RESTRICTED
WORLD TRADE WT/ACC/GEO/7
13February 1998
ORGANIZATION(98-0524)
Original: English Working Party onthe
Accession ofGeorgia
ACCESSION OFGEORGIA
Additional Questions andReplies
(Documents WT/ACC/GEO/4 andWT/ACC/SPEC/GEO/1)
ThePermanentMissionofGeorgiahassubmittedrepliestoadditionalquestionsraisedconcerning
documents WT/ACC/GEO/4 andWT/ACC/SPEC/GEO/1, withtherequest thattheybecirculated
tothemembers oftheWorking Party. Thequestions andreplies arereproduced hereunder.
_______________WT/ACC/GEO/7
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TABLE OFCONTENTS
Question
No.Page
No.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofnational tariff 1 3
(m-n) Anti-dumping andcountervailing regimes 2 3
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive Standards ofProtection 3-4 3
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
2. Economic Integration, Customs Union andFreeTrade Area
Agreements5-6 4
Questions andReplies todocument WT/ACC/SPEC/GEO/1:
Investment 7-10 5
Realestate 11 6
Legal services 12-13 6
Accounting, auditing andbookkeeping services 14 7
Telecommunications services 15 7WT/ACC/GEO/7
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IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofnational tariff
Question 1
Re.Answer toQuestion 32,WT/ACC/GEO/4
Please explain why thetrade-weighted average customs tariff ofGeorgia wasraised from
2.2percentfor1996 to3.9percentforthefirstquarter of1997.
Answer:
Theincrease ofthetrade-weighted customs tariffofGeorgia wascaused bythechanging import
structure.
(m-n) Anti-dumping andcountervailing regimes
Question 2
Re.Answer toQuestion 99,WT/ACC/GEO/4
Please explain thecriteria tojudge whether theprice ofgoods imported intotheterritory ofGeorgia
is"essentially" lower. Georgia 'sanswer says"ifitsexport price islessthantheprice atwhich
alike-product issoldforconsumption intheexporting country". Candumping bedetermined
evenifthemargin is"deminimis"? (Please seeArticle 5.8oftheAgreement onAnti-dumping.)
Does theMinistry ofEconomy (ortheMinistry ofIndustry andSocio-Economic Information)
have anycriteria todetermine whether theexports affected bysubsidies damage orthreaten to
damage theinterests ofGeorgia? How aretheinvestigation andeconomic analyses carried out?
Answer:
Nospecific criteria concerning anti-dumping arestipulated byGeorgian legislation. However,
theGovernment ofGeorgia intends toelaborate andimplement WTO-consistent legislation inthisfield
prior toitsaccession totheWTO.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
2. Substantive Standards ofProtection
Question 3
Re.Answer toQuestion 167,WT/ACC/GEO/4
Haswork ontheEnglish translation ofthedraft Copyright Lawbeen completed?
Answer:
TheworkontheEnglishtranslationofthedraftCopyrightLawhasbeencompleted.TheEnglish
version ofthedraftCopyright Lawisavailable intheSecretariat (Room 1126, Accessions Division)WT/ACC/GEO/7
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forconsultation. However, work onelaboration ofthefinalversion ofthedraftCopyright Lawisstill
going on.
Question 4
Re.Answers toQuestions 168and169,WT/ACC/GEO/4
Have thedraft lawsontrademarks andontheprotection oforigin andgeographical indications
been presented totheParliament?
Answer:
Thedraftlawsontrademarks andontheprotection oforigin andgeographical indications have
notyetbeenpresented totheParliament ofGeorgia. Theyhavebeensubmitted totheStateChancellery
ofGeorgia forconsideration. They willbepresented totheParliament after completion ofthe
consideration.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
2. Economic Integration, Customs Union andFreeTrade Area Agreements
Question 5
Re.Answer toQuestion 208,WT/ACC/GEO/4
Please explain whythedataabout thepercentage ineachmajor sector which isexcluded from
thefreetrade regime byGeorgia andbyitspartners isnotavailable. These dataareimportant
toconsult theconsistency withArticle XXIV:8 oftheGATT. Willthese databeavailable inthe
nearfuture? Ifso,please explain when these dataaretobeavailable.
Answer:
These datawillbeavailable inthenearfuture.
Question 6
Re.Answer toQuestion 209, WT/ACC/GEO/4
PleaseexplaininwhichaspectstheCISCustomsUniondoesnotcorrespondtoWTOrequirements?
Answer:
Inapractical sense, theCISCustoms Union doesnotcorrespond tothetraditional concept
ofacustoms union. Themember countries ofthisunion usedifferent levels ofcustoms tariffs in
international transactions withthirdcountries. There areseveral groupings within thisunion. There
arenoguarantees thatinthenearfuture theywillbeabletoagree onapplication ofthecommon external
tariff. From ourpoint ofview, themain reasons forthislieinsignificant differences intheeconomic
development ofthecountries inquestion, andalsotheunder-developed state oftheir market
infrastructure. Furthermore, member countries oftheCISCustoms Union areacceding totheWTO
separately withdifferent binding ratesofcustoms tariffs.WT/ACC/GEO/7
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Therefore, taking intoaccount theeconomic andalsopolitical objectives ofGeorgia, including
itsfastaccession totheWTO andintegration intotheEuropean Communities, joining theCISCustoms
Union doesnotaccord withtheinterests ofGeorgia.
Questions andReplies tothedocument WT/ACC/SPEC/GEO/1
Investment (page 2ofWT/ACC/SPEC/GEO/1 andAnswer toQuestion 187,ofWT/ACC/GEO/4)
Question 7
Please provide information ofanycasewhere theregistration offoreign investors under Article 6
oftheLawonInvestment Promotion Activities hasbeen refused.
Answer:
There hasbeennocasewhere theregistration ofaforeign investor under Article 6oftheLaw
onPromotion andGuarantees ofInvestment Activities hasbeenrefused.
Question 8
Please explain when is"themoment ofmaking suchaninvestment". Isitwhen thecontract of
investment ismade, theactual investment ismade, oranyother moment?
Answer:
Aforeign investor isobliged toregister attheInvestment Agency under theMinistry ofTrade
andForeign Economic Relations anyinvestment worth US$100 thousand ormore (oritsequivalent),
within 60daysfrommaking suchaninvestment. Both, themoment ofmaking suchaninvestment and
itsconditions aredetermined bythecontract concluded between aninvestor andinvestment receiving
party.
Question 9
Theaimoftheregistration isexplained tobethecreation ofastatistical database ofinvestment
activity inGeorgia. Why would aforeign investor beprohibited tocarry outinvestment activity
ifhefailstoregister? Isitnottoostrict ameasure?
Answer:
Theruleofregistration stipulated bytheLawonPromotion andGuarantees ofInvestment
Activities issosimple, thatitdoesnotcause anyproblem toaninvestor inregistration ofhisinvestment.
Namely, aforeign investor isobliged toregister attheInvestment Agency under theMinistry ofTrade
andForeign Economic Relations anyinvestment worth US$100 thousand ormore (oritsequivalent),
within 60daysfrom making suchaninvestment, forwhich hehastopresent ashort description of
themain directions ofhisinvestment activities, acopyofthedocument certifying theregistration of
theappropriate enterprise, adocument certifying thevalue oftheinvestment, permission formaking
theinvestment including thelicence. Within 5daysofmaking aninvestment, theForeign Investment
Agency registers theforeign investment.WT/ACC/GEO/7
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Question 10
Please explain thenature ofthelicence which authorises investors tocarry outtheactivities listed
from (i)to(viii) (pages 2to3ofWT/ACC/SPEC/GEO/1). Isitconsistent withArticles III,VI
andVIIoftheGATS?
Answer:
Thelicences authorising investors tocarry outtheir activities inthefield listed in
paragraphs (i)-(viii) ofdocument WT/ACC/SPEC/GEO/1 areissued bytheappropriate Georgian
authorities. Theprocedures forissuing suchlicences areinconformity withArticles III,VIandVII
oftheGATS.
Realestate (page 3ofWT/ACC/SPEC/GEO/1)
Question 11
Itisexplained thatjoint-ventures have theright tobuyagricultural land. Does thismean that
joint-ventures donothavetheright tobuylandother thanagricultural land? Arejoint-ventures
allowed ownership ofland?
Answer:
Yes,thismeans thatjoint-ventures havetherighttobuyonlyagricultural land. Accordingly,
itisallowed ownership ofthisland.
Legalservices(page7ofWT/ACC/SPEC/GEO/1andAnswertoQuestion198ofWT/ACC/GEO/4)
Question 12
Could Georgia provide theoutline oftheframework forperforming legal services inGeorgia
byaforeign service supplier which istobecompleted inthemiddle of1998?
Answer:
Theexisting legislation doesnotrestrict foreign legalservice suppliers fromproviding legal
services inGeorgia, which willnotbeincontradiction withtheGeorgian legislation inforce.
Currently,thelicensingrequirementsforperforminglegalservicesinGeorgiahavebeenremoved
fromthedraftlawonlicensing. Itissupposed thatthedraftlawwillbepresented totheappropriate
Parliamentary Committees forconsideration inthenearfuture.
Question 13
Does "thenewlawabout licensing" offootnote ofpage7ofWT/ACC/SPEC/GEO/1 correspond
totheframework explained intheanswer toquestion 198ofWT/ACC/GEO/4?
Ifnot,please explain thecontent of"thenewlawabout licensing". When isthenewlawexpected
tocome intoforce?WT/ACC/GEO/7
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Answer:
Yes. Itissupposed thatthedraft lawonlicensing willbepresented totheappropriate
Parliamentary Committees forconsideration inthenearfuture.
Accounting, auditing andbookkeeping services (page 7ofWT/ACC/SPEC/GEO/1 andAnswer
toQuestion 199ofWT/ACC/GEO/4)
Question 14
Itisstated inpage7ofWT/ACC/SPEC/GEO/1 thatlicences onauditing activities areissued by
theAuditing Council foreachobject which issubject totheauditing service, andthatvalidity
oflicences isoneyear. Thisscheme doesnotallow foreign providers toprovide audit services
generally andpermanently. WhydoesGeorgia keepthisscheme? DoesGeorgia haveanyintention
toimprove thisscheme?
Answer:
TheAuditing Council intends toputthequestion ofimprovement oftheexisting scheme before
theFinancial andBudgetary Committee oftheParliament ofGeorgia inthenearfuture.
Telecommunications services (page 13ofWT/ACC/SPEC/GEO/1)
Question 15
Does theinformation provided in2C.ofWT/ACC/SPEC/GEO/1 apply both tobasic
telecommunications services andvalue added services?
Answer:
Yes, theinformation provided in2C.ofWT/ACC/SPEC/GEO/1 applies both tobasic
telecommunications services andvalue added services.
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