Turkey Signals Push for Free Trade Agreement With Azerbaijan

Turkey is seeking to deepen its economic integration with Azerbaijan by moving toward a complete free trade agreement (FTA), Trade Minister Ömer Bolat announced in Baku. Speaking on the sidelines of the 2nd Turkey–Azerbaijan Investment Forum, Bolat said Ankara views expanded trade ties as a strategic priority and has already begun technical work with its counterpart.

The announcement underscores growing momentum in bilateral economic relations as both countries aim to significantly scale up trade, investment, and private-sector cooperation in the coming years.

Strong Political and Economic Momentum

Bolat told journalists that the forum brought together senior government officials and private-sector representatives from both countries to explore new avenues for cooperation. According to the minister, discussions focused on removing trade barriers, boosting mutual investments, and aligning long-term economic goals.

“We are running with all our strength toward much higher targets in the economy and trade between Turkey and Azerbaijan,” Bolat said, highlighting the political will on both sides to move beyond incremental steps.

The remarks come at a time when Turkey is actively pursuing diversified trade partnerships amid shifting global supply chains and regional economic realignments.

From Preferential Trade to Full Free Trade

Bolat pointed to the preferential trade agreement that entered into force between Turkey and Azerbaijan in 2021, noting that it has already delivered positive results for both economies. That agreement reduced tariffs on a selected list of goods, facilitating increased trade volumes and strengthening commercial ties.

Encouraged by those outcomes, Ankara now wants to take the next step.

“We want to conclude a free trade agreement between Turkey and Azerbaijan. Technical teams from both governments are in talks. They are carrying out analysis and evaluation work. Hopefully, in time, we will achieve this as well,” Bolat said.

A full FTA would significantly expand the scope of tariff-free trade, potentially covering industrial products, agriculture, services, and investment protections.

Strategic Importance of Azerbaijan

Azerbaijan holds a unique position in Turkey’s regional trade and energy strategy. Beyond shared cultural and political ties, the two countries cooperate closely in energy, logistics, construction, and defense industries. Azerbaijan also plays a critical role in regional transit corridors connecting Turkey to Central Asia and the Caspian region.

Economists say a comprehensive free trade agreement could further integrate supply chains, reduce costs for exporters, and increase competitiveness for businesses operating in both markets.

Technical Talks Underway

Bolat emphasized that negotiations are still at a technical and analytical stage, with teams assessing sectoral impacts, trade balances, and regulatory alignment. Such preparatory work is standard before launching formal FTA negotiations and can take months—or longer—depending on scope and complexity.

Trade officials note that aligning standards, rules of origin, and customs procedures will be key challenges, particularly if the agreement is designed to be broad and long-lasting.

Private Sector Watching Closely

Business leaders attending the forum welcomed the announcement, viewing a potential FTA as a significant opportunity to expand cross-border investments and joint ventures. For Turkish exporters, Azerbaijan represents a nearby, familiar, and growing market, while Azerbaijani firms see Turkey as a gateway to Europe, the Middle East, and Africa.

If concluded, the agreement could also serve as a model for Turkey’s broader regional trade strategy, reinforcing its economic footprint in the South Caucasus and beyond.

For now, both governments are signaling intent rather than setting a firm timeline. Still, Bolat’s remarks make clear that Ankara sees a Turkey–Azerbaijan free trade agreement not as a distant aspiration, but as an achievable next step built on existing cooperation.