RESTRICTED  
  
WT/TPR/G/420  
1 December 2021  
(21-9027) Page: 1/16 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
GEORGIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Georgia  
is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Georgia . WT/TPR/G/420 • Georgia  
 
- 2 - 
 
  Contents  
1   INTRODUCTION  ................................ ................................ ................................ .........  3 
2   RECENT ECONOMIC DEVELOPMENTS AND REFORMS  ................................ ..................  4 
2.1   Macroeconomic Overview  ................................ ................................ ............................  4 
2.2   Agriculture  ................................ ................................ ................................ .................  5 
2.3   Energy  ................................ ................................ ................................ ......................  6 
2.4   Tourism  ................................ ................................ ................................ .....................  7 
2.5   Transport  ................................ ................................ ................................ ..................  8 
2.6   Telecommunication, Innovation and Technology Development  ................................ ....... 10 
2.7   Technical Barriers to Trade  ................................ ................................ ........................  10 
2.8   Tax and Customs  ................................ ................................ ................................ ...... 12 
2.9   Competition and Anti -dumping Regulation  ................................ ................................ ... 13 
2.10   Public Procurement  ................................ ................................ ................................ . 14 
2.11   Intellectual Property Rights  ................................ ................................ ......................  14 
3   MAIN TRADE AGREEMENTS  ................................ ................................ ......................  15 
3.1   Turkey  ................................ ................................ ................................ ....................  15 
3.2   European Free Trade Association (EFTA)  ................................ ................................ ...... 15 
3.3   People's Republic of China  ................................ ................................ .........................  15 
3.4   The Hong Kong Special Administrative Region of the People's Republic of China 
(Hong  Kong,  China)  ................................ ................................ ................................ ..........  16 
3.5   United Kingdom ................................ ................................ ................................ ........  16 
3.6   India-Israel -South Korea  ................................ ................................ ...........................  16 
4   CONCLUSIONS ................................ ................................ ................................ ..........  16 
 
  WT/TPR/G/420 • Georgia  
 
- 3 - 
 
  1  INTRODUCTION  
1.1.  Trade liberalization continues to be one of the key objectives on Georgia 's economic policy 
agenda. In the reporting period Georgia undertook a number of reform initiatives targeted at 
streamlining, liberalization and simplification of trade regulations and their implementation.  
1.2.  As a result of reforms carried out by the Government of Georgia (GoG ), today Georgia pursues 
one of the most liberal foreign trade policies in the world that implies facilitated foreign trade regime 
and customs procedures, low import tariffs and minimal non -tariff regulations.  
1.3.  The basic objectives of Georgia 's trade policy  are defined as follows:  
• Integration into the world economy, including the implementation of WTO membership 
obligations and obligations under other international agreements;   
• Trade policy liberalization, including simplification of export and import procedures and 
tariff and non -tariff regulation;  
• Diversification of trade relations by establishing preferential regimes with main trade and 
regional partner countries;  
• Enhancement of transparency in the policy -making process.  
1.4.  The reforms implemented durin g the last years have contributed to the creation of competitive 
market conditions and a business enabling environment. Additionally, these reforms have diversified 
international trade and Georgia 's economic ties, thus generating growth and development.  
1.5.  By undertaking numerous economic reform initiatives and ensuring a strong legal system to 
protect investor rights, Georgia has positioned itself as an attractive destination for foreign direct 
investment. The government 's priorities are now focused on furthe r improving investment climate 
and strengthening investor confidence to attract more foreign investment and boost economic 
growth.  
1.6.  Strategic document – Government Program 2021 -24 – Toward Building a European State –
adopted in December 2020, among other vit al issues, concentrates on economic development, in 
particular with the challenges posed in the aftermath of C OVID‑19 pandemic.  
1.7.  The country 's economic policy continues to focus on free market principles, with the 
private  sector as the main driving force be hind the economy. At the same time, the economic policy 
is channeled toward maintaining macroeconomic stability, especially in the post -pandemic period, 
also toward further developing the business and investment environment, to support the recovery 
and sub sequent expansion of pandemic -affected businesses.  
1.8.  The Government 's economic policy focuses on Georgia 's repositioning in the post -pandemic 
world, and on tapping into new opportunities for the country 's subsequent development, especially 
in terms of encour aging domestic investment growth and attracting foreign investments.  
1.9.  To ensure a high level of long -term economic growth, the Government proceeds the works on 
the structural transformation of the economy, and on the maximal incorporation of economic factor s, 
and state -owned resources, into economic activities as well as active efforts continue toward the 
qualitative improvement of the work of relevant state institutions, which will support the effective 
implementation of the country 's economic policy.  
1.10.   Georg ian Government 's economic policy focuses on the country 's rapid economic growth, 
poverty reduction, and the country 's stronger positioning as the region 's logistics and 
investment  hub. WT/TPR/G/420 • Georgia  
 
- 4 - 
 
  2  RECENT ECONOMIC DEVELOPMENTS AND REFORMS  
2.1  Macroeconomic Overview  
2.1.  Georgia 's economic performance for the period 2016 -19 was averaging 4.4%, but due to global 
pandemic, average GDP growth for 2016 -20 amounted to 2.3%. In 2020 real GDP decreased 
by 6.2%.  
2.2.  After the economic contraction in 2020, significant recovery was observed  since February and 
the economy shows broad -based recovery driven by improvement in domestic and external demand.  
Georgia's economic recovery has gained surprising momentum, in January -September economic 
growth amounted to 11.3 % and economic activity significantly exceeded (by 5.7 %) pre-pandemic 
level as well. The preliminary results of economic activity in 2021 are more positive than previously 
forecasted by IFI 's, far exceeding expectations. Government of Georgia expects 9.5% e conomic 
growth in 2021.  
2.3.  According to IMF projections, Georgia will ensure fastest economic recovery in medium term 
among regional and European countries, amounting to 5.8%, supported by infrastructure spending 
and sustained structural reforms to increase p roductivity and enhance private sector -led growth.  
2.4.  Georgia's ratings are supported by strong structural indicators, such as governance and 
business environment. According to Fitch and S&P, Georgia has a track record of cooperation and 
strong support from I FI's, which ensure policy credibility, continued reform momentum and reduce 
financing risks. A credible policy framework has helped underpin Georgia's resilience not just to the 
current C OVID‑19 shock, but also past external shocks in the region.  
2.5.  The large st sectors by share of GDP are industry (15.8%), trade (14.5%), real estate (11 .7%), 
construction (8.9%), agriculture (8.4%), public administration (7.4%) and transport  and 
communication (5.9%).  
2.6.  During 2016 -20 period, the fastest growing sectors were healt hcare (6.1%), information and 
communication (5.4%), water supply (5.2%), financial and insurance activities (4.7%), mining and 
quarrying  (4.2%). It should be mentioned that during period of 2016 -19 one of the fastest growing 
sectors were accommodation and food service activities (13.7%) and arts, entertainment and 
recreation (9.6%). The C OVID‑19 outbreak has hit these sectors hardest.  
2.7.  In 2020, real growth of industry (in GDP) amounted to 9.1% compared to 2016 and amounted 
to GEL  4.8 billion (in constant 201 5 prices), up from GEL 4.4 billion in 2016. In this period turnover 
of industry increased by 50.8% and amounted to GEL 15.9 billion. Mining and quarrying almost 
doubled, grew by 99.3% - from GEL 611.1 million in 2016 up to GEL 1.2 billion  in 2020. Signific ant 
growth - by 50.9% was indicated in manufacturing and reached GEL 10.9 billion in 2020, up from 
GEL 7.2 billion in 2016.  
2.8.  Despite global crisis, production output of industry sector increased by 5.0% and amounted to 
GEL 13.9 billion.  In comparison to 2016, production output of industry sector increased by  49.9%. 
During 2016 -20 period output of industry, trade and construction showed highest growth. Output of 
trade sector increased by 44.8% up to GEL  8.2 billion, while output of construction sector increased 
by 22.9% up to GEL 9.1 billion . 
2.9.  The total volume of foreign direct investments in 2016 -20 amounted to U SD 6,859.6  million. 
In 2016 -20 the largest share of FDI, 45.5% (U SD 3,122.8 million) came from 
EU countries  (plus the United  Kingdom), 23.7% (US D 1,623.0  million) from CIS countries and 
30.1%  (USD 2,062.8  million) from other countries. Georgia 's FDI to GDP is among the highest in 
the region and in 2019 amounted to 7.6% of GDP.  
2.10.   During 2016 -20 period sec tors that attracted the highest shares of investment were transport 
and communication (22.5%), financial sector (20.2%), energy sector (11.7%), construction  (8.9%) 
and manufacturing sector (8.0%).  
2.11.   From 2016 current account deficit had downward trend till 2019. During this period deficit 
decreased by 7 percentage points  from 12.5% to 5.5% of GDP. Due to the global crisis and WT/TPR/G/420 • Georgia  
 
- 5 - 
 
  pandemic  in 2020, current account deficit to GDP amounted to 12.4% and equaled 
USD 1,962.2  million. The deficit is mainly conditioned b y a negative balance in trade in goods. While 
trade balance in services is still positive, the amount decreased significantly because of travel 
restrictions during 2020. Tourism was one  of the fastest -growing sectors in the current account and 
before 2020 it contributed around 70%  to service export. In the 2nd quarter of 2021 CA deficit 
improved by 3.8 % points (compared to the same period of previous year) and amounted to 
8% of GDP. 
2.12.   In line with improving economic activity in 2021 external merchandise trade  far exceeded the 
pre-pandemic indicators. Service export remains subdued due to the limited recovery in international 
tourism, however recovery trends in tourism industry strengthened since May.  
2.13.   The financial sector of Georgia is stable. Currently, 15 com mercial banks are operating in 
Georgia including 14 foreign -controlled banks and one branch of a non -resident bank. In 2016 -20, 
the volume of deposits increased by 97.6% and amounted to GEL  33.6 billion, the volume of loans 
increased by 102.1% and amounted to GEL  38.2 billion. Assets of commercial banks in the same 
period increased by 88.6% and amounted to GEL  56.9 billion.  
2.14.   Bonds of two the largest Georgian commercial banks, Bank of Georgia and TBC  Bank are 
placed  on London Stock Exchange. JSC Bank of Georgia 's shares had been listed  on the London  Stock 
Exchange in the form of GDRs since November 2006 and JSC TBC Bank - since June  2014.  
2.15.   Government of Georgia prioritized the structural reforms to focus on long -term development 
goals. The priorities of  structural reforms are oriented at structural transformation of the economy, 
inclusive access to the economic opportunities, decrease of external vulnerability, increase of savings 
and productivity enhancement.  
2.2  Agriculture  
2.16.   The agricultural sector constitu ted 8.4% (as of 2020, preliminary data, at basic prices) of the 
total GDP of Georgia with 40.6% of the entire population residing in rural area (as of 
1 January  2021). According to 2020, the employment rate in rural area is 38.7%. The government, 
fully ack nowledging the central importance of this vital part of the economy, has diverted substantial 
sums to the sector. In 2015 -20, funding for the agricultural sector from the state budget increased 
by 38.4%. The enticements have also resulted in the increase o f agricultural exports by 6.0% 
in 2020 compared to the previous year.  
2.17.   GoG has launched various program mes aimed at further improving the economic condition of 
rural areas and their workers. These included green grant program me, state program me of 
co-financ ing agricultural mechanization, improving rural development in Georgia, industrial apple 
sale promotional program me, agro -diesel support program me, plant the future, Georgian tea 
plantation rehabilitation program me, Preferential Agro -Credit, agro insurance , state program me of 
dairy modernization and market access (DIMMA) and program mes supporting development of 
agricultural cooperatives.  
2.18.   Significant improvements were noted in ensuring epizootic and phytosanitary reliability, 
food safety and enhanced irrigat ion and drainage systems. Vigorous international promotion projects 
for Georgian agricultural products, has been launched as well.  
2.19.   Pursuant to the Deep and Comprehensive Free Trade Area (DCFTA),  and with the intent of 
approximation with EU legislation, Geo rgia adopted number of new regulations in the filed of 
food safety, veterinary and plant protection, such as flavourings and certain food ingredients with 
flavouring properties for use in and on foods, Requirements Concerning Materials and Items That 
Come into Contact with Food Products, rules on registration, authorization and control of 
the veterinary medicinal products, marketing procedures of different kind of vegetables and seed 
and ect.  
2.20.   According to the Annex XIB of the Association Agreement Geor gia shall approximate 
its legislation to 272 legal acts of the EU. Timeframes for the approximation are 2015 -27. Legal 
approximation process in ongoing and every year new legal acts are adopted or corresponding WT/TPR/G/420 • Georgia  
 
- 6 - 
 
  changes are made in existing legislation. So far, Georgia has approximated more than 
160 EU legal acts in food safety, veterinary and phytosanitary fields.  
2.21.   The overall strategic goals of Georgian agriculture and rural development for next 
seven  years, according to the "Strategy for Agriculture and Ru ral Development in Georgia 2021 -27", 
is to diversify/develop economic opportunities in rural areas based on the sustainable development 
principles, improve social condition and quality of life. Strategy goals are as follows: competitive 
agricultural and no n-agricultural sectors; sustainable usage of natural resources, retaining the 
eco-system, adaptation to climate change; effective systems of food/feed safety, veterinary and 
plant protection.  
2.3  Energy  
2.22.   The energy sector still  remains one of the leading sector s in the economy of Georgia. 
Affordable and reliable energy supply stays a key goal of the country. Reforms carried out in the 
sector were directed towards the main goals of: increasing efficiency of the existing and development 
of new capacities and diver sification of export and import sources. For this purpose, significant 
changes were made  to the legal basis during the reporting years.  
2.23.   The range of the legislative acts were adopted  in order to regulate the energy field, attract 
investors, promote  the ren ewable energy and energy efficiency, as well as for approximation of the 
Georgian legislation with the EU.  
2.24.   Since becoming a full -fledged member to the Energy Community Acquis, the Government of 
Georgia stayed committed to implement the new standards in acc ordance to the EU  Energy 
3rd Package. The Package itself entails the competitive/open market. In this regard several laws and 
bylaws have been developed,  which support the development of Georgian electricity market. 
One of them being the Law on Energy and Water Supply (hereafter "Energy Law ") adopted in  2019 
that provides the legal basis for power related secondary legislation, the main pieces of which are 
the Electricity Market Model Concept and the Electricity Market Rules.  
2.25.   In line with the Energy Law, Ce rtification Rules for Transmission System Operators was 
approved in 27  March  2020 by Resolution of N o. 9 of Georgian National Energy and Water Supply 
Regulatory Commission (hereinafter – GNERC), which establishes Transmission System Operator 
Certification Procedures. Unbundling plan of Transmission System Operator has been approved by 
the Government of Georgia  by the Resolution N o. 682 on in  13 November  2020. According to the 
said document, Georgian State Electrosystem JSC (hereinafter -GSE) has been certified as a 
Transmission System Operator by GNERC. In addition, electricity DSOs and TSO have been 
unbundled and retail market has been opened for suppliers and consumers since 1 July 2021.  
2.26.   Georgia implemented the Law on Encouraging the pr oduction and use of energy from 
renewable sources (hereafter "The Law on RES ") on 20 December  2019.  The Law on RES defines 
the national target for renewable energy at 35% of total final consumption by 2030. It also grants 
the discretion to choose the suppo rt schemes to achieve the above -mentioned national target.  
2.27.   In accordance of the law on RES, on July 2020, the Government of Georgia has adopted the 
Resolution N o. 403 on approval of generation and use the energy from Renewable Energy Sources 
Support Scheme . The Renewable Energy Support Scheme defines measures to facilitate the 
construction and operation of a Solar, wind and hydroelectric power plant with above 5  MW installed 
capacity built by the private investor in Georgia.  
2.28.   On 2 December  2020, "Security of  Electricity Supply Rules " (hereafter "SoS rules ") were 
adopted. The SoS rules establishes the requirements to mitigate the risks of electricity supply as 
well as to prevent and prepare for managing crisis in electricity sector; on risk management 
planning ; to manage electricity crisis in a spirit of transparency and in full regard for the 
requirements of a competitive electricity market.  
2.29.   Georgia has started to implement a reform that will transform the power market. On 
16 April 2020, the Government of Geor gia adopted the Electricity Market Model Concept. As for the 
Electricity Market Rules, it was adopted by GNERC on 11 August  2020 for all segments of the 
wholesale market. Market Concept sets the guiding principles for organizing and functioning of the WT/TPR/G/420 • Georgia  
 
- 7 - 
 
  segm ents of the electricity wholesale market – Day ahead market; Intraday market; Bilateral 
agreements ' market; Balancing and ancillary services ' market.  
2.30.   The Law on Energy efficiency adopted on 21 May 2020 establishes a national energy efficiency 
target, and a procedure for adopting an energy efficiency action plan. The purpose of the Law is to 
increase energy savings, energy supply security and energy independence and to maximally 
eliminate barriers to  improving energy efficiency in the energy market. In addition, on 21 May 2020 
was adopted the Law on Energy Efficiency in Buildings, which  promotes the rational use of energy 
resources and establishes the rules to improve the energy efficiency of building s, taking into account 
the external climate and local conditions of buildings, the demand for indoor  climate conditions and 
cost-effectiveness. The minimum energy performance requirements of buildings, building units and 
building elements is adopted by the  Resolution of Government of Georgia N o. 354 on 13 July 2021. 
At the same year, national methodology for calculating the energy performance of buildings has also 
been adopted by the Government of Georgia.  
2.4  Tourism  
2.31.   Tourism is one of the fastest developing sectors of the Georgian economy and one of the main 
contributors to the increased wellbeing of the countries ' population, having a high potential for 
further advancement. Between 2016 and 2019 Georgia achieved tremendous results in tourism 
growt h, with international traveler trips increasing by more than 139 %, from 6.7 million to exceeding 
the 9 million mark. In the same period, international travel receipts increased  by 54.9%, which is 
more than a one billion dollar contribution to the national economy.  
2.32.   The increase of travelers in the period of 2016 -19, was largely determined by the entrance of 
new airlines - the introduction of direct flights to new destinations, drastic improvement of 
infrastructure, liberal visa policy, marketing campaigns, a nd development initiatives implemented 
by the Government of Georgia.  
2.33.   Amid the global outbreak of the COVID ‑19 pandemic, Georgias ' tourism sector occurred to be 
one of the hardest -hit industries, likewise, all the other international travel destinations, an d 
correspondingly, the country experienced an 81.3% decrease in the traveler numbers in 2020. To 
translate the aforementioned in economic terms, we experienced a 2.7 billion  loss in international 
travel receipts.  
2.34.   In the COVID  reality to ensure that Georgia s' fastest growing industry continues its 
contribution to the economy, the Government of Georgia elaborated various actions aimed at 
recovery, with tourism representing a priority pillar in post -crisis and economic recovery plans. We 
initiated the support of the tourism businesses with various benefits and program mes since the 
first day of the crisis, including economic stimulus packages and various program mes to confront 
the negative impact of the pandemic outbreak. The Government has outlined a long-term tourism 
development vision, where one  of the keys is to focus on the development of new policies, 
diversification of tourism products, and offerings making emphasis on sustainability. All the above -
mentioned  factors, as well as a timely introduct ion of safety regulations for the tourism sector and 
the active emphasis on the vaccination process, lead to reopening the country to international 
visitors with the most favorable conditions. In addition, since the full reopening of the scheduled air 
traffic, Georgia has demonstrated unprecedented recovery rates with 86% of flight frequency and 
68% of passenger traffic  volume recovery in August 2021 (in comparison to August 2019) at the 
same time the country hosted more than one million international visit ors. 
2.35.   Furthermore, within the past few years, one of the major successes for the tourism sector in 
Georgia has been the entry of renowned hotel chains in the regions of Georgia such as: In Batumi, 
Wyndham Batumi, Best Western Premier Batumi, and Sky Tower H otel Batumi joined the list of 
existing hotel brands. Best Western expanded its hotel chain in Georgia by introducing new hotels 
in Bakuriani, Batumi, and Kutaisi. Furthermore, Best Western Sairme Resorts started to operate in 
Sairme, while premium interna tional brand Hotel Paragraph Resort & Spa Shekvetili, Autograph 
Collection was opened in Shekvetili. In Kakheti, Radisson Blu Tsinandali, Park Hotel Tsinandali, and 
Holiday Inn Telavi joined the list of hotel brands. Furthermore, Best Western Gudauri start ed to 
operate.  WT/TPR/G/420 • Georgia  
 
- 8 - 
 
  2.36.   Herewith, the liberal visa regime has had a considerable effect on increasing both the 
number  and the diversity of visitors traveling to Georgia. Currently, the country upholds a 
visa-free regime  with 98  nations and Resident Permit Holders o f 50 states. Furthermore, an 
e-visa portal  (evisa.gov.ge), which grants citizens of foreign countries the ability to apply for a 
Georgian visa online, serves as a good base for increasing visitor flows to the country. It is also 
important to note that Geor gia and Turkey have an agreement regarding passport -free travel 
between the countries.  
2.37.   To further aid the development of the tourism industry in the post -COVID  period, the 
tailormade Tourism Recovery Plan is being elaborated in the framework of the Georgia  Tourism 
Strategy  2025. Furthermore, to insure provision of high -quality ecotourism -related products and 
services to the international visitors, Georgias' Eco -Tourism Development Strategy 2020 -30 has 
been adopted and entered into force.  
2.5  Transport  
2.38.   Due to it s geopolitical location, transport is one of the major pillars of economic development 
and prosperity of the country. Georgia is located on the crossroad of Europe and Asia, where 
transportation of strategic cargoes is conducted. Therefore, one of the top priorities for the 
Government of Georgia is coordinated functioning of transport fields, modernization -construction of 
transport infrastructure in accordance with international standards and approximation of 
country 's legislation with international law.  
2.39.   Ministry of Economy and Sustainable Development of Georgia has elaborated the National 
Transport and Logistics Strategy (2021 -30) and its Action Plan (2021 -22). It aims at further 
developing Georgia 's transport and logistics sector through increased coordina tion, enhancing 
transport connectivity, developing reliable, effective and fast logistics services as well as increasing 
human capital in transport and logistics. The document shall be adopted by the Government in the 
nearest future. Its implementation wil l greatly contribute to increasing competitiveness of the 
transport and logistics sector in Georgia.  
2.40.   Moreover, work is on -going  on a Maritime Strategy Document which is planned to be adopted 
in 2021 as well.  
2.41.   There was steady growth in the use of most forms  of transport during 2015 -19. However, the 
impact of the global pandemic and the consequences it had on movements and the economy caused 
a significant decline in the transport of persons since 2020. Freight transport, or the movement of 
goods, on the other  hand, remained steady or declined only slightly over the same period.  
2.42.   Georgia has also endorsed the Belt and Road Initiative (BRI) with transport infrastruture 
projects occurring in its territory during the review period, i.e. parts of the China -Europe BR I corridor 
route through Tbilisi. The infrastructure elements include the rail extension of Baku -Tbilisi -Kars. 
Once completed, the BRI infrastrucutre improvements in Georiga and across other BRI  participants 
is expected to lower Georgia's average shipment time with its trading partners by  3.5%. However, 
as Geogia has its own ports, it it not as dependent on the BRI project like may of its neighbours.  
2.43.   Georgia is one of Eastern Partnership countries and stronger connectivity has been declared 
as one of the top priorities within the Eastern Partnership. Enhanced physical connectivity between 
Georgia and the EU would help better use of the DCFTA and increase country 's transit and logistic 
potential and it is also of high relevance in the context of Euro -Asia c onnectivity. Joint Staff working 
Document "Recovery, resilience and reform: post 2020 Eastern Partnership Priorities " was 
elaborated by European Commission and it establishes flagship initiatives for the EU partnership 
countries, one of the initiatives inc lude the improvement of Black Sea Transport Connectivity. This 
flagship will involve developing new ferry/feeder services on the Black SeaLegislation in the transport 
sector for Georgia is elaborated by various transport codes for most modes of transport.  
2.44.   Most of this legislation remains longstanding and there have not been significant changes 
during the review period. In addition to its domestic legislation, Georgia adheres to many of the 
international conventions in the transport field.  WT/TPR/G/420 • Georgia  
 
- 9 - 
 
  2.45.   Georgia has adopte d liberalized environment in the aviation sector since 2005, consequently, 
the bilateral agreements are based on the Open Skies policy. Air transport services with the 
European  Union are largely governed by the 2010 Common Aviation Area Agreement. 
Georgia  has 11 international conventions in place on civil aviation and 36 bilateral agreements. 
Since  2015, bilateral air services agreements have been signed with the Kingdom of Bahrain  (2016), 
Belarus (2017), India (2017), the Kingdom of Saudi Arabia (2019), an d the Republic of Korea (2021).  
2.46.   Georgia has achieved significant progress in a wide area of road transport related activities in 
the course of implementation of the DCFTA. In particular, Georgia has implemented the legislation 
concerning the carriage of da ngerous goods, reinstated periodic technical inspection of vehicles, 
introduced EU requirements concerning the weights and dimension of vehicles and speed limitation 
devices. Georgia regularly issues bilateral road transport permits (usually single -use aut horizations) 
between the competent authorities of its partner  countries on an annual basis allowing international 
road transport operations (to/from the country and in transit). Georgia is also involved in a number 
of multilateral systems of licences such as ECMT, BSEC and TRACECA permit systems.  
2.47.   In total, Georgia has 31 bilateral road transport agreements. Since 2015, bilateral agreements 
on international road transport have been concluded with Bosnia and Herzegovina, China, Estonia, 
Kazakhstan, Slovenia, Slovakia, and Turkmenistan. Georgia is also party to three international road 
conventions.  
2.48.   Georgia is a maritime nation with a large maritime register with thousands of seafarers and 
connection to the Mediterranean Sea through its ports on the Black Sea. A s of early 2021, work was 
on-going to develop a Maritime Strategy document, expected in 2021.  
2.49.   In the maritime transport sector, Georgia is party to 23 international conventions and has 
22 intergovernmental bilateral agreements with other countries on marit ime transport, shipping, 
inland navigation, ferry services, etc. Two bilateral agreements were concluded in 2017, with Malta 
and Ukraine, on maritime shipping and on direct rail -ferry services through the ports, respectively. 
In May  2018 Georgia signed the  Burgas Declaration, which is important for setting up structured 
cooperation on maritime affairs in the Black Sea and is in the process of ratifying the Maritime Labour 
Convention  (MLC).  
2.50.   Georgia maintains four sea ports, at Batumi, Poti, Supsa, and Kulevi  on the Black Sea. These 
ports are important for Georgia but movements through them also support trade to many of its 
landlocked neighbours. The ports of Poti and Batumi have been described as medium -size ports that 
handle a variety of goods including bulk  (dry and liquid), general cargo, and containerized traffic 
while the ports at Supsa and Kulevi are specialized and are dedicated oil terminal facilities. Both Poti 
and Batumi ports are directly linked to the Georgian railway network. The Poti port operato r has 
been undertaking improvements to expand its off -dock container storage capacity and started work 
to expand berth capacity.  
2.51.   Georgia's rail infrastructure is comprised of 1,992  km rail of which 90% is electrified and is 
run and operated by Georgian  Railway JSC, a 100% state -owned enterprise.  
2.52.   One of the major undertakings durinig the period was the modernization of the 
Tbilisi -Makhinjauri railway line which is being carried out by international firms chosen after a 
competitive tendering process. The proj ect is expected to increase the capacity of the line, improve 
safety,and reduce travel times. In cooperation with Azerbaijan and Turkey, the three countries 
recently completed the construction of the Baku –Tbilisi –Kars (BTK) Railway which provides a direct 
connection between Baku and southern Turkey via Georgia. Working towards meeting 
European  standards in rail transport has also been another of its priorities during the period.  
2.53.   Fulfilment of the rail -related obligations of the DCFTA entails substantial cha nges to the 
railway sector in Georgia, i.e. eight EU  Directives or Regulations concerning railway transport are to 
be implemented. In particular, the railway operations of freight and passenger services and 
infrastructure are to be separated with their own  respective new authorities for licensing and 
regulatory aspects. Through the recently launched Twinning Project, the European  Union will support 
Georgia in the approximation of Georgian legal and institutional framework to the EU  acquis in the 
field of ra il transport.  WT/TPR/G/420 • Georgia  
 
- 10 - 
 
  2.6  Telecommunication, Innovation and Technology Development  
2.54.   The Government of Georgia has a strong focus on developing the telecommunication sphere 
by using innovative techniques and technologies. Georgia put a lot of effort into introducing 
new services and improving existing ones using cutting -edge technology. Thanks to the legislative 
reforms of previous years, there is an attractive environment for investment in the country, for 
example, the licensing regime was abolished for t he use of numbering resource and for the air 
broadcasters. In addition, a number of support tools were made available for developing 
entrepreneurship and increasing competitiveness.  
2.55.   The adoption of the Law of Georgia on Information Technology Zones resulte d the creation of 
an attractive environment for persons carrying out the economic activities in the field of Information 
Technology. Acquiring virtual zone person status is needed to start activates in the IT virtual zones. 
Since software product is create d, status holders will be exempted from: i) Profit tax on product 
deliveries outside of Georgia; ii) VAT on product deliveries outside of Georgia; iii) Export tax for 
export leaving Georgian customs territory.  
2.56.   The large -scale reform of transition to digita l terrestrial broadcasting was successfully 
completed in 2015. Consequently, state and private digital terrestrial broadcasting networks, 
including regional networks equipped with new technologies, are providing a variety of television 
program mes to the po pulation for free. Under the reform, licensing regime for broadcasters was void 
and simplified broadcasting market access (authorization procedure) was introduced, which allows 
the broadcasters and investors to produce the television program me in their des ired form, including 
digital terrestrial open network.  
2.57.   According to the decision made by the Government of Georgia in 2020, IT companies with 
international status will enjoy significant tax benefits, which include a reduction of both income and 
profit tax,  as well as the abolition of 5% dividend tax and property tax. According to the government 
decree, this status can be obtained by companies that have been directly providing IT services for 
the last two years or their founding company was engaged in these activities.  
2.58.   Georgia has the ambition to host a regional digital hub, which will help to address challenges 
of limited international data connectivity and development of domestic IT capabilities. It is one of 
the strategic priorities under the "National Broadband Development Strategy of Georgia and its 
implementation action plan for 2020 -25" (NBDS), which was adopted by the Government of 
Georgia  (GoG) on  9 January  2020. The key objectives of the NBDS are to enhance the legal and 
regulatory framew ork for broadband development in line with the EU  norms (EU  gigabit society 
strategy for 2025) and overcome the digital divide across urban and rural areas. Herewith, the 
Government of Georgia explores the possibility to host the regional digital hub and a ttract 
investments in the development of Digital Corridor and data centres, which could serve as a regional 
hub for South Caucasus and gateway of the EU and Asia. For the implementation of the NBDS the 
Government of Georgia started the Log -in Georgia Proje ct, which will help to increase the coverage 
of high -speed broadband internet services in rural settlements "white zones" of Georgia, where the 
population is greater than or equal to 200 and the operators do not plan to build broadband 
infrastructure in th e next three  years.  
2.7  Technical Barriers to Trade  
2.59.   Georgia continues to maintain open markets and has acknowledged that technical regulations 
have a significant role in promoting free trade. Recent policy initiatives have emphasized facilitating 
export develo pment and promoting integration with international and European markets. Georgian 
legislation on TBT follows international best practices and norms and significant steps have been 
taken to develop the national quality infrastructure to the level of the EU Acquis.  
2.60.   Developments during the review period have focused on implementing the provisions of 
DCFTA in Standardization, Metrology, Accreditation and Conformity Assessment, thereby achieving 
greater integration in the EU market. Significant steps were made f orward in the area of quality 
infrastructure.  
2.61.   The Georgian National Agency for Standards and Metrology (GEOSTM) of the Ministry of 
Economy and Sustainable Development is the principal agency tasked with oversight of WT/TPR/G/420 • Georgia  
 
- 11 - 
 
  standardization and metrology. Its main tasks include maintaining a register of standards and 
ensuring their availability; development and maintenance of measurement standards (etalons) base 
and ensuring of traceability, type approval/recognition of type approval of measuring instruments; 
ensuri ng the exchange of information on standards and technical regulations registered in Georgia 
with relevant international organizations; and representing Georgia in international and regional 
organizations.  
2.62.   During the review period, the Agency established a new electronic 
platform  (sst.geostm.gov.ge) which was created in 2020 to increase access to Georgian standards 
and simplify the existing procedures, including the purchase of Georgian standards in electronic 
format. There have been several other developmen ts during the period such as the establishment 
of an 8th standardization Technical Committee (TC) for Standardization " Road Traffic Safety" in  2020 
by GEOSTM. Main role of TCs is to review drafts of Georgian standards  in the area of their 
responsibility. The technical committees shall not consider a development of Georgian standard in 
case of following two conditions:  a) in a field where there is an international standard; b) in a field 
where there is no high demand for a standard.  
2.63.   As of 2020, 18 ,500 (in t otal) standards were adopted as Georgian standards. 36 .79% of them 
are international standards; 63 .08% European (including harmonized standards); 0.13% national.  
2.64.   In terms of metrology, Georgia is in the process of undergoing reforms. One element is the 
work being undertaken to further develop national reference laboratories. As part of a regional 
project among three South Caucus countries, Georgia is participating in a project to strengthen 
metrology and its quality infrastructure.  
2.65.   In spite of limitations a nd challenges caused by the COVID ‑19 pandemic, Georgia 's progress 
in the metrology field, such as significant extension of international recognition of metrological 
services, were quite comprehensively explored and used by customers not only in Georgia, but on 
the regional level, particularly before pandemic situation. During 2018 -20 GEOSTM provided 
calibration services on a regular basis to clients from neighbo uring countries in different fields such 
as temperature, mass, humidity, small volume,  pressure, length.  
2.66.   Georgia is a member of the main international and regional standards organizations  – 
ISO (International Organization for Standardization), CEN (European Committee for 
Standardization), CENELEC (European Committee for Electrotechnical Sta ndardization), 
IEC (International Electro -technical Committee), OIML (International Organization of Legal 
Metrology), BIPM (International Bureau of Weights and Measures), COOMET  (Euro-Asian 
Cooperation of National Metrological Institutions), IRSA (Inter -regional Standardization Association), 
and Euro -Asia Interstate Council for Standardization, Metrology and Certification.  
2.67.   Accreditation and conformity assessment in Georgia is under the responsibility of the Unified 
National Accreditation Body, i.e. the Geor gian Accreditation Center (GAC) as it is more commonly 
known, whose main work involves accrediting conformity assessment bodies.  
2.68.   In 2017, GAC received first recognition from European Accreditation Forum (EA) by signing 
the Bilateral Recognition Agreement b etween EA and GAC. Recognition from EA in 2017 covered 
five accreditation schemes: schemes for calibration and testing laboratories, scheme for inspection 
bodies, scheme for product and personal certification bodies. Later on in 2019, international 
recogni tion was extended to the scheme for medical laboratories.  
2.69.   The GAC became an Associate Member of the International Laboratory Accreditation 
Cooperation (ILAC) on 15 January  2021 and the signatory of a membership memorandum of the 
International Accreditation  Forum (IAF) on 27 April 2021. The work to become full member in both 
organizations is ongoing.  
2.70.   Important reforms have been carried out regarding the establishment of the market 
surveillance system on non -food products. At first, market surveillance in Geo rgia was conducted by 
the LEPL Technical and Construction Supervision Agency. In 2018, relevant amendments have been 
introduced in the Law of Georgia Product Safety and Free Movement Code, prescribing principal 
market surveillance procedures.  WT/TPR/G/420 • Georgia  
 
- 12 - 
 
  2.71.   In the beginn ing of 2020, due to the importance of the field, the sole responsible authority 
for market surveillance – the Market Surveillance Agency (MSA) was established under the Ministry 
of Economy and Sustainable Development of Georgia. The mission of the MSA is t o prevent and 
ensure that hazardous products are not placed on Georgia 's Market in order to protect the health 
and safety of citizens, as well as the environment and the property. The MSA conducts market 
surveillance on certain non -food products for which relevant technical regulations have been 
adopted. The list of products include: Lifts; Cableways; Hot Water Boilers; Pressure Equipment; 
Simple Pressure Vessels; Construction Products (cement, cables, plastic pipes, reinforcing steel, 
gypsum plasterboard);  Child-resistant lighters; Products appearing to be other than they are, Toys, 
Machinery, Equipment and protective systems for use in potentially explosive atmospheres, Personal 
protective equipment, Appliances burning gaseous fuels. It is expected that ot her products will be 
added to the mandate of the MSA as per AA approximation agenda.  
2.8  Tax and Customs  
2.72.   During the review period, Georgia continued its efforts to digitize customs procedures and 
made various adjustments to its legal framework to further simplify procedures and ensure the 
approximation of its customs (and tax) legislation with that of the Eur opean  Union as provided in 
the Deep and Comprehensive Free Trade Area (DCFTA). Georgia adopted inter alia a 
new Customs  Code.  
2.73.   Customs procedures are governed mainly by the Tax Code, the new Customs Code, and the 
new Ministerial Order No.  257 on "the Approv al of instructions on the movement and registration of 
goods on the customs territory". The Customs Code and Ministerial Order No.  257 entered into force 
in September and August 2019, respectively. These legal instruments are complemented by other 
customs -related laws, including the new Law on Border Measures Related to Intellectual Property 
Rights  (IPR), which entered into force in February 2018. This new law seeks to protect and 
enforce  IPR at the border by preventing the importation or exportation of cou nterfeited goods.  
2.74.   The new Customs Code seeks to promote the modernization of customs infrastructure, the 
simplification of procedures, and the digitalization of customs services. The new Customs Code was 
elaborated based on the obligations undertaken by Ge orgia within the scope of the 
Georgia -EU association agreement and builds upon the provision of the Union Customs Code.  
2.75.   2019 saw the introduction of the Authorized Economic Operator program me, which was 
designed in compliance with the EU AEO guidelines whi le also taking into account the relevant 
provisions of the WTO TFA and the WCO SAFE framework of standards. The program me seeks to 
create a new level of customs to business as well as business to business cooperation through 
increased cooperation of operat ors with Customs authorities. The benefits of participation in the 
program me are further enhanced by the possibility of a mutual recognition scheme with partner 
customs administrations enabling operators to gain access to various simplifications in states bound 
by such an arrangement and as of 2021 Georgia is in negotiations with the PRC and the Republic of 
Turkey to conclude these agreements. Additionally, early talks and/or consultations have begun with 
Hong Kong,  China and members states to the GUAM orga nization.  
2.76.   Devoted towards developing simple and reliable customs formalities and supporting trade 
facilitation, Georgia is putting efforts to advance in modernizing digital customs via Single Window 
and data exchange both within state agencies and partner economies. The principle is based on 
using single taxpayer 's electronic account for all customs related documents starting from filling the 
customs declaration to requesting and receiving relevant licen ce/permit/certificate issued by other 
agency and reque sting decision on advance ruling. In total about 130 services are available at the 
Revenue Service e -portal www.rs.ge . On the state level Unified System of Licen ces, Permits and 
Certificates is the platform for exchanging i nformation/documentation on customs related 
mandatory documents between business operator and relevant state agency. At present, the system 
comprises 38 licen ces/permits/certificates of eight agencies and the documents issued by these 
agencies are availabl e in the real - time regime for the Revenue Service and economic agent.  
2.77.   Following Digital Customs concept and data exchange with partner customs administrations 
(in place with Turkey, Azerbaijan, Ukraine and Armenia in process), Georgia  aims at digitalization of 
mandatory documents (Invoice and CMR) and with already existing permits/certificates/licen ces 
create possibilities for exchanging all paper documents digitally.  WT/TPR/G/420 • Georgia  
 
- 13 - 
 
  2.78.   In 2021 Georgia Revenue Service (RS) enhanced its capabilities via  introducin g new analytical 
program mes in the field of customs risk management based on automatic data analysis and Machine 
Learning. Georgian Customs moves towards an analytical platform that supports the ingestion and 
analysis of a large amount of data. Based on le ssons learned from US Government agencies, 
including Homeland Security Investigations (HSI), it introdueced Business Intelligence for Trade 
Enforcement  (BITE) that provides a space for analysts and data scientists to discover insights into 
trade data in su pport of their law and border enforcement missions.  
2.79.   During the review period, Georgia became party to various customs and trade related 
agreements and conventions with the aim of facilitating trade. It ratified the WTO Trade Facilitation 
Agreement  (TFA) in  2016. At the time of ratification, about 92% of the TFA obligations had been 
already implemented. In May 2019, Georgia established the National Trade Facilitation Committee 
to oversee the agreement's implementation and advise the government on trade facil itation matters.  
2.80.   In November 2018, Georgia also acceded to the Revised Kyoto Agreement administered by 
the World Customs Organization on the simplification and harmonization of customs procedures. 
Georgia is also planning to accede to the EU Convention on a common transit procedure, and 
Convention on the simplification of formalities in trade in goods.  
2.81.   In parallel, Georgia continiued to promote tax policy and administration reforms to booster 
economic growth. From 2017 new distribution based c orporate income tax system was introduced 
when profits are subject to CIT only when distributed. Furtehrmore, Georgia  conducted 
comprehensive VAT reform and fully aligned its VAT legislation with one of EU as provided in the 
Association agreement.  the comp rehensive VAT reform will further strengthen and intensify business 
relations between Georgian and EU businesses, increase certainty of tax system. Establishment of 
EU rules on place of supply of services, will eliminate any possible double taxation with V AT with 
regards to services provided between EU and Georgian taxpayers. In the area of VAT Georgia also 
enacted fully automated VAT refund system, which significanltly increase acces to finance for 
businesses, especially for those involved in cross -border trade and making substantial investments.  
2.82.   Georgia has been continuing to modernize its tax administration in line with best international 
practice. Introduction of  single treasury account, realible and accurate taxpayer register, 
improvement of  compliance risk management system, further enhancmenet and difersification of 
services (focusing on electronic services while introducing call centres, mobile RS cars, RS chat, 
new website of RS), are only part of reforms that was dully recognized by TADAT assessment  
conducted in 2020, which showed significant imrpovments comparing to the same assesment 
in 2016.  
2.83.   In the same period Georgia continued to be actively involved in various international tax fora. 
From 2016 Georgia became membere of BEPS Inclusive framework. In 2016 , OECD global forum on 
Transparency and exchange of Information for tax purposes adopted Georgia phase two  Report 
assigned rating of "largely compliant " which means that Georgia 's legal frameqwork as well as 
practice governing tax transparency and t ax information exchange is in line with international 
practice. From 2018 Georgian tax administaration also became member of OECD forum on 
tax administration (FTA).  
2.9  Competition and Anti -dumping  Regulation  
2.84.   Georgia has made substantial amendments to Competition legislation during the review period 
in order to harmonize Georgian Competition legislation with the EU standards.  
2.85.   Georgian National Competition Agency [Hereinafter – the GNCA] is the independent Legal 
Entity of Public Law, which implements com petition policy in the country from 2014 and 
anti-dumping  policy from 2021.  
2.86.   In September 2020, the Law of Georgia "On Competition " and related sub -legal acts were 
substantially amended. Main reason to amend the law was to approximate national competition 
legislation to the standards used in the EU to the fullest extent. Legislative changes include new 
functions and enforcement tools of the GNCA, better system of concentration control procedure, 
improved model of enforcement competition in regulated sectors of economy, changed institutional WT/TPR/G/420 • Georgia  
 
- 14 - 
 
  arrangement of the Agency and etc. The said amendments will also assist in better protection of the 
rights of the parties in competition -related legal proceedings and ensuring the procedural justice.  
2.87.   In July 2020, the new law "On the Introduction of Anti -dumping Measures in Trade " was 
enacted and entered fully into force on 1  June 2021. The Law builds upon the WTO  Agreement  on 
Implementation of Article  VI of the GATT  1994. The Law designates the GNCA as the investigating 
authority, thus, within its structure a department for Anti -Dumping Measures was created that is 
responsible for investigating anti -dumping cases.  
2.10  Public Procurement  
2.88.   Since 2009, Georgia's public procurement system has undergone major positive legislative 
and institutional changes.  
2.89.   In June of 2014, the  EU and Georgia  signed an  Association Agreement, which includes, a 
dedicated Chapter 8 on public procurement and an associated Annex XVI. Essentially, the Agreement 
provides for effective, reciprocal and gradual opening of the public procurement markets of the 
EU and of Georgia, which is linked to gradual progress in the approximation of the Georgian public 
procurement legislation with the EU public procurement acquis, accompanied by institutional reform 
and the c reation of an efficient public procurement system based on the principles governing 
EU public procurement.  
2.90.   Reforms initiated by the obligations of AA/DCFTA, covered primary and secondary legislation, 
followed by introduction of new e -services to the e -Procurement system. These reforms initiated 
following changes to the public procurement legislation:  
• introduced principles of equal treatment and proportionality, which were not explicitly 
mentioned in the Law;  
• introduced the use of general description of perf ormance, technical and/or functional 
criteria for defining the characteristics of the works, supplies or services required.  
• Introduced reasonable timeframes on the call for tender and for familiarization to the 
terms of tender, which entered into force on 19 July 2017.  
2.91.   In order to fully implement obligations, foreseen under the AA (Roadmap), SPA launched 
several new procurement procedures: a) two stage procurement procedure; b) procurement 
procedure with prequalification.  
2.92.   In July 2020, the Parliament of Geo rgia adopted the amendments to the Law of Georgia on 
public procurement legal framework. According to the amendments, new impartial and independent 
administrative review body/tribunal has launched its operations with new institutional arrangements 
from the  1 January  2021. With these changes, Georgia has successfully completed first  phase of 
approximation under the AA/DCFTA. EU Commission has positively evaluated completed reforms 
and relevant draft decision of EU -Georgia Association Council were prepared fo r adoption, which 
would grant market access on EU central government level.  
2.11  Intellectual Property Rights  
2.93.   Georgia has made number of amendments to its IP legislation during the review period in 
order to harmonize Georgian legislation in the intellectual property field with the EU standards.  
2.94.   In 2010, fundamental amendments were introduced to the Patent Law, Trademark law and 
to the Law on Copyrights and Neighbouring Rights. Also in 2010 Parliament passed the new Design 
Law. 
2.95.   In line with Georgi a's commitments under the DCFTA Agreement, to prevent and suppress 
infringements of IPRs and to ensure the implementation of appropriate sanctions, Sakpatenti drafted 
a package of amendments to the IP legislation which was adopted by the Parliament of Geor gia on 
23 December  2017 and entered into force on 11  January  2018.  WT/TPR/G/420 • Georgia  
 
- 15 - 
 
  2.96.   Moreover, the Law of Georgia on Intellectual Property Measures Related to the Border of 
13 December  2017 was adopted pursuant to the provisions in Annex  XIII, stipulating the 
approximation of Georgia's IPR legislation with EU Regulation No.  608/2013 of 12  June 2013 
concerning customs enforcement of intellectual property rights. Prior to the enactment of this law 
enforcement at the border were only applicable to trademarks, copyright and rela ted rights, 
appellations of origin and geographical indications and designs. Now the new provisions are 
applicable to patents, integrated circuit topology and breeders' exclusive rights. The scope of 
intellectual property protection was also expanded and n ow allows enforcement on imports, 
warehousing, storage in free zones, re -exports, and exports in the territory of Georgia, whereas 
previously only customs warehousing, customs terminal storage, other storage for export was 
covered. The new law also allows for the possibility of proactive application of intellectual property 
measures on the border through an ex -officio process. Georgian legislation on IPR is moving towards 
the EU acquis and a number of other EU norms are expected to be approximated in the fu ture. 
2.97.   In 2019, the Agreement between the Government of Georgia and the European Patent 
Organization  (EPO) on Validation of European Patents (Validation Agreement) was signed. Under the 
terms of the agreement, applicants will be able to validate their Europ ean patent applications and 
patents granted by the EPO in Georgia. Likewise, European applications and patents validated for 
Georgia will have the same legal effects and will be subject to Georgian law exclusively. The 
validation will enter into force afte r the ratification by the parliament of the corresponding 
amendments to the patent law of Georgia.  
3  MAIN TRADE AGREEMENTS  
3.1.  One of the priorities of the GoG is the diversification of export markets as well as products. 
Numerous regional free trade agreements were completed by Georgia since the last review.  
3.1  Turkey  
3.2.  Turkey has been Georgia 's largest trading partner since 2006. Negotiations on concluding a 
free trade agreement started in January 2007. On 21  November  2007, a free trade agreement 
between Georgia and the Republic of Turkey was signed. It came into force on 1 November  2008. 
According to this agreement customs tariffs on industrial products have been fully eliminated. Both 
countries maintain certain types of tariffs on agricultural products. Also, on the Turkish side, some 
agricultural products are subject to tariff quotas. In 2016, under the FTA Joint Committee meetings, 
the Parties opened negotiations with the intent to further liberalize Trade in goods and 
cover  Trade  in Services.  
3.2  European Free Trade Association (EFTA)  
3.3.  Georgia signed the Agreement on Free Trade with the European Free Trade Association  (EFTA) 
on 27  June 2016, which incorporates four EFTA States: Iceland, Liechtenstein, Norway and 
Switzerland. The Agreement consists of 13 Chap ters and 16 Annexes, covering the following main 
subjects: Trade in Goods; Sanitary and Phyto -Sanitary Measures; Trade in Services; Establishment; 
Protection of Intellectual Property; Government Procurement; Competition; Trade and Sustainable 
Development; Institutional Provisions; Dispute Settlement.  
3.4.  The Agreement aims to eliminate customs duties on imports and exports of all types of 
industrial goods, including fish and other marine products originating to or from any of the Parties. 
It provides tariff con cessions on both, basic and processed agricultural products covered by the 
bilateral Annexes to the Agreement. Agreement fully entered in force since May 2018.  
3.3  People 's Republic of China  
3.5.  On 13  May 2017, Georgia signed a Free Trade Agreement with the People 's Republic of China. 
This makes Georgia the first country in the region, which has the FTA with both China and the EU. 
The Agreement covers Trade in Goods, as well as Trade in Services. Along other spheres, other 
chapters regulate Customs Procedures  and Trade Facilitation; SPS; TBT; Trade remedies; 
Environment and Trade; Competition and IPR. It is noteworthy, that negotiations between 
China  and Georgia were concluded in 7 months. Since 1  January  2018, the agreement is in force.  WT/TPR/G/420 • Georgia  
 
- 16 - 
 
  3.4  The Hong Kong Special Administrative Region of the People 's Republic of China 
(Hong  Kong, China)  
3.6.  Negotiations on a Free Trade Agreement between Georgia and Hong Kong, China were finalized 
in April 2017. It was preceded by the FTA negotiations between Georgia and China, where th e 
Hong Kong, China 's delegation participated as an observer. Georgia - Hong Kong,  China FTA 
negotiations took only two rounds of negotiations to agree on final texts. The free trade agreement 
between Georgia and Hong Kong, China was signed on 27  June 2018. The agreement entered into 
force on 13  February  2019.  
3.5  United Kingdom  
3.7.  Georgia and UK entered into consultations to negotiate a Strategic Partnership Agreement, in 
order to replace  the EU -Georgia Association Agreement in bilateral UK -Georgia relations after Brexit 
on 28  January  2019. The Agreement envisages Free Trade Regime between two Parties. Georgia 
and UK signed an agreement on strategic partnership and cooperation  between Georgia and the 
United  Kingdom of Great Britain and Northern Ireland  on 21  October  2019. The agreement entered 
into force on 1  January  2021.  
3.6  India -Israel -South Korea  
3.8.  Georgia has concluded the Joint Feasibility Studies on the Free Trade Agreements with India, 
Israel and South Korea. Launch of the bilateral negotiations with India was ini tially planned to take 
place in 2019, however postponed due to the COVID -19. 
4  CONCLUSIONS  
4.1.  Georgia 's economic policy, during the reporting period, continued to focus on free market 
principles, with the private sector as the main driving force behind the econ omy. In parallel, the 
economic policy was channeled toward maintaining macroeconomic stability as well as toward 
further developing the business and investment environment. Greater attention was given to rapid 
infrastructural development as a factor stimul ating economic growth.  
4.2.  Diversification of export markets and products has been among the top priorities for Georgia.  
To this end, Georgia has entered into free trade arrangements with various countries and blocs 
enjoying free access to more than two billion worth consumer market thus significantly encouraging 
local entrepreneurship, including the SMEs, to enhance and div ersify business operations.  
4.3.  To tap into country 's potential as a regional hub, Georgia has essentially developed its 
infrastructural, transport, logistics, communications, energy, technological, educational, and 
financial hub -systems. To that end, increase d endeavo ur was attached toward both the rapid 
development of the country 's key infrastructure and the further advancement of transport corridors.  
4.4.  Overall, trade and economic reforms and improved business environment have been well 
reflected in various int ernational ratings. According to the World Bank 2020 report "Doing Business ", 
Georgia ranked seven  among 190 countries, whereas as per to Heritage Foundation report of  2021 
on "Economic Freedom Index ", Georgia ranks 12 in the world. In 2021 Fraser Institut e ranking 
"World  Economic Freedom ", Georgia takes 5th place among the leader countries.  
__________