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The new law on supply chains will appear on January 1, 2023 in Germany. It will proscribe to all companies from Serbia, local or foreign, exporting raw materials, components, semi-products and services to the German market, to honor human rights and to prove that they are environmentally friendly. Companies which export finished products aren’t pertained to by this regulation.
According to Tanja Lindell, Deputy Manager in department for Industry at Chamber of Commerce and Industry of Serbia (CCIS), German companies with over 3,000 employees will be primarily pertained to by the new law, and from January 1, 2024, it will start being applied to German companies with over a thousand employees.
Lindell says that German companies with their own activities are subject to this law. It is transferred to direct and indirect suppliers of semi-products and services in the production chain, that is, to all those companies which have supply agreements with companies over there. She mentions the lack of information about the number of companies this pertains to, due to ignoring what kind of agreements they have. Around 3,000 Serbian companies export to the German market, but a part of them exports finished products.
As Lindell says, those responsibilities and obligations from the law which the end-customer, the German partner, transfers to Serbian companies, will have to be met by them. Only what the German company must fulfill is defined by the law, and the contract will define which part of the obligations the German company transfers to its direct supplier. Companies are required by the law to make risk assessment, to carry out success analyses regularly, to respect human rights, to protect the environment and to publish reports which are public.
Lindell notes that the German law prepares companies for the EU directive which they have announced and which has already been preparing. It will be much stricter than the German law. An office for helping Serbian companies with the aim of informing them, as well as possible, and of helping them adapt the new law on supply chains will be opened by the CCIS in the first quarter of 2023.
According to Dragoljub Rajic of the Business Support Network, this regulation will not affect a large number of Serbian companies in the first year of the application. However, it will affect more companies beginning with the year after that, especially logistics companies which transport raw materials. The fact that German companies will not be able to work with companies which violate human rights in any way, which are involved in forced labor, or which have illegal employees will not affect Serbian exporters. Companies from Asia and Africa which participate in German supply chains are mostly pertained to by this.
Rajic explains that it will be more significant to prove that companies exporting raw materials or semi-products don’t pollute the environment through their business operations. The amount of carbon-dioxide emitted during their production or operating processes mustn’t exceed the level proscribed in Germany for the given industry. Serbian producers will have to replace diesel with other fuels in a certain percentage, or to use Euro 5 engines or to prove that the share in production is either at a minimum or zero. In the future hybrid trucks will have to start being bought by logistics companies, and the rail sector will have to be switched to hydrogen.
This has been initiated by Germany, but similar steps are being taken by France and Great Britain, and it will soon be an obligation at the EU level. The rail sector will be a great challenge for Serbia, as it is the greenest form of transport. Slow Serbian rail sector is not competitive. Due to this reason, entry of an Austrian cargo group to Serbian market has been announced.

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According to Trend, establishing new import rules are considered by Azerbaijan.
The amendment to the Customs Code, which was discussed at a meeting of the Parliament’s Committee on Economic Policy, Industries and Enterprising on December 13, reflected this issue.
It proposes to review the appeal to the customs authority on the clearance of goods within one day. This amendment obliges the authority to notify the customs applicant within 24 hours from the moment the appeal was submitted to the body in case of cost adjustments for the passage of commodities.
The aim of the bill is to improve customs clearance procedures.

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As the Ministry of Finance announced on Tuesday, the project for the construction of a joint border crossing point between Georgia and Azerbaijan for further developing regional trade and transit has been discussed at the meeting between Georgian Finance Minister Lasha Khutsishvili and Shane Rosenthal, the Asian Development Bank Country Director for Georgia.
An agreement on establishing the crossing point on the border has already been signed by the two countries, and the aim of today’s meeting was to discuss ADB’s involvement, as both countries are member states of the Bank.
As Rosenthal said at the meeting, further development of infrastructure of border crossing points is a “logical continuation of the large road infrastructure projects already supported by the Asian Development Bank”.
According to the Country Director, the utilization of the transit potential between Georgia and Azerbaijan and the process of establishing the former country as a transit hub would be “significantly contributed” to by the checkpoint.
Traffic bridging between Georgia and Azerbaijan is being operated by the following checkpoints: Boyuk-Kasik in Azerbaijan and Gardabani in Georgia, Mazymgara in Azerbaijan and Tsodna in Georgia, Ipek Yolu in Azerbaijan and Abreshumis Gza in Georgia, Sadakhli Azerbaijan and Vakhtangisi in Georgia, Mughanli in Azerbaijan and Samtattskaro in Georgia, as well as the Red Bridge crossing between the two countries.

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A 43.5% increase was shown by Armenia – Iranian trade in the first 10 months of 2022. According to Armenian Deputy Economy Minister Armen Arzumanyan, it rose from $390 million to around $560 million in the reporting period.
Good business cooperation between the countries was noted by Arzumanyan. He also added that it was necessary for its further development to identify all issues in order to step up economic activity.
The Minister mentioned the extensiveness of the Iranian market, but also a problem of its self-sufficiency. He expressed his confidence in a possibility to find out what they could do to export Armenian food, agricultural and other products to this market, which is by and large familiar with Armenian produce.
Armenia’s National Statistical Committee reports that trade turnover between Armenia and Iran in January-October 2022 reached about $565.5 million (a 45.3% increase). Armenian exports to IRI totaled about $92 million (an 82.4% increase year-on-year). A growth by 39.1% (to $474.3 million) was attained by imports from Iran.

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According to Deputy Prime Minister and Minister of Foreign Affairs of Kazakhstan Mukhtar Tileuberdi, Lithuania is among 10 largest trade partners of the country in the EU and 20 largest trade partners in the world. As Kazinform correspondent reports, it was said on Tuesday during Lithuania’s Minister of Foreign Affairs Gabrielius Landsbergis’ official visit to Astana.
An important historic milestone – 30 years since the establishment of diplomatic relations between Kazakhstan and Lithuania – was marked by the visit. Minister Tileuberdi said that a trust-based dialogue at all levels instrumental in strengthening of constructive relations and mutually profitable cooperation in bilateral and multilateral formats has been sustained all these years by the countries.
According to Minister Tileuberdi, the spirit and principles of the Treaty between the Republic of Kazakhstan and the Republic of Lithuania on mutual understanding and cooperation signed on November 7, 1993 in Almaty are fully kept during the development of relations between Astana and Vilnius.
The fact that Lithuania was one of the first countries in 2016 to ratify the EU-Kazakhstan Enhanced Partnership and Cooperation Agreement underpinning Kazakhstan’s cooperation with EU member states in 29 areas was pointed out by the Kazakh Foreign Minister.
He also highlighted that disruptions in traditional logistics chains trade turnover between the two countries didn’t prevent it from achieving a 2.1fold increase ($500.4 million in 9 months of 2022). It makes Lithuania one of 10 largest trade partners of Kazakhstan in the EU. There are about 170 Lithuanian companies working in Kazakhstan and dozens companies with the Kazakh capital operating in Lithuania.
Joint work of Kazakhstan and Lithuania can be seen in many spheres: professional pilots’ training, medical equipment manufacturing and many others.
There is a hope for an additional impulse to strengthening of friendship and partnership between Kazakhstan and Lithuania given by Gabrielius Landsbergis’ visit to Astana.

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A working visit of Azerbaijan’s Minister of Digital Development and Transport Rashad Nabiyev to Brussels, the capital of Belgium has taken place.
A meeting between Rashad Nabiyev and European Commissioner for Transport Adina Valean was organized during the visit.
Cooperation between Azerbaijan and the European Union in the field of transport, especially aviation, as well as the implementation of projects within the Trans-European Transport Networks (TEN-T) and adding the Zangazur corridor to these networks in the future were discussed at the meeting.
Issues related to holding the second meeting of the High Level Transport Dialogue in Baku were also mentioned.
A detailed information about the transport and digitalization projects implemented in Azerbaijan, including the importance of the Zangazur corridor and the work done in the liberated territories was given to European Commissioner for Transport Adina Valean.
A great potential for cooperation around the Middle Corridor, a multimodal transport route passing through the South Caucasus and Central Asia was also noted. Certain opportunities for integrating the region into European and global supply chains will be opened by it.

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The declaration on the completion of the study on a free trade agreement was signed by Georgian deputy economy minister Genadi Arveladze and Gi Wook Young, director general on free trade agreements of Korea’s ministry of trade, industry and energy, earlier today in Seoul.
According to the ministry of economy, a positive impact of the deal on the economic welfare of both countries has been confirmed by a joint feasibility study on a free trade agreement between Georgia and South Korea.
The signing of the declaration on the completion of the study on a free trade agreement by Georgian deputy economy minister Genadi Arveladze and Gi Wook Young, director general of Korea’s ministry of trade, industry and energy, led to the conclusion.
Implementation of “relevant internal state procedures as soon as possible” to start negotiations on the actual agreement, with the first round of talks planned for 2023 was accepted by the both parties.
According to Georgia’s economy ministry, the Korean market of 50 million consumers “with high purchasing power” would be opened to Georgian exporting companies by the agreement.
Strengthening trade and economic relations between Georgia and the Republic of Korea will be boosted by the free trade agreement between the two countries. According to the state body, the expansion of trade and investment will be facilitated by the agreement and a comprehensive institutional framework for a wide range of bilateral cooperation will be provided.
Negotiations on an agreement on promotion and protection of investment between the countries were also held by Arveladze.

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According to the Armenian service of RFE/RL, the finance ministers of Armenia and Iran expressed their hope to further increase of economic exchanges between their countries, taking into account a recent growth in bilateral trade, during their meeting in Tehran.
The meeting between Armenia’s Finance Minister Tigran Khachatrian and Iran’s Minister of Economic and Financial Affairs Ehsan Khandozi took place in Tehran.
The main subject of the visit of Khachatrian and his delegation to Iran that took place one week after Prime Minister Nikol Pashinian visited Tehran where he met with Iranian President Ebrahim Raisi, was mainly regional security, but they also discussed prospects of increasing bilateral trade between the two neighboring countries.
According to Khachatrian, the volume of economic exchanges between the two countries is expected to grow by over 40 percent in 2022.
Several economic priorities between the two countries were highlighted by the Armenian and Iranian ministers, particularly, raising annual bilateral trade to $3 billion, increasing the goods exchange volume to 5 million tones, as well as the facilitating and developing financial, banking, commercial and customs relations.
According to the Armenian minister, they held productive and constructive discussions during his first-ever visit to Iran. “Constantly developing and strengthening cooperation” between Iran and Armenia was also highlighted by him.
Khachatrian said that the history of economic and political relations between Iran and Armenia has been lasting for decades. These main foundations are testified by the goal of raising the level of commercial relations between Armenia and Iran to $3 billion a year. This longstanding cooperation between the two countries is the basis of all ongoing negotiations.
The Iranian minister replied that “the government of Iran is very closely following the economic policy run by neighbor countries, putting the focus on the Caucasus region.”
Khandozi expressed his hope for the fulfillment of the goal of carrying out 3 billion dollars’ worth of trade between the countries, discussed during the meeting of the Iranian president and the Armenian prime minister, under the leadership of this government.
A meeting between Khachatrian and members of his delegation, including his deputy Avag Avanesian, and Iranian Vice President Masoud Mir Kazemi took place during the visit to Iran, and the meeting with Iran’s Minister of Industry, Mines and Trade Reza Fatemi Amin was planned.

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According to the press service of the Kazakh MFA, a seminar on: “Trade and investment promotion between Kazakhstan and Ethiopia” was held by The Embassy of the Republic of Kazakhstan in Ethiopia, the Center for the Development of Trade Policy “QazTrade” of the Ministry of Trade and Integration of the Republic of Kazakhstan, the Export Insurance Company “KazakhExport” and the Addis Ababa Chamber of Commerce and Industry.
Representatives of the business circles of Addis Ababa, interested in the supply of Kazakh goods to the market of Ethiopia and other African countries, as well as in the development of bilateral trade and exports of Ethiopian products, attended the event, held in a hybrid format.
The seminar participants were acquainted with the course of economic reforms of President Kassym-Jomart Tokayev, conducted in the country in the context of creating a new, fair and inclusive Kazakhstan, based on the principles of socio-economic justice, intolerance to corruption, fair and equitable competition and efficient allocation of resources, by Ambassador Barlybay Sadykov.
The great potential for increasing mutual trade between Ethiopia and Kazakhstan was noted by Deputy Secretary General of the Addis Ababa Chamber of Commerce and Industry Associations Zekarias Assefa.
Ethiopia is the largest market among the countries of East Africa, due to a population of more than 120 million people, and an aviation transit hub on the African continent, due to convenient access to the market of the East African Community. According to the representative of AACCIA, an increase in trade turnover with Kazakhstan is expected.
A presentation on the trade, economic and investment potential of Kazakhstan was made at the seminar by Galym Nurgazinov, Director of the Project Development Department of JSC Center for Development of Trade Policy “QazTrade”, and Armana Bekbasova, Director of the Department of International Cooperation of the Export Insurance Company “KazakhExport”.
Great interest was aroused by the information presented by the Kazakh participants among businessmen of Ethiopia, who made proposals for the development of cooperation with Kazakhstan, establishing direct contacts with businessmen of our country, creating joint ventures. Many practical questions concerning doing business with Kazakhstan were also asked.
Tadesse Sisay, Managing Director of the “Sendros” trading company, highlighted the necessity of solving the main barrier in trade – logistics issues.
According to Sisay, significant trade opportunities of Kazakhstan were learnt today. Demand for Kazakh products in the Ethiopian market may be great. She expressed her opinion that the main task was to build logistics routes for the mutual supply of goods.
The plans for cooperation with Kazakhstan were spoken about by Ermeyas Asfaw, General Manager of “Edcon” PLC.
According to him, import of plastic and other petrochemical products from Kazakhstan presents a great interest for the company. Demand for these goods is great in Ethiopia, and it is necessary to find reliable partners in Kazakhstan.
Significant opportunities for the growth of mutual trade between Kazakhstan and Ethiopia are confirmed by the experts, and the decision was made to work closely to eliminate such barriers as the lack of direct communications to support trade, the lack of information about differences in technical standards, permits and accompanying documents, the development and proposal of mutually beneficial logistics routes for the supply of goods.
Interest in working together in these areas was expressed by the seminar participants. They are going to organize meetings and look for partners to increase bilateral trade.
The amount of 280.6 thousand US dollars, which is 2.9 times higher than in the same period of the previous year (95.7 thousand US dollars), was reached by the trade turnover between Kazakhstan and Ethiopia in January – September 2022. The import of Ethiopian goods to Kazakhstan (coffee, live plants, flowers, vegetables, clothing and textiles) accounted for almost 100% of the turnover.
There is a general growth of the trade turnover between Kazakhstan and all African countries, and the increase of the trade turnover of Kazakhstan with Ethiopia corresponds to this trend. It reached $849.2 million in nine months of 2022, which is 1.3 times more compared to the same period in 2021 ($380 million). Exports of Kazakh goods to African countries exceed imports from this continent and reached 624.6 million US dollars (1.8 times increase), imports reached 224.6 million US dollars (40% growth).

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According to the Statistical Committee, the biggest share in Armenia’s exports in the first 9 months of this year belonged to mineral products, whereas in the imports, machinery, equipment and mechanisms had it.
An increase by 63.8% compared to the same period of the previous year was shown by Armenia’s exports in January-September (3 billion 509 million 421.2 thousand dollars).
The export to the countries of the Eurasian Economic Union (EAEU) grew up 2.4 times compared to the same period of the past year and comprised 1 billion 467 million 370.5 thousand dollars.
The export to the member states of the European Union rose up by 23.9% compared to the same period of the previous year (totally 606 million 568.3 thousand dollars).
Mineral products was the most exported product by Armenia– 785 million 398.5 thousand dollars (4.2 times increase compared to the same period of the previous year). Ready-made food products followed the mineral products and attained a 44.7% increase compared to January-September 2021 (605 million 400.7 thousand dollars).
Precious and semi-precious stones, precious metals and items made of precious metals were the next. Their export volume increased 2.7 times compared to the same period of the previous year and attained 597 million 341.0 thousand dollars.
Machines, equipment and mechanisms are the first in terms of import volumes– 1 billion 109 million 076.2 thousand dollars (an 84.9% increase compared to the same period of the previous year). The mineral products came after them with 858 million 430.1 thousand dollars (a 32.7% growth compared to the same period of the previous year).

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