Azerbaijan is the largest U.S. trading partner in the South Caucasus, with the largest foreign direct investment in the region (more than $14 billion). The State Oil Fund of Azerbaijan, in close cooperation with the U.S. financial institutions and funds, has invested approximately $7.6 billion in the securities and real estate markets; Meanwhile, more than 300 American companies are registered in Azerbaijan.

Key agreements in the economic sphere: The Agreement on Trade Relations between the Governments of the Republic of Azerbaijan and the United States of America signed in 1993, and the Agreement on Mutual Protection and Promotion of Investment between the Governments of the Republic of Azerbaijan and the United States of America signed in 1997.

Trade turnover between the United States and Azerbaijan over the past 3 years (million in U.S. dollars):

Trade turnover in the first half year of 2020-2021 (million in U.S. dollars):

Major exports from Azerbaijan to the United States are as follows: Crude oil and other fuels, depending on the seasonal period of the year. Other exported goods are natural fruit juices and jams, carpets and textiles, plants for making medicines and perfumes, wine products, equipment and mechanical devices, chemical products, radio and radar equipment, etc.

Products imported by Azerbaijan from the United States: precious metals (gold, aluminum), civil aircraft, its engines and spare components, ground vehicles, equipment, and devices, as well as their spare components, pipes, tanks, and related parts, etc.

As a result of the growing ranking of business, investment, and freedom of investment, Azerbaijan has moved six steps up in the U.S. Heritage Foundation’s list of 2021 compared to 2020 and was settled mainly among the countries of free-market (it is ranked 38^th out of 186 countries of the worlds, and 23^rd out of 45 countries in Europe). According to the report, since the first publication of the index in 1996, Azerbaijan has made great strides in economic freedom and is on the verge of joining the ranks of completely free countries.

The State Department’s Investment Climate Statements for 2020 and 2021 noted that the overall investment climate in Azerbaijan continues to improve despite difficulties, and that the government is reforming to attract foreign direct investment and diversify the economy.

The Azerbaijan-US Economic Partnership Commission was established in 2007. The co-chairs are Finance Minister Samir Sharifov and First Deputy Assistant Secretary of State for Economic and Business Affairs Peter Haas. The Commission held four meetings (I meeting in 2007 (Baku), II meeting in 2008 (Washington), III meeting in 2012 (Washington), IV meeting in 2019 (Baku)). Although preparations for the 5th meeting were underway, it was postponed due to the COVID-19 pandemic.

Cooperation between Azerbaijan and the United States in the field of energy, which began in 1994 with the engagement of U.S. companies in the “Contract of the Century” for the joint development of the Azeri-Chirag-Gunashli field, continued with active support for the construction of main oil and gas export pipelines initiated by Azerbaijan. On September 14, 2017, Chevron and Exxon were included in the renewed Production Sharing Agreement (PSA) to extend the joint development of the Azeri, Chirag, and Gunashli deep-water fields until 2050.

The United States has supported Azerbaijan’s contribution to Europe’s energy security. The United States has repeatedly stated its commitment to the Southern Gas Corridor and supports the efforts of Azerbaijan and its international partners to complete the project.

In 2017, “Azerbaijan Airlines” and “Silk Way Airlines” and Boeing have signed purchase agreements to buy a total of $3 billion worth of aircraft. In April of 2021, the “Silk Way West Airlines” and Boeing have signed another agreement for purchasing 5 Boeing-777F type cargo planes. In cooperation with the US company “Orbital Sciences Corporation” in connection with the production, design and launch of Azerbaijan’s first satellite “Azerspace-1” in 2013, and the cooperation has been established with “Space Systems/Loral LLC” in the framework of the launch of the Azerspace-2 satellite in 2018.

Azerbaijan’s Agriculture Minister I.Kerimov took part in the 1^st Illinois-Azerbaijan Agricultural Forum in Chicago on April 4-5, 2019, and in the “Oklahoma-Azerbaijan Agricultural Forum” in Oklahoma on November 6-8, 2019. Opportunities for further cooperation with Oklahoma in renewable energy sources, grain, and livestock are under consideration. Along with official meetings during the visit of the Governor of Oklahoma to Azerbaijan on July 25-31, 2021, a Memorandum of Cooperation on the Dual Diploma Program at the master’s level was signed between the Azerbaijan State Agrarian University and Oklahoma State University.

Founded in 1995, the US-Azerbaijan Chamber of Commerce has been an important resource for the U.S. and Azerbaijani entrepreneurs and businesses seeking to build long-term business relationships, and it is a platform for trade missions and conferences and partnerships between government and business leaders.

The annual Trans-Caspian Forum, which has been held since 2016 with the participation of U.S. and Azerbaijani government agencies, discusses the strategic partnership between the United States, Azerbaijan, and the Trans-Caspian countries.