Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

There are also opportunities for leather production and processing
in Azerbaijan as livestock-breeding has been growing rapidly for
the last few years.
Markets for Azerbaijan’s textiles, in addition to the local market,
include Russia, Central Asia and Iran. No export duty is payable on
such products. Textile products exported to the EU are free of
quotas and permits, and only the import customs duty is payable.
Products of Azerbaijan origin attract import duties significantly
lower than those from other countries. Undoubted comparative
advantages of the textile industry in Azerbaijan are:
• cheap labour and low production costs;
• strong historical traditions in weaving;
• local raw materials;
• favorable location;
• direct access to central asia and the caspian sea region;
• proximity to large potential markets;
• the opportunity to locate production in small and middle-sized
towns of the country;
• opportunities arising from privatization of state owned textile
plants.
Transport & logistics
Azerbaijan has a relatively developed transport infrastructure. It
includes about 22,000 km of roads, over 2,000 km of railroads, and
3 international airports, including the largest one in the region, as
well as several regional airports. It also has the largest Caspian
port. The challenges for Azerbaijan include both upgrading of
existing infrastructure, some of which was poorly maintained in
1990s, and construction of new infrastructure to reinforce its
status as a transit point for goods from Central Asia to Europe.
SECTORS REVIEW
Total goods transported (1995-2006)
Years 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Ths Tons 83382 92993 80180 92648 98445 110001 117313 128328 145596 167533 183093
Dynamics % -7.2 11.5 8.6 15.5 6.2 11.7 6.6 9.3 13.0 14.8 9.3
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