US corporations expand footprint in Azerbaijan as trade nears $1.8 billion

US-Azerbaijani trade relations have recently entered a new and more structured phase. The first bilateral business mission between Azerbaijan and the United States, organized toward the end of last month, marked an important milestone in institutionalizing economic dialogue between the two countries. The mission focused on key strategic sectors, including energy and digital transformation, defense and transport, agriculture and healthcare, finance, and investments - areas that reflect both Azerbaijan’s diversification agenda and US global commercial priorities.

Within the framework of the US Chamber of Commerce business mission to Azerbaijan, a high-level roundtable was held at the Ministry of Economy. The delegation was led by Kush Choksi, Senior Vice President of the US Chamber of Commerce for the Middle East, Central Asia, and Turkiye. During the discussions, it was emphasized that Azerbaijan–US relations, supported by the political will of both governments, have evolved to the level of a strategic partnership. This political foundation has created favorable conditions for broadening economic cooperation beyond its traditional energy-centered model.

From an analytical perspective, the emphasis on macroeconomic stability and sustainable development during the roundtable was not coincidental. Azerbaijan is positioning itself as a predictable and reform-oriented economy at a time when global investors are increasingly sensitive to risk, supply chain disruptions, and regulatory uncertainty. The country’s efforts to expand the non-oil and gas sector - combined with incentives for entrepreneurs, digitalization reforms, and investment-friendly policies -signal a clear intention to attract long-term, technology-driven foreign capital rather than short-term speculative inflows.

Transport and logistics also emerged as a strategic theme. Azerbaijan’s geographic location and expanding transport corridors offer US companies potential access to wider regional markets, including Central Asia and Europe. New transport connections are expected to increase Azerbaijan’s relevance not only as a trading partner but also as a transit hub, adding a geopolitical dimension to economic cooperation.

US company representatives expressed satisfaction with Azerbaijan’s business environment and signaled strong interest in deepening partnerships. The participation of executives from global corporations such as Apple, ExxonMobil, bp, Boeing, Visa, Mastercard, Shell, Meta, and Honeywell underscores the breadth of US commercial interest. This diversity suggests that bilateral relations are gradually moving from sector-specific engagement toward a more comprehensive economic partnership.

The current momentum can be traced back to the Memorandum of Understanding signed on August 8, 2025, which laid the groundwork for intensified cooperation in strategic investment and regional economic integration. Notably, the scope of cooperation now includes artificial intelligence, digital infrastructure, and advanced technologies - areas that could redefine the future trajectory of Azerbaijan–US economic relations.

Trade structure and current dynamics

Despite the growing political and strategic dialogue, trade figures indicate that Azerbaijan–US trade remains asymmetric and concentrated. According to the Observatory of Economic Complexity (OEC), Azerbaijan exported a total of $27.2 billion in 2024, ranking 71st globally. Exports to the United States totaled $74.9 million, dominated by aluminum plating ($31.7 million), explosive ammunition ($8.13 million), petroleum resins ($6.51 million), ferroalloys ($6.79 million), and diamonds ($2.51 million).

This export structure reflects limited product diversification and highlights the challenge Azerbaijan faces in scaling up non-energy exports to the US market. While Azerbaijan is the largest US trading partner in the South Caucasus, its share in total US imports remains modest, indicating untapped potential rather than underperformance.

Historically, energy has been the backbone of bilateral economic relations. Since Azerbaijan regained independence in 1991, US companies have played a pivotal role in developing the country’s oil and gas sector. Over time, this cooperation has expanded, but energy still defines the strategic core of the relationship.

The United States is Azerbaijan’s second-largest investor, with over 250 US-invested companies registered in the country. Foundational agreements, including the 1993 Agreement on Commercial Relations and the 1997 Agreement on the Protection and Promotion of Mutual Investments, have provided legal stability and investor confidence. The Azerbaijan–US Economic Partnership Commission, established in 2007, has further strengthened institutional ties through regular meetings in Baku and Washington.

Trade trends: Rapid growth, structural imbalance

Trade statistics over recent years show rapid growth, particularly on the import side:

Year Import Export Trade turnover

2022 $479.8M $90.3M $570.1M

2023 $888.1M $16.0M $904.1M

2024 $1,617.93M $135.03M $1,752.96M

The sharp increase in trade turnover in 2024 indicates intensifying economic interaction. However, the persistent trade deficit highlights Azerbaijan’s reliance on US high-value imports such as machinery, aircraft, engines, pharmaceuticals, medical equipment, and advanced technologies. While these imports support modernization and productivity gains, they also underline the need for Azerbaijan to enhance export competitiveness in value-added sectors.

Azerbaijan’s exports to the US - ranging from crude oil and agricultural products to carpets, textiles, chemical goods, and electronic equipment - remain fragmented. Expanding these exports will likely require compliance with stricter US standards, branding strategies, and deeper integration into global value chains.

Beyond trade: Technology and energy security

Cooperation in space and high technology represents another strategic layer of the relationship. Partnerships with US companies such as Orbital Sciences Corporation and Space Systems/Loral for the Azerspace-1 and Azerspace-2 satellites demonstrate that bilateral cooperation extends into advanced technological domains.

Energy cooperation remains the cornerstone. US participation in the “Contract of the Century” and support for the Southern Gas Corridor underline Washington’s recognition of Azerbaijan’s role in regional and European energy security. Continued US involvement in projects such as Azeri–Chirag–Gunashli and the extension of production-sharing agreements signal that energy, while evolving, will remain central to the partnership.

In conclusion, US- Azerbaijan trade relations are transitioning from an energy-dominated model toward a more diversified and strategic framework. While trade volumes are growing rapidly, the qualitative transformation of exports and deeper integration into high-value sectors will determine the long-term sustainability of this relationship. If current reforms and investment initiatives translate into concrete projects, US -Azerbaijan economic cooperation may enter a new phase - one defined not only by energy security, but also by innovation, connectivity, and shared strategic interests.