Abstract 

Georgia and Azerbaijan have close trade (and not only trade) relations. Azerbaijan is the largest export and import country for Georgia. Georgia is also  an important trade partner for Azerbaijan, but the role of Georgia in Azerbaijan’s foreign trade is relatively low.

The paper discusses the dynamics and trends of trade relations between the two countries and provides the conclusion that it is possible to further deepen the existing close trade ties. According to the National Statistics Office of Georgia, Azerbaijan has always been represented in the largest exporting countries of Georgia. According to the data of 2022, it is at the second position following China and accounts to 12% of the total export of Georgia, which is 1.2% percentage points lower compared to the corresponding indicator of China. Azerbaijan is the fourth-ranked country in terms of trade turnover following Turkey, Russia and China, and the sixth-ranked country in terms of imports following Turkey, Russia, China, the  US and Germany.

Azerbaijan is also an important import country for Georgia. It is among the top ten import countries of Georgia. According to the 2022 data of Geostat, import from Georgia to Azerbaijan amounted to USD 640.4 million, thus taking the sixth position (5th position in 2021), while its share in the total import of Georgia was 4.7%.

It should be noted that in recent years the highest trade turnover between Georgia and Azerbaijan was observed in 2013, 2022 and 2012. The year 2013 is also notable for the fact that in a positive trade balance was observed for the first time during 2010-2021 - Georgia's exports to Azerbaijan exceeded imports by USD 57 million.

Azerbaijan is the only country among the neighboring countries of Georgia (Turkey, Russia, Azerbaijan and Armenia), with which Georgia had a positive trade balance in 2022. Transport vehicles and their parts occupy the first place among Georgia's export goods in Azerbaijan.

Azerbaijan is not a member of the World Trade Organization. We believe that its membership in WTO will significantly contribute to further deepening of the trade relations between the countries and correct the imbalance in trade relations, as there are different taxation regimes for a number of goods.

Both countries are facing quite important challenges in terms of globalization. These countries of South Caucasus are actively trying to establish their places among the successful countries of the world. They organize various activities in this regard and try to engage in global integration processes.

The history of Georgia and Azerbaijan is closely interrelated. They started developing market economy about 30 years ago. They are actively engaged in the activities of international organizations and cooperate in various projects. Obviously, the relations do not include only the economic and trade areas. Although there are some issues which still need to be resolved, the most problematic in this regard is the determination of the official border, which has not been resolved as yet. The disagreement between Azerbaijan and Georgia on the section of the border where the Davit Gareji Monastery complex is located continues to this day, which can always have a negative impact on trade (and not only trade) relations between the parties.

Thus, Georgia has traditionally good neighborly relations with Azerbaijan. There are close trade relations between the parties, which will further deepen in the future.