Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Selling to the Public Sector
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Selling to the Government

The government of Azerbaijan, state-owned enterprises, and quasi-state-owned enterprises are some of the largest players in the economy.  Selling directly to the government or to these enterprises can be profitable, but limited transparency in government procurement processes can present a challenge.  Major infrastructure projects typically funded through the World Bank or other multilateral development bank financing are more transparent than those funded directly by the government.  Azerbaijan is not a WTO member and has not agreed to abide by the WTO Government Procurement Agreement.          

U.S. companies bidding on government tenders can also qualify for U.S. Government advocacy.  A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies.  The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts.  Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government.  Consult Advocacy for Foreign Government Contracts for additional information.                                                      

Financing of Projects

Access to capital is a key challenge to Azerbaijan’s economic development.  Non-government domestic sources of project financing are limited.  External sources of finance include the U.S. Export-Import Bank, the U.S. International Development Finance Corporation, the Asian Development Bank, and the European Bank for Reconstruction and Development, among others.  Venture capital is virtually non-existent.  State procurement is typically financed from the national budget or through international financial institutions, though the government has focused on decreasing its debt-to-GDP ratio and limited borrowing.

Multilateral Development Banks and Financing Government Sales.

Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks.  A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks (PDF).  The U.S. Department of Commerce’s International Trade Administration has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks: The African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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