The host government is required to offer protection and security to all investments in the event of physical danger (for example. B, in the event of a riot or demonstration). In the event of losses due to armed conflict, conflict or similar events, host countries must compensate the investors concerned on a non-discriminatory basis. The government has begun to make progress on economic reforms and old economic ties and structures are beginning to be replaced. One of the obstacles to economic progress, including increased foreign investment in the non-energy sector, is the ongoing conflict with Armenia for the Nagorno-Karabakh region. Trade with Russia and other former Soviet republics is losing importance, while trade with Turkey and the nations of Europe is growing. The long-term outlook will depend on global oil prices, the situation of new pipelines in the region and Azerbaijan‘s ability to manage its oil wealth. To promote the ASEAN region as an integrated investment space providing favourable conditions for national and international investment, all Member States agree on this point through the CFIA: after independence in 1991, Azerbaijan allowed Western European companies to develop their vast energy resources and its oil production has soared since the mid-2000s. Despite these investments and related investments, most of the newly discovered wealth remains in the hands of a few people. While downtown Baku thrives with new buildings and a growing middle class, much of the country‘s landscape remains poor and relatively undated. The government remains very authoritarian.
Another cfIA‘s guiding principle is to improve the transparency and predictability of investment rules, rules and procedures that lead to increased investment. These include: under the CFIA, each Member State must allow all transfers related to an investment covered in a freely usable currency to be made freely and without delay on its territory and at the departure of it, at the exchange rate of the market in force at the time of the transfer. Transfers may include: under the CFIA, the investment also includes amounts generated by investments, including profits, interest, capital gains, dividends, royalties and royalties. Any change in the form in which assets are invested or reinvested has no impact on their classification as assets. If an asset does not have the characteristics of an investment, it is capital commitment, maintenance of profits or profits, or risk-taking; it is not considered an investment in any form under the CFIA. You can stay abreast of the latest business and investment trends across Asia by subscribing to Asia Briefing‘s free update service with news, comments, guides and multimedia resources. Overall, ASEAN is the EU‘s third largest trading partner outside Europe, after the United States and China. Ensuring better access for EU exporters to the dynamic ASEAN market is an EU priority. Negotiations for a trade and investment agreement between the region and ASEAN began in 2007 and were interrupted by mutual agreement in 2009 to relax a bilateral negotiating format. These bilateral trade and investment agreements were designed as building blocks for a future agreement between the regions. The CFIA is not an investment catchall that any type of business or investor can benefit from, and it contains precise definitions of investments and authorized investors.