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Canada and Azerbaijan have had interstate relations since 1992.
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Background
On October 18, 1991, the Azerbaijani parliament adopted a constitutional act recognizing the independence of Azerbaijan. Subsequently, the Soviet Union fell apart on December 25, 1991, and on that same day Canada recognized the independence of Azerbaijan along with 11 other post-Soviet states. Diplomatic relations between the two countries were established on July 10, 1992. The Ambassador of Canada to Turkey is also accredited to Azerbaijan, while Azerbaijan opened its embassy in Ottawa in 2004.
Economic Relations
Canadian firms are active in Azerbaijan's oil and gas industry and Canada is seeking to increase its stake in the petroleum and energy transmission sector. Bilateral trade was C$12.6 million in 2004 and represented mostly Canadian exports.
On September 7, 2004, the governments of Canada and Azerbaijan signed a bilateral Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on capital.
In 2008, Canada’s total import from Azerbaijan reached $1.168.295 billion. The same year Canada’s export to Azerbaijan amounted $19.713 million. In 2010, Canadian imports to Azerbaijan were $542 million, down significantly from $1.2 billion in 2009. Merchandise exports to Azerbaijan were also down from $31.0 million the previous year to $20 million in 2010.
CIDA provides funding for Canadian technical assistance to Azerbaijan through regional projects and a Canada Fund for local development projects is managed by the Canadian Embassy in Ankara, Turkey.