Free Trade regime with People’s Republic of China
In Beijing, on May 13, 2017 Free Trade Agreement was signed between the Ministry of Economy and Sustainable Development of Georgia and the Ministry of Commerce of the People’s Republic of China. Georgia is the first country in the region to sign the Free Trade Agreement with the People’s Republic of China.
Georgia is a country small country with an open economy. Georgia’s export to China is increasing permanently during the recent years. Georgia is achieving free trade regimes with such a large economies since Georgia is trying to become the most comfortable, convenient and attractive platform for trade relations between the huge economies. As much as Georgia is trying to becoming a trade platform. Georgia-China FTA is of especially importance in this regard.
Based on the Free Trade Agreement with China, Georgia is be able to export its goods and services to one of the largest markets in the world with 1.4 billion customers. Georgian entrepreneurs are able to export their production to the China market without additional duty rates.
The agreement consists of 17 chapters covering trade in goods, trade in service, rule of origin, Customs procedures and trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, trade remedy, and IPR cooperation areas.
The Agreement frees the exported Georgian goods from the customs taxes by almost 94%. Exported good to China from Georgia include wine, hazelnut, honey, mineral water, beer, non-alcoholic beverages, jams, juices, vegetables, fruits, chocolate products, tea, fish and other seafood, cereals, medicines, cables, plastic products, nitrogen and mineral fertilizers, ferrosilicomanganese, locomotives, etc.
After the agreement has gone into effect, in terms of the trade in goods, Georgia imposes zero tariffs on 96.5% of China's products, covering 99.6% of the total imports from China; China imposes zero tariff on 93.9% of Georgia’s products, covering 93.8% of China's total imports from Georgia, of which 90.9% (taking up 42.7% of imports) has zero tariffs and the remaining 3% (taking up 51.1% of imports) will gradually have zero tariff within 5 years. In terms of trade in services, both sides will further open their markets to each other on the basis of their WTO commitments. In addition, Georgia and China have reached broad consensuses in many fields such as environment and trade, competition, intellectual property, investment and e-commerce.
Regarding trade in service, both sides commit to opening up various service departments at a high level. Among these, the Georgian side solved the Chinese concern in finance, transport, movement of natural persons, and traditional Chinese medicine areas, and the Chinese side also solved the Georgian concern in tourism, shipment and legal areas. Besides, the agreement further improves trade rules and regulates that no one shall use the third party surrogate price during the anti-dumping investigation and clarifies the major areas for bilateral cooperation in the future.
China-Georgia FTA further improves the liberalization and facilitation of bilateral trade, and builds a more open, transparent and stable trading environment for enterprises, providing more quality and cheap products and services for people from both countries. By taking the opportunity of the effect taking of the agreement, China and Georgia comprehensively improve both sides’ practical cooperation level, thus firmly promoting the Belt and Road construction and achieve common prosperity.
China is Georgia’s important trade partner. The bilateral trade relations between Georgia and China over the last three years have the trend of growth. Especially important is the increase of the export of such products as wine, spirits, beer, mineral waters, etc. China has 14 Free Trade Agreements with over 24 states and regions worldwide and now Georgia is in the list as well.
You can find the agreement on the following link: text of the agreement