Azerbaijan [Shutterstock]

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U.S.-Azerbaijan Relations

The United States established diplomatic relations with Azerbaijan in 1992, following its independence from the Soviet Union. Together, the two countries work to promote European energy security, expand bilateral trade and investment, and combat terrorism and transnational threats. The United States is committed to strengthening democracy and promoting economic diversification in Azerbaijan. The United States strongly supports efforts to peacefully resolve the Nagorno-Karabakh conflict through the OSCE Minsk Group process and promote regional stability, peace, and prosperity.

U.S. Assistance to Azerbaijan

U.S. Government assistance to Azerbaijan aims to improve Azerbaijan’s capacity to deal with security threats, increase and diversify economic development, and promote independent institutions and civil society.

Bilateral Economic Relations

The United States and Azerbaijan have a Trade Relations Agreement and a Bilateral Investment Treaty. The governments periodically convene the U.S.-Azerbaijan Economic Partnership Commission to discuss bilateral cooperation to promote trade and investment. The United States has long supported Azerbaijan’s efforts to develop and export its energy resources to Western markets. Crude oil is the single largest import from Azerbaijan to the United States. U.S. companies are involved in offshore oil development projects in Azerbaijan, export aircraft and heavy machinery to Azerbaijan, and are considering opportunities in agriculture, telecommunications, tourism, transportation services, and other fields. With some exceptions, primarily in the national security and defense sectors, Azerbaijan’s Law on Protection of Foreign Investments permits foreign direct investment in any activity in which a national investor may also invest. Azerbaijan is a beneficiary country under the Generalized System of Preferences (GSP) program. The GSP program provides an incentive for investors to produce in Azerbaijan and export selected products duty-free to the U.S. market. The United States considers Azerbaijan to have succeeded to the rights and obligations of the former USSR under the U.S.-USSR Tax Treaty.

U.S. Department of State

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