WT/REG397/M/1  
 
10 August  2020 
 
(20-5487) Page: 1/4 
Committee on Regional Trade Agreements  
Ninety -sixth  Session    
 
 
FREE TRADE AGREEMENT BETWEEN HONG KONG, CHINA AND GEORGIA,  
GOODS AND SERVICES  
NOTE ON THE MEETING OF  27 JULY 2020 
Chairman: Ambassador H.E. Mr. Mārtiņš KREITUS (Latvia)  
1.1.  The 9 6th Session of the Committee on Regional Trade Agreements (hereinafter  'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/ 21/Rev.1  dated 6 July 2020. 
1.2.  Under Agenda Item D.III of the Session, the CRTA considered the  Free Trade Agreement  
between Hong Kong, China and Georgia , (goods and services), (hereinafter "the Agreement").  
1.3.  The Chairman  noted that the Agreement had entered into force on 13 February 2019. It had 
been notified to the WTO by the Parties on 12 February 2019 under Article  XXIV:7(a) of the 
GATT  1994 and the Understanding on the Interpretation of Article  XXIV of GATT 1994 as an  
Agreement covering trade in goods and related issues  (document  WT/REG397/N/1) and under 
GATS  Article  V:7(a) as an agreement covering trade in services  (document S/C/N/923). The text of 
the Agreement was available, together with its Annexes, on the Parties ' official websites. The Factual 
Presentation on the goods and services aspects (document  WT/REG397/1 dated 27 January 2020) 
and questions and replies on this Agreement (document WT/REG397/2 dated 10 March  2020) had 
been distributed.  
1.4.  The representative of  Hong Kong, China  said she was pleased to take part in the meeting to 
consider the Agreement.  
1.5.  She thanked  the Secretariat for preparing the Factual Presentation, which had succinctly 
capture d the key elements of the Agreement.  She also  thank ed colleagues f rom Georgia for the joint 
preparatory work for th e meeting.  
1.6.  The Agreement not only br ought  to traders and businessmen  of Hong Kong, China  legal 
certainty and better market access to the Georgian market, but also enhance d trade and investment 
flows between the two economies, offering a wealth of opportunities for businesses as well as 
investors.   
1.7.  She indicated that t he Agreement was fully consistent with the provisions of the WTO.  It was 
comprehensive in scope and commitments therein were of high quality, en compassing trade in goods 
and services, investment, and other trade related areas.  
1.8.  On trade in goods, the Agreement provide d full certainty to exporters.  Under the Agreement, 
Hong Kong, China had bound  its existing zero import tariff regime for all products originating in 
Georgia.  Reciprocally, Georgia had eliminate d import tariffs on 96.6% of its tariff lines for products 
originating in Hong Kong , China . The remaining 3.4% of its tariff lines, comprisi ng mainly agricultural 
products such as fruits, nuts, beverages, and spirits, would  continue to be subject to import tariff 
due to domestic sensitivity in Georgia.  
1.9.  Apart from tariff elimination, the Agreement include d provisions providing disciplines additional 
to the relevant WTO Agreements on the application of trade remedy measures, which better WT/REG397/M/1  
 
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  safeguard ed the trade interest s of both sides.  There  were provisions for enhanced communication 
and cooperation in the are as of sanitary and phytosanitary measures as well as technical barriers to 
trade.  The Agreement also provide d for mutual cooperation in the administration of customs matters, 
seeking to ensure that the customs procedures and practices applying to goods tra ded between the 
two sides were predictable, consistent, transparent and trade facilitating.  
1.10.   On trade in services, the Agreement cover ed a comprehensive range of services sectors.  Many 
of the commitments made by Hong Kong, China and Georgia had gone  beyond their existing 
commitments under the GATS.  Some had even exceed ed the level of commitments offered under 
the Doha Round negotiations.   
1.11.   Apart from market access commitments, the two sides had agreed on other general 
obligations to facilitate trade in servic es. The Annex on International Maritime Transport of the 
Agreement, which was the first of its kind under Hong Kong, China 's FTAs with other trading 
partners, provide d for non -discriminatory treatment for vessels of a Party with regard to their access 
to and use of ports and port services, as well as related fees and charges, and customs formalities 
of the other Party. In addition, the WTO -plus rules and disciplines under the Agreement improve d 
transparency of domestic regulations and streamline d the proced ures for applying for authorisation 
for providing services, so as to ensure that they did not constitute unnecessary barriers to trade in 
services.   
1.12.   On investment, the Agreement had enhance d investors ' confidence and facilitate d investment 
flows between Ho ng Kong, China and Georgia by providing investors with non -discriminatory 
treatment as compared with a Party's own investors and other safeguards, in respect of their 
investments in non -services sectors.  
1.13.   The Agreement contain ed provisions to ensure effective protection of intellectual property 
rights, promote competition, and enhance protection of the environment while encouraging trade 
and investment. Commitments and cooperation in these areas would have the positive effect of 
facilitating trade and investment flows between Hong Kong, China and Georgia.  The two sides had 
also agreed to establish a transparent mechanism for consultations and settlement of possible 
disputes arising under the Agreement.   
1.14.   The Agreement had entered i nto force in February 2019 and its implementation had been 
smooth so far.  The Agreement provide d a platform for both Parties to take their bilateral economic 
and trade relations to a new level, while offering opportunities for Hong Kong, China's  businessme n 
to tap into the Georgian market, which serve d as an ideal gateway to the Caucasian region.  Hong 
Kong, China also hope d that th e Agreement, which was based on WTO disciplines, would be 
conducive to promoting multilateral trade liberalisation.   
1.15.   She thanked  Members for their interest in the Agreement, especially the delegations of 
Canada, the European Union, Japan, and Thailand for their written questions, to which the joint 
written replies  from Hong Kong, China and Georgia had been circulated prior to th e meeting.  She 
looked forward to a fruitful discussion, and welcome d any comments made by Members.   
1.16.   The representative of Georgia  said that it was a privilege for the Georgian delegation to 
participate in the consideration of the Agreement. She conve yed her authorities'  sincere appreciation 
to the Secretariat for the preparation of the Factual Presentation and extend ed particular gratitude 
to Hong Kong, China for its fruitful cooperation in th e process. She also thanked  those Members 
which had demonstrated particular interest in the Agreement and had raised questions.  
1.17.   Talks on the adoption of the text of the Agreement were initiated in September 2016 followed 
by only two rounds of negotiations, which  had been finalized in just five months. It was important 
to underline, that the Agreement was the first such type of instrument to be concluded  by Hong 
Kong, China in the region.  
1.18.   The objective of the Agreement was to provide for the  free movement of goods between the 
Parties as well as  to encou rage and facilitate trade in services. It was a new generation Agreement 
covering  a  wide spectrum of trade related areas including customs trade facilitation, technical 
barriers to trade, sanitary and phytosanitary measures and others.  WT/REG397/M/1  
 
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  1.19.   In trade in goods,  Georgia had eliminated import tariffs on 96.6% of tariff lines for products 
originating in Hong Kong, China while retaining under exception only 3.4% of tariff lines on sensitive 
commodities such as dairy products, honey, hazelnut , citrus, wine and others . Reciprocally, Hong 
Kong, China had bound  its existing zero import tariff regime  for all products originating in Georgia.  
1.20.   Since the Agreement had been implemented, Georgia had seen positive trade dynamics.   In 
2019, Georgia’s export s to Hong Kong, China had increased by 43% in comparison to the previous 
year. The main export commodities were alcoholic beverages, wine, beer and others. In addition to  
traditional export commodities, Georgia  had recently seen some new export s emerge such  as berry 
fruits, ferroalloys, precious stones and metals, textile s and chocolate products.  
1.21.   In the area of trade in services, the Agreement cover ed a wide range of sectors providing 
measures for trade in financial services, transport and related services and the movement of natural 
persons , thus elevating the level of cooperation in these areas. Some of the commitments 
undertaken by the Parties went further from their existing commitments under the GATS . 
1.22.   It was essential to note, that under the Agreement, vessels under the Georgian flag would  be 
granted treatment no less favorable than th at accorded to Hong Kong, China’s own vessels, with 
regard to access to ports, the use of infrastructure and auxiliary maritime services as well as related 
fees and charges , customs formalities and assignment of facilities for loading and unloading.  
1.23.   The Agreement was a positive tool, which increase d Georgia’s attractiveness for traders and 
investors from Hong Kong, China. More specifically, investors could benefit by produci ng in Georgia 
and exporting to Georgia’s FTA partners with which Hong -Kong, China did not enjoy  a preferential 
trade regime, notably the EU, Turkey and CIS members. Thus Georgia provide d a suitable platform 
for Hong Kong, China in its efforts to access new  markets, using the Georgian market as a production 
hub. 
1.24.   Overall, Georgia  firmly believe d that the Agreement, which had only been in effect for a year 
and a half, would  significantly boost the enhacement of trade and economic re lations among the 
Parties and enable Georgian entrepreneurs to offer their production to a 7 million high purchasing 
consumer market without additi onal trade barriers. Th e Agreement, along with Ge orgia’s transport 
and transit infrastructure, business friendly environment and access to regional and international 
markets, would  provide increased opportunities for investment, export diversification and economic 
growth.  
1.25.   She concluded by express ing her sincere gratitude to the CRTA for its outstanding work and 
Hong Kong, China for the successful cooperation.  
1.26.   The representative of the European Union  thanked the Secretariat for its factual presentation 
and the Parties for their answers to the written ques tions that the European Union was carefully 
considering. If further clarification s were required, the European Union would address them directly 
to the Parties.  
1.27.   The representative of the United States  thanked  the Parties and the Secretariat for their 
transparency. As raised in the United States'  statement under the review of ASEAN’s Agreement 
with Japan, she reiterated that the United States w as looking forward to reviewing a notification of 
the Hong Kong , China -ASEAN agreement, which had been in force sinc e last year.  
1.28.   In response to the question by the United States, the representative of Hong Kong, China  
indicated that the Hong Kong, China -ASEAN free trade agreement was not fully into force as various 
ASEAN member states were still going through their domestic ratification procedures. She said that 
Hong Kong, China would try its best to notify the FTA to t he WTO when the agreement between 
Hong Kong, China and its ASEAN trading partners would have fully entered into force.  
1.29.   The Chairman  noted that the consideration of the Goods and Services Aspects of the Free 
Trade Agreement  between Hong Kong, China and Geor gia had allowed the Committee to clarify a 
number of questions and could now conclude oral discussion of the RTA in accordance with paragraph 
11 of the Transparency Mechanism. If delegations wished to ask follow up questions they were 
invited to forward su bmissions in writing to the Secretariat by 3 August 2020. Parties were asked to 
submit replie s in writing by no later than 17 August 2020. In accordance with paragraph 13 of the WT/REG397/M/1  
 
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  Transparency Mechanism all written submissions, as well as minutes of this mee ting would be 
circulated promptly, in all WTO official languages, and would be made available on the WTO website.  
1.30.   The Committee took note  of the comments made.  
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