Economic contacts between Azerbaijan and the European Union

After regaining independence іп the early 1990s, the Republic of Azerbaijan signed many international agreements. It also estabHshed relations with the European Union. Economic contacts between the partners were revived by the partnership and cooperation agreement's entry into force іп 1999. It assumed political dialogue, assistance іп building democracy, cooperation іп the sphere of economy and investment. In terms of trade іп goods and services, the country have granted each other most-favored-nation clauses іп the collection of customs duties and charges, transit clearance, composition and transhipment of goods, payment transfers for purchased goods and services. This has led to increased trade between the European Uninon and Azerbaijan. The most important trade partners of Azerbaijan in the years 2000-2017 were the following members of the European Union: Italy, France and Germany. The exports were dominated by Germany, France, Italy, the United Kingdom and Spain. The opening of the oil and gas sector to foreign companies has contributed to a significant inflow of foreign direct investment. More than 80% of the incoming investment is in the oil sector and the main activities are focused the construction of new gas and oil pipelines. The leading investors in this group in the years 2000-2013 were the United Kingdom, the Netherlands, Germany, Italy, France and Cyprus.