İqtisadiyyat Nazirliyi

The legal framework of relations of the Republic of Azerbaijan with the European Union

• The Partnership and Cooperation Agreement (PCA) was signed on April 22, 1996 and came into force on July 1, 1999;
• The European Union-Azerbaijan Action Plan adopted on November 14, 2006;
• Memorandum of Understanding aimed at strategic partnership in the field on energy signed between EU and Azerbaijan on November 7, 2006;
• Framework Agreement signed between the Government of the Republic of Azerbaijan and the European Union's Commission on June 16, 2008;
• Eastern Partnership Declaration signed on May 17, 2009;
• "Joint Declaration" on the establishment of the Southern Gas Corridor signed on January 13, 2011;
• "Protocol of Intention" on the establishment of a working group on the Southern Gas Corridor signed on January 13, 2011;
• Memorandum of Understanding on National Indicative Program (NIP)for 2011-2013 within the framework of the EU's European Neighbourhood and Partnership Instrument signed between the Republic of Azerbaijan and European Commission on January 13, 2011;
• Memorandum of Understanding on Framework Document of Comprehensive Institution Building (CIB) Program signed between Azerbaijan Republic and EU on January 13, 2011 within the framework of Eastern Partnership;
• Visa Facilitation Agreement signed by between Azerbaijan Republic and European Union signed on November 29, 2013;
• The agreement on the readmission of persons residing without authorization between Azerbaijan Republic and European Union signed on February 28, 2014;
• Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part on the Framework Agreement of general principles for Azerbaijan's participation in European Union programmes signed between Azerbaijan Republic and European Union on June 14, 2014.

 

Partnership and Cooperation Agreement (PCA)

A legal basis of comprehensive relations between Azerbaijan and the European Union is "(PCA) Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part" signed in Luxembourg on April 22, 1996 that came into force on June 22, 1999. This agreement covers all possible, including political and economic spheres of cooperation between Azerbaijan and EU. The agreement ensures frameworks of all kinds of cooperation between Azerbaijan and EU, except military area. PCA was signed for 10 years period and its execution is extended for a period of one year each year as implementation period of the agreement ended in 2009.

 

The European Neighbourhood Policy (ENP)

The recommendation on attraction of South Caucasus countries of the European Commission to the ENP was adopted in the meeting of Council of the heads of European Union state and government in 2004. 5 years Action plan was signed by the minister of Foreign Affair of the Republic of Azerbaijan after acceptance of Azerbaijan to the ENP on November 14, 2006. 10 priority directions were determined in the Action Plan. 1) Peaceful solution of the Nagorno-Karabakh conflict, 2) Strengthening democracy, 3) Strengthening pre-eminence of law, protection of human rights and fundamental freedoms, 4)Improving business and investment climate, 5) Improving customs service, 6) Support to balanced and sustained economic development, 7) Further convergence of economic legislation and administrative practices, 8) Strengthening of EU-Azerbaijan energy and transport cooperation, 9) Enhancement of cooperation in the field of justice, freedom and security, including in the field of border management, 10) Strengthening regional cooperation.

 

Memorandum of Understanding aimed at strategic partnership in the field of energy between Azerbaijan and European Union

Memorandum of Understanding aimed at strategic partnership in the field of energy between Azerbaijan and European Union was signed by the President of the Republic of Azerbaijan on November 7, 2006. There are 4 areas of memorandum: 1) Harmonization of Azerbaijani legislation with the Community legislation, 2)Enhancing the safety and security of energy supplies from Azerbaijan and Caspian basin to the EU, 3) Issuing comprehensive energy demand management policy, 4)Technical Cooperation and the exchange of expertise, moreover renewable energy development.
The supervision of Memorandum of Understanding is carried out by the sub-committee on energy, transport and environmental issues.

 

Eastern Partnership Initiative

Eastern Partnership (EP) initiative nominated by Poland and Sweden aims to strengthen bilateral co-operation between EU and Azerbaijan, Georgia, Armenia, Ukraine, Belarus, Moldova and continue on multilateral direction within the framework of ENP. Within the framework of the EP new co-operation agreements on deep and comprehensive Free Trade Areas, the programs financed by EU, "mobility and security pacts", visa-free travel, accession to EU labour market, Adaptation to EU legislation and standards, cooperation in the field of relations among population were considered. The following platforms were established for carrying out discussions within the multilateral format of EP:
-Platform on democracy, good governance and stability (Platform 1);
-Platform on economic integration and adaptation to EU policies (Platform 2)
-Platform on energy security (Platform 3);
-Platform on the relations among people (Platform 4).
The Ministry of Economic Development takes part at the general meetings of Platform 2 and meetings of the panels on "Trade" and "Small and medium-sized enterprises" created under this platform.
Meetings are held within the framework of the platforms constantly.

 

Comprehensive Institution Building (CIB) Program

CIB program is designed for strengthening the capacity of main institutions for implementation of the Association agreement. It is intended to allocate 19 billion Euros for financing program over 2012-2013. The followings are CIB's directions:
-Pre-eminence of law, reforms in justice, freedom and security areas.
-Reforms on state governance and civil servant areas
-Reforms in trade area.
Memorandum of Understanding on CIB was signed on January 13 2011. Institutional Reforms Plan-1 (on trade), Institutional Reforms Plan-1 (on justice) and Institutional Reforms Plan-1 (on civil service) have been approved, and execution of the Program has started.
First meeting of the Leading Committee on Institutional Reforms Plan-1has been held on April 29 2015.

 

State Commission of Azerbaijan Republic on cooperation with European Union


New composition of the State Committee of Azerbaijan Republic on cooperation with European Union was approved by the Order No 2597 of the Republic of Azerbaijan dated 13 December 2012 on the amendments to the Order No 834 of the Republic of Azerbaijan dated 1 June 2005 on "Establishment of State Commission of Azerbaijan Republic on cooperation with European Union", and the minister of economy and industry of Azerbaijan Republic was appointed the head of the Commission. 4th meeting of the Commission was held on August 24 2013. "Actions Plan on the approximation of the legislation of Azerbaijan to EU legislation over 2013-2014" was approved at the meeting.
Several working groups operate within the Commission. One of the Working Groups operating within the Commission chaired by the minister of economy and industry of Azerbaijan Republic is the Working Group on Economic Issues. The function of the Working Group is focused on the execution of "Work Plan" designed on the basis of the economic issues of the Action plan approved in 2006 within framework of the European Neighbourhood Policy and "Actions Plan on the approximation of the legislation of Azerbaijan to EU legislation over 2010-2012".
The name of the Commission was changed as the State Committee of Azerbaijan Republic on cooperation with European Union under the Order No 1382 of the Republic of Azerbaijan dated 31 August 2015.

 

Cooperation on assistance between Azerbaijan and EU

Within the framework of the EU TACIS Program, the Emergency Assistance Program (EXAP), ECHO Humanitarian Assistance Program, Food Assistance Program, Food Security Program (FSP), Rehabilitation Program (REHAB), Emergency Humanitarian Assistance Program (EHA) humanitarian, technical and food assistance were provided to Azerbaijan over 1992-2006.

 

European Neighbourhood and Partnership Instrument (ENPI)

European Neighbourhood and Partnership Instrument (ENPI) have been applying since 2007. Assistance is indented in order to implement European Neighbourhood Policy within the framework of this instrument. Assistance instruments such as budget support, twinning, technical assistance, TAIEX, SIGMA are included to ENPI.
The assistances provided to Azerbaijan during the years mentioned in the National Indicative program signed for the purpose of determination of the priority cooperation areas between EU and Azerbaijan, including providing assistance to these areas within the framework of the ENPI for the years 2011-2013 will aimed at the following three areas
- Strengthening democratic structures and good governance;
- Regulating socio-economic reforms and sustainable development, trade and investment, legislation and supporting reforms;
- Supporting of Action Plan on the Partnership and Cooperation Agreement and the European Neighbourhood Policy, comprehensive institutional building, including the mobilization and security issues.

 

Budget support instrument

1.

Grant Program for “Support for rural development”

Beneficiary: Ministry of Economy and Industry: 2013–2016

 

Twinning Instrument


Currently, Azerbaijan is the leader in the region according to the number of twining projects. The project under the beneficiary of the Ministry of Economy and Industry was marked as a one of the four successful projects in 2010 and the project under the beneficiary of the Milli Majlis was one of the three successful projects in 2011 by the European Commission.
21 of the twinning projects had already ended, 7 of them under the execution, project plug are prepared for 14 projects.

 

The twinning projects under implementation

1.

Support to the State Agency on Control over Safety in Construction of the Ministry of Emergency Situations of the Republic of Azerbaijan in the field of transition to the EU construction standards

Beneficiary: The Ministry of Emergency Situations

Length: 2014–2016

2.

Support to the Ministry of Taxes of the Republic of Azerbaijan in building capacity for a sustainable development of its Human Resources

Beneficiary: the Ministry of Taxes:

Length: 2014-2016

3.

Support to the State Social Protection Fund on the introduction of funded element within the insurance–pension system, establishment of non–state pension funds and development of legal framework for regulating their activity

Beneficiary: The State Social Protection Fund
Length: 2014–2016

4.

Support to the Ministry of Labor and Social Protection of Population of the Republic of Azerbaijan for the Development of a System for Medico-Social Rehabilitation of People with Disabilities

Beneficiary: The Ministry of Labor and Social Protection of Population

Length: 2014–2016

5.

Support to the development of modern standardization system of Azerbaijan Republic

Beneficiary: The State Committee on Standardization, Metrology and patent

Length: 2013–2015

6.

Development of rendering social service in Azerbaijan

Beneficiary: The Ministry of Labor and Social Protection of Population

Length: 2015–2017

7.

Support to the Ministry of Education of the Republic of Azerbaijan for further adherence of the higher education system to the European Higher Education Area

Beneficiary: the Ministry of Education

Length: 2015–2017

 

TAIEX

20 TAIEX appeals were made in 2010. 12 of these appeals were on holding seminars in Azerbaijan, 6 of them for expert mission and 2 of them on training visits.
34 TAIEX appeals were made in 2011. 10 of these appeals were on holding seminars in Azerbaijan, 15 of them for expert mission and 9 of them on training visits.
39 TAIEX appeals were made in 2012. 12 of these appeals were on holding seminars in Azerbaijan, 16 of them for expert mission and 11 of them on training visits.
50 TAIEX appeals were submitted to the European Commission in 2013. 16 of these appeals were on holding seminars in Azerbaijan, 20 of them for expert mission and 14 of them on training visits.
21 TAIEX appeals were submitted to the European Commission in 2014. 6 of these appeals were on holding seminars in Azerbaijan, 6 of them for expert mission and 5 of them on training visits.
49 TAIEX appeals were submitted to the European Commission in 2015. 13 of these appeals were on holding seminars in Azerbaijan, 19 of them for expert mission and 17 of them on training visits.

 

SIGMA


In general, 15 SIGMA projects have been executed.

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