WORLD TRADE
ORGANIZATIONWT/REG118/3
29 October 2001
(01-5292)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN GEORGIA AND
THE RUSSIAN FEDERATION
Communication by Georgia
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
Date of Signature: 3 February 1994 (Tbilisi), Georgia
Ratification: 10 May 1994 (Georgia)Entry into Force: 11 February 2000
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 free-trade
relations between Georgia and the Russian Federation.
The Agreement covers commodities, service, capital and labour.
With the entry into force of this Agreement, Parties 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.  The Partie s 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
the relevant taxes or charges imposed on analogous  goods of local production or those produced in
third countries.
4. Trade Data
Imports from Russian Federation into Georgia, 1997-2000
(million US$)
Total Trade Trade Covered Trade Covered (%)
1997 76.2 69.7 91.5%
1998 64.7 41.5 64.1%
1999 129.3 113.9 88.1%
2000 52.9 51.2 96.8%WT/REG118/3
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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 Protocol of exemptions from the free-trade regime represents an integral part of the
agreement and covers the following products:
170199 10 White sugar
220300 Beer made from malt
2207 Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher; ethyl
alcohol and other spirits, denatured, of any strength
2208 90 91 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol., in
containers holding:  2 litres or less
2208 90 99 More than 2 litres
2402 Cigars, cheroots, cigarillos and cigarette s, of tobacco or of tobacco substitutes
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
Georgia does not charge the export of goods.  The Russian Federation applies an export tariff
on commodities, the list of which is attached in Annex 1).
2.2 Quantitative restrictionsBoth sides will refrain from carrying out quantitative restrictions or equivalent measures on
exports of goods within the framework of the present Agreement.
3. Rules of Origin
The following goods are considered as being originated from the territories of the Parties:
(a) goods fully produced in the territories of the Parties;(b) goods processed in the territories of the Parties using raw materials and accessory
items originated from third countries, resu lting in a change of tariff classification
(namely of first four digits);WT/REG118/3
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(c) goods produced using raw materials and accessory items noted in the paragraph "b",
provided that their aggregate cost does not exceed the fixed amount of export price of
the goods.
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.
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 unfai r business practice is incompatible with the
Agreement's objective.
7. Subsidies and State-Aid
Parties will not apply governmental support through subsidization or any other form if such
governmental support negatively affects the normal economic conditions in the territory of other
Party.
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
The present Agreement does not concern action of other agreements, which were concluded
between the Parties and third countries.WT/REG118/3
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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:
- Information concerning interests of national defense;
- Trade in weapon, ammunition and  military equipment;
- Research and production, relating to defensive needs;
- Supply of materials and equipment applied in nuclear industry;
- Protection of public moral and public order;
- Protection of industrial or intellectual property;
- Gold, silver or other precious metals and stones;
- Protection of human, animal, plant health and environment.
2. Accession
In case of the approval by the Parties, any Government may accede to the present Agreement
subject to conditions which will be agreed upon among this Government and the Parties.
3. Dispute Settlement Procedures
Disputes regarding interpretation and application of provisions of the Agreement will be
settled through bilateral negotiations.
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 the present Agreement and elaborate recommendations for
improvement of trade and economic cooperation be tween two countries, Parties to the Agreement
agreed to establish the joint Russian–Georgian Commission.WT/REG118/3
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ANNEX 1
Export tariff of Russian Federation
Code Rate of export custom duty
(per cent of custom value, or in euro)
0301, 0302, 0303, 0307, 1605 10 000, 1605 20, 1605 30 000, 1650
40 000, 1605 90 900, 2705 00 000, 2706 00 000, 2707, 2708, 271000, 2711, 2714, 2715 00, 2907 23 100, 3102 30, 3104 10 000, 310430 000, 3104 90 000, 3104 20, 3105, 7108, 7201-7203, 7205-7229,7204 41, 76015
0306, 4701 00-4707, 4801 00-4823, 7401, 7402 00 000, 7403,
7405 00 000, 7501, 7520, 790110
1201 00, 1205 00 10 no less than 20 euro for 1,000 kg.
1206 00 10 no less than 15 euro for 1,000 kg.
4104 10 no less than 90 euro for 1,000 kg.
4105 10 no less than 70 euro for 1,000 kg.
4107 10 no less than 60 euro for 1,000 kg.
4402-4421 10 no less than 5 euro for 1m3.
4407 91, 4407 92 10 no less than 10 euro for 1m3.
4407 99 10 no less than 12 euro for 1m3.
4703 21 000 0, 4704 21 000 0 10 no less than 40 euro for 1,000 kg.
2207, 2208, 2501 00, 2502 00 000, 2504, 2505, 2506, 2507 00,
2508, 2509 00 000, 2510, 2511, 2512 00 000, 2513, 2514 00 000,2515, 2516, 2517, 2518, 2519, 2520, 2521 00 000, 2522, 2523,2524 00, 2525, 2526, 2527 00 000, 2528, 2529, 2530 10, 2530 20000, 2530 40 000, 2530 90 2000, 2530 90 950 2601, 2602 00 000-
2621 00 000, 2704 00, 2805, 2818 20 000, 2818 30 000, 2825,
2902 41 000-2902 43 000, 2902 50 000, 2905 13 000, 2907, 293371 000, 3901, 3902, 3904, 7101-7112, 8001, 8002 00 000, 8101 91,810291, 8103 10, 8106 00, 8107, 8108 10 1000, 8109-81126.5
2709 00 27 euro for 1,000 kg.
2711 11 000-2711 14 000, 2711 19 000 40 euro for 1,000 kg.
2711 21 000 5 no less than 2.5 euro for 1,000 kg.
3102 10 5 no less than 4 euro
4408 90, 4409 20 5 no less than 6 euro for 1m3.
4101 15 no less than 150 euro for 1,000 kg.
4102 15 no less than 105 euro for 1,000 kg.
4103 15 no less than 90 euro for 1,000 kg.
4104 10 no less than 90 euro for 1,000 kg.
4105 10 no less than 70 euro for 1,000 kg.
4107 10 no less than 60 euro for 1,000 kg.
4402-4421 10 no less than 5 euro for 1m3.
4407 91, 4407 92 10 no less than 10 euro for 1m3.
4407 99 10 no less than 12 euro for 1m3.
4703 21 000 0, 4704 21 000 0 10 no less than 40 euro for 1m3.
7404 00 30 no less than 330 euro for 1,000 kg.
7503 00 30 no less than 720 euro for 1,000 kg.
7602 00 30 no less than 150 euro for 1,000 kg.
7802 00 000 30 no less than 105 euro for 1,000 kg.
7902 00 000 30 no less than 180 euro for 1,000 kg.
8105 10 900 30 no less than 1,200 euro for 1,000 kg.
8108 10 900 30 no less than 225 euro for 1,000 kg
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