Turkey seeks to solidify role as critical link in East-West commerce traffic
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Hopping onboard a global trade blend, Turkey, Georgia, and Azerbaijan are cooking up a plan to supercharge the Middle Corridor, a trade route linking China to Europe via the Caspian Sea. It's all about speeding up freight train traffic and nurturing economic blossom.
Turkish President Recep Tayyip Erdogan waved his quill on April 7, inking a deal aimed at simplifying customs procedures along the Baku-Tbilisi-Kars railway. While Erdogan kept mum on the signing, back in 2017, he spilled the beans at the railroad's opening ceremony, stating it could foster "political peace, security, stability, and social prosperity."
Turkey's got visions of grandeur, aiming to be the coveted hub in this network of financial highways. An alternative route sashays across the Black Sea between Georgia and Romania, but currently, it's not tickling anyone's fancy due to the Ukraine war. Georgia, on the other hand, is betting big bucks on a boost in demand over both routes. It's bolstering its bet with initiatives like the Baku-Tbilisi-Kars customs agreement and constructing a deepwater port.
Erdogan's ultimate goal? To maintain Turkey's ancestral role as a East-West commerce hub. Last year, Erdogan felt he was given the cold shoulder by the West after a bunch of countries signed off on a trade corridor sidestepping Turkey at the G20 meeting in September. In a huff, he told the press that East-West trade wouldn't thrive without Turkey. "Türkiye is a goldmine for production and trade," he asserted. "The most sensible route for east-to-west traffic must run through Türkiye."
The ink-squished deal includes provisions for coordinating customs inspections across the three countries, with oversight from a brand-new commission. If everything goes according to plan, this streamlining will help Turkey, Georgia, and Azerbaijan reap the rewards of an anticipated tripling in Middle Corridor trade volume by 2030.
Azerbaijan and Georgia have already given the Baku-Tbilisi-Kars route a facelift to handle increased traffic. Erdogan's signature on the deal puts the Middle Corridor firmly center-front on Turkey's to-do list. The agreement fills crucial gaps that have been hindering the rail route's utility, such as the absence of standard customs procedures. Reportedly, the manifold state operating agencies along the route have been a "source of friction," adding to costs and poor reliability, according to a World Bank report from 2023.
Typically, when nations rally to improve trade corridors, they focus on several strategies:
- Harmonizing Customs Procedures: Countries customarily strive to align their customs regulations and processes to bust down barriers and facilitate smoother goods movement.
- Digitalizing Customs Procedures: Adopting digital platforms for customs clearance significantly slashes transit times and amplifies transparency.
- Simplifying Documentation: Minimizing the complexity of documentation needed for customs clearance helps expedite the movement of goods.
- Investment in Infrastructure: Upgrading infrastructure like roads, railways, and ports is essential for boosting the corridor's efficiency and capacity.
- Enhancing Cooperation: Regular collaboration and cooperation among countries are essential for tackling issues and ensuring consistent implementation of streamlined procedures.
With the specifics of this Turkey-Georgia-Azerbaijan accord still under wraps, these strategies generally are the key to enhancing trade corridors across the globe.
- The recent agreement between Turkey, Georgia, and Azerbaijan focuses on harmonizing customs procedures along the Baku-Tbilisi-Kars railway, as part of their plan to supercharge the Middle Corridor, to facilitate smoother goods movement and foster economic blossom in the technology and finance industry.
- To further boost the efficiency of the Middle Corridor, Turkey aims to digitalize customs procedures, adopting digital platforms for customs clearance to slash transit times and amplify transparency in the general news sector.
- Simplifying documentation is also a key strategy for the trio, as minimizing the complexity of required documents for customs clearance will help expedite the movement of goods in the business and politics arena.