Disputes - international:
Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s has militarily occupied 16% of Azerbaijan; over 800,000 mostly ethnic Azerbaijanis were driven from the occupied lands and Armenia; about 230,000 ethnic Armenians were driven from their homes in Azerbaijan into Armenia and Nagorno-Karabakh; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; Azerbaijan, Kazakhstan, and Russia have ratified Caspian seabed delimitation treaties based on equidistance, while Iran continues to insist on an even one-fifth allocation and challenges Azerbaijan's hydrocarbon exploration in disputed waters; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian; Azerbaijan and Georgia continue to discuss the alignment of their boundary at certain crossing areas

Refugees and internally displaced persons:
refugees (country of origin): 2,400 (Russia)
IDPs: 580,000-690,000 (conflict with Armenia over Nagorno-Karabakh) (2007)

Trafficking in persons:
current situation: Azerbaijan is primarily a source and transit country for men, women, and children trafficked for the purposes of commercial sexual exploitation and forced labor; women and some children from Azerbaijan are trafficked to Turkey and the UAE for the purpose of sexual exploitation; men and boys are trafficked to Russia for the purpose of forced labor; Azerbaijan serves as a transit country for victims from Uzbekistan, Kyrgyzstan, Kazakhstan, and Moldova trafficked to Turkey and the UAE for sexual exploitation
tier rating: Tier 2 Watch List - Azerbaijan is on the Tier 2 Watch List for its failure to provide evidence of increasing efforts to combat trafficking in persons, particularly efforts to investigate, prosecute, and punish traffickers; to address complicity among law enforcement personnel; and to adequately identify and protect victims in Azerbaijan; the government has yet to develop a much-needed mechanism to identify potential trafficking victims and refer them to safety and care; poor treatment of trafficking victims in courtrooms continues to be a problem (2008)

Illicit drugs:
limited illicit cultivation of cannabis and opium poppy, mostly for CIS consumption; small government eradication program; transit point for Southwest Asian opiates bound for Russia and to a lesser extent the rest of Europe