the Azerbaijan-Russia Intergovernmental Standing Commission on economic cooperation has been operating. The commission is engaged in studying the problems of economic cooperation between the two countries, preparing a package of proposals and projects necessary for the development of economic relations. In 2003 alone, the volume of trade turnover between the two countries was 532.9 million US dollars, which was 1.5 times more than in 2000 [Aliyev, 2006. Pp. 40--45]. Close economic and trade relations were established with Moscow, St. Petersburg, Republics of Tatarstan and Dagestan, Sverdlovsk, Saratov and Astrakhan regions of the Russian Federation. Draft agreements on the expansion of trade and economic relations between the Republic of Azerbaijan and the government of Bashkortostan, St. Petersburg, Novosibirsk, Kemerovo, Tomsk and Voronezh regional administrations were prepared.

The gradual expansion of trade and economic relations between the Republic of Azerbaijan and the CIS countries is considered important for both sides. In order to develop these relations, high-level official meetings were held with state and government heads, relevant ministries, and interstate economic commissions. In total, from 1991 to 2004, 141 documents related to foreign economic relations were signed between the Republic of Azerbaijan and the CIS member states.

In trade relations with the CIS countries, 90 percent of the imported products of Azerbaijan fell to the Russian Federation, Ukraine and Kazakhstan, and 92 percent of the exported products fell to the Russian Federation, Georgia and Ukraine. Although Georgia was the second partner country in terms of the volume of goods and products exported to the CIS countries, the share of this country was 33.4 percent in exports and only 1.2 percent in imports1.

Azerbaijan's relations with the countries of Western Europe are of particular importance. The development of these relations has a positive impact on the implementation of fundamental reforms in the public and private sectors, as well as the creation of a modern market economy and the attraction of foreign investment. The cooperation of the Republic of Azerbaijan in the western direction included the countries of the European Union (EU) and the Organization of the Black Sea Economic Cooperation (BSEC).

The foundation of Azerbaijan's relations with the European Union has been laid since the establishment of the organization. The Partnership and Cooperation Agreement, which constitutes the legal framework for relations, was signed in 1996. On April 22, 1996, an agreement on partnership and cooperation signed between the European Union and its member states and the Republic of Azerbaijan in the city of Luxembourg legally established these relations. In 2014, the parties signed a Protocol on Azerbaijan's participation in EU programs and agencies (entered into force on July 6, 2016). Currently, negotiations are underway between the EU and Azerbaijan on a Strategic Partnership Agreement. This agreement included both political and trade areas of cooperation between Azerbaijan and the EU. Within the framework of the EU's TASIS Program, Emergency Aid Program, ECNO Humanitarian Organization, FEO- GA Food Aid Program, Food Security Program, and Recovery Program, funds have been allocated for the implementation of various projects in Azerbaijan.

On July 29, 1997, Heydar Aliyev's meeting with the members of the American-Azerbaijani Chamber of Commerce and the Organization of Understanding business council and the employees of the US Ministry of Commerce at the bank of “J.P. Morgan” was very useful. The conference titled “Azerbaijan in the 21st century. Trade and investment opportunities” and held in Washington on May 21--22 paved way to receive detailed information on raw materials resources, tax rates, customs tariffs, transport infrastructure, etc.

The International conference on the restoration of the historical Silk Road held in Baku on September 7--8, 1998, with the participation of representatives from 32 countries and 13 international organizations, and the signed documents were of an important political and economic significance. In the decree of the Republic President “On measures related to the implementation of the decisions of the international Baku conference on the restoration of the historical “Silk Road” dated October 26, 1998, defined the tasks facing the relevant executive structures for the implementation of the multilateral basic agreement signed within the framework of the TRASECA program Aliyev Heydar MjusteqiUiyimiz ebedidir: chihi^lar, nitgler, beyanatlar, mektublar, mjusahibeler [Our independence is eternal: speeches, speeches, statements, letters, reports]. Vol. 18. Baky: Azerneshr, 2006. 552 p..

The Republic of Azerbaijan joined the International Monetary Fund (1992), the World Bank (1992), the International Development Association (1995), and the International Finance Corporation (1995). Effective cooperation with international financial institutions and the implementation of reforms, infrastructure projects and other necessary measures based on a correct, well-thought-out strategy facilitated the continuous development of the country and the improvement of the living standards of the population. In regards of the development of Azerbaijan's economic relations, we can mention the UN Development Program (UNDP), the UN Industrial and Development Organization (UNIDO) and the United Nations Special Program for the Economies of Central Asia (SPECA). In November 2002, the Republic of Azerbaijan became a member of SPECA. The main goal of this program was to support the integration of the region countries and to finance the priority issues for their active participation in the world economy. Due to the joint cooperation of our republic with the International Monetary Fund in the field of improving economic reforms, 6 programs were implemented. The Oil Fund and the Accounting Chamber were established; the transparency of the monetary policy was ensured. According to information of December 2003, technical and economic justification of 19 socio-economic development projects was carried out at the expense of 98 million US dollars allocated to Azerbaijan by the Islamic Development Bank [Memmedov: 2008]. It is necessary to note the relationship with Pakistan, which has reached the level of partnership, as well as with India -- to the level of cooperation. Azerbaijan has a positive attitude towards the constant development of mutually beneficial relations with the countries of the Near and Middle East, considering the trade, technological and financial opportunities of the countries of this region to be very beneficial.

One of the notable points in foreign economic relations of Azerbaijan was the expansion of trade cooperation. As a result of the foreign economic policy justified in terms of strategic goals, Azerbaijan became a member of dozens of international and regional economic organizations in a short period. Preparations were being made for the Republic of Azerbaijan to become a full member of the World Trade Organization (WTO). The strategic directions of changes and reforms in the field of foreign trade by the countries admitted to the membership of that organization required the liberalization of trade, the elimination of unreasonable restrictions and the replacement of the administrative management system with economic methods. The government of the Republic prepared a memorandum on the foreign trade regime and submitted it to the WTO. All legislative acts related to foreign economic activity of the Republic were included in this document. As a result, in July 1998, the Republic of Azerbaijan received observer status in the WTO [Guliyev, 2013. Pp. 9--13].

The participation of the Davos Forum in determining the strategic directions of the foreign economic relations of the Republic of Azerbaijan was of a political and economic significance. Due to their relevance and scale the issues discussed here were very important for Azerbaijan. The active participation of the President of the Republic Heydar Aliyev in the Forum held on January 27-30, 2000 was a bright example of economic diplomacy. In his meetings with the heads of the world's leading countries and transnational companies, the investment opportunities of Azerbaijan's economy, new forms and methods of cooperation in this field were widely discussed Davos: qlobal iqtisadiyyatin ufuqleri. Azerbaycan Respublikasmm Prezidenti Heydar Aliyevin Davos Dunya Iqtisadi Forumu ile elaqedar igguzar seferi [Davos: horizons of the global economy. The business trip of the President of the Republic of Azerbaijan Heydar Aliyev in connection with the Davos World Economic Forum]. January 27--30, 2000. Baku: Secretariat of the President of the Republic of Azerbaijan, 2000. 85 p..

Already in 2003, 77.3 percent of foreign trade turnover of Azerbaijan was with distant foreign countries, and 22.7 percent was with CIS countries. Italy (27.2 percent), Russia (7 percent), France (5.8 percent), Turkey (5.6 percent), England (3.8 percent), the United States (3.7 percent) and Germany (2.9 percent) took the leading place in foreign trade relations of Azerbaijan. Iran, Israel, Switzerland, Georgia, Kazakhstan and Turkmenistan also had a high share in import-export operations. 65.7 percent of the products exported from Azerbaijan and 32 percent of the imports fell to the countries of the European Union. As a whole, the Republic of Azerbaijan has established trade relations with 124 countries, while in 1996 the number of these countries was only 55 [Qardashchanova, 2004. P. 18].

The 1996--2003 years became a qualitatively new stage in Azerbaijani-Turkish economic cooperation. If in the first years chemical products, metal and cotton was the main part of exports in our foreign trade with Turkey, in 1996--2003 70 percent of Azerbaijan's exports to Turkey were oil products. Along with trade relations, mutual investment and scientific- technical cooperation were also being strengthened [Hesenov, 2002. Pp. 40--41]. The role of integration in establishing economic diplomatic relations is one of the undeniable factors. During 1995--2003 investments were made in the amount of 16640.2 million US dollars. 12,393 million US dollars of these funds, or 74.5 percent, was a successful result of economic diplomacy, or rather, it took place on the basis of agreements concluded with foreign countries. In 2001--2003 foreign investment in the amount of 6.600 million US dollars was made in the country's economy, which was equal to 53.3 percent of the total foreign investments attracted to the economy in 1995--2003. During 1995--2003 8642.2 million US dollars was allocated to the oil industry alone. Foreign investments in the amount of US dollars were made. As a result of the creation of a favorable environment for foreign investors, the interest of developed countries and large international companies in the economy of Azerbaijan has increased significantly [Gencijev, 2005. P. 5]. As a result of the establishment of foreign economic relations based on a well-founded strategy, Azerbaijan became the country with the largest foreign capital investment in the CIS. This has been confirmed in the reports of international organizations on Azerbaijan. In other words, the approval of the favorable investment environment in Azerbaijan by international organizations made it possible for more foreign capital flow into our country. In 2003 the Republic of Azerbaijan conducted trade operations with 124 countries. According to customs statistics, the volume of foreign trade turnover increased to the level of 5218.1 million US dollars, including import 2626.4 million dollars (50.3 percent), export 2591.7 million dollars (49.7 percent). 77.3 percent of foreign trade relations, including 67.6 percent of imports and 87.1 percent of exports, were conducted with distant foreign countries. The results of 2003 confirmed that Italy had (27.2 percent) share, Russia (10.2 percent), France (7.0 percent), Turkey (5.8 percent), United Kingdom (5.6 percent), USA (3.8 percent), Turkmenistan (3.7 percent), Germany (3.4 percent) and Kazakhstan (2.9 percent). Corresponding projects were implemented to further develop customs relations with countries with intensive foreign trade relations (2003) Azerbajcan Respublikasy Djovlst Gjomruk Komitssinin Cari Archivi, kollegiya iclaslarinin materiallary [Current archive of the State Customs Committee of the Republic of Azerbaijan, materials of the board meetings].. According to the indicators of 2021, among the main foreign trade partners of Azerbaijan, Italy ranked 1st (28.5 percent), Turkey -- 2nd (13.7 percent), Russia -- 3rd (8.8 percent), China -- 4th (4 percent), Germany 5th place (3.8 percent), Israel 6th place (2.7 percent), Georgia 8 th (2.3 percent), USA 15th (1.5 percent), France 23rd (7.0 percent) The foreign trade of Azerbaijan / Statistical yearbook /.

Cooperation in the field of customs has an exceptional role in the regulation of economic and diplomatic relations. In accordance with this policy, the customs in the Republic of Azerbaijan was further improved, and measures were taken to integrate the national customs system into the international customs system. The customs policy is specifically aimed at solving two economic issues: 1) increasing customs revenues as much as possible and 2) forming a positive foreign trade balance of the country. The priority directions for the development of the customs work in the Republic of Azerbaijan are the prevention of violations of the customs legislation, the prevention of smuggling cases together with other law enforcement agencies, the control of the technology of customs payments and their entry into the budget and the strengthening of currency control, the application of modern technologies in customs control [Guliyev, Mahmudov, 2007].

The experience gathered in the field of customs work in recent years shows that the increase in the volume of import-export transactions and the strengthening of their integration into the international economic system directly depend on the improvement of the legislation in the field of customs work. The improving and developing the national customs legislation, as well as applying international standards in the field of customs work, is being continued consistently. With the implementation of the “State Program on the Development of the Customs System of the Republic of Azerbaijan in 2007-- 2011”, approved by the Decree of the President of the Republic of Azerbaijan dated February 1, 2007, the role of the customs system in ensuring the socio-economic development and economic security of the country has increasedGeneral leadership for publication of yearbook: Tahir Budagov. Baku, Narinci Neshriyyat Evi MMC, 2022. P. 19..

In recent years they put into operation customs posts of the Baku General Customs Department, border crossing points of the Tovuz Customs Department, Astara, Balakan customs offices, administrative building and posts of the Department for the Protection of Economic Interests of the Republic of Azerbaijan in the Caspian Sea, Sumgait General Customs Department, Regional Training Center and Cynological Center, Administrative building of the State Customs Committee, Energy Customs Department, Air Transport General Customs Department (2006-2007), Medical Service Department, Customs Hospital, Yevlakh Customs Department (2008), “Si- niq korpu (Broken Bridge)”, “Bilesuvar”, “Astara” customs passing posts, “Mazymchay” customs post (2010), the administrative buildings of the Motor Transport Customs Department, European Regional Baku Office for Strengthening the Potential of SCO (2011). In May 2012, the new administrative building of Nakhchivan City Customs Department was put into operation.

The analysis of statistical indicators shows that the amount of customs taxes and duties collected to the state budget through the system of customs tariff regulation has increased dynamically, the specific weight of customs payments in budget revenues has increased year by year. If in 1994 only 3479.8 thousand manats of customs payments were collected in the state budget, this indicator increased to 112330.6 thousand in 1998, 143921.3 thousand in 2000, 212246.9 thousand in 2003, 1141528.5 thousand in 2011, 3938242 thousand in 2020 “2020-ci ilin jekunlary, qarshyda duran vezifeler” mjovzusunda metbuat konfransy kecirilib [A press conference was held on “2020 results, upcoming tasks”]. URL: https://customs.gov.az/az/faydali/xeberler/4516 (date of access: 4/15/2022)..

Bilateral and multilateral agreements signed in the field of customs play an important role in coordination of interstate customs relations. Cooperation with regional organizations is divided into northern, eastern and western directions, and ensuring national interests in each direction are the main priorities determining these relations. International legal cooperation of the Republic in the field of customs affairs is developing mainly in 4 directions: 1) cooperation with international organizations, including the World Customs Organization (WCO); 2) cooperation with customs organizations of CIS member states; 3) cooperation within the Economic Cooperation Organization and 4) cooperation with the customs bodies of individual states on the basis of bilateral relations Azerbaycanin gjomrjuk chidmeti fealiyyetini jolkenin inkishaf strategiyasina uygun qurur [The customs service of Azerbaijan builds its activity according to the country's development strategy]. Azerbaycan [“Azerbaijan” newspaper], 2012, January 25, p. 3. International intergovernmental documents have been signed with more than 30 countries in order to expand bilateral cooperation in the field of customs of the country §sksrsliyev A.S., §sksrsliyeva Z.A. Gomruk i^inin ts^kili vs idars edilmssi. Baki: Iqtisad Universiteti ns§riyyati. 2018. 292 s. 1 S. 82. URL: http://anl.az/el/ Kitab/2016/Azf-287750.pdf (date of access: 4/15/2022).. Serious projects were implemented in the field of customs, in the direction of developing digital customs administration, organizing business processes, customs control, simplifying customs procedures and increasing transparency Aliyev, Aydin. Artan dinamika ile inkishaf eden Azerbajcan gjomrjuyju jolkemizin jumumi tereggisine hidmet edir [Azerbaijan customs, which is developing with increasing dynamics, serves the general progress of our country]. Chalg gezeti [«People's newspaper»], 2017, January 28, pp. 5--6.

A Protocol was signed between the State Customs Committee of the Azerbaijan Republic and the Federal Customs Service of the Russian Federation on the organization of the exchange of primary information on goods and means of transport moving across the state border, and the Agreement -- between the Government of the Republic of Azerbaijan and the Government of the Russian Federation on customs control of goods moving over power lines and pipelines.

As a whole, due to significant changes in the socio-economic life of the Republic and the increase in customs revenues, the country's budget opportunities expanded. In 2017 the customs service of Azerbaijan was re-elected as a member of the Finance Committee of the WCO [Piriyev, 2019. P. 3]. According to the Decree of the President of the Republic of Azerbaijan dated December 21, 2018 No. 427 on the approval of the “Regulations on obtaining the right of foreign trade participants to permanently use the “Green Corridor” pass system, suspension, cancellation and restoration of that right, and on February 1, 2019 the implementation of the “Green Corridor” pass system began [Zeynalova, 2020. Pp. 148--153]. The reforms carried out and the comprehensive measures implemented in the fiscal service of the customs service had a positive effect on the performance of the functions of the “Study-time” program for determining the time of pass through the customs. In order to facilitate international trade, the customs authorities carry out at the state border exit point veterinary, phytosanitary and other types of control of goods determined by the President of the Republic of Azerbaijan based on the “one window” principle as soon as possible. The State Customs Committee of the Republic of Azerbaijan was nominated to the WGT Political Commission by the Eastern Group of the European Region. The national customs service was also unanimously elected to the WTO Political Commission for 2021--2023.

Conclusion

The fundamental qualitative changes in international trade that have occurred in recent years have necessitated adaptation to the Azerbaijani economy and foreign trade ties, resulting in a slew of new standards and standard norms for international trade integration. As a result, universal laws are created for all countries around the world, including Azerbaijan, and the process of their operation and application is at the heart of the global economic system's growth [Dadashova, 2021. Pp. 20--21].

In such circumstances the proper organization of foreign trade relations within the national economic interests of Azerbaijan, ensuring the country's foreign trade in line with international trade standards should be considered one of the most important conditions. The Republic of Azerbaijan in its foreign policy began to pay special attention to relations with international financial, economic and customs organizations. Enough work has been done in this area over the past period.

Thus, the stages of formation of the economic diplomacy carried out by the independent Republic of Azerbaijan can be accessed in 4 main contexts:

1991--1993 -- the phase of economic crisis and “anarchy” in foreign trade relations;

1994--1995 -- the stage of preparation and changes for economic reforms;

1996--2000 -- the stage of implementation and stabilization of legal reforms in the field of foreign economic relations;

the stage of the rise of foreign economic and trade relations, which began in 2001--2003 and is being continued.

At the same time, this stage is determined by two main development trends: firstly, a significant increase in the country's export potential, and secondly, the strengthening of the system of measures aimed at regulating foreign trade and customs control.

In modern conditions a new approach is being formed in the foreign economic relations of the Azerbaijan state. Thus, the economic and legal environment of foreign economic activity, customs regulations are further improved based on the principles of world trade. Economic and trade interests are conformed to partner countries, and a mechanism for mutual guarantee of relations is created. Cooperation in the field of mutual trade, high technologies, digitalization, information technologies and cyber security, agriculture, renewable energy fields, as well as discussions of projects to be implemented in the direction of the restoration of territories freed from occupation, all these are the main priorities of the modern economic diplomacy of the Republic of Azerbaijan.

Naturally, customs diplomacy, which is an important component of economic diplomacy, plays an important role in the further development of international cooperation in the field of customs, in the process of preparing interstate bilateral and multilateral contracts and agreements in this field. Active economic diplomacy and customs cooperation will create conditions for increasing the export potential of the national economy in the near future.

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