WORLD TRADE
ORGANIZATIONWT/REG123/3
29 October 2001
(01-5295)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN GEORGIA AND KAZAKHSTAN
Communication by Georgia
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
Date of Signature: 11 November 1997 in Almatish (Kazakhstan)
Ratification: 28 May 1997 (Georgia)Entry into Force: 16 July 1999
2. Type of Agreement
The Agreement establishes a free-trade area in conformity with the definition set out in
Article XXIV:8(b) of GATT 1994.
3. Scope
The free-trade area established by this Agreement provides the framework for future trade
relations between Georgia and the Government of Kazakhstan.
The Agreement covers commodity and services.
With the entry into force of this Agreemen t, Parties to the Agreement will not impose
customs duties, taxes or charges of equivalent effect on exports and imports of commodities
originating from the customs territories of the contracting Parties.  Parties to the Agreement will also
not impose, directly or indirectly,  local taxes or charges on goods covered by the present Agreement,
in excess of the rate of relevant taxes or charges imposed on analogous goods of local production orthose produced in third countries.
4. Trade Data
Imports from Kazakhstan into Georgia, 1997-2000
(milion US$)
Total Trade Trade Covered % of Trade Covered
1997 2.7 -
1998 7.0 -
1999 1.4 1.0 72.5%
2000 11.2 11.2 100.0%WT/REG123/3
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II. TRADE PROVISIONS
1. Import Restrictions
1.1 Duties and charges
As provided for by Article 1 of the Agreement, the Parties shall introduce no customs duties
on imports or taxes and charges having equivalent effect except on imports of goods listed in the
protocol of exemptions from the free trade regime.
The draft of the protocol of exemptions from the free trade regime is being negotiated
between the Parties and would constitute an integral part of the agreement.  Currently the following
products are excluded from the free tr ade regime between the two parties:
Title of the commodity Code Tariff Rate
Alcoholic and non-alcoholic beverages Group 22
(except 2201, 2202, 2204, 2208, 2209)12%
Tobacco and industrial substitutes for tobacco Group 24 12%
Sugar 12%
1.2 Quantitative restrictions
Parties will refrain from applying the quantitative restrictions on imports of goods or their
equivalent measures in the framework of the present Agreement.
The Parties have also agreed on freedom of transit.
2. Export Restrictions
2.1 Duties and charges
Parties do not charge the export of goods2.2 Quantitative restrictions
Parties will refrain from implementing of discriminative measures, as well as from applying
of quantitative restrictions on exports of goods or their equivalent measures in the framework of the
present Agreement.
3. Rules of Origin
The Rules of Origin were defined according to the decision of the Council of Heads of
Government of CIS of 30 November 2000.
4. Standards
The Agreement does not stipulate any provisions regarding the standards.
The Agreement does not provide for the provisions concerning sanitary and phytosanitary
measures.WT/REG123/3
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5. Safeguards
Quantitative restrictions may be introduced unilaterally in a reasonable manner having strictly
determined period and in the following cases only:
- In case of sharp commodity deficiency at the domestic market - till stabilization of
situation at the market;
- In case of a balance-of-payments deficit - till stabilization of the
balance-of-payments;
- In case when a commodity is imported to the territory of one of the Parties in such an
increased quantity or in conditions which are threatening to cause the damage todomestic procedures of similar or directly competitive goods.
6. Anti-Dumping and Countervailing Measures
Parties to the Agreement consider that unfair business practice is incompatible with the
Agreement's objective.
8. Sector-specific Provisions
As mentioned above, there is a list of commodities not covered by the free trade regime
between the Parties.  These products are incorporated in the Protocol of exemptions from the free
trade regime signed by the Parties, which represents an integral part of the Agreement.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
Nothing in this Agreement shall prevent any Party from using the measures that it deems
necessary in order to protect its vital interests or implement the provisions of international agreements
to which it is a contracting party, if such measures concern the following:
- Interests of national defense;
- Trade in weapon, military materials, military equipment;
- Investigations concerning the production of defensive needs;- Supply with materials and equipment applied in nuclear industry;
- Protection of the public moral and public order;
- Protection of industrial or intellectual property;
- Gold, silver or other precious stones and metals;
- Care of human, animal, plant health and environment.
3. Dispute Settlement Procedures
Disputes regarding interpretation and application of provisions of the Agreement will be
settled through bilateral negotiations.WT/REG123/3
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4. Relation with Other Trade Agreements
Nothing in this Agreement shall prevent the Parties from implementing the relations with
third countries or international organizations without prejudice to the objectives and terms of the
present Agreement.
5. Institutional Framework
In order to implement agreed policy on export control towards third countries, the Parties will
hold regular consultations and take mutually agreed measures for establishing effective export control
system.
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