Obama praises democracy in Georgia.

US President Barack Obama offered encouragement on Monday for of Georgia's hopes for a preferential trade agreement with the United States, but said the country has a way to go in its economic reforms.

According to the Associated Press, Obama praised visiting Georgian president Mikhail Saakashvili and said there is a "possibility" of a free trade agreement that is a top priority for Georgia. Obama said the US will help Georgia strengthen its free market system with high-level dialogue, but did not address when or under what conditions that might expand.

Saakashvili thanked Obama for the possible free trade agreement.

"That's going to attract lots of additional activity to my country," he said.