Georgia - Foreign Relations
Georgia's location, situated between the Black Sea, Russia, Armenia, Azerbaijan, and Turkey, gives it strategic importance far beyond its size. It is developing as the gateway from the Black Sea to the Caucasus and the larger Caspian region, but also serves as a buffer between Russia and Turkey. Georgia has a long and close relationship with Russia, but it is reaching out to its other neighbors and looking to the West in search of alternatives and opportunities. It signed a partnership and cooperation agreement with the European Union, participates in NATO's Partnership for Peace program, and encourages foreign investment. China, France, Germany, Great Britain, Greece, Italy, Russia, Switzerland, and Turkey maintain embassies in Tbilisi. Germany is a significant bilateral donor. Georgia is a member of the UN, the OSCE, and the CIS. It is an observer in the Council of Europe.
U.S.-Georgia relations continue to be close. Georgian leaders note that U.S. humanitarian assistance was critical to Georgia's recovery from civil war and economic difficulties following independence. Extensive U.S. assistance is currently targeted to support Georgia's economic and political reform programs, with an emphasis on institution building. The U.S. also is working with the Georgian Parliament on draft laws and establishing procedures and standards consistent with the country's 1995 Constitution. The United States provided Georgia approximately $1.2 billion in assistance through 2001, averaging about $100 million annually.
The United States also provides Georgia with bilateral security assistance, including through the International Military Education and Training (IMET) program. Evolving U.S.-Georgia partnerships include the Georgia Train and Equip Program, intended to enhance Georgia's military capability and stimulate military reform, programs by the Georgia (U.S.) National Guard, visits by the Sixth Fleet and the Coast Guard to Georgia, and the Bilateral Working Group on Defense and Military Cooperation. The United States has declared its intention to more closely scrutinize the efficacy of its assistance monies. In September 2003, the United States completed an assistance review and announced cuts in two programs. The summer 2003 exit of the American firm AES, which had been engaged in the electricity distribution sector, was a major setback for the economy and investment in Georgia. On another front, in June 2003, Georgia was placed on Tier 3 status with regard to the Trafficking Victims' Protection Act, which could have led to a suspension of all non-trade, non-humanitarian related assistance. During a 90-day grace period the Georgian government took sufficient steps to warrant a reassessment, and subsequently was placed on Tier 2 and thus did not lose any assistance.
