International Diversification of Agricultural Trade of Armenia, Azerbaijan and Georgia

Abstract

This paper describes the structure and development of agricultural trade of Armenia, Azerbaijan, and Georgia in the period 2002-2018. Despite different directions of economic integration followed by these countries, the CIS and Russia in particular have been major trade partners for all South Caucasus countries. Compared to its neighbors, Georgia is relatively less dependent on the Russian market, whereas Azerbaijan's trade dependency on Russia is the highest among the three countries. Moreover, Azerbaijan has the lowest trade diversification level compared to its neighbors. While the share of the EU in agricultural export is moderate for all three countries, this share is highest for Georgia. Increased diversification of agricultural trade would contribute to the stable development of these countries, by reducing their vulnerability to various external shocks as well as upgrading their food systems.