The Path Forward for U.S.-Georgia Relations

Until recently, the Caspian and Black Seas region played a limited role in geopolitics as a trade, energy, and infrastructure corridor. In February 2022, Russia’s invasion of Ukraine incited the international business community to bypass Russia by investing in new trade routes along the Caucasus and Central Asia. However, ongoing local conflicts throughout the Caspian and Black Seas region and the Middle East risk further destabilizing the countries around the seas.
With shared national interests in a secure and stable Caspian and Black Sea region, Georgia is a critical partner of the United States in promoting peace, economic development, and stability. Yet, a deeper partnership between the two countries is necessary to counter the coercive actions of regional malign actors, promote regional integration, and further economic development. Enhancing U.S.-Georgian relations in renewable energy, connectivity, security, and institutional capacity can improve regional peace and financial wellbeing.

THE REGION TODAY
The Caspian and Black Sea region borders Iran and Turkey to the south and Russia to the north, connecting the resource-rich Caspian basin to the European market. Since the 1990s, the United States has supported the construction of oil and gas pipelines running from the Caspian through Georgia. Since Russia invaded Ukraine, these pipelines have provided an alternative to Russian energy sources, along with the Middle Corridor trade route that connects China and Europe.
A series of military conflicts between Azerbaijan and Armenia from 2021–2023 has contributed to the destabilization of the region. Moreover, since the 2008 August War between Russia and Georgia, Russia has continued to occupy 20 percent of Georgia’s territory, with military strongholds in the Abkhazia and the Tskhinvali regions. Israel’s war against Hamas also risks drawing in Iran, which could extend the regional conflict to Armenia and Azerbaijan’s borders.
The region has three NATO countries: Bulgaria, Romania, and Turkey. Bulgaria and Romania are also European Union (EU) member states. Georgia, Ukraine, and Moldova are close Western partners that seek EU membership. Recently, the European Commission granted EU member candidate status to Georgia, bringing the country closer to its path to EU integration.

THREE DECADES OF U.S.-GEORGIAN FOREIGN POLICY PARTNERSHIP
Over the past three decades, the United States and Georgia have maintained a strategic partnership in various areas, including security, economics, democracy building, and people-to-people relations. Georgia provided the biggest per capita contribution of foreign troops to the United States’ war on terrorism, with 40,000 Georgians serving in Iraq and Afghanistan over the past two decades. In August 2022, when the United States requested assistance, Georgia provided security and shelter to U.S. government employees and their families departing Afghanistan.
The countries are also united in their opposition to Russian aggression and expansionism. For example, the United States has shown consistent support for Georgia’s policy of de-occupation and peaceful reconciliation of the Georgian regions of Abkhazia and Tskhinvali. In 2017, the U.S. Congress also designated Abkhazia and Tskhinvali as Russian-occupied territories, prohibiting U.S. economic activity in those areas.
The United States has consistently prioritized its relationship with Georgia, investing significant time, political capital, and resources to strengthen its ties. For example, Georgia is one of the largest per capita recipients of U.S. financial assistance in the world. This aid has helped build state institutions, enhance security, increase economic resilience, and improve the rule of law. With these improvements, Georgia is progressing toward becoming a full-fledged member of the EU and NATO.

THE PATH FORWARD
U.S. Ambassador to Georgia Robin L. Dunnigan arrived in Tbilisi in October 2023 with a message of positivity. During the hearing at the Parliament of Georgia in February 2024, she emphasized the importance of the U.S.-Georgia bilateral relationship and expressed her desire to deepen the partnership. However, Ambassador Dunnigan faces a daunting task ahead. Despite the historically productive partnership, limited connectivity, regional turbulence, geopolitical priorities, and geography have hindered progress toward greater integration between the United States and Georgia.
Additionally, the Russian occupation forces’ killing of Georgian citizen Tamaz Ginturi in November of 2023 is a stark reminder of the ramifications of the illegal Russian occupation of Georgian territories. Arguably, no U.S. ambassador to Georgia has started their tenure in such challenging circumstances in the last thirty years. For U.S.-Georgian relations to fulfill their potential, I provide several suggestions:

Resumption of High-Level Dialogues and Strategic Partnership Working Group Meetings
Since signing the bilateral strategic agreement in 2009, working group meetings with Georgian and U.S. representatives have proven essential for policy formulation and relationship building. These meetings with senior government representatives cover democracy, security, economy, and people-to-people relations. They provide a roadmap for future actions, oversight, and progress analysis. Resuming working group meetings will enable diplomats and participating officials to rebuild personal ties, foster understanding, and develop a viable agenda for 2024 and beyond.

Black Sea Strategy
Senators Jeanne Shaheen, a Democrat from New Hampshire, and Mitt Romney, a Republican from Utah, have led a bipartisan effort in the U.S. Senate to establish a new strategy for the Black Sea region. The U.S. Department of State has also submitted a report that outlines the United States’ vision for a secure, prosperous, democratic, and globally connected Black Sea. These documents should serve as a blueprint for future collaboration, providing Georgian policymakers, academics, and businesses with a long-term understanding of U.S. interests and policies. On the U.S. side, allocating specific funds to enhance Georgia’s economy and fund key infrastructure projects like the Black Sea undersea electricity cable will boost trust and signal commitment.

Regional Peace Initiatives
Advancing peace and stability in the Caspian and Black Sea region aligns with U.S. national interests. The U.S. government has increased its involvement in conflict resolution efforts between Azerbaijan and Armenia, including by hosting meetings in Washington and Munich with high-level officials from Armenia and Azerbaijan. Georgia has shown willingness and ability to support this process, which could prove instrumental in developing creative strategies for regional peace. Georgia’s support can also alleviate the strain on U.S. resources by helping U.S. officials understand the complexities of regional politics while remaining attuned to actions on the ground.

A Regional DFC Office
The U.S. International Development Finance Corporation’s (DFC) investments in Georgia have played a significant role in rebuilding industries, creating jobs, and connecting the South Caucasus with global markets. In fall 2020, DFC announced a potential new regional office in Tbilisi. If opened, Georgia would be one of the few countries globally with a representative office of the largest U.S. government agency for development and investment. However, after the change in U.S. administration in 2021, the new DFC leadership paused the process due to an ongoing strategic overview, and a decision is still pending. A regional office would send Georgia a strong message of continuous U.S. support. Furthermore, with the possibility of peace between Azerbaijan and Armenia, a regional DFC office would augment the United States’ ability to influence regional economic integration processes.

Trade Liberalization for Improved Commerce
Georgia and the United States have discussed the possibility of opening negotiations on a free trade agreement for more than a decade. Despite some progress, shifts in U.S. leadership and approaches to global trade have impeded a free trade agreement. In the short term, a viable solution could be sector-based agreements that could increase the institutional capacity of Georgian government agencies. In particular, the digital economy, energy, and manufacturing industries could catalyze the integration.
Separately, the U.S. House of Representatives will soon debate extending the Generalized System of Preferences (GSP) trade program for participant countries. The GSP program allows participant countries, including Georgia, to export certain products to the United States without U.S. tariffs. Including Georgian wine, spirits, and steel products in this program would be a welcome message for Georgia’s small and medium-sized companies. Taking steps toward trade liberalization will increase the trade volume between the two countries, promote commerce, and create jobs.

Direct Flights Connecting Businesses and Governments
Before the pandemic, the U.S. and Georgian governments supported starting direct commercial flights between the two countries. In September 2019, a delegation of high-ranking Georgian government officials visited the United States to meet with executives from the three major airlines to explore this possibility. Although the pandemic disrupted this process, the U.S. embassy in Georgia could again offer guidance to their Georgian colleagues to resume discussions. Senior members of the Georgian government could then travel to Washington to meet with U.S. airline executives, the U.S. Department of Commerce, the U.S. Trade Representative, and the Federal Aviation Administration. Direct flights between the two countries could reduce transaction costs for U.S. companies conducting business in Georgia and facilitate stronger people-to-people relations.

CONCLUSION
The United States and Georgia are committed to promoting a world order based on rules, respect for state sovereignty, and territorial integrity. Georgia’s location as the southernmost link in the Euro-Atlantic security architecture makes it a crucial partner for the United States. Since gaining independence, Georgia has found no better ally than the United States in its aspiration to become a member of the family of free and democratic nations. Therefore, it is now more critical than ever for Georgia and the United States to take their partnership to a new level.