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The 'dark' part of the road to Europe
What are the unresolved 10% issues of the Strategic Agreement draft?

"Why has the remaining 10% of the journey to Europe become impassable? The first article in the series.

For several years now, popular clothing stores named “Memi” have been operating in Baku and other major cities of Azerbaijan. Here, the prices are quite cheap compared to other stores, and there can be no complaint about the quality. Because it's European-made! This is what attracts customers to “Memi” stores. Who wouldn't want the goods they buy to be both cheap and of high quality. Now, it's difficult to find both in the Azerbaijani market, as the shops and markets are filled with not-so-cheap Chinese goods and Turkish textiles.

Why are European clothes cheap in Baku, which is listed high among the expensive capitals in the world, although not for it's living conditions? For several years, why doesn't “Memi”, which has gathered a considerable number of customers around it, seem to attract the interest of monopolists who quickly seize profitable areas in the market?"

There is a short answer to these two questions: these clothing stores sell second-hand goods. To put it more clearly, old clothes and shoes thrown away from the wardrobes of Europeans are bought in bulk by our people, who then bring them to Azerbaijan and establish a profitable business. The goods are cleaned, ironed, labeled, and presented to customers. Neither the sellers hide this fact, nor are the buyers unaware... The marketing is well-structured, skillfully leveraging people's trust in European quality. After all, Europe is unattainable for the majority in Azerbaijan, and the trouble of going there, of touring, is not just about having enough money...

European goods in Azerbaijan are not a rarity; there are plenty of expensive, luxurious stores and brands in the capital, each with their own clientele. These clients have the chance to set foot on the “old continent” once or twice a year, to breathe its air, to wander its stores. They are called the “middle class.”

There is also a class that, even though they own many of these stores in the capital, do not like what is sold there; they shop from European capitals, are regular customers of popular designers. Diplomatic passports, permanent Schengen visas, dual citizenship, hefty bank accounts, luxurious apartments, expensive resorts, entertainment venues, and much more...

Europe is perceived differently by these three social classes in Azerbaijan. For some, it's a dream; for others, a chance; and for yet another group, a permanent way of life. Of course, it's pointless to look for equality among these three classes, but at least the unattainability can be removed. It's sad that in the current era, people in a rich oil and gas country find solace in wearing clothes discarded by Europeans. There are no special skills that distinguish the people of the Baltic countries, Georgia, and Moldova, who have stepped out of the Soviet Union in lockstep, from Azerbaijanis. Therefore, the problem is not with the people, but with the approach of political elites who have a different attitude towards Europe. The groups living at the pinnacle of European luxury disdain the simple, poor compatriots' easy access to the 'old continent.' They even badmouth Europe to them at every opportunity on air. Of course, Europe is not sacred; there is much to criticize, such as the biased attitude of some politicians and organizations against Azerbaijan's internationally protected interests in the Nagorno-Karabakh conflict...

So, what do relations with the European Union entail for Azerbaijan, what stage is the integration process at, and what does the future hold?

Establishment and development of relations:

Azerbaijan's European dream emerged in the early years of independence. The Partnership and Cooperation Agreement (PCA) signed between Azerbaijan and the European Union (EU) in 1996 came into force in 1999."

The Agreement, signed for a duration of 10 years, encompassed cooperation in political dialogue, trade, investment, legislation, science, and culture. Since 2009, its execution has been automatically extended for one year annually until a new agreement is signed.

In 1998, the EU appointed a special envoy for Azerbaijan, and in July 2003, a special representative for the South Caucasus was appointed, while in 2000, Azerbaijan established its Representation to the EU.

In 2004, Azerbaijan joined the European Neighbourhood Policy, and in 2009, it became part of the Eastern Partnership program, a multilateral cooperation format in the Eastern direction.

Under the European Neighbourhood Policy program, Azerbaijan has had the opportunity to implement many of its economic, political, legal, and administrative reforms, obtaining financial and technical support from the EU for these purposes.

A Memorandum of Understanding on strategic partnership in the energy sector between the Republic of Azerbaijan and the European Union was signed on November 7, 2006, in Brussels. The parties have emphasized the importance of ensuring the sovereignty, territorial integrity, and inviolability of internationally recognized borders of the countries in the region, particularly in terms of eliminating threats and risks to strengthen European energy security."

 

The document states that cooperation will be implemented in four areas:

  1. Harmonization of national legislation in the energy sector with EU legislation;
  2. Strengthening the physical and technical security of energy supply and transit systems from Azerbaijan and the Caspian Sea basin;
  3. Preparation of a comprehensive management policy for energy demand related to energy conservation and climate change objectives;
  4. Technical cooperation and exchange of experience.
The agreements on the simplification of visas and the readmission of persons residing without permission between Azerbaijan and the EU were signed on November 29, 2013, and February 28, 2014, respectively. Both agreements came into force on September 1, 2014.

A Joint Declaration on Partnership in Migration was signed in Brussels on December 5, 2013. The main purpose of the Declaration is to facilitate the movement of people between Azerbaijan and the EU, better manage migration flows in accordance with relevant international standards, and expand cooperation in the field of combating illegal migration.

At the 5th Eastern Partnership Summit in Brussels in November 2017, a Joint Declaration was adopted in which Azerbaijan's territorial integrity and sovereignty were once again supported. Another clause of the Joint Declaration emphasized the resolution of all conflicts in the territories of the Eastern Partnership countries based on the norms and principles of international law.

In July 2018, at the headquarters of the European Union in Brussels, a ceremony for the initialing of the "Partnership Priorities" document between the Republic of Azerbaijan and the European Union took place with the participation of Azerbaijani President Ilham Aliyev and the President of the European Council, Donald Tusk.

As noted in the first clause of the document, partnership priorities were agreed upon by Azerbaijan and the European Union based on mutual interests and shared values, with the aim of further strengthening cooperation. Additionally, the first clause expresses both parties' commitment to supporting the territorial integrity, independence, and sovereignty of countries, as well as the inviolability of international borders.

Following the revision of the European Neighbourhood Policy, negotiations were held on a new Partnership Priorities document that would replace the EU-Azerbaijan Action Plan. A ceremony marking the completion of negotiations on this document, with the participation of President Ilham Aliyev, was held in Brussels on July 11, 2018. The document was adopted on September 28, 2018, following a recommendation by the EU-Azerbaijan Cooperation Council and came into effect on the same date.

The Partnership Priorities encompass cooperation in the following areas:

  1. Strengthening institutions and good governance;
  2. Economic development and market opportunities;
  3. Connectivity, energy efficiency, environment, and climate action;
  4. Migration and people-to-people contacts;
  5. Currently, efforts are being made to extend the duration of the document until 2027.
The "Southern Gas Corridor" is among the main priorities for the delivery of natural gas to European markets. A Joint Declaration on the Southern Gas Corridor was signed in Baku on January 13, 2011. In the document, Azerbaijan is recognized as a key contributor to the Southern Gas Corridor and its realization. The parties identify the delivery of existing natural gas resources from "Shah Deniz-2" and other Azerbaijani fields to European markets as a shared strategic goal.

On May 29, 2018, the official opening ceremony of the Southern Gas Corridor was held at the Sangachal terminal. This event marked a new phase in Azerbaijan's energy strategy. The Southern Gas Corridor, a 3,500-kilometer pipeline system, transports gas extracted from the second phase of the "Shah Deniz" field in the Azerbaijani sector of the Caspian Sea. The gas is transported through Georgia to Turkey and then to Europe. This corridor comprises three pipelines: the South Caucasus Pipeline (SCP), the Trans-Anatolian Natural Gas Pipeline (TANAP), and the Trans-Adriatic Pipeline (TAP). The final part of the Southern Gas Corridor, TAP, was completed in December 2020. The project creates significant opportunities for delivering Azerbaijani gas to major European markets such as Italy, Germany, France, the United Kingdom, Switzerland, and Austria. Participants in the implementation of the Southern Gas Corridor include Albania, Azerbaijan, Bulgaria, Georgia, Italy, Turkey, and Greece. Additionally, three Balkan countries — Bosnia and Herzegovina, Montenegro, and Croatia — intend to join the project in the next phase.

Official statements issued from Baku regarding the fate of the Agreement:

On April 4, 2019, Foreign Minister Elmar Mammadyarov stated during the 16th meeting of the EU-Azerbaijan Cooperation Council in Brussels that negotiations on a new agreement between Azerbaijan and the EU could be finalized soon: "We have managed to synchronize all three parts of the agreement. Now, 90 percent of the issues have been agreed upon."

On June 18, 2020, during the video conference summit of the "Eastern Partnership" countries, the cooperation between Baku and Brussels was discussed again.

President Ilham Aliyev, in his speech, stated that Azerbaijan is an active partner country of the "Eastern Partnership." According to the Head of State, cooperation with the European Union is one of the main priorities of Azerbaijan's foreign policy. "We have close cooperation with many member states of the European Union. Azerbaijan has signed documents on strategic partnership with 9 members of the European Union. We are in the final stage of negotiations on a new partnership agreement with the European Union. 90 percent of the text has already been agreed upon," said President Aliyev.

The President recalled that two years earlier, the "Partnership Priorities" document between Azerbaijan and the European Union had been initialed in Brussels, highlighting both parties' commitment to the principles of independence, sovereignty, territorial integrity, and the inviolability of internationally recognized borders.

In an interview with Azerbaijan Television on July 23, 2021, President Ilham Aliyev stated:

"90 percent of the Agreement between the European Union and Azerbaijan has been agreed upon. The remaining issues, I believe, can be signed in the coming days, or maybe in the coming months, if the principles of realism prevail and our concerns about some issues are taken into account."

Foreign Minister Jeyhun Bayramov said: "In 2022, Azerbaijan plans to conclude negotiations with the European Union and sign an agreement on strategic partnership. Ten percent of the Agreement remains unagreed, pertaining to 'trade-economic issues.' This Agreement mainly consists of four sections. It covers political security, trade, economic, sectoral institutional development, and other issues. There was a certain slowdown in the negotiation process due to pandemic-related restrictions. However, since June of last year, intensive negotiations have been ongoing between the European Union and Azerbaijan regarding the Agreement. There is a decrease in the number of unresolved issues. We believe that it will be possible to finalize this agreement in 2022."

Everything so far is positive. The government does not see any problems in cooperation, even speaks enthusiastically about this topic. The European Union, as they say, is eager to expand and gain a partner like Azerbaijan. 90 percent of the Strategic Agreement has been agreed upon. So, what is that remaining 10 percent? What are the principal issues that have been challenging to reach consensus on for years?

All questions have answers. And not just 90 percent, but 100 percent answers.

In the next article...

Elchin Rustamov