Georgia’s main trading partner is the European Union. The EU accounts for over 23% of its commerce, followed by Turkey (14%), and Russia (8%). (12 percent ). The European Union (EU), the European Free Trade Association (EFTA), Commonwealth of Independent States (CIS) countries, Turkey, China, and Hong Kong all have free trade agreements with Georgia. Georgian products currently have access to one-third of the global consumer market through free trade agreements that reach a total of 2.3 billion people. Georgia exports 87% of its domestic goods to nations with which it has a free trade agreement.
Georgia- European Free Trade Association (EFTA) Agreement
At the EFTA Ministers Conference on June 27, 2016, in Bern, Georgia and the EFTA countries (Switzerland, Liechtenstein, Norway, and Iceland) inked a comprehensive free trade agreement. The free trade agreement between the EFTA (Switzerland, Iceland, Liechtenstein, and Norway) and Georgia comes into force on May 1, 2018, following individual country ratification. Almost all industrial products have their import charges removed quickly. Food imports, both processed and unprocessed, are subject to a significant duty reduction. Switzerland and Georgia have signed a free trade agreement. Swiss-Georgian bilateral trade between the two countries was CHF 39 million in 2015. Pharmaceutical products (52 percent), watches (11 percent), and optical and medical instruments (7 percent) are Switzerland’s top exports to Georgia.
Georgia-US
Georgia is entitled to export several products duty-free to the United States under the Generalized System of Preferences (GSP) program, according to a Bilateral Investment Treaty signed by both nations in 1994.
World Trade Organization (WTO)
Georgia enjoys Most Favored Nation commercial relationships with all WTO member nations because it is a WTO member. Georgia benefits from tariff reductions under the Generalized System of Preferences (GSP) with Switzerland, Norway, Canada, and Japan on a wide range of items. Since 2000, Georgia has been a member of the World Trade Organization.
Georgia and The European Union
Georgia and the EU concluded an Association Agreement as well as a Deep and Comprehensive Free Trade Area in 2014. Georgia receives GSP+ treatment from the EU, which includes duty-free treatment for over 7,000 products. With a turnover of €2.6 billion in 2018, EU trade with Georgia accounts for 0.1 percent of the EU’s total trade.
Turkey-Georgia
The Republic of Turkey and Georgia signed a Free Trade Agreement (FTA) on November 21, 2007. The Agreement went into effect on November 1, 2008. In the case of agricultural items, Turkey awarded tax reductions or exemptions from customs duties in the form of tariff quotas.
Georgia and China
Georgia has inked an agreement with China to establish free trade zones. The agreement aims to further grow the country’s economy and facilitate commerce. Georgia has removed tariffs on 96.5 percent of Chinese exports. Nearly 91 percent of China’s imports from Georgia are now tariff-free.
Georgia and The United Kingdom
Georgia and the United Kingdom have struck a legally binding agreement. Georgia and the United Kingdom of Great Britain and Northern Ireland signed a Strategic Partnership and Cooperation Agreement in London on October 21st, 2019. The signed document, which aims to establish a bilateral legal basis between the countries after the United Kingdom leaves the EU, covers all aspects of bilateral relations, including political cooperation, conflict resolution, Georgia’s Euro-Atlantic integration, defense and security, counter-terrorism, free trade, economic cooperation and energy, tourism, environment, education, science, and culture. Georgia is the first country to sign a comprehensive treaty with the United Kingdom after concluding its Association Agreements with the EU. Tariff rates for bilateral goods trade between the United Kingdom and Georgia remain unchanged, as stipulated in the agreement. However, due to changes in the UK’s Most Favoured Nation tariff schedule, the non-preferential applied rates may be cheaper in some situations.
