WT/REG354/1  
13 April 2015  
(15-1971)  Page: 1/47  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
DEEP AND COMPREHENSIVE FREE TRADE AREA CO NCLUDED AS A PART OF THE ASSOCIATION 
AGREEMENT BETWEEN THE EUROPEAN UNION AND GEORGIA 
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the consideration of the Deep and Comprehensive Free Trade 
area concluded as a part of the Associat ion Agreement between the European Union 
and Georgia, has been drawn up by the WTO Secretariat on its own responsibility and 
in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement or acceptance by the Secretariat of such 
terminology. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional 
Trade Agreements (WT/L/671) and thus does not imply any value judgement by the 
Secretariat regarding the contents of the Agreement. 
Any technical questions arising from this repo rt may be addressed to Mr Peter Milthorp 
(tel: +41 22 739 50 16). Any statistical questions arising from this report may be 
addressed to Ms Rowena Cabos (tel: +41 22 739 51 85). 
 
 WT/REG354/1 
 
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  TABLE OF CONTENTS 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
1.2   Trade in servic es and inve stment ................................................................................. 6  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 9  
2.1   Background  Information ............................................................................................. 9  
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 10  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 10 
3.1.1   Genera l provisions ................................................................................................. 10 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 11 
3.1.3   Tariff rate quotas ................................................................................................... 15 
3.2   Rules of origin .......................................................................................................... 15 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 16 
3.4   Regulatory provisions on trade in goods ....................................................................... 16 
3.4.1   Standards ............................................................................................................. 16 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 16 
3.4.1.2   Technical barriers to trade .................................................................................... 17 
3.4.2   Safeguard mechanisms ........................................................................................... 17 
3.4.2.1   Global safeguards ............................................................................................... 17 
3.4.2.2   Bilateral safeguards ............................................................................................. 17 
3.4.2.3   Anti-circu mvention me chanism ............................................................................. 18 
3.4.2.4   Safeguard measures related to  balance of payment (BOP) difficulties ......................... 18 
3.4.3   Anti-dumping and countervailing measures ............................................................... 18 
3.4.4   Subsidie s and State-aid .......................................................................................... 18 
3.4.5   Customs-re lated procedures .................................................................................... 18 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 19  
4.1   Scope and definitions ................................................................................................ 19 
4.2   Denial of benefits ..................................................................................................... 20 
4.3   General provisions on trade in services ........................................................................ 20 
4.3.1   Market access in cro ss border supply of services ........................................................ 20 
4.3.2   National and MFN tr eatment .................................................................................... 20 
4.3.3   Commercial presence ............................................................................................. 21 
4.3.4   Movement of  natural persons .................................................................................. 21 
4.4   Liberalization commitments ........................................................................................ 22 
4.4.1   The European Union ............................................................................................... 22 
4.4.1.1   MFN and hori zontal comm itments .......................................................................... 22 
4.4.1.2   Sector sp ecific commitments ................................................................................ 23 
4.4.2   Georgia ............................................................................................................... . 26 
4.4.2.1   MFN and hori zontal comm itments .......................................................................... 26 
4.4.2.2   Sector sp ecific commitments ................................................................................ 26 WT/REG354/1 
 
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  4.5   Regulatory provisions ................................................................................................ 29 
4.5.1   Domestic regulation ............................................................................................... 29 
4.5.2   Recognition ........................................................................................................... 30 
4.5.3   Subsidies .............................................................................................................. 30 
4.5.4   Safeguards ........................................................................................................... 30 
4.5.5   Other ................................................................................................................. .. 30 
4.5.5.1   In vestment ........................................................................................................ 30 
4.5.5.2   Monopolies and ex clusive servic e suppliers ............................................................. 30 
4.6   Sector specific provis ions on trade in services ............................................................... 30 
4.6.1   Comput er services ................................................................................................. 30 
4.6.2   Postal and courier se rvices ...................................................................................... 30 
4.6.3   Electronic communicati on networks an d services ........................................................ 31 
4.6.4   Financial Services .................................................................................................. 31 
4.6.5   International mari time transpor t services .................................................................. 31 
4.6.6   Electr onic commerce .............................................................................................. 31 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 32  
5.1   Tran sparency ........................................................................................................... 32 
5.2   Current payments and capital movements .................................................................... 32 
5.3   Exceptions ............................................................................................................... 33 
5.3.1   Genera l exceptions ................................................................................................ 33 
5.3.2   Security exceptions ................................................................................................ 33 
5.4   Accession and Withdrawal .......................................................................................... 33 
5.5   Disput e settlement ................................................................................................... 33 
5.5.1   Consultations and mediation .................................................................................... 34 
5.5.2   Arbitrat ion procedures ............................................................................................ 34 
5.6   Relationship with other agr eements concluded by the Parties .......................................... 36 
5.7   Government  procurement .......................................................................................... 38 
5.8   Intellectual property rights ......................................................................................... 39 
5.9   Ot hers .................................................................................................................. .. 41 
5.9.1   Trade-related energy .............................................................................................. 41 
5.9.2   Sustainable development ........................................................................................ 41 
5.9.3   Competition .......................................................................................................... 42 
5.9.4   Economic and other sectoral cooperation ................................................................... 42 
5.10   Institutional fram ework of the Agreement................................................................... 42 
ANNEX 1 ....................................................................................................................... . 44 
ANNEX 2 ....................................................................................................................... . 47 
 WT/REG354/1 
 
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Key Facts 
 
Parties to the Agreement:  The European Union (Austria; Belgium; 
Bulgaria; Croatia; Cyprus; Czech Republic; Denmark; Estonia; 
Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; 
Lithuania; Luxembourg; Malta; Netherlands; Poland; Portugal; 
Romania; Slovak Republic; Slovenia; Spain; Sweden; United 
Kingdom) and Georgia 
 
Date of Signature:   27 June 2014  
 
Date of Entry into Force:  1 September 2014  
 
Date of Notification:   16 September 2014 
 
Full implementation:  Goods: 1 September 2014 
     Services: 1 September 2014 
 
1  TRADE ENVIRONMENT1 
1.1.  The Deep and Comprehensive Free Trade Area (hereinafter referred to as "the Agreement") 
concluded as a part of the Association Agreemen t between the European Union (hereinafter the 
EU) and Georgia is the EU's 38th and Georgia's 11th regional trade agreement (RTA).2 
1.2.  In 2013, with a population of 507 million, the EU's GDP was estimated at US$17,352 billion, 
while that of Georgia, with a population of 4. 5 million was estimated at US$16 billion. The EU 
mainly traded manufactured products (representin g 77% of the EU's exports and 56% of imports) 
as was the case for Georgia (60% of Georgia's exports and 62% of its imports). Averaged over the 
period 2011-2013, the Parties' trade (goods and services) to GDP ratio was 34.9 for the EU and 
96.9 for Georgia.  
1.1  Merchandise trade 1.3.  In 2013, the EU's shares in total world merchandise exports and imports were 15.3% and 
14.8% respectively, while those for Georgia were 0.06% for exports and 0.03% for imports. With 
total merchandise exports of US$2,307 billion and imports of US$2,235 billion, the EU was the world's largest global exporter and second largest importer, while Georgia ranked 96th largest 
exporter and 84th largest importer (with exports of US$2.9 billion and imports of US$8.0 billion). 
1.4.  Based on 2013
3 trade data, the EU was Georgia's largest source of imports and second 
largest destination for exports, while Georgia was the EU's 84th largest source of imports and 
65th largest export destination. 
1.5.  Developments in global and intra-Party tr ade are presented in Charts 1.1 and 1.2 over the 
period 2001-2013. The EU's trade surplus with Geor gia widened during this period, particularly 
since 2007. In parallel, the EU maintained a global deficit until 2013 when it developed a small 
surplus, while Georgia's global trade showed a widening deficit for much of the period.  
                                               
1 Source for this section: WTO Trade Profiles 2014 (2012 data), Eurostat and UNSD Comtrade database. 
Export figures are calculated f.o.b. and import figures are calculated c.i.f. Ranking in world trade excluding 
intra-EU trade. For bilateral trade, the figures ar e based on Eurostat and UNSD Comtrade (2013 data). 
2 Agreements in goods and services counted as one an d only agreements in forc e, notified to the WTO. 
3 Source: Eurostat and UNSD Comtrade database. WT/REG354/1 
 
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  Chart 1.1 European Union and Georgia: bila teral and total merchandise trade, 2001-2013  
012345678
012345678
2001 2003 2005 2007 2009 2011 2013B. Georgia 2001-2013
(€ Billion)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
012345678
02004006008001,0001,2001,4001,6001,8002,000
2001 2003 2005 2007 2009 2011 2013A. EU 2001-2013
(€ Billion)
Imports from Georgia (Right Axis)
Exports to Georgia (Right Axis)
Total Imports
Total Exports
 
Note: 
European Union: covers data for EU (15) from 2000-2003, EU (25) from 2004-2006, EU (27) from 2007-2012 
and EU(28) from 2013. Trade flows excludes intra-EU trade. 
Georgia: Exchange rate Euros per US dollar are: 1.12 (2001), 1.06 (2002), 0.89 (2003), 0.81 (2004), 0.80 
(2005), 0.80 (2006), 0.73 (2007), 0.68 (2008), 0.72 (2009), 0.76 (2010), 0.72 (2011), 0.78 (2012) and 0.75 (2013). 
Source: Eurostat and UN SD Comtrade database. 
1.6.  The commodity structure of trade between Georgia and the EU, and between each Party and 
the world, during the period 2011-2013, is shown in  Chart 1.2, on the basis of Harmonized System 
(HS) Sections.  
1.7.  Minerals products, vegetables and chemical products together accounted for 82% of the EU's 
imports from Georgia (62, 11 and 8% respectively ), while these three sectors were respectively 
the EU's 1st, 2nd, and 10th largest global imports (representing together 42.1% of the EU's global imports) and Georgia's 4th, 5th and 6th largest global exports (corresponding together to 26.5% of Georgia's global exports).  
1.8.  Mineral products, machinery and vehicles represented half of Georgia's imports from the EU 
(23.4% for minerals; 22.1% for machinery and 13% for vehicles). These three sectors were respectively Georgia's top three global imports (representing together 48.8% of Georgia's global 
imports) and respectively the EU's 1st, 2nd and 5th largest global exports (corresponding together 
to 56.8% of the EU's global exports).  WT/REG354/1 
 
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  Chart 1.2 European Union and Georgia: Pr oduct Composition of merchandise trade, 
annual average (2011-2013) 
62 11810534EU imports from Georgia (%)
31
20
86554333227EU's Global Imports (%)
27
19
1210884336Georgia's Global Exports (%)
23
22
131254332228Georgia's imports from EU (%)
20
17
12
8875433837Georgia's Global Imports(%)
26
15
14775544229EU's Global Exports(%)Total: € 618 million Total: €1,734 billion
Total: €5.7 billion Total: €1,664 billionTotal:  €1.9 billion
Total: €1,537 million
 
Note: 
European Union covers data for EU (27) from 2011-2012 and EU (28) for 2013. 
Georgia: Exchange rates Euros per US dollar are 0.72 (2011), 0.78 (2012) and 0.75 (2013). Source:  Eurostat and UNSD Comtrade database. 
 
1.2  Trade in services and investment 
1.9.  In 2013, the EU's shares of total commerc ial services exports and imports were 25.19% and 
19.74% respectively, while Georgia's share was 0.06% for exports and 0.03% for imports of 
services. With total commercial services export s of US$891 billion, and imports of US$668 billion, 
the EU was the world's largest exporter and importer of commercial services. Georgia was the 64
th largest exporter (US$3.0 billion) and 94th largest importer (US$1.6 billion). 
1.10.  Chart 1.3 below shows global trade in commercial services for Georgia and for the EU (all 
based on data for the period 2001-2013). Both Parties had a positive balance in their global trade 
in services. For both Parties, trade in services has grown during the period despite the 2008-2009 slow-down associated with the financial crises. Travel and transportation services account for a 
large share of services traded by the Parties wi th other business services also important exports 
and imports for the EU. 
 WT/REG354/1 
 
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  Chart 1.3 European Union and Georgia: Trad e in commercial services with the world, 
2001-2013  
0100200300400500600700800900
2001 2003 2005 2007 2009 2011 2013A. EU imports from world
2001-2013
(€ Billion)
0100200300400500600700800900
2001 2003 2005 2007 2009 2011 2013B. EU exports to world
2001-2013
(€ Billion)
0.00.51.01.52.02.5
2001 2003 2005 2007 2009 2011 2013C. Georgia imports from world
2001-2013
(€ Billion)
0.00.51.01.52.02.5
2001 2003 2005 2007 2009 2011 2013D. Georgia exports to world
2001-2013
(€ Billion)
 
Note: 
European Union: covers data for EU (15) from 2000-2003, EU (25) from 2004-2006, EU (27) from 2007-2012 
and EU(28) from 2013. Trade flows excludes intra-EU trade. 
Georgia: Exchange rate Euros per US dollar are: 1.12 (2001), 1.06 (2002), 0.89 (2003), 0.81 (2004), 0.80 
(2005), 0.80 (2006), 0.73 (2007), 0.68 (2008), 0.72 (2009), 0.76 (2010), 0.72 (2011), 0.78 (2012) and 0.75 (2013). 
 No import data for Personal, cultural and recreational services (2001-2006). No export data for 
Construction (2001-2006) and Computer and information services (2001-2003). 
Source: Eurostat, WTO Statistics Database and National Statistics Office of Georgia (2011-2013).  
1.11.  Chart 1.4 below depicts each Party's foreign direct investment stocks with the world as well 
as the Party's FDI flows with the world which have grown steadily during the period 2001-2013. While the EU is a net investor in the world, Georgia is a net recipient of FDI. WT/REG354/1 
 
- 8 - 
 
  Chart 1.4 European Union and Georgia: FDI stock with the world, 2001-2013 
01,0002,0003,0004,0005,0006,000
2001 2003 2005 2007 2009 2011 2013EU FDI stock with world
2001-2013
(€ Billion) 
Outward Inward
Note: no data on FDI stock for 2013.0100200300400500600700800
2001 2003 2005 2007 2009 2011 2013EU FDI flow with world
2001-2013
(€ Billion) 
Outward Inward
012345678910
2001 2003 2005 2007 2009 2011 2013Georgia FDI stock with world
2001-2013
(€ Billion) 
Outward Inward
-0.50.00.51.01.52.0
2001 2003 2005 2007 2009 2011 2013Georgia FDI flow with world
2001-2013
(€ Billion) 
Outward Inward
 
Note: 
European Union:  covers data for EU (15) from 2000-2003, EU (25) from 2004-2006, EU (27) from 2007-   2012 and EU(28) from 2013. Trade flows excludes intra- EU trade.  
Georgia: exchange rate Euros per US dollar are: 1.12 (2001), 1.06 (2002), 0.89 (2003), 0.81 (2004), 
0.80 (2005), 0.80 (2006), 0.73 (2007), 0.68 (2008), 0.72 (2009), 0.76 (2010), 0.72 (2011), 0.78 (2012) and 0.75 (2013). 
Source: Eurostat, UNCTAD and National Statistics Office of Georgia (2011-2013). 
 
Chart 1.5 Georgia: FDI stock with EU, 2011-2013 
05001,0001,5002,0002,5003,0003,5004,000
2011 2012 2013Georgia FDI stock with EU
2011-2013
(€ Million) 
Outward
Inward
050100150200250300350400450
2011 2012 2013Georgia FDI flow with EU
2011-2013
(€ Million) 
Outward
Inward
 
Note:  Exchange rate EUR per USD are: 0.72 (2011), 0.78 (2012) and 0.75 (2013). 
Source: National Statistics Office of Georgia. WT/REG354/1 
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  The Association Agreement between the European Union and the European Atomic Energy 
Community and their Member States, of the one part, and Georgia of the other part, foresees, 
under Title IV, the creation of a "Deep and Comp rehensive Free Trade Area" (DCFTA). The factual 
presentation therefore focusses on the DCFTA (hereinafter called "the Agreement"). The 
Agreement was signed by the Parties on 27 June 2014 and, is applied since 1 September 2014. 
2.2.  The text of the Agreement is available from the following websites: 
European Union: 
http://eur-lex.europa.eu/legal-content/EN/ TXT/PDF/?uri=CELEX:22014A0830(02)&from=EN  
 
Georgia:  
http://www.mfa.gov.ge/  
 
2.3.  The Agreement was notified to the WTO in document WT/REG354/N/1/Add.1 under 
Article XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS on 19 September 2014. 
2.4.  The Association Agreement is composed of 8 Titles, 432 Articles, 39 Annexes and 4 Protocols 
(some with annexes). All Annexes and Protocols are an integral part of the Association Agreement 
(See Box 2.1 below).  
Box 2.1 Contents of the Association Agreement  
Chapters, and Annexes Title/description  
Preamble 
Title I General Principles 
Title II  Political Dialogue and Reform, Cooperation in the Field of Foreign and Security 
Policy 
Title III Freedom, Security and Justice 
Title IV Trade and Trade-Related Matters 
Chapter 1 National Treatment and Market Access for Goods 
Chapter 2 Trade remedies 
Chapter 3 Technical Barriers to Trade, standardisation, metrology, accreditation and 
conformity assessment 
Chapter 4 Sanitary and Phytosanitary Measures 
Chapter 5 Customs and trade facilitation 
Chapter 6  Establishment, trade in services and electronic commerce 
Chapter 7 Current payments and movement of capital 
Chapter 8 Public procurement 
Chapter 9 Intellectual Property rights 
Chapter 10 Competition 
Chapter 11 Trade-related energy provisions 
Chapter 12 Transparency 
Chapter 13 Trade and sustainable development 
Chapter 14 Dispute Settlement 
Chapter 15 General provisions on appr oximation under Title IV WT/REG354/1 
 
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  Chapters, and Annexes Title/description  
Preamble 
Title V Economic Cooperation 
Title VI Other Cooperation Policies 
Title VII Financial Assistance, And Anti-Fraud and Control Mechanisms 
Title VIII Institutional, General and Final Provisions 
  
Annexes Title 
Annexes I-XXXIV Supplementary provisions referring to  specific parts of the Agreement 
Protocols I-IV  
2.5.  As provided in Article 1.2(h) of the Association Agreement, one aim is to achieve Georgia's 
gradual economic integration into the EU internal market, in particular through establishing a deep 
and comprehensive free trade area which will provide for far-reaching market access on the basis of sustained and comprehensive regulatory approximation in compliance with Georgia's WTO rights 
and obligations. 
3  PROVISIONS ON TRADE IN GOODS 3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 
3.1.  Under Title IV, which covers trade and trade-related matters, Chapter 1 of Title IV concerns 
national treatment and market access for goods. Title IV, Chapter 1, Article 22 of the Agreement 
provides that the Parties will establish a free trade area from the entry into force of the 
Agreement, in accordance with the provisions of the Agreement and of Article XXIV of the 
GATT 1994. Article 23.1 of the Agreement provides that Chapter 1 of the Agreement shall apply to 
all trade in goods between the Parties. Section 2 of Chapter 1 concerns the elimination of customs 
duties, fees and other charges. Article 24 defines "customs duties". Article 25 provides that the 
classification of goods in trade between the Part ies shall be determined by reference to each 
Parties respective tariff nomenclature in conformity with the 2012 Harmonised System.  
3.2.  Article 26.1 provides that the Parties shall eliminate all customs duties on goods originating 
in the other Party as from the date of entry into  force of the Agreement, except as provided in 
Articles 26.2 and 26.3 (and without prejudice to  Article 26.4). Article 26.2 provides that the 
products listed in Annex II-A of the Agreement shal l be free of customs duties within the limits of 
the tariff rate quotas (TRQs) specified in that Annex when imported into the EU. MFN customs duty 
rates shall apply to imports exceeding the TRQ quanti ties. Article 26.3 provides that goods listed in 
Annex II-B to the Agreement which are subject to an entry price, will be exempt from the 
ad valorem  component of import duties charged when imported into the EU. The Parties do not 
have schedules of concessions attached to the Agreement. According to the Parties Georgia has 
given full duty free entry for all EU goods.  
3.3.  Article 26.4 provides that the import of agricultural and processed agricultural products of 
Georgian origin products listed in Annex II-C to the Agreement shall be subject to the anti-
circumvention provision of Article 27 of the Agreement (see Section 3.5.1 below).  
3.4.  Neither Party may adopt any new customs duty on a good originating in the other Party or 
increase any customs duty applied on the date of  entry into force of the Agreement except as 
authorized by the Dispute Settlement Body of th e WTO (Article 28). Article 26.5 provides that 
within 5 years of entry into force of the Agreement the Parties will consult to consider broadening 
the scope of liberalization of customs duties. A decision under Article 26.5 shall be made by the 
Association Committee in Trade configuration as set out in Article 408.4 of the Agreement.  WT/REG354/1 
 
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  3.5.  Article 30 provides that each Party shall en sure, in conformity with Article VIII of GATT 1994 
and its interpretative notes, that all fees and charges of whatever character other than customs 
duties or other measures referred to in Article 26 of the Agreement are limited to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a 
taxation of imports or exports for fiscal purposes.  
3.6.  Section 3 of Chapter 1 of Title IV concerns non-tariff measures. Article 31 provides that each 
Party shall accord national treatment to the goods of the other Party per Article III of the 
GATT 1994 including the interpretative notes, wh ich are incorporated into the Agreement by 
reference. 
3.7.  Article 32 provides that neither Party shall adopt or maintain any prohibition or restriction on 
the import of any good of the other Party (or on th e export or sale for export of any good destined 
for the territory of the other Party) except as otherwise provided for in the Agreement or in 
accordance with Article XI of the GATT and its inte rpretative notes (which are incorporated into the 
Agreement by reference). 
3.1.2  Liberalization of trade and tariff lines 
3.8.  All tariffs are to be eliminated by the Part ies on entry into force of the Agreement except as 
provided for in Annex II:  
a. Annex II-A lists the single item (at the HS eight-digit level) subject to an annual 
duty-free tariff-rate quotas applied from th e EU to Georgia's exports (garlic, fresh or 
chilled); 
b. Annex II-B lists the 28 tariff lines (at the HS eight-digit level) which are subject by the 
EU to entry prices. For the listed products, when imported from Georgia, the ad valorem  
component of the import duty is exempted; and 
c. Annex II-C contains the list of 233 agricultural and 44 processed agricultural products 
subject by the EU to the anti-circumvention mechanism
4 (Article 27).  
3.9.  Tables 3.1 and 3.2 show tariff eliminatio n by the EU under the Agreement for imports from 
Georgia. In 2014 when the Agreement entered into force, around 25% of the EU's tariff 
(2,356 lines) were already duty-free on an MFN basis corresponding to 67.9% of EU imports from 
Georgia in 2011-2013.5 Following the entry into force of the Agreement, a further 6,994 lines were 
liberalized, corresponding to 32.1% of imports from Georgia in 2011-2013. As a result 99.7% of the tariff became duty free for imports from Georgia, corresponding to 100% of the EU's imports 
from Georgia during 2011-2013. 
Table 3.1: EU 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out 
period Number 
of lines % of total lines in 
EU's tariff 
schedule Value of EU's imports 
from Georgia 
(2011-2013) 
€ million  % of EU's total 
imports from  
Georgia 
2011-2013 
MFN duty free (2014) 2,356 25.1 398.5 67.9 
2014 6,994 74.6 188.1 32.1 
Remain dutiable 29 0.3 0.0 0.0 
Total 9,379 100.0 586.6 100.0 
Note: Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data submis sion from the EU auth orities and WTO-IDB. 
                                               
4 Agricultural products covered in clude beef, pork and sheep meat; po ultry meat; dairy products; eggs 
in shell and albumins; mushrooms; cereals; malt and wheat gluten; starches; suga rs; bran, sharps and other 
residues. Processed agricultural products covered ar e sweet corn; sugar processed; cereal processed and 
cigarettes. 
5 In 2014 the EU's MFN applied tariff consisted of 9,379 lines of which 8,382 lines (89.37%) had 
ad valorem  rates of duty. Of the remainder, 651 lines were subject to specific duties, 215 compound and 64 
mixed. 67 lines had other rates of duty. WT/REG354/1 
 
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  3.10.  Table 3.2 depicts the EU's tariff elimination, by HS section with regard to Georgia and shows 
that the tariffs remaining dutiable are found in sections II (vegetable products) and IV (prepared food).  
Table 3.2 EU: Tariff elimination under the Agreement, by HS Section 
 
HS 
Section MFN 
average%  No. of 
lines Duty-free lines 
under the  
MFN 2014 Number of duty-free 
lines under the 
Agreement Remain 
dutiable Avg. Final Tariff 
(Dutiable) 
2014 
I 9.8 932 107 825   
II 5.5 552 150 381 21 9.6 
III 5.9 128 23 105   
IV 14.8 832 95 729 8 - 
V 0.8 234 170 64   
VI 4.3 1,149 299 850   
VII 4.6 301 62 239   
VIII 3.1 130 45 85   
IX 2.4 213 99 114   
X 0.0 195 195    
XI 8.0 1,159 39 1,120   
XII 8.2 106 2 104   
XIII 4.0 236 33 203   
XIV 0.6 56 45 11   
XV 1.8 953 500 453   
XVI 2.3 1,375 307 1,068   
XVII 4.9 269 30 239   
XVIII 2.5 322 89 233   
XIX 2.2 22 4 18   
XX 2.6 208 55 153   
XXI 0.0 7 7    
Total 5.1 9,379 2,356 6,994 29 9.6 
- subject to entry price See A nnex II-B (EP based tariff minus ad valorem  part). 
Note: Tariff lines subject to in-quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on data submission from the EU authorities. 
 
3.11.  Table 3.3 shows the 29 items that will remain subject to duties upon implementation, 
together with the difference between 2014 MFN rate and the preferential rate applied to products 
imported from Georgia. One line (garlic) is subj ect to preferential duties under TRQ imports from 
Georgia. 
Table 3.3 EU: Tariff lines remaining dutiable under the Agreement 
Tariff Line Description MFN 2014 Preferential 
07020000 Tomatoes, fresh or chilled EP EP based tariff minus ad valorem  part 
07032000 - Garlic, fresh or chilled 9.6 % + 120 
EUR/100 kg 9.6 % + 120 EUR/100 kg (Out-quota) 
07070005 - Cucumbers, fresh or chilled EP EP based tariff minus ad valorem  part 
07099100 -- Globe artichokes, fresh or chilled EP EP based tariff minus ad valorem  part 
07099310 --- Courgettes, fresh or chilled EP EP based tariff minus ad valorem  part 
08051020 -- Sweet oranges, fresh EP EP based tariff minus ad valorem  part 
08052010 -- Clementines EP EP based tariff minus ad valorem  part 
08052030 -- Monreales and satsumas EP EP based tariff minus ad valorem  part 
08052050 -- Mandarins and wilkings EP EP based tariff minus ad valorem  part 
08052070 -- Tangerines EP EP based tariff minus ad valorem  part 
08052090 -- Tangelos, ortaniques, malaquinas 
and similar citrus hybrids (excl. clementines, monreales, satsumas, mandarins, wilkings and tangerines) EP EP based tariff minus ad valorem  part 
08055010 -- Lemons (Citrus limon, Citrus 
limonum) EP EP based tariff minus ad valorem  part 
08061010 -- Table grapes, fresh EP EP based tariff minus ad valorem  part WT/REG354/1 
 
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  Tariff Line Description MFN 2014 Preferential 
08081080 -- Apples, fresh (excl. cider apples, 
in bulk, from 16 September to 15 
December) EP EP based tariff minus ad valorem  part 
08083090 -- Pears, fresh (excl. perry pears in 
bulk from 1 August to 31 December) EP EP based tariff minus ad valorem  part 
08091000 - Apricots, fresh EP EP based tariff minus ad valorem  part 
08092100 -- Sour cherries (Prunus cerasus), 
fresh EP EP based tariff minus ad valorem  part 
08092900 -- Cherries (excl. sour cherries), 
fresh EP EP based tariff minus ad valorem  part 
08093010 -- Nectarines, fresh EP EP based tariff minus ad valorem  part 
08093090 -- Peaches (excl. nectarines), fresh EP EP based tariff minus ad valorem  part 
08094005 -- Plums, fresh EP EP based tariff minus ad valorem  part 
20096110 Grape juice, incl. grape must, 
unfermented, Brix value <= 30 at 
20 °C, value of > EUR 18 per 100 
kg, whether or not containing added 
sugar or other sweetening matter 
(excl. containing spirit) EP EP based tariff minus ad valorem  part 
20096919 ---- Grape juice, incl. grape must, 
unfermented, Brix value > 67 at 20 °C, value of > EUR 22 per 100 kg, whether or not containing added sugar or other sweetening matter (excl. containing spirit) EP EP based tariff minus ad valorem  part 
20096951 ----- Concentrated grape juice, incl. 
grape must, unfe rmented, Brix 
value > 30 but <= 67 at 20 °C, 
value of > EUR 18 per 100 kg, 
whether or not containing added 
sugar or other sweetening matter 
(excl. containing spirit) EP EP based tariff minus ad valorem  part 
20096959 ----- Grape juice, incl. grape must, 
unfermented, Brix value > 30 but <= 67 at 20 °C, value of > EUR 18 per 100 kg, whether or not 
containing added sugar or other 
sweetening matter (excl. concentrated or containing spirit) EP EP based tariff minus ad valorem  part 
22043092 ---- Grape must, unfermented, 
concentrated within the meaning of 
Additional Note 7 to chapter 22, of a 
density <= 1,33 g/cm 3 at 20 °C 
and of an actual alcoholic strength 
<= 1 % vol but > 0,5 % vol (excl. 
grape must whose fermentation has 
been arrested by the addition of 
alcohol) EP EP based tariff minus ad valorem  part 
22043094 ---- Grape must, unfermented, non-
concentrated, of a density <= 1,33 g/cm 3 at 20 °C an d of an actual 
alcoholic strength <= 1 % vol but > 0,5 % vol (excl. grape must whose fermentation has been arrested by the addition of alcohol) EP EP based tariff minus ad valorem  part 
22043096 ---- Grape must, unfermented, 
concentrated within the meaning of 
Additional Note 7 to chapter 22, of a 
density > 1,33 g/cm 3 at 20 °C and 
of an actual alcoholic strength <= 1 
% vol but > 0,5 % vol (excl. grape 
must whose fermentation has been 
arrested by the addi tion of alcohol) EP EP based tariff minus ad valorem  part WT/REG354/1 
 
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  Tariff Line Description MFN 2014 Preferential 
22043098 ---- Grape must, unfermented, non-
concentrated, of a density > 1,33 g/cm 3 at 20 °C an d of an actual 
alcoholic strength <= 1 % vol but > 0,5 % vol (excl. grape must whose fermentation has been arrested by the addition of alcohol) EP EP based tariff minus ad valorem  part 
EP: Entry Price. 
Source:  WTO estimates based on data submission from the EU authorities. 
3.12.  Tables 3.4 and 3.5 show Georgia's duty e limination under the Agreement. In 2014 when the 
Agreement entered into force, 79.6% of its tariff (8,161 lines) was already duty free on an MFN 
basis, corresponding to 78.9% of its imports from the EU during 2011-2013.6 As a result of the 
Agreement Georgia liberalized a further 2,094 lines (20.4%) of the tariff for imports from the EU, corresponding to 21.1% of its imports from the EU in 2011-2013.  
Table 3.4: Georgia 
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out 
period Number of 
lines % of total lines in 
EU's tariff schedule Value of Georgia's 
imports from EU 
(2011-2013) 
€ million  % of Georgia's 
total imports from  
EU 
2011-2013 
MFN duty free (2014) 8,161 79.6 1,607.3 78.9 
2014 2,094 20.4 429.7 21.1 
Total 10,255 100.0 2,037.7 100.0 
Note: Tariff line coverage is from HS chapters 1-97 only.  
Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on  data submission from the Geor gian authoritie s and WTO-IDB. 
Table 3.5 Georgia: Tariff elimination under the Agreement, by HS Section  
HS Section MFN average%  No. of lines Duty-free lines under the  
MFN 2014 Number of duty-free lines 
under the Agreement 
2014 
I 4.6 740 420 320 
II 5.6 570 305 265 
III 0.1 127 126 1 
IV 8.5 842 184 658 
V 4.1 255 168 87 
VI 0.2 1,237 1,205 32 
VII 2.6 376 226 150 
VIII 0.0 219 219  
IX 6.2 204 99 105 
X 0.0 216 216  
XI 0.0 1,168 1,168  
XII 0.0 112 112  
XIII 3.2 267 196 71 
XIV 2.5 63 50 13 
XV 1.3 1,013 906 107 
XVI 0.0 1,635 1,629 6 
XVII 0.0 580 301 279 
XVIII 0.0 371 371  
XIX 0.0 28 28  
XX 0.0 225 225  
XXI 0.0 7 7  
Total 1.8 10,255 8,161 2,094 
Note: Tariff line coverage is from HS chapters 1-97 only.  
Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data su bmission from the Georgian authorities. 
                                               
6 In 2014 Georgia's applied MFN tariff at the HS eight digit level consisted of 10,255 lines of which 
95.48% (9,791 lines) had ad valorem  rates of duty. 185 lines had specific rates and 279 lines had other rates.  WT/REG354/1 
 
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  3.1.3  Tariff rate quotas 
3.13.  As noted above, Annex II-A provides that garlic, fresh or chilled (0703 20 00) is subject to 
an annual duty-free tariff rate quota of 220 metric tonnes. The out of quota rate is the MFN rate 
(9.6% plus 120 euros per 100 kg in 2014). According to the Parties, under the Agreement the 
Parties can further liberalization of customs duties within 5 years of the entry into force of the 
Agreement. Currently, there are no plans to incr ease the TRQ and the quota amount is fixed. 
3.2  Rules of origin 
3.14.  The rules of origin applicable in the contex t of the Agreement are set out in Protocol I to the 
Agreement (concerning the definition of the concept of "originating products" and methods for administrative cooperation). While definitions are provided for under Title I of the Protocol, the 
concept of "originating products" is defined in Title II of Protocol I. According to Article 2 of the 
Protocol, a good is considered as originating in a Party when:  
a. it is wholly obtained in a Party; and 
b. it is obtained in a Party, incorporating materials which have not been wholly obtained 
there, provided they have undergone sufficient working or processing in the Party. 
3.15.  Article 4 of the Protocol clarifies what constitutes a wholly obtained product, and Article 5 
refers to Annex II to the Protocol, which lists, per product or category of products, the conditions 
that need to be fulfilled for products to be considered "sufficiently worked or processed". While a 
change in tariff classification, as set out in Annex II constitutes the main criteria used to determine origin in cases of substantial transformation of goods, the value of non-originating material used in the production of a good can be used as an alternative criterion in a number of cases.
7 In certain 
cases, Annex II to the Protocol also registers manufacturing or processing operations conferring 
origin. 
3.16.  Non-originating products, the value of whic h does not exceed 10% of the ex-work prices of 
the products, may be used in the processing of originating final products. Moreover, for a number 
of products, the list in Annex II to the Protocol contains the maximum value of non-originating materials not to be exceeded to qualify as originating final products. Specific rules are however 
defined for textiles and textile articles and "basic textile materials" (HS Chapters 50 to 63).
8 
3.17.  Insufficient working or processing operations are described in Article 6 of Protocol I. Title II 
of Protocol I also contains disciplines on unit of qualification (Article 7); accessories, spare parts and tools (Article 8); sets (Article 9); and neutral elements (Article 10). 
3.18.  Cumulation of origin is governed by the prov isions of Article 3 of Protocol I. Products shall 
be considered as originating in a Party if such products are obtained there by incorporating materials originating in the other Party, provided that the working or processing carried out goes 
beyond the insufficient working or processing operations while it shall not be necessary that the 
materials of the other Party have undergone sufficient working or processing. 
3.19.  Title III (Territorial Requirements) of Prot ocol I addresses the principle of territoriality 
(Article 11); direct transport (Article 12); and the treatment of originating products sent for 
exhibition in a country other than a Party and sold after the exhibition for importation in a Party (Article 13). 
3.20.  Title IV (Drawback or exemption) provides that non-originating materials used in the 
manufacture of products originating in a Party for which a proof of origin is issued shall not be 
subject to drawback of, or exemption from, cust oms duties of whatever kind. Modalities and 
conditions related to prohibition of drawback are contained in Article 14. 
                                               
7 For these cases, the value of all non-originating materials used is indicated in columns 3 and/or 4 of 
Annex II to the Protocol. 
8 See Notes 4 through 6 in Annex I to Protocol I (Introductory notes to the list in Annex II to Protocol I). WT/REG354/1 
 
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  3.21.  Title V of Protocol I contains detailed disciplines related to proof of origin9 (Section 4).  
3.22.  Title VI of Protocol I sets disciplines and registers commitments by the Parties in relation to 
administrative cooperation. It addresses verificati ons of proofs or origin, the settlement of dispute 
in relation to the verification procedure or other origin-related matters, penalties, and free zones 
situated in the Parties' territories.  
3.23.  Title VII (Ceuta and Melilla) of Protocol I covers products originating in Ceuta and Melilla, 
(considered by the Agreement as not originating in the EU). For products originating in the 
Republic of San Marino as well as in the Principality of Andorra (for the latter, limited to 
non-agricultural products), according to two joint declarations by the Parties, shall be accepted by Georgia as originating in the EU.  
3.24.  Finally, in a joint declaration concerning the revision of the rules of origin contained in 
Protocol I, the Parties agree to review the rules concerning the definition of originating products 
and methods or administrative cooperation and discuss necessary amendments upon request of either Party. 
3.3  Export duties and charges,  and quantitative restrictions 
3.25.  Title IV, Article 29 provides that neither Pa rty shall adopt or maintain any customs duty or 
tax (other than internal charges applied in confor mity with Article 30 of the Agreement) on or in 
connection with the export of goods to the territory of another Party.  
3.26.  Article 32 provides that neither Party shall adopt or maintain any prohibition or restriction 
on the export or sale for export of any good destined for the territory of another Party, except as provided in the Agreement or in accordance with Article XI of GATT 1994, which is, together with 
its interpretative notes, incorporated into and made part of the Agreement .  
3.27.  Article 69 on fees and charges, provides th at the Parties shall prohibit administrative fees 
having an equivalent effect to impo rt or export duties or charges. 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 
3.28.  Under the Agreement, sanitary and phytosanitary (SPS) matters are regulated through 
Chapter 4 of Title IV and Annex IV-XII to the Ag reement. Chapter 4 also aims at reaching a 
common understanding between the Parties concerning animal welfare standards (Article 50). 
3.29.  The Parties reaffirm their rights and obligations under the WTO Agreement on 
SPS (Article 51). The SPS provisions of the Agreement build on the WTO provisions in areas such 
as recognition for trade purposes of animal health and pest status and regional conditions (Article 56); recognition of equivalence, including the possibility to withdraw or suspend 
equivalence in certain conditions and under certain circumstances (Article 57); transparency and 
exchange of information (Article 58); notification, consultation and facilitation of communication (Article 59); trade conditions (Article 60); certification procedure (Article 61); verification 
(Article 62); and import checks and inspection fees (Article 63). Safeguard measures, including in 
application of the precautionary principle are governed by Article 64.  
3.30.  The Parties shall inform each other about the structure, organization and division of 
competences of their competent authorities during the first meeting of the SPS Sub-Committee
10 
established under Article 65. According to the Parties, the first meeting of the SPS Sub-Committee 
will take place in the first quarter 2015. The competent authority for the EU is DG SANTE of the 
                                               
9 Annex III to Protocol I contains specimens of th e movement certificate EUR.1 and the application 
form, and Annex IV to Protocol I contains the text of the origin declaration in all the official languages. 
10 Technical working groups may be esta blished, under the SPS Sub-Committee. WT/REG354/1 
 
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  European commission http://ec.europa.eu/dgs/health_consumer/index_en.htm . The competent 
authority for Georgia is the Ministry Of Agriculture of Georgia www.moa.gov.ge . 
3.31.  The Sub-Committee adopts its decisions, recommendations or other action by consensus 
and regularly informs the Association Committee in Trade configuration on a regular basis, through 
a report on its activities and decisions taken within its competence. (see Section 5.11 below). 
3.32.  Georgia gradually approximates its SPS and an imal welfare law to that of the EU as set out 
in Annex IV (and XI) to the Agreement (Article 55). This process is regularly monitored by the SPS 
Sub-Committee. Moreover, no later than six months after the entry into force of the Agreement, 
Georgia submits a list of EU SPS, animal welfare and other legislative measures which it will approximate.
11 The approximation list and the principles for the evaluation of the progress in the 
approximation process will be added to Annex XI-B and XI-A to the Agreement. According to the 
Parties bilateral consultations on the list and the next steps are ongoing. Georgia intends to submit 
the approximation list (mentioned in Article XXX) to the European Commission within the deadline set in the Agreement (6 months since the start of application). 
3.4.1.2  Technical barriers to trade 
3.33.  Title IV, Chapter 3, Articles 44-49 concern technical barriers to trade (TBT). Article 44.1 
provides that the Chapter applies to the prepar ation, adoption and application of standards, 
technical regulations and conformity assessment procedures as defined in the WTO Agreement on 
TBT. It does not apply to SPS measures (Article 44.2). Article 44.3 provides that the definitions contained in Annex 1 of the TBT Agreement apply.  
3.34.  In Article 45 the Parties reaffirm their rights and obligations under the TBT Agreement, 
which is incorporated into the Agreement. Article 46 concerns technical cooperation on TBT 
matters between the Parties. Article 47 concerns ap proximation of technical regulations, standards 
and conformity assessment and in Article 47.1 requires Georgia to take measures necessary in 
order to gradually achieve approximation with the Union's TBT framework and undertakes to follow 
the principles and practice laid out in the Union's acquis per the indicative list in Annex III-B to the Agreement. A list of the measures for approximation is set out in Annex III-A to the Agreement. 
3.35.  Article 48 permits the Parties to add as a Protocol to the Agreement an Agreement on 
Conformity Assessment and Acceptance of Industri al Products (ACAA). In Article 49.1 concerning 
marking and labelling the Parties reaffirm th e principles of Chapter 2.2 of the WTO TBT 
Agreement, without prejudice to th e provisions of Article 47 and 48. 
3.4.2  Safeguard mechanisms 
3.36.  Section 1 of Chapter 2 of Title IV concerns the use of global safeguard measures, while 
establishing the applicable disciplines in relation to bilateral safeguard measures.  
3.4.2.1  Global safeguards 
3.37.  Title IV, Chapter 2, Section 1, Articles 37-39 of the Agreement concern global safeguard 
measures. In Article 37.1 the Parties confirm their rights and obligations under Article XIX of GATT 
1994 and the WTO Agreement on Safeguards, and Arti cle 5 of the WTO Agreement on Agriculture. 
Preferential rules of origin granted under Chapte r 1 of Title IV of the Agreement do not apply 
(Article 37.2). The dispute settlement provisions of the Agreement do not apply to Title IV, Chapter 2, Section 1 of the Agreement (Article 37.3).  
3.38.  Article 38 of the Agreement sets out transp arency obligations for the conduct of safeguard 
measures. Article 39 on the application of measures  provides that the Parties shall endeavour to 
impose them in a way that affects their bilateral trade the least. 
3.4.2.2  Bilateral safeguards 
3.39.  There are no specific rules on bilateral safeguards in the Agreement.  
                                               
11 Annex IV to the Agreement defines priority areas. WT/REG354/1 
 
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  3.4.2.3  Anti-circumvention mechanism 
3.40.  Article 27 establishes an anti-circumvention mechanism for agricultural products and 
processed agricultural products imported into the EU from Georgia. The products subject to this 
mechanism are listed in Annex II-C12 to the Agreement.13 When the volume of imports of one or 
more categories of products identified in Annex II-C reaches 70%, the EU notifies Georgia about 
the volume of imports of the product(s) concerned. When the volume reaches 80% of that volume, Georgia shall provide the EU with a sound justification for the increase of imports. If those imports 
reach 100% of the volume indicated in Annex II-C, and in the absence of a sound justification by 
Georgia, the EU may temporarily suspend the pref erential treatment for the products concerned. 
Such suspension shall be applicable for a maxi mum of six months. A temporary suspension may 
be lifted before the expiry of six months of Ge orgia provides evidence that the volume of the 
relevant category of products imported in exce ss of the volume referred to in Annex II-C results 
from a change in the level of production and export  capacity of Georgia. There is no corresponding 
provision in respect of similar products imported into Georgia from the EU.  
3.4.2.4  Safeguard measures related to  balance of payment (BOP) difficulties 
3.41.  The Agreement is silent in relation to th e use by the Parties of BOP measures for trade in 
goods. Some disciplines on safeguard measures are however mentioned in relation to current 
payments and movement of capital (see below).  
3.4.3  Anti-dumping and countervailing measures 3.42.  Title IV, Chapter 2, Section 2, Articles 40-43 concern the application of anti-dumping and 
countervailing duty measures. In Article 40.1 the Parties confirm their rights and obligations under 
Article VI of the GATT 1994, the WTO Anti-Dumping Agreement and the WTO Agreement on 
Subsidies and Countervailing (SCM Agreement). Preferential rules of origin granted under 
Chapter 1 of Title IV of the Agreement do not apply (Article 40.2). The dispute settlement 
provisions of the Agreement do not apply to anti-dumping and countervailing measures 
(Article 40.3). Article 41 creates additional transparency obligations. Article 42 requires the Parties to consider the public interest before applying such measures. Article 43 creates a lesser duty rule. 
3.4.4  Subsidies and State-aid 
3.43.  General state-aid disciplines, also covering services are contained in Chapter 10 of Title IV 
(competition) (see Section 5.10.3 below).  
3.4.5  Customs-related procedures 
3.44.  Title IV, Chapter 5, Articles 66-75 concern customs and trade facilitation. Article 66 sets out 
the objectives of the Chapter.  
3.45.  In Article 67 the Parties agree that their respective trade and customs legislation shall be 
stable and comprehensive and that the provisions and procedures shall be proportionate, 
transparent, predictable, non-discriminatory, impartial and applied uniformly and effectively. Additional requirements are set out in Article 67.1(a)-(m). Article 67.2 sets out specific 
requirements to improve working methods as well as non-discrimination, transparency, efficiency, 
integrity and accountability of operations, with particular obligations described in Articles 67.2 (a)-(e). In Article 67.3 the Parties agree to eliminate (a) any requirements for the mandatory use of customs brokers, and (b) any requirements  for the mandatory use of pre-shipment or 
destination inspections.  
3.46.  On transit, Article 67.4 provides that  the transit rules and definitions of the WTO 
Agreement, in particular Article V of the GATT 1994, and any related provisions including any 
                                               
12 Annex XV-C may be amended and the volume modified by mutual consent in order to reflect changes 
in the level of production and export capacity of Georgia. 
13 The agricultural products covered are: beef, pork  and sheep meat; poultry me at; dairy products; eggs 
in shell; eggs and albumins; Mushrooms; Cereals; Ma lt and wheat gluten, Starches, Bran, sharps and other 
residues; and sugars. The processed agricultural products cover: cereal processed; cigarettes; sugar processed; and sweet corn. WT/REG354/1 
 
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  clarifications or amendments resulting from Doha Round negotiations on trade facilitation shall 
apply, including when the transit of goods begins or ends in the territory of a Party. The Parties 
agree to pursue the progressive interconnectivity of their respective customs transit systems, with a view to the future participation of Georgia in the common transit system. The Parties also agree 
to ensure cooperation and coordination between all relevant parties in their territories to facilitate 
traffic in transit and promote cooperation between th e authorities and the private sector in relation 
to transit.  
3.47.  Article 69 of the Agreement concerns fees and charges. Article 69.1 provides that the 
Parties shall prohibit administrative fees having an equivalent effect to import or export duties or charges. Article 69.2 sets out additional conditio ns for the imposition of fees and charges in 
sub-paragraphs (a)-(e) inclusive.  
3.48.  Article 70.1 of the Agreement on Customs Va luation, provides that the provisions of the 
Agreement on Implementation of Article VII of GATT 1994 shall govern the customs valuation of 
goods traded between the Parties. Minimum customs values are not to be used.  
3.49.  Article 71 on Customs Valuation provides that the Parties shall strengthen cooperation to 
ensure implementation of the objectives of the Ch apter in order to further trade facilitation. The 
Parties may use the European Commission Customs Blueprint as a benchmarking tool. In 
sub-paragraphs (a)-(j) the Parties list areas in which the Parties will cooperate on customs 
valuation. In Article 73 the Parties agree to cooperate with a view to providing technical assistance and capacity building for the implementation of trade facilitation and customs reforms. Article 74 creates a Customs Sub-Committee which reports to the Association Committee in Trade 
configuration (Article 74.1). Article 74.2 and 74. 3 set out the functions of the Sub-Committee. 
Article 75 provides that gradual approximation of Georgia's laws to the Union's customs law and certain international law shall take place as specified in Annex XIII to the Agreement. 
3.50.  Section 5 of Chapter 1 of Title IV of the Agreement contains provisions on administrative 
cooperation with other countries, which, in case of a failure of one Party to provide administrative cooperation or assistance and/or of irregularities or fraud under Chapter 1, the other Party may 
temporarily suspend the relevant preferential trea tment of the product(s) concerned (Article 34). A 
finding of irregularities or fraud may be made, inter alia , where there is a rapid increase, without 
satisfactory explanation, in the volume of imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning 
irregularities or fraud. The application of temporary suspensions is subject to the conditions 
contained in Article 34.5. 
3.51.  In addition to the above-mentioned special provisions on administrative cooperation, 
Article 35 also contains disciplines on the management of administrative errors, in particular in 
relation to rules of origin. 
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definitions 
4.1.  Chapter 6, Articles 76-136 concern trade in services. Section 1 concerns general conditions.  4.2.  The objective, scope and coverage of sectio n 1 of Chapter 6 of the Agreement is described in 
Article 76 of the Agreement. The Chapter specifica lly excludes coverage of public procurement in 
Article 76.2, subsidies (Article 76.3) and measures affecting natural persons seeking access to the 
employment market of a Party, and measures rega rding citizenship, residence or employment on a 
permanent basis (Article 76.5). Article 76.6 provid es that nothing in the Chapter shall prevent a 
Party from applying measures to regulate the entry of natural persons into or their temporary stay 
in its territory, provided that any such measures are not applied in a way that could nullify or impair the benefits accruing to any Party under the terms of a specific commitment made in the 
Chapter or Annex XIV to the Agreement. 
4.3.  Article 77 sets out the definitions used in the Chapter. Article 78 (Section 2 (Establishment) 
of Chapter 6 of the Agreement) provides that Section 2 of Chapter 6 applies to all measures 
adopted or maintained by the Parties affecting establishment in all economic activities, with the WT/REG354/1 
 
- 20 - 
 
  exception of; (a) mining, manufacturing and processi ng of nuclear materials, (b) production of or 
trade in arms, munitions and war material, (c) audio-visual services, (d) national maritime cabotage and (d) domestic and international air transport services, whether scheduled or non-scheduled and services directly related to the exercise of traffic rights. Article 78(e)(i-v) set 
out sub-sectors of Article 78(e) which are covered by Section 2 of Chapter 6.  
4.4.  In Section 3 of Chapter 6 on Cross Border supply of services, Article 83 sets out the scope of 
the section, and provides that Section 3 of Chapter 6 applies to all measures adopted or 
maintained by the Parties affecting cross border supply in services with the exception of (a) 
audio-visual services, (b) national maritime cabotage and (c) domestic and international air transport services, whether scheduled or non-scheduled and services directly related to the exercise of traffic rights (other than aircraft repair and maintenance services during which an 
aircraft is withdrawn from service; the selling and marketing of air transport services; computer 
reservation services; ground-handling services; airport operation services. 
4.5.  In Section 4, temporary presence of natural persons for business purposes, Article 88 sets 
out the scope and definitions used in section 4 of Chapter 6. Article 88.1 provides that the section 
applies to measures of the Parties concerning the entry and temporary stay of key personnel, graduate trainees, business sellers, contractual se rvice providers and indepe ndent professionals in 
accordance with Article 76.5 of the Agreement. 
4.6.  Sub-Section 1,  Section 5 of Chapter 6 on domestic regulation sets out the disciplines relating 
to licencing or qualification requirements and procedures that affect cross-border supply of services, establishment and temporary stay of categories of natural persons, as defined in the 
Agreement. 
4.2  Denial of benefits 4.7.  There is no denial of benefits clause as su ch, but the Agreement clarifies in the definition of 
juridical persons that "Juridical persons" having only their registered office or central 
administration in a Party's territory shall not be a beneficiary of preferences granted by the Agreement, unless their operations possess a real and continuous link with the economy of, at 
least, one of the Parties (Article 77). Services supplied in the exercise of governmental authority 
are excluded from the scope of Chapter 6. 
4.3  General provisions on trade in services 4.3.1  Market access in cross border supply of services 
4.8.  Article 84.1 provides that with respect to market access, each Party shall accord services and 
service suppliers of the other Party treatment not less favourable than that provided for in their specific commitments in Annexes XIV-B and XIV-F to the Agreement. Article 84.2 provides that in 
sectors where market access commitments are undertaken, the measures which a Party shall not 
maintain or adopt either on the basis of a region al sub-division or on the basis of its entire 
territory, unless otherwise specified in Annexes XIV-B or XIV-F to the Agreement are defined as: 
(a) limitations on the number of service suppliers, whether in the form of numerical quotas, 
monopolies, exclusive service suppliers of th e requirements of an economic needs test 
(b) limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test, or  (c) limitations on the total number of service 
operations or on the total quantity of service ou tput expressed in terms of designated numerical 
units in the form of quotas or the requirement of an economic needs test. 
4.9.  Article 86 provides that the sectors liberalized by each Party pursuant to section 3 of 
Chapter 6 of the Agreement, and by means of reservations, the market access and national 
treatment limitations applicable in services and service suppliers of the other Party in those sectors are set out in their lists of commitments in Annexes XIV-B and XIV-F of the Agreement. 
4.3.2  National and MFN treatment 
4.10.  Article 85.1 on national treatment provides that for the sectors inscribed in Annexes XIV-B 
and XIV-F (and conditions contained therein), ea ch Party shall grant to services and service WT/REG354/1 
 
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  suppliers of the other Party, treatment no less favourable than it grants its own like services and 
service suppliers in respect of all measures affecting cross border trade in services. Articles 85.2 provides that a Party may comply with Article 85.1 by providing formally identical or formally different treatment to that it accords its own serv ices and services suppliers. Article 85.3 provides 
that formally identical or formally different treatment shall be considered to be less favourable if it 
modifies the conditions of competition in favour of services or service suppliers of the Party compared to like services or service suppliers of the other Party. 
4.11.  In Chapter 6, Section 2 concerns ( inter alia ) national and MFN treatment in respect of 
establishment and operation of juridical persons in the territory of the other Party. Article 79 
concerns national and MFN treatment. Article 79.1 provides that subject to any reservations set 
out in Annex XIV-E to the Agreement, Georgia gran ts, upon entry into force of the Agreement, as 
regards the establishment of subsidiaries, branches and representative offices, of juridical persons 
of the Union, treatment no less favourable than that accorded to Georgia's juridical persons or such persons of a third party, whichever is better. As regards the operation of subsidiaries and 
branches and representative offices of juridical persons of the EU in Georgia, Article 79.1(b) 
requires Georgia to accord treatment no less favour able than that accorded to Georgia's juridical 
persons, branches and representative offices or of any third party's juridical persons, whichever is 
better. Article 79.2 creates corresponding obligations for the EU in respect of Georgian juridical 
persons for (a) establishment and (b) their operation. In Article 79.3 the Parties agree that subject to reservations in Annexes XIV-A and XIV-E to  the Agreement the Parties cannot adopt any new 
regulations or measures which introduce discrimination as regards the establishment or operation 
of juridical persons on their territory. 
4.3.3  Commercial presence 4.12.  Section 2 of Chapter 6 (Articles 78-82) contains national treatment and MFN as well as 
standard of treatment for branches and representative offices disciplines applicable to 
establishment. While the term "establishment" encompasses the notion of commercial presence ( a s  d e f i n e d  u n d e r  t h e  G A T S ) ,  i t  a l s o  g o e s  f u r t h e r  a s  i t  a l s o  c o v e r s  t r a d e  i n  g o o d s - r e l a t e d  
establishment.  
4.3.4  Movement of natural persons 4.13.  Section 4 of Chapter 6 concerns the temporary presence of natural persons for business 
purposes. Article 88.2 sets out the definitions used in the section. Articles 89-92 describe the 
period different categories of natural person ma y enter or remain in the territory of the other 
Party, including key personnel and graduate trainees (Article 89), business sellers (Article 90), contractual service suppliers (Article 91), independent professionals (Article 92) and qualifications.  
4.14.  Article 89.1 provides that in respect of committed sectors under section 2 of the Chapter 
(establishment), key personnel and graduate tr ainees shall be granted temporary entry and 
temporary stay for a period of no longer than three years for intra-corporate transferees, 90 days 
in any 12 month period for business visitors for establishment purposes and one year for graduate 
trainees. Those obligations are subject to any reservations contained in Annexes XIV-A and XIV-E as well as Annexes XIV-C and XIV-G.  
4.15.  Article 89.2 provides that for every sector in which there are commitments under section 2 
of the Chapter (establishment), the measures which a Party shall not maintain or adopt either on 
the basis of a regional subdivision or its entire territory (unless otherwise specified in Annex XIV-C and XIV-G to the Agreement) are limitations on the total number of natural persons that an 
entrepreneur may employ as key personnel and graduate trainees in a specific sector in the form 
of numerical quotas, an economic needs test and as discriminatory conditions.  
4.16.  Article 90 on business sellers provides that  in respect of all sectors committed under section 
2 (establishment) or 3 (cross border supply of se rvices) temporary entry of business sellers shall 
be permitted for a period of no longer than 90 days in each 12 month period, subject to any reservations contained in Annexes XIV-A and XIV-E or Annexes XIV-B and XIV-F. 
4.17.  Article 91.1 on contractual service providers restates the Parties obligations arising from 
commitments under the GATS regarding entry and temporary stay of contractual service WT/REG354/1 
 
- 22 - 
 
  providers. The Parties' commitments under Annexes XIV-D and XIV-H of the Agreement are 
subject to additional conditions described in Article 91.2. 
4.18.  Article 92, on independent professionals provides in Article 92.1 that in accordance with 
Annexes XIV-D and XIV-H to the Agreement, the Parties allow the supply of services by 
independent professionals of the other Party, subj ect to the conditions set out in Article 92.2. 
4.4  Liberalization commitments 4.19.  The schedules of specific commitments for each Party are contained in Annex XIV 
(reservations on establishment; commitments on cr oss-border supply of services; reservations on 
key personnel, graduate trainees and business sellers; and reservations on contractual services suppliers and independent professionals).  
4.20.  In relation to establishment, the Partie s' commitments follow a negative list approach. 
National and MFN treatment for the establishment and operation of their subsidiaries, branches 
and representative offices of juridical persons are granted by the other Party, subject to the 
reservations in Annexes XIV-A (EU) and XIV-E (Georgia). In relation to the cross-border supply of 
covered services sectors, the Parties' commitments follow a positive list approach. Market access 
and national treatment are granted by each Party to services and service suppliers of the other 
Party as scheduled in Annexes XIV-B (EU) and XIV-F (Georgia). 
4.21.  The sections below compare the Parties' liberalization commitments under the Agreement 
and their GATS commitments. Each Party's GATS schedule is compared to Annex XIV of the Agreement. After recalling GATS MFN exemptions an d identifying horizontal limitations in the GATS 
and in the Agreement, Tables 4.1 and 4.2 summari ze specific commitments under the Agreement, 
by main sectors and sub-sectors and compare th em with GATS commitments. Improvements over 
existing GATS commitments are either a reductio n of the limitations to market access and/or 
national treatment, a relaxation of the form of  establishment under mode 3, and/or additional 
commitments. As negative lists are difficult to compare to compare with GATS types of 
commitments, the following sections are to be read in conjunction with the Parties' schedules of commitments under the Agreement. 
4.4.1  The European Union 
4.4.1.1  MFN and horizontal commitments 4.22.  In its GATS schedule, the EU took co mmitments in 130 out of 155 services sectors.
14 It has 
scheduled extensive commitments in a number of sect ors, subject, in certain cases, to limitations 
b y  a l l  o r  s o m e  i n d i v i d u a l  E U  M e m b er States. There are no commitments, inter alia , for certain 
professional services related to postal and audio-vi sual services, and cultural and sporting services 
and some activities in transport services.  
4.23.  The EU and/or some of its member States have a number of MFN exemptions under the 
GATS15, in audio-visual, transport, news agency and press agency services, and financial services, 
as well as, covering all sectors, in mode 4. In relation to establishment, Article 79.2 contains an 
MFN/national treatment commitment by the Parties but exemptions are mentioned in 
Annex XIV-A. There is, however, no MFN clause in the Agreement for cross-border supply of services.  
4.24.  Under the Agreement, as under the GATS, the EU has, inter alia , a horizontal "public utilities 
carve-out", on the form of certain legal entities, and a carve-out for subsidies and grants. In 
relation to cross-border supply of services, th e EU commitments are without prejudice to the 
existence of public monopolies and exclusive rights as described in the list of commitments on 
                                               
14 The GATS schedule for EU-25 was certified on 18 December 2006 (S/L/286) and is contained in 
document S/C/W/273, and Add.1 and Suppl.1. For ease of reference, comparisons made between the EU's commitments under the Agreement and its GATS schedule are based on the EU(25) GATS schedule. This consolidated schedule has not yet entered into force beca use the ratification process has not been completed in 
a number of EU Member States. The GATS EU(27) and/or  EU(28) schedules have not yet been certified.  
15 Based on the EU(12) list of MFN exemptions. MF N exemptions have also been scheduled by the 
16 countries which acceded to the EU since 1995. WT/REG354/1 
 
- 23 - 
 
  establishment. Moreover, in relation to establis hment, the EU's reservations broadly corresponds 
to horizontal reservations under the GATS by individual EU Member States concerning other conditions for commercial presence (mode 3), types of establishment, investment, and certain real 
estate purchases. In the GATS the EU has made re servations concerning certain measures relating 
to qualification requirements and procedures, te chnical standards and licensing requirements and 
procedures. The measures (e.g. need to obtain a licence, universal service obligations, need to obtain recognition of qualifications in regulated sectors and need to pass specific, including 
language, examinations) are also reserved in the Agreement, for services and service suppliers of 
Georgia. The rights and obligations arising from the lists have no self-executing effect and thus confer no rights directly to natural or juridical persons. As far as the temporary presence of key personnel, graduate trainee, as well as business sellers are concerned, the EU commitments, as in 
the GATS, are subject to the limitations in Anne xes XIV-C, D, G, and H to the Agreement.  
4.4.1.2  Sector specific commitments 4.25.  The following section identifies some of the main differences, by sector, between the EU's 
GATS schedule and its sector-specific commitments und er the Agreement. It should also be read in 
conjunction with Annexes XIV-A, B, E and F. There is, as yet, no certified EU(27) or EU(28) List of Specific Commitments, consolidated to take into account the latest EU enlargements. 
Table 4.1 European Union: comparison between the GATS and Agreement specific 
commitments in trade in services
 
Sectors (CPC Classification) GATS  FTA 
sectoral commitments, except as in Annex XIV (horizontal 
reservations) 
Establishment   
(Annex XIV-A) 
Negative list Cross-border supply in 
services (Annex XIV-B) 
Positive list 
compared to 
GATS 
commitments  Commitments  
from 
reservations) compared to 
GATS 
commitments Commitments 
(based on 
sectoral 
coverage and 
limitations) 
1. Business services      
A. Professional Services Partial  Improved  Partial  Improved Partial  
B. Compute r and Related Services  Partial  Improved  Full Improved Full  
C. Research and Development  Services  Partial  Improved  Partial  Improved Partial  
D. Real Estate Services  Partial  Improved  Full Improved Partial  
E. Rental/Leasing Services without Operators  Partial  Improved  Partial  Limited Partial  
F. Othe r Business Services Partial  Improved  Partial  Limited Partial  
2. Communication services       
A. Postal services ---  New Full New Partial  
B. Courie r services Partial  Improved  Full Improved Partial  
C. Telecommunication services  Partial  Improved  Full Improved Partial  
D. Audiovisual services --- Simila r ---* Simila r ---* 
3. Construction and related engineering 
services       
A. General construction work fo r buildings Partial  Improved  Full Improved Full 
B. General construction work fo r civil Engineering  Partial  Improved  Full Improved Full  
C. Installation and assembly work  Partial  Improved  Full Improved Full 
D. Building completion and finishing work  Partial  Improved  Full Improved Full  
E. Othe r --- New Full New Full 
4. Distribution services      
A. Commission agents' services  Partial  Improved  Full Improved Partial  
B. Wholesale trade services Partial  Improved  Partial  Improved Partial  
C. Retailing services Partial  Improved  Partial  Improved Partial  
D. Franchising Partial  Improved  Full Improved Partial  
5. Education services      
A. Primary education services  Partial  Simila r Partial  Simila r Partial  
B. Secondary education services  Partial  Simila r Partial  Simila r Partial  
C. Higher education services  Partial  Simila r Partial  Simila r Partial  
D. Adult education Partial  Simila r Partial  Simila r Partial  
E. Other education services  ---  New Full New Partial  
6. Environmental servicesa      
A. Sewage services Partial  Improved  Full Improved Partial  
B. Refuse disposal services Partial  Improved  Full Improved Partial  
C. Sanitation and similar services  Partial  Improved  Full Improved Partial  
D. Othe r Partial  Improved  Full Improved Partial  
7. Financial services      
A. All insurance and insurance-related services  Partial  Improved  Partial  Improved Partial  
B. Banking and othe r financial  services Pa rtial Improved  Partial  Improved Partial  WT/REG354/1 
 
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  Sectors (CPC Classification) GATS  FTA 
sectoral commitments, except as in Annex XIV (horizontal 
reservations) 
Establishment   
(Annex XIV-A) 
Negative list Cross-border supply in 
services (Annex XIV-B) 
Positive list 
compared to 
GATS 
commitments  Commitments  
from 
reservations) compared to 
GATS 
commitments Commitments 
(based on 
sectoral 
coverage and 
limitations) 
8. Health related an d social services      
A. Hospital services Partial  Improved  Full Simila r Partial  
B. Other Human Health Services Partial  Improved  Partial  Limited Partial  
C. Social Services Partial  Improved  Partial Improved Partial  
D. Othe r Partial  Improved  Partial  Limited Partial  
9. Tourism and travel related services       
A. Hotels and restaurants (including catering) Partial  Improved  Partial  Improved Partial  
B. Travel agencies and tou r operators services Partial  Improved  Full Improved Partial  
C. Tourist guides services Partial  Improved  Partial  Improved Partial  
10. Recreational and cultural and sporting 
services      
A. Entertainment services Partial  Improved  Full Simila r Partial  
B. News agency services Partial  Improved  Partial  Improved Full  
C. Libraries, archives, museums and other cultural 
services Partial  Improved  Partial  Simila r Partial  
D. Sporting and other recreational services  Partial  Improved  Partial  Simila r Partial  
11. Transport services       
A. Maritime Transport Services  Partial  Improved  Partial  Improved Partial  
B. Internal Waterways Transport Partial  Improved  Partial  Improved Partial  
C. Air Transport Services Partial  Improved  Partial  Improved Partial  
D. Space Transport  --- New Full Simila r --- 
E. Rail Transport Services Partial  Improved  Partial  Improved Partial  
F. Road Transport Services Partial  Improved  Partial  Improved Partial  
G. Pipeline Transport  Partial  Improved  Partial  Simila r Partial  
H. Services auxiliary to all modes of transport  Partial  Improved  Partial  Improved Partial  
I. Othe r Transport Services  Partial  Improved  Partial  Improved Partial  
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments/limitations excluded. 
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments. New: New commitments under the Agreement (full or partial, with or without limitations). "New" can, in 
most but not all cases, be seen as "improved". 
Improved: Overall improved commitments un der the Agreement compared to the GATS. 
Similar: Similar commitments (Agreement vs GATS); though possibly, in specific cases, with limited 
improvements and/or limited  additional reservations. 
Not covered: No commitments. Limited: Some additional limitations (compared to GATS commitments). *: Excluded from the Agreement. a: There is an EU-wide reservation on the collection, pu rification and distribution of water which is outside 
the remit of environmental services. 
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/C/W/273/Suppl.1), (in 2006), which 
does not cover the result of the 2007 and further EU enlargements, and Annexes XIV-B and XIV-F to 
the Agreement. The comparison only concerns mode s 1-3, market access and national treatment. 
and additional commitments. 
4.4.1.2.1  Business services 
4.26.  In relation to mode 3, the EU builds on its GATS commitments and enlarges the scope for 
most subsectors. It also eliminates a number of national limitations, compared to the GATS, in particular for professional services, real estate services and rental and leasing services. The scope 
is also enlarged and a number of individual EU Member State limitations are withdrawn for 
modes 1 and 2. WT/REG354/1 
 
- 25 - 
 
  4.4.1.2.2  Communication services 
4.27.  The EU opens, partly and subject to some  limitations, postal services and enlarges its 
coverage for courier services (unbound for postal services and only partially covered for courier services under the GATS). It also improves ma rket access for telecommunication sub-sectors, 
while dropping the remaining national treatment limitations of some EU Member States, though 
the subsector becomes subject to the EU regulatory  framework for electronic communication. As in 
the GATS, the EU has no commitments for audio- visual services, which are excluded from the 
Agreement (Article 78(c)). 
4.4.1.2.3  Construction and related engineering services 4.28.  The EU improves its GATS commitments by enlarging coverage and withdrawing some 
limitations on market access and national treatment for modes 1 and 2 and by facilitating 
establishment for the other Party's service provid ers under mode 3. It also drops a number of 
limitations by individual EU Member States, including for the provision of services through mode 3. 
4.4.1.2.4  Distribution services 
4.29.  Improvements are made in particular for establishment by the other Party's service 
providers. While a number of individual EU Member State limitations are dropped, restrictions in some Member States, on the distribution of, inter alia , tobacco and tobacco products, alcoholic 
beverages, and pharmaceuticals are maintained under the Agreement, as under the GATS. 
4.4.1.2.5  Educational services 4.30.  Commitments in educational services, as under the GATS, are limited to privately funded 
services. A number of EU Member States maintain most education services sub-sectors as 
unbound and the participation of private operators in education requires concessions. The EU's 
commitments under the Agreement are broadly si milar to those in the GATS, though other 
education services, unbound under GATS, are fu lly committed in relation to establishment. 
4.4.1.2.6  Environmental services 
4.31.  The EU builds upon its GATS commitments. Establishment is fully liberalized while some 
limitations are eliminated, particularly for mode 2, while mode 1 remains largely unbound. 
4.4.1.2.7  Financial services 
4.32.  Largely based upon its GATS commitments,  the EU's commitments are an improvement for 
the Parties' services providers, essentially through the removal of some of the individual EU Member State restrictions for insurance and banking services.  
4.4.1.2.8  Health relate d and social services 
4.33.  Some limitations under the GATS are remo ved, particularly for establishment and in the 
context of the overall simplification of EU commi tments, while most EU Member States maintain 
mode 1 unbound for hospital services, residential he alth facilities other than hospital services and 
social services. Some other health related services (covered under the GATS) are not covered by the Agreement. According to the parties, there is an EU wide reservation with respect to publicly 
founded health and social services and privately founded other human services.  
4.4.1.2.9  Tourism and travel related services 4.34.  The EU reduces the number of its Member State limitations, resulting in a partial 
improvement for establishment (for hotels and restaurants as well as travel agencies and tour 
operator services) and for cross-border supply of services (for travel agencies, tour operator 
services and tourist guides services).  
 
 WT/REG354/1 
 
- 26 - 
 
  4.4.1.2.10  Recreational, cult ural and sporting services 
4.35.  The EU builds on its GATS commitments, im proves its coverage and reduces the number of 
national limitations. While commitments for the sector overall are improved, the coverage and limitations on the cross-border supply of servic es for entertainment services, libraries, archives, 
museums and other cultural services, as well as sporting and other recreational services remain 
similar to those in the GATS. 
4.4.1.2.11  Transport services 
4.36.  The EU undertakes a number of commitments in some transport services subsectors or for 
certain activities, for which it has no GATS commitments. This is the case, with limitations by a number of EU Member States, in sub-sectors such as certain maritime transport, internal waterways transport, rail transport services, suppor ting services for road transport, as well as 
some services auxiliary to all modes of transpor t. While commitments on cross-border supply of 
space transport are similar to the corresponding commitments under GATS, establishment is fully 
liberalized for this subsector, unbound under GATS . Similarly, pipeline transport remains largely 
unbound for modes 1 and 2, but is fully liberalized and bound under mode 1. 
4.4.1.2.12  Other services not included elsewhere 4.37.  As under the GATS, the EU replicates under the Agreement some specific commitments in 
certain sub-sectors in distribution, telecommunications or transport services (such as some 
energy-related services or some telecommunications connection services) or not included elsewhere (such as some beauty-related services). 
4.4.2  Georgia 
4.4.2.1  MFN and horizontal commitments 
4.38.  In its GATS schedule, Georgia took commitments in 119 out of 155 services sectors.
16 It has 
scheduled commitments in a large number of sector s, making full commitments in some of them, 
though mode 4 remains largely "unbound". Under the GATS Georgia has scheduled horizontal 
market access exemptions in relation to privatization and mode 4 for persons responsible for establishment of a commercial presence, salesp ersons and intra corporate transferees. Under 
national treatment Georgia has horizontal reservations on subsidies (modes 1, 2 and 3), and real 
estate (mode 3). The other horizontal reservation listed by Georgia under GATS refers to movement of natural persons (mode 4) and is addressed in the Agreement through Section 4 of Chapter 6 and through Annexes XIV-G and XIV-H. 
4.39.  Georgia's MFN exemptions under the Agreemen t are set out under "horizontal limitations" in 
Annex XIV-E in connection with subsidies, privatization and real estate. 
4.4.2.2  Sector specific commitments 
The following section identifies some of the main differences, by sector, between Georgia's GATS 
schedule and its sector-specific commitments under the Agreement. It should also be read in conjunction with Annexes XIV-E and XIV-F of the Agreement. 
                                               
16 Georgia joined the WTO in 2000.  WT/REG354/1 
 
- 27 - 
 
  Table 4.2 Georgia: comparison between the GATS and Agreement specific commitments 
in trade in services 
Sectors (CPC Classification) GATS  FTA 
sectoral commitments, except as indicated in Annex XIV 
(horizontal reservations) 
Establishment   
(modes 1 and 2)  
(Annex XIV-F) 
Negative list Cross-border supply in 
services (Annex XIV-E)  
(mode 3) Positive list 
compared to 
GATS 
commitments  Commitments 
(from 
reservations) compared to 
GATS 
commitments Commitments 
(based on 
sectoral 
coverage and 
limitations) 
1. Business services      
A. Professional Services Partial  Same  Partial  Same Partial  
B. Compute r and Related Services  Full  Same  Full Same Full  
C. Research and Development  Services  Full Same  Full Same Full 
D. Real Estate Services  Full  Same  Full Same Full  
E. Rental/Leasing Services without Operators  Partial  Simila r Partial  Partial Partial  
F. Othe r Business Services Partial  Simila r Partial  Simila r Partial  
2. Communication services       
A. Postal services ----  Simila r Partial  ---- Partial  
B. Courie r services Full Full Full Full Full 
C. Telecommunication services  Full Improved  Full Simila r Full  
D. Audiovisual services Partial  ---- ---- ---- ---- 
3. Construction and related engineering 
services       
A. General construction work fo r buildings Partial  Improved  Full Same Full 
B. General construction work fo r civil Engineering  Partial  Improved  Full Same Full  
C. Installation and assembly work  Partial  Improved  Full Same Full 
D. Building completion and finishing work  Partial  Improved  Full Same Full  
E. Othe r Partial  Improved  Full Same Full 
4. Distribution services      
A. Commission agents' services  Full Same  Full Simila r Full 
B. Wholesale trade services Full  Same  Full Simila r Full  
C. Retailing services Full Same  Full Simila r Full 
D. Franchising Full  Same  Full Simila r Full  
E. Othe r ----  ---- ---- ---- ----  
5. Education services      
A. Primary education services  Full Same  Full Same Full  
B. Secondary education services  Full Same  Full Same Full 
C. Higher education services  Full Same  Full Same Full  
D. Adult education Full Same  Full Same Full 
E. Other education services  ----  Same  ---- ---- ----  
6. Environmental services      
A. Sewage services Partial  Same  Partial  Same Full  
B. Refuse disposal services Partial  Same  Partial  Same Full 
C. Sanitation and similar services  Partial  Same  Partial  Same Full  
D. Othe r Partial  Same  Partial  Same Full 
7. Financial services      
A. All insurance and insurance- related services  Partial  Simila r Full Same Full 
B. Banking and othe r financial  services Full  Same  Full Same Full  
8. Health related an d social services      
A. Hospital services Full  Simila r Full Simila r Full  
B. Other Human Health Services Full Simila r Full Simila r Full 
C. Social Services Full  ---- ---- Same Full  
D. Othe r --- ---- ---- ---- --- 
9. Tourism and travel related services       
A. Hotels and restaurants (including catering) Full Same  Full Same Full 
B. Travel agencies and tou r operators services Full  Same  Full Same Full  
C. Tourist guides services Full Same  Full Same Full 
10. Recreational and cultural and sporting 
services      
A. Entertainment services Full Same  Full Same Full 
B. News agency services Full  Same  Full Same Full  
C. Libraries, archives, museums and other cultural 
services Full Same  Full Same Full 
D. Sporting and other recreational services  Full  Same  Full Same Full  
11. Transport services       
A. Maritime Transport Services  Partial  Improved   Partial  Same  Partial  
B. Internal Waterways Transport ---- Improved  Full Improved  Full 
C. Air Transport Services Partial  Improved  Full Improved Full  
D. Space Transport  ---- ---- ---- Improved Full 
E. Rail Transport Services Partial  Same  Partial  Same Partial  
F. Road Transport Se rvices Partial  Improved  Partial  Improved Partial  
G. Pipeline Transport  ----  ---- ---- ---- ----  
H. Services auxiliary to all modes of transport  Partial  Same  Partial  Improved Full WT/REG354/1 
 
- 28 - 
 
  Sectors (CPC Classification) GATS  FTA 
sectoral commitments, except as indicated in Annex XIV 
(horizontal reservations) 
Establishment   
(modes 1 and 2)  
(Annex XIV-F) 
Negative list Cross-border supply in 
services (Annex XIV-E)  
(mode 3) Positive list 
compared to 
GATS 
commitments  Commitments 
(from 
reservations) compared to 
GATS 
commitments Commitments 
(based on 
sectoral 
coverage and 
limitations) 
I. Othe r Transport Services  ----  ---- ---- ---- ----  
General Note: MFN and Horizontal limitations, as well as Mode 4 commitments/limitations excluded. 
Partial:  GATS commitments subject to some limitation (s) under market access or national treatment, under 
any of the three modes. 
Full: GATS commitments not subject to limitation(s) under market access or national treatment, under 
any of the three modes. 
---: No commitments. 
New: New commitments under the Agreement (full or partial, with or without limitations). "New" can, in 
most but not all cases, be seen as "improved". 
Improved: Overall improved commitments made under the Agreement. Similar: Similar commitments (Agreement vs GATS); though possibly, in specific cases, with limited 
improvements and/or limited  additional reservations. 
*: Excluded from the Agreement.  Limited: Some additional limitations. Source:  Georgia's Schedule of Sp ecific Commitments (GAT S/SC/129), and Annexes XIV-E and XIV-F to the 
Agreement. 
 
4.4.2.2.1  Business services 
4.40.  Georgia's commitments under the Agreement are similar to those under the GATS, though 
as noted above the horizontal limitations on the purchase of real estate remain. 
4.4.2.2.2  Communication services 
4.41.  Georgia's commitments are improved, as compared to its GATS commitments, through full 
commitments for telecommunication services, including for establishment. Similarly, as audio-visual services are excluded from the Ag reement, Georgia undertakes no commitments in 
this subsector, in contrast to its commitments under the GATS.  
4.4.2.2.3  Construction and related engi neering services; distribution services; 
educational services; environmental services ; and tourism and travel related services 
4.42.  Full commitments are made under the Agr eement as in the GATS, with the exception of a 
reservation (mode 3) that not less than 50% of the entire staff be Georgian citizens.  
4.4.2.2.4  Financial services 4.43.  Georgia gives a full mode 3 commitment (broader than GATS), with the sole exception of 
"other financial services", where Georgia has expr essed a no market access or national treatment 
reservation.  WT/REG354/1 
 
- 29 - 
 
  4.4.2.2.5  Health relate d and social services 
4.44.  Full commitments are made in the sector, wi th only a reservation for the Georgian language 
for doctors working in Georgia.17 Under the GATS, there are no commitments for "other health 
related and social services". While this remains the case for modes 1 and 2 per Annex XIV-F, 
under mode 3 (Annex XIV-E) Georgia keeps a reservation of no national treatment or MFN 
obligations with respect to other education services (CPC 929).  
4.4.2.2.6  Recreational, cultural and sporting services 
4.45.  Except for entertainment services, which ar e only partly covered, both under the Agreement 
and under GATS, full commitments are made in th e rest of the sector under both the Agreement 
and the GATS, with the exception of mode 3 wher e under the Agreement Georgia has a limitation 
of no national treatment or MFN obligations for other recreational, cultural sporting services.  
4.4.2.2.7  Transport services 
4.46.  Under the GATS Georgia has partial commitments which are improved under the 
Agreement. However, in relation to air transpor t services and as compared to Georgia's GATS 
commitments, coverage is expanded in the Agre ement through the inclusion of ground-handling 
services and airport operation services, for wh ich commitments are made without restriction. 
4.5  Regulatory provisions  
4.5.1  Domestic regulation  
4.47.  Section 5 of Chapter 6, concerns the regulatory framework, and sub-section 1, 
Articles 93-95 set out disciplines on domestic re gulation as affecting (a) cross border supply of 
services, (b) establishment of juridical and na tural persons defined in Article 77.9 of the 
Agreement, and (c) temporary stay of natural persons as defined in Article 88.2 of the Agreement. 
Article 93.2 states that the disciplines in the Article only apply to sectors for which the Party has taken specific commitments and to the extent that the specific commitments apply in accordance 
with Annexes XIV-B and XIV-F to the Agreement. For temporary stay of natural persons, the 
disciplines shall not apply to services sectors if a reservation is listed in accordance with Annexes XIV-C, XIV-D and XIV-H of the Agreement. Per Article 93.3, the disciplines do not apply 
to measures to the extent that they constitute limitations under Annexes XIV-A to XIV-H to the 
Agreement. 
4.48.  Article 94 on conditions for licencing and qualifications provides in Article 94.1 that each 
Party shall ensure that measures relating to licencing requirements and procedures, qualification 
requirements and procedures are based on criteria  which preclude the competent authorities from 
exercising their power of assessment in an arbitrary manner. Those criteria must be (a) proportionate to a public policy objective, (b) clear and unambiguous, (c) objective, 
(d) pre-established, (e) made public in advance, and (f) be transparent and accessible 
(Article 94.2). Articles 94.3-6 set out additional requirements in relation to the issuing of licences, review of decisions, numerical limits on and public policy objectives.  
4.49.  Article 95 requires that licensing and qualification procedures be clear, made public in 
advance and be such as to provide the applicants with a guarantee that their application will be 
dealt with objectively and impartially (Article 95.1). Article 95.2 provides that licencing and qualification procedures and formalities shall be as simple as possible and shall not unduly 
complicate or delay the provision of the service. Any fees arising from the application should be 
reasonable and proportionate to the cost of the authorization procedures in question. Other requirements for licensing and qualification procedures are set out in Articles 95.3-9. 
                                               
17 Under Georgia's GATS commitments the health related and social services sector is subject to a 
specific headnote limitation: "The knowledge of Georgian language (the State language) is obligatory for pharmacists, who works in Georgia".   WT/REG354/1 
 
- 30 - 
 
  4.5.2  Recognition 
4.50.  Sub-section 2 of Section 5 of Chapter 6, Article 96 concerns mutual recognition. Article 96.2 
provides that each Party shall encourage the relevant professional bodies in their respective territories to provide recommendations on mutual recognition to the Association Committee in 
Trade configuration as set out in Article 408.4 of the Agreement, for the purpose of the fulfilment, 
in whole or in part, by entrepreneurs and service su ppliers of the criteria applied by each Party for 
the authorization, licensing, operation and certification of entrepreneurs and service suppliers, 
and, in particular, professional services. On receipt of a recommendation the Association 
Committee in Trade configuration shall, within a reasonable time, review the recommendation with a view to determine whether it is consistent with the Agreement and assess (a) the extent to which standards and criteria applied by each Party for authorization, licences, operation and 
certification of services providers and entrepreneurs are converging and (b) the potential economic 
value of a mutual recognition agreement. Article 96.4 provides that when these requirements are 
satisfied the Association Committee shall establish the necessary steps to negotiate and thereafter 
the Parties shall enter into negotiations, through their competent authorities, of a mutual 
recognition agreement. Per Article 96.5, any such ag reement shall be in conformity with Article VII 
of the GATS.  
4.5.3  Subsidies 
4.51.  Article 206 provides that a subsidy is a meas ure which fulfils the conditions of Article 1 of 
the SCM Agreement, irrespective whether it is grante d in relation to the production of goods or the 
supply of services and which is specific within  the meaning of Article 2 of the Agreement.  
4.5.4  Safeguards 
4.52.  The Agreement does not contain specific provisions on safeguards in services, however 
according to the Parties the Agreement provides ce rtain security and general exemptions similar to 
those stipulated by the GATS. 
4.5.5  Other 4.5.5.1  Investment 
4.53.  Investment is not specifically addressed in a dedicated section of the Agreement. However, 
disciplines on establishment, regulated by the provisions of Chapter 6, do indirectly cover 
investment-related matters. Chapter 7, which cove rs current payments and movement of capital, 
also contains investment-related provisions (see below). 
4.5.5.2  Monopolies and ex clusive service suppliers 
4.54.  Elements related to monopolies and exclusive service suppliers are addressed in Chapter 10 
(competition), which is addressed below. 
4.6  Sector specific provisions on trade in services 
4.6.1   Computer services 4.55.  Sub-section 3 of section 5 of Chapter 6 of the Agreement concerns computer services 
(Article 98 (Understanding on Computer Services)).  Article 98.1 provides that to the extent that 
computer services are liberalized in accordance with section 2 (establishment), section 3 (cross-border supply of services) and section 4 (temporary presence of natural persons for business purposes) of the Chapter, the Parties shall comply with Articles 98.2, 98.3 and 98.4.  
4.6.2   Postal and courier services 
4.56.  Articles 99 to 103 set out the principles of the regulatory framework for all postal and 
courier services in which the Parties have commitments in accordance with Sections 2, 3 and 4 of 
the Chapter. Sub-section 4 of the Agreement contains provisions on the prevention of 
anti-competitive practices in the postal and courie r services sector, universal service, individual WT/REG354/1 
 
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  licences, and independence of regulatory bodies. It also refers to the gradual approximation 
process of Georgia's existing and future legislation on postal and courier services to the list of the 
EU acquis set out in Annex XV-C to the Agreement (Article 103).  
4.6.3  Electronic communicati on networks and services 
4.57.  Articles 104 to 113 set out the principles of the regulatory framework for all electronic 
communication services liberalized, pursuant to Se ction 2, 3 and 4 of the Chapter. Sub-section 5 
on telecommunications services builds on certain aspects of the 1996 Reference paper of the WTO 
Negotiating Group on Basic Telecommunications and contains, besides definitions, provisions on 
regulatory authorities; authorization to provide telecommunications services, access to interconnection; procedures for the allocation and use of scarce resources, universal service; cross-border provision of electronic communication services; confidentiality of information; and 
disputes between suppliers of telecommunications netw orks or connected services. It also refers to 
the gradual approximation process of Georgia's existing and future legislation on telecommunication services to the list of the EU acquis set out in Annex XV-B to the Agreement 
(Article 113). 
4.6.4  Financial Services 4.58.  Articles 114-126 establish the principles of the regulatory framework for all financial 
services in which the Parties have commitments pursuant to Section 2, 3 and 4 of the Chapter. 
The sub-section on financial services contains provisions on clearing and payment systems; prudential carve-out; effective and transparent regulation; new financial services
18; data 
processing; specific exceptions, and self-regulatory organizations. The Agreement also refers to 
the gradual approximation process of Georgia's existing and future legislation to the international 
best practice standards listed in Annex XV-D to the Agreement (Article 126). 
4.6.5  International maritime transport services  
4.59.  Sub-section 7, Articles 123-126 set out the principles for certain transport services (in 
particular international maritime transport and some air transport services) in which the Parties have commitments pursuant to Sections 2, 3 and 4 of Chapter 6.  
4.60.  For international maritime transport (Article 124), each Party agrees to ensure effective 
application of the principle of unrestricted access to cargoes on a commercial basis; the freedom to provide international maritime services, as well as national treatment in the framework of the provision of such services. The Parties shall not introduce cargo-sharing arrangements in future 
agreements with third countries concerning mariti me transport services and terminate, within a 
reasonable period of time cargo-sharing arrangements in case they exist in previous agreements. Moreover, upon the entry into force of the Agreement, the Parties shall abolish and abstain from 
introducing any unilateral measures and administrative, technical and other obstacles which could 
constitute a disguised restriction or have discriminatory effects on the free supply of services in international maritime transport. MFN treatment sh all be granted to establishment of international 
maritime transport service suppliers of the other Pa rty. A number of services at the port is to be 
made available without discrimination to operators of the other Party. Movement of equipment between ports of the Parties shall be permitted.  
4.61.  Article 126 of the Agreement concerns the gradual approximation process of Georgia's 
existing and future legislation in relation to maritime transport services on the basis of the list of 
the EU acquis set out in Annex XV-D to the Agreement. 
4.6.6  Electronic commerce 
4.62.  Provisions on electronic commerce are contained in section 6 of Chapter 6 of Title IV 
(Articles 127-133). In Article 127.3 the Parties agree that electronic transmission shall be considered as the provision of services, within the meaning of Section 3 (cross-border supply of 
services) of the Chapter, which cannot be subject to customs duties. The Parties also agree that 
                                               
18 A Party may determine the institutional and juridical form through which the new financial service 
may be supplied and may require authorizat ion for the supply of such service.  WT/REG354/1 
 
- 32 - 
 
  the development of electronic commerce must be compatible with the international standards of 
data protection, in order to ensure the confidence of users of electronic commerce. They commit to maintain a dialogue on regulatory issues raised by electronic commerce (Article 128). 
4.63.  Recognizing that the services of intermediaries can be used by third parties for infringing 
activities, the Parties shall provide measures that are set out in Sub-section 2 of Chapter 6 and 
which cover the liability of intermediary service providers in relation to certain types of activities ("mere conduit", "caching", and "hosting"). In that regard, the Parties shall not impose a general 
obligation on a provider, when providing the servic es covered by Articles 130, 131 and 132 of the 
Agreement, to monitor the information which they transmit or store, nor shall they impose a general obligation to actively seek facts or circum stances indicating illegal activity (Article 133.1). 
The Parties may nevertheless establish obligations for information society service providers to 
promptly inform the competent public authorities of alleged illegal activities undertaken or 
information provided by recipients of their serv ice or obligations to communicate the competent 
authorities, at their request, information enabling the identification of recipients of their service 
with whom they have storage agreements (Article 133.2). 
5  GENERAL PROVISIONS OF THE AGREEMENT 5.1  Transparency 
5.1.  In addition to the specific transparency rules in other parts of the Agreement, and without 
prejudice to any of them, Chapter 12 of Title IV  (Articles 219-226) contains general transparency 
disciplines, listing requirements on publication of measures of general application; the designation 
of contact points acting as coordinators to facilitate communication between the Parties; principles 
pertaining to the administration of measures of general application; review and appeal of 
administrative actions relating to matters covered under Title IV; and regulatory quality and performance and good administrative behaviour. 
5.2  Current payments and capital movements 
5.2.  Chapter 7 (current payments and movement of  capital) of Title IV covers current payments 
and movement of capital. The Parties undertake to  authorise, in freely convertible currency, in 
accordance with the provisions of Article VIII of the Agreement of the International Monetary 
Fund, any payments and transfers on the current  account of balance of payments between the 
Parties (Article 137).  
5.3.  Article 138 provides that the Parties shall ensure the free movement of capital relating to 
direct investments, including the acquisition of real estate, made in accordance with the laws of 
the host country, investments made in accordance with the provisions of Chapter 6 (establishment, trade in services and electronic commerce) and the liquidation or repatriation of 
invested capital and of any profit stemming therefrom. With regard to other transactions on the 
capital and financial account of balance of payments, each Party shall ensure, without prejudice to other provisions of the Agreement, the free movement of capital relating to credits for commercial 
transactions or for the provision of services in which a resident of one of the Parties is 
participating; and the free movement of capital relating to portfolio investments, financial loans and credits by the investors of the other Party.  
5.4.  Where, in exceptional circumstances, payments and capital movements cause, or threaten to 
cause, serious difficulties for the operation of exchange rate or monetary policy in any of the 
Parties, that Party may adopt safeguard measures with regard to capital movements for a period 
not exceeding six months if such measures are strictly necessary (Article 139). 
5.5.  Article 140 provides that consultations sh all take place between the Parties on ways to 
facilitate the movement of capital between them. Moreover, during the first four years following 
the date of entry into force of the Agreement, the Parties shall take measures permitting the 
creation of the necessary conditions for further gradual application of the EU rules on the free 
movement of capital. By the end of the fifth year  following the entry into force of the Agreement, 
the Association Committee in Trade configuration shall review the measures taken and determine the modalities for further liberalization. WT/REG354/1 
 
- 33 - 
 
  5.3  Exceptions 
5.6.  Title VIII (Institutional, General and final prov isions), is applicable horizontally to the whole 
Agreement, and also covers security exceptions (Article 415). 
5.3.1  General exceptions 
5.7.  Article 33 (section 4 of Chapter 1 of Title IV) provides that nothing in Chapter 1 shall be 
construed to prevent the adoption or enforcement by any Party of measures in accordance with Articles XX and XXI of GATT 1994 and any relevant interpretative notes to those Articles under 
GATT 1994, which are hereby incorporated into the Agreement and made an integral part thereof. 
In relation to establishment and trade in services, Section 7 of Chapter 6 of Title IV sets out exceptions (without prejudice to the general exceptions set out in Article 415) that mirror Article XIV of the GATS.
19 Article 134 is applicable to the Parties' reservations on establishment, 
commitments on cross-border services, reservatio ns on key personnel, graduate trainees and 
business sellers, and reservations on contractual services suppliers and independent professionals. 
Moreover, Article 134.3 establishes a carve-out for the Parties' respective social security systems 
or to activities in the territory of each Party which are connected, even occasionally, with the 
exercise of official authority.  
5.8.  Article 135 establishes that the MFN treatment granted in accordance with Chapter 6 shall 
not apply to the tax treatment that Parties are prov iding or will provide in the future on the basis 
of agreements between the Parties designated to avoid double taxation. While the Agreement 
confirms the application of the principle of non-di scrimination (Article 416), it also indicates that 
this is without prejudice to the right of the Partie s to apply the relevant provisions of their fiscal 
legislation to taxpayers who are not in identical situations as regards their place of residence 
(Article 416). 
5.3.2  Security exceptions 
5.9.  Article 136 (security exception (on establishment and trade in services)) reflects the 
provisions of Article XXI of GATT 1994 and the provisions of Article XIV bis of GATS. Moreover, 
under Title VII (Institutional, general and final provisions), Article 415 replicates most of the 
wording of the security exception contained in Article XXI of GATT 1994, in Article XIV bis of GATS, 
and of Article 73 of the TRIPS Agreement. None  of these provisions mention the actions in 
pursuance of the Parties' obligations under the UN Charter for the maintenance of international peace and security. 
5.4  Accession and Withdrawal 
5.10.  The Association Agreement applies for an indefinite period (Article 427.1). Any Party may 
withdraw from the Association Agreement, in whic h case the Association Agreement is terminated 
according to the provisions contained in Article 427.2.  
5.5  Dispute settlement 5.11.  Article 421, under Title VIII of the Associ ation Agreement, establishes a mechanism for the 
settlement and avoidance of disputes applicable to disputes arising between the Parties concerning 
the interpretation, implementation, or good faith application of the Association Agreement. Nevertheless, disputes concerning the interpretation, implementation, or good faith application of the Agreement (Title IV - Trade and trade-related matters) is governed by Chapter 14 of Title IV 
(Article 245).  
5.12.  The provisions in Chapter 14 of the Agr eement are without prejudice to the rights and 
obligations of the Parties pursuant to the WT O Agreement, including the dispute settlement 
proceedings (Article 269.1). Chapter 14's procedures also provide for the choice of dispute 
settlement proceeding under the WTO or under the Agreement at the discretion of the complaining 
Party (Article 269). When a Party has requested the establishment of a panel under Article 6 of the 
WTO Dispute Settlement Understanding or an arbitration panel pursuant to Article 248 of the 
                                               
19 Without prejudice to Article 415 of the Agreement. WT/REG354/1 
 
- 34 - 
 
  Agreement, that Party may not initiate another proceeding for the breach of a substantially 
equivalent obligation in the other forum, except when the forum selected first fails for procedural or jurisdictional reasons to make findings on th e claim. Chapter 14 does not prevent a Party from 
suspending benefits if authorized by the Dispute Settlement Body of the WTO and the WTO 
Agreement should not be invoked to prevent a Party from suspending benefits under Chapter 14 
(Article 269.4). 
5.5.1  Consultations and mediation 
5.13.  Article 246 (consultations and mediation) provides that the Parties should endeavour to 
resolve any dispute by entering into consultations in good faith with the aim of reaching a mutually agreed solution, under rules set out in that Article. Article 247 (mediation) provides that any Party to the Agreement may request the other Party to enter into a mediation procedure with respect to 
any measure adversely affecting its trade interests pursuant to Annex XIX to the Agreement 
(Article 247). A Code of Conduct for mediators (and arbitrators) is set out in Annex XXI to the Agreement. 
5.5.2  Arbitration procedures 
5.14.  Articles 248-253 of the Agreement set out an  Arbitration panel procedure. If consultations 
under Article 246 fail to resolve the matter, the Party that sought consultations may request the 
establishment of an arbitration panel. A request must be made in writing to the other Party and 
the Association Committee in Trade configuration,  as set out in Article 408(4) of the Agreement 
(Article 248.2). Article 249 provides that an arbitration panel is composed of 3 arbitrators, whose members are selected by mutual agreement (Artic le 249.2). The Parties can agree on the three 
arbitrators within 10 days of the request, or if they fail to agree an arbitration panel can be 
established by drawing lots from a list of pre-agreed arbitrators as provided for in Article 268. According to the Parties the list has to be established within 6 months from the provisional 
application of the Agreement. The provisional application started on 1 September 2014, the 
process for the selection of the arbitrators is ongo ing. If a Party so requests, the arbitration panel 
has to give a preliminary ruling on whether it deems the case to be urgent within 10 days of its 
establishment (Article 250). The rules of procedure for dispute settlement are contained in 
Annex XX to the Agreement. 
5.15.  The arbitration panel should interpret the provisions of the Agreement in accordance with 
customary rules of interpretation of public international law, including those codified in the Vienna 
Convention of 1969 on the Law of Treaties, and take into account relevant interpretations 
established in reports of panels and of the Appe llate Body adopted by the WTO Dispute Settlement 
Body (Article 265). The rulings of the arbitration panel cannot add to or diminish the rights and 
obligations of the Parties provided under the Agreement (Article 265). Information and technical 
advice may be obtained by the panel and amicus curiae  briefs may be submitted to the panel in 
accordance with the rules of procedures (Artic le 264). The arbitration panel should make every 
effort to take any decision by consensus. Nevertheless, the matter at issue may be decided by a 
majority vote. In no case should dissenting opin ions of arbitrators be disclosed (Article 266). 
5.16.  An interim report is issued to the Parties by  the arbitration panel prior to notification by the 
panel to the Parties of its final ruling. Shorter time limits are provided for in cases of urgency 
(Article 251.3) and of urgent energy disputes under Chapter 11 (Trade-related energy disputes). 
5.17.  The Party complained against should take any measure necessary to comply promptly and 
in good faith with the arbitration panel ruling (Article 254). Should a disagreement exist on the 
length of the reasonable period of time for compliance with the panel ruling, the arbitration panel 
may be requested to rule on the matter (Article 255).  
5.18.  In case of non-compliance, the complaining Party may request the Party complained against 
for temporary compensation for non-compliance; or  notify the Party complained against and the 
Association Committee in Trade Configuration of its intention to suspend obligations to a level equivalent to the nullification or impairment caused by the violation (Article 257). A suspension of benefits may be applied at the earliest 10 days af ter this notification. The level of the suspension 
may be challenged by the Party complained against and be examined by the arbitration panel. The 
compensation or the suspension of benefits are temporary and do not waive the obligations of the WT/REG354/1 
 
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  Party complained against to comply with the ruling. The Party complained against may at any time 
following an agreement on compensation or a susp ension of benefits notify the adoption of a 
measure to comply with the panel ruling and request the complaining Party to terminate the suspension of benefits. The suspension of benefits must be terminated within 30 days following 
such notification unless the complaining Party disagrees that the notified measure brings the Party 
complained against in compliance with the provisions of the Agreement. In such a case, the complaining Party must ask the arbitration panel to rule on the matter.  
5.19.  When a dispute raises a question of interpretation of a provision of EU law, the arbitration 
panel should not decide the question but request the Court of Justice of the European Union to 
give a ruling on the question (Article 267.2).  
5.20.  A special procedure for disputes concerning Chapter 11 (trade-related energy), is provided 
for in Chapter 14. This procedure is faster than the procedure in cases of urgency and contains 
specific provisions concerning conciliation for urgent energy disputes (Article 252) and remedies for urgent energy disputes (Article 258).  
5.21.  Chart 5.1 below summarizes the main steps of the dispute settlement mechanism 
established by the Agreement. WT/REG354/1 
 
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  Chart 5.1 - Dispute Settlement Mechanism established by the Agreement 
 
 
5.6  Relationship with other agreements concluded by the Parties 
5.22.  Title IV, Chapter 1 of Article 36 of the Agreement provides that the Agreement do not 
preclude the maintenance or establishment of customs unions, free trade areas or arrangements 
for frontier traffic except insofar as they conflict with trade arrangements under the Agreement. 
5.23.  The 1996 Partnership and Cooperation Agreement between the EU and Georgia20 is repealed 
and replaced by the Agreement (Article 423). The Agreement also replaces the agreement 
between the EU and Georgia on the protection of ge ographical indications of agricultural products 
and foodstuffs, signed on 14 July 2011.21 The Parties may complement the Agreement by 
concluding specific agreements in any area falling within its scope (Article 425). Such agreements 
                                               
20 This Agreement entered in to force 1 July 1999. 
21 This Agreement entered in to force on 1 April 2012. Source: WTO Secretariat based on the Agreement. 
 Consultations (Art. 246 ) 
Establishment of an 
Arbitration Panel  
(Art. 249) 
Proceedings (Art. 251 and 
Annex XX ) 
Ruling by the  
Arbitration Panel (Art. 253) 
Implementation  
(Temporary) suspension of 
benefits by complaining 
Party (Art.257) Review of compliance  
(Art. 256) Non-Implementation Notification by the Party 
complained against of the 
measure to comply 
(Art. 256) 
Temporary 
compensation 
Compliance Non-Compliance Notification of the 
complaining Party's 
intention to temporarily 
suspend benefits 
Termination of the 
suspension Disagreement between 
the Parties on 
compliance Review of measures taken 
to comply after the 
adoption of temporary 
remedies for non-
compliance (Art. 259) Mediation (Art. 247 ) 
Conciliation for urgent energy 
disputes (Art. 252) WT/REG354/1 
 
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  are to be an integral part of the overall bilatera l relations as governed by the Agreement and shall 
form part of a common institutional framework.  
5.24.  Should these situations occur, in particular in the event of a third country acceding to the 
EU, the Parties are to consult so as to ensure that account is taken of the mutual interests of both 
Parties (Article 36.2). Article 429 provides that the application of the Agreement in relation to 
Georgia's regions of Abkhazia and Tskhinvali/South Ossetia over which the Government of Georgia does not exercise effective control, shall commence once Georgia ensures the full implementation 
and enforcement of the Agreement in its entire territory (Article 429.2). 
5.25.  Table 5.1 below shows the Parties' RTAs, notified and non-notified, other than the 
Agreement. 
Table 5.1 European Union and Georgia: Pa rticipation in other RTAs (notified and 
non-notified in force), as of 27 February 2015 
RTA Name Date of 
entry into 
force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
EUROPEAN UNION 
EU - Ukraine a  Goods & 
Services 2014 GATT Art. XXIV & GATS Art. V 
EU – Republic of Moldova  01-Sep-14 Goods & 
Services 2014 GATT Art. XXIV & GATS Art. V 
EU - Cameroon 04-Aug-14 Goods 2009 GATT Art. XXIV 
EU - Central America 01-Aug-13 b Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
EU - Colombia and Peru 01-Mar-13 c Goods & 
Services 2013 GATT Art. XXIV & GATS Art. V 
EU - Eastern and Southern Africa 
States Interim EPA 14-May-12 Goods 2012 GATT Art. XXIV 
EU - Republic of Korea 01-Jul-11 Goods & 
Services 2011 GATT Art. XXIV & GATS Art. V 
EU - Serbia 01-Feb-10 
01-Sep-13 Goods 
Services 2010 
2013 GATT Art. XXIV 
GATS Art. V 
EU - Papua New Guinea / Fiji 20-Dec-09 d 
28-Jul-14 Goods 2011 GATT Art. XXIV 
EU - Côte d'Ivoire 01-Jan-09 Goods 2008 GATT Art. XXIV 
EU - CARIFORUM States EPA 01-Nov-08 Goods & 
Services 2008 GATT Art. XXIV & GATS Art. V 
EU - Bosnia and Herzegovina 01-Jul-08 Goods 2008 GATT Art. XXIV 
EU - Montenegro 01-Jan-08 
01-May-10 Goods 
Services 2008 
2010 GATT Art. XXIV 
GATS Art. V 
EU - Albania 01-Dec-06 
01-Apr-09 Goods 
Services 2007 
2009 GATT Art. XXIV  
GATS Art. V 
EU - Algeria 01-Sep-05 Goods 2006 GATT Art. XXIV 
EU - Egypt 01-Jun-04 Goods 2004 GATT Art. XXIV 
EU - Lebanon 01-Mar-03 Goods 2003 GATT Art. XXIV 
EU - Chile 01-Feb-03 
01-Mar-05 Goods 
Services 2004 
2005 GATT Art. XXIV  
GATS Art. V 
EU - Jordan 01-May-02 Goods 2002 GATT Art. XXIV 
EU - San Marino 01-Apr-02 Goods 2010 GATT Art. XXIV 
EU - Former Yugoslav Republic of 
Macedonia 01-Jun-01 
01-Apr-04 Goods 
Services 2001 
2009 GATT Art. XXIV  
GATS Art. V 
EU - Mexico 01-Jul-00 
01-Oct-00 Goods 
Services 2000 
2002 GATT Art. XXIV 
GATS Art. V 
EU - Israel 01-Jun-00 Goods 2000 GATT Art. XXIV 
EU - Morocco 01-Mar-00 Goods 2000 GATT Art. XXIV 
EU - South Africa 01-Jan-00 Goods 2000 GATT Art. XXIV 
EU - Tunisia 01-Mar-98 Goods 1999 GATT Art. XXIV 
EU - Palestinian Authority 01-Jul-97 Goods 1997 GATT Art. XXIV 
EU - Faroe Islands 01-Jan-97 Goods 1997 GATT Art. XXIV 
EU - Turkey 01-Jan-96 Goods 1995 GATT Art. XXIV 
European Economic Area (EEA) 01-Jan-94 Services 1996 GATS Art. V WT/REG354/1 
 
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  RTA Name Date of 
entry into 
force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
EU - Andorra 01-Jul-91 Goods 1998 GATT Art. XXIV 
EU - Syria 01-Jul-77 Goods 1977 GATT Art. XXIV 
EU - Norway 01-Jul-73 Goods 1973 GATT Art. XXIV 
EU - Iceland 01-Apr-73 Goods 1972 GATT Art. XXIV 
EU - Switzerland-Liechtenstein 01-Jan-73 Goods 1972 GATT Art. XXIV 
EU – Overseas Countries and 
Territories (OCT) 01-Jan-71 Goods 1970 GATT Art. XXIV 
GEORGIA 
Turkey – Georgia 01-Nov-08 Goods 2009 GATT Art. XXIV 
Georgia – Turkmenistan 01-Jan-00 Goods 2001 GATT Art. XXIV 
Georgia – Kazakhstan 16-Jul-99 Goods 2001 GATT Art. XXIV 
Georgia – Armenia 11-Nov-98 Goods 2001 GATT Art. XXIV 
Georgia – Azerbaijan 10-Jul-96 Goods 2001 GATT Art. XXIV 
Georgia – Ukraine 04-Jun-96 Goods 2001 GATT Art. XXIV 
Commonwealth of Independent 
States (CIS) 30-Dec-94 Goods 1999 GATT Art. XXIV 
Georgia – Russian  Federation 10-May-94 Goods 2001 GATT Art. XXIV 
Georgia – Republic of Uzbekistan 15-Oct-10 Goods Not notified 
Georgia – Moldova 19-Apr-07 Goods Not notified 
Guam (Georgia, Ukraine, 
Azerbaijan, Republ ic of Moldova) 10-Dec-03e Goods Not notified 
a The notifications made in July 2014 (see WT/REG353/N/1 and S/C/N/744) stated that the dates of 
entry into force will be: "In acco rdance with the Parties' resp ective internal procedures." 
b The trade pillar of the Association Agreement has been provisionally applied since 1 August 2013 with Honduras, Nicaragua and Panama, since 1 Octo ber 2013 with Costa Rica and El Salvador, and 
since 1 December with Guatemala. 
 The notifications made in February 2013 (s ee WT/REG332/N/1 and S/C/N/680) stated that: 
"Provisional application of the Agreement by all si gnatory parties is expected in the course of the 
second quarter 2013"; Further notifications to confirm the dates of entry into force between the EU and Central American countries are awaited. 
c
 EU and Peru: 1 March 2013; EU and Colombia: 1 August 2013. 
d The Agreement's provisional application started on 20 December 2009 for Papua New Guinea and 
the European Union and on 28 July 2014 for Fiji and the European Union. 
e Date of implementation indicated by Georgia: 28 December 2002. 
Source: WTO Secretariat. 
5.7  Government procurement 
5.26.  Chapter 8 of Title IV of the Agreement (Articles 141-149) contains rules applicable to 
government procurement. The Chapter envisages mu tual access to public procurement markets on 
the basis of the principle of national treatment at national, regional and local level for public 
contracts and concessions in the public sector as well as in the utilities sector. It also provides for 
a gradual approximation of the public procurement legislation in Georgia with the EU's acquis , 
based on the principles governing public procurement in the EU.22 Chapter 8 applies to contracts 
above value thresholds set out in Annex XVI-A to the Agreement. The value of the thresholds shall 
be revised regularly every two years (Article 142).  
                                               
22 The Agreement makes direct references to the EU  Directive 2004/18/EC of the European Parliament 
and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts. Annex XXIX-C to the Agreement summarizes the basic elements of that Directive and Annex XXIV-D provides  the basic elements of Council Directive 89/665/EEC. A 
reference to Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 
coordinating the procurement procedures of entities op erating in the water, energy, and transport and postal 
services sectors is also made. Annex XXIV-E to the Agre ement summarizes the basic elements of that Directive 
and Annex XXIV-D provides the basi c elements of Council Directive 92/13/EEC. Other non-mandatory and 
mandatory elements of relevant EU Directives are contained in Annexes XXIX-F to XXIV-K, while 
Annexes XXIX-L through XXIX-O list the provisions of a certain Directives which ar e outside of the scope of 
approximation.  WT/REG354/1 
 
- 39 - 
 
  5.27.  The EU is a Party to the plurilateral government procurement agreement (GPA), concluded 
under the auspices of the WTO, while Georgia is negotiating its accession to it. As a result, the Agreement's provisions on government procurement improve legal certainty in relation to market access for all Parties for procurement of goods and services covered by Annex XVI-A. The EU 
commitments under the Agreement largely correspond to that it made under the GPA, with 
identical thresholds as under the GPA. Some adjustments are made to integrate recent EU internal and intra-GPA government procurement-related practices consist in granting to Georgian suppliers 
full and unrestricted access to the EU procurement m a r k e t  ( i n s o f a r  a s  i t  i s  c o v e r e d  b y  t h e  E U  
procurement market), based on Georgia's prog ress in approximating and implementing EU 
legislation. According to the Parties, this is somewhat wider than what the EU is offering under the GPA.  
5.28.  No later than three years from the entry into force of the Agreement, the Parties should 
comply with a set of basic standards, deriving directly from the EU's acquis , including the 
principles of non-discrimination, equal treatment,  transparency and proportionality, for the award 
of all contracts. The basic standards regulating th e award of contracts, as listed in Article 144, 
cover publication; award of contracts; and juridica l protection. The main features of an appropriate 
institutional framework and mechanism necessary for the proper functioning of the public 
procurement system and the implementation of the provisions of Chapter 8 of Title IV are 
contained in Article 143. 
5.29.  In relation to the gradual approximation of Georgia's public procurement legislation with the 
EU's acquis , prior to the commencement of the process, Georgia is to submit to the Association 
Committee in Trade Configuration a comprehensive roadmap for the implementation of Chapter 8 
(Article 145). In that regard, Annex XVI-B to the Agreement contains an indicative time schedule for institutional reform, legislative approximation and market access. As the gradual approximation 
progresses, each phase shall be evaluated by the Association Committee in Trade Configuration. 
Following a positive assessment by the Committee, reciprocal market access, as set out in Annex XVI-B to the Agreement, is to be granted. 
5.30.  Each Party shall ensure that contracting entities and economic operators are appropriately 
informed about public procurement procedures; en sure the effective dissemination of information 
on tendering opportunities (Article 148), and cooperation between them to achieving a better understanding of their respective government procurement systems is governed by Article 149 and 
Annex XVI-P to the Agreement which include a list of issues for cooperation. 
5.8  Intellectual property rights 5.31.  Chapter 9 of Title IV of the Agreement (Articles 151-202) concerns intellectual property 
rights (IPRs). As a general principle, the Parties are to ensure the adequate and effective 
implementation of the international agreements dealing with IPR to which they are parties, 
including the TRIPS Agreement. In that context, the provisions of Chapter 9 shall complement and 
further specify the rights and obligations between the Parties under the TRIPS Agreement and 
other international agreements in the field of IPR (Article 151). Under the Agreement, protection of intellectual property includes protection against unfair competition as referred to in Article 10 bis of 
the Paris Convention for the Protection of Industrial Property of 1967 (Article 151.3). 
5.32.  Each Party provides for a regime of domestic or regional exhaustion of IPRs (Article 152). 
5.33.  On copyright and related rights (Articles 153-164), the Parties are to comply with existing 
rights and obligations.
23 The Agreement builds on the relevant provisions of the TRIPS Agreement 
with respects to principles applicable to authors (Article 154); performers (Article 155); producers 
of phonograms (Article 156); and broadcasting organisations (Article 157), including in connection with broadcasting and communication to the public (Article 158). In relation to terms of protection, 
Article 159 provides that the rights of authors shal l run for the life of the author and 70 years after 
his/her death, while the term of protection for pe rformers shall expire no less than 50 years from 
the date of the performance, or 70 years in case  the performance is fixed in a phonogram. The 
rights of broadcasting organisations shall expire no less than 50 years after the first transmission 
                                               
23 B y  v i r t u e  o f  t h e  B e r n e  C o n v e n t i on for the Protection of Literary  and Artistic Works, the Rome 
Convention for the Protection of Performers, Producer s of Phonograms and Broadcasting Organizations, the 
WIPO Copyright Treaty, the WIPO  Performance and Phonograms Tr eaty, and the TRIPS Agreement. WT/REG354/1 
 
- 40 - 
 
  of a broadcast (Article 159). The Agreement also contains disciplines on the protection of 
technological measures (Article 160); the protection of rights management information (Article 161); and the right of artists to obtain a royalty on resale of works of art (Article 163), while rights' exceptions and limitations are cove red by Article 162. A best endeavour clause is 
applicable to cooperation on collective management of rights (Article 164). 
5.34.  On trademarks (Articles 165-168), the Parties commit to comply with relevant international 
treaties.
24 Disciplines on the trademarks' registration procedure (Article 166) and the protection of 
well-known marks (Article 167) are also covered by the Agreement, while exceptions to the rights 
conferred by a trademark are addressed in Article (168). 
5.35.  Disciplines on geographical indications25 (GIs), which complement the relevant provisions in 
the TRIPS Agreement, are contained in Articles 169- 179. These disciplines apply in particular to 
the scope of protection of GIs (Article 172); the right of use of GIs (Article 174); the enforcement 
of protection (Article 175); and the relationship with trademarks (Article 176). Annex XVII-A to the Agreement lists the relevant Parties' respective legislations applicable to the protection of GIs. 
Moreover, in its Part C, Annex XVII-A identifies the elements for registration and control of GIs 
that shall serve as a basis for an objection procedure. After having completed such objection procedure, the Parties shall protect their respective GIs
26 for agricultural products and foodstuffs, 
listed in Annex XVII-C, and for wines, aromatized wines and spirit drinks, listed in Annex XVI-D. 
According to the Parties this procedure can be launched at any moment, in order to add new GIs to the list. The products currently listed in the A nnex are subject of protection. There is an ongoing 
process of preparing new products to be added to the list. Currently approximately 3200 EU and 
18 Georgian GIs are on the list. A Geographical Indication Sub-Committee is established under 
Article 179, inter alia , to approve a product specification, to amend Annexes XVII-C and XVII-D, 
and to monitor the latest developments regarding the enforcement of the protection of GIs listed 
in Annexes XVII-C and XXX-D to the Agreement. Cooperation and transparency on GI's is 
addressed in Article 178. 
5.36.  On designs (Articles 180-183), the Parties shall comply with the Geneva Act to the Hague 
Agreement Concerning the International Registrati on of Industrial Designs (1999). The Agreement 
identifies the requirements for protection of designs
27 (Article 181); the Parties' possibility to 
establish limited and conditional exceptions to the protection of designs (Article 182); and the relationship to copyright (Article 183).  
5.37.  On patents (Article 184-188), the Parties shall adhere to the provisions of the WIPO Patent 
Cooperation Treaty and shall make all reasonable efforts to comply with the WIPO Patent Law Treaty. The importance of the Declaration of the Ministerial Conference of the WTO on the TRIPS 
Agreement and public health (2001) and of the re lated Decision of the WTO General Council of 
30 August 2003 is reiterated (Article 185). The Ag reement contains supplementary specific rules 
on medicinal and plant protection products protecte d by a patent (Article 186) as well as on the 
protection of data submitted to obtain an authorization to put a medicinal product on the market 
and of plant protection products (Articles 187 and 188). Moreover, the Parties shall protect plant 
varieties rights, in accordance with the International Convention for the Protection of New Varieties of Plants (UPOV Convention). 
5.38.  Section 3 of Chapter 9 addresses enforcement of intellectual property. It establishes the 
modalities for civil enforcement (Articles 190-202) and contains disciplines on border measures (Article 200). It also encourages the developmen t, by trade or professional associations or 
organizations, of codes of conduct aimed at contributing towards the enforcement of IPRs 
(Article 201) and defines areas of cooperation between the Parties with a view to supporting 
implementation of the commitments and obligations undertaken under Chapter 9 (Article 202). 
                                               
24 the Protocol Relating to the Madrid Agreement Co ncerning the International Registration of Marks, 
adopted on 28 June 1989, the WIPO Trademark Law Treaty and the Nice Agreement Concerning the International Classification of Goods and Services for th e Purposes of the Registration of Marks (Article 165). 
They also shall make all reasonable efforts to adhere  to the Singapore Treaty on the Law of Trademarks. 
25 Including "designations of origin". 
26 The lists may be complemented with new GIs to be protected after the Parties have completed the 
objection procedure. 
27 The duration of protection shall amount to 25 year s from the date of filing of the application for 
registration. WT/REG354/1 
 
- 41 - 
 
  5.9  Others 
5.9.1  Trade-related energy 5.39.  Chapter 11 contains disciplines on trade-related energy, covering transit (Article 211); 
unauthorized taking of goods in transit (Article 212); uninterrupted transit (Article 213), transit 
obligation for operators (Article 214); regulatory authorities (Article 215); organization of markets 
(Article 216); access to energy transport facilities (Article 217); and relationship with the energy 
community treaty (Article 218).  
5.9.2  Sustainable development 
5.40.  Chapter 13 addresses trade and sustainable development. It recognizes the right of each 
Party to determine its sustainable development policies and priorities (Article 227), to establish its own levels of domestic environmental and labour protection (Article 228), and to adopt or modify 
accordingly its relevant law and policies, consistently with their commitments to internationally 
recognized standards and agreements
28 (Article 229). The Parties also reconfirm their commitment 
to enhance the contribution of trade to the goal of sustainable development in its economic, social 
and environmental dimension and, inter alia , agree that they shall strive to facilitate and promote 
trade and investment in environmental goods and services (Article 231). Chapter 13 also covers topics such as: biological diversity (Article 232)
29, management of forests and trade in forest 
products (Article 233) as well as trade and the conservation and the management of fish stocks 
(Article 234). 
5.41.  Under Article 235, a Party shall not waive or  derogate from its environmental or labour law 
as an encouragement for trade or the establishment, the acquisition, the expansion or the 
retention of an investment of an investor in its territory. Moreover, a Party shall not, through a 
sustained or recurring course of action or inaction, fail to effectively enforce its environmental and labour laws, as an encouragement for trade or investment. Article 236 addresses the importance 
of scientific information when preparing and implementing sustainable development related 
measures, and expressly permits the parties to use the precautionary principle. Article 237 
concerns transparency requirements related to me asures aimed at protecting the environment or 
labour conditions. Article 238 creates an obligatio n for the Parties for reviewing, monitoring and 
assessing the impact of the implementation of  Title IV on sustainable development through 
participative processes and institutions. An indicative list of areas of cooperation between the Parties is provided in Article 239. 
5.42.  Besides the designation of contact points, the Parties agree to establish a Trade and 
Sustainable Development Sub-Committee to oversee the implementation of Chapter 13. Moreover, 
domestic advisory groups on sustainable developm ent shall be convened (Article 240). The Parties 
shall also facilitate a joint forum with civil society organization established in their territories 
(Article 241). The Chapter also established a dedicated mechanism for dealing with any matter arising under Chapter 13. This foresees recourse to government consultations, including through 
the Trade and Sustainable Development Sub-Committee, (Article 242) and upon request of either 
party, to the establishment of a Panel of Experts under the modalities contained in Article 243. The 
experts of such Panel shall comply with the Code of conduct established for arbitrators and mediators and contained in Annex XXI to the Agreement, while the rules of procedure for dispute 
settlement and contained in Annex XXI to the Agre ement shall apply to the work of the Panel of 
Experts. The Parties shall discuss appropriate measures to be implemented, taking into account the Panel of Experts' report and recommendations. The civil society mechanisms established in the 
Chapter (both the domestic advisory bodies and the jo int forum) are also involved in this process.  
 
                                               
28 In relation to multilateral labour standards and ag reements (Article 229), the Agreement refers to the 
ILO Declaration on Fundamental Princi ples and Rights at Work and its Fo llow-up of 1998 and the fundamental 
ILO conventions. In relation to multilateral enviro nmental governance and agr eements (Article 230), the 
Agreement refers to all multilateral environmental ag reements (MEAs) to which the Parties are party, 
specifically mentioning the UN Framework Convention on Climate Change and its Kyoto Protocol.  
29 In relation to biological diversity (Article 232), the Agreement refers to the Convention on Biological 
Diversity, the Convention on International Trade in En dangered Species of Wild Fauna and Flora, and other 
relevant international instruments to which the Parties are party.   WT/REG354/1 
 
- 42 - 
 
  5.9.3  Competition  
5.43.  Chapter 10 of Title IV of the Agreement addr esses competition. Each Party is to maintain in 
its respective territory comprehensive competition laws which effectively address anti-competitive agreements, concerted practices and anti-competitive unilateral conduct of undertakings with 
dominant market power and provide effective control of concentration (Article 204); an authority is 
to be maintained by each Party to enforce competition laws. Article 205 establishes disciplines on state monopolies, state enterprises and enterprises entrusted with special or exclusive rights. 
Article 206 requires that the parties ensure transparency in relation to subsidies (per Articles 1 and 
2 of the SCM). Chapter 14's dispute settlement mechanism does not apply to Articles 203, 204 and 205 of the Agreement. Article 208 provides that  the provisions of the Chapter are without 
prejudice to the rights and obligations of a Part y under the WTO Agreement in particular the SCM 
Agreement and the DSU.  
5.9.4  Economic and othe r sectoral cooperation 
5.44.  Title V of the Association Agreement addr esses areas of cooperation agreed between the 
Parties. Though this is done within the Associat ion Agreement but outside of Title IV on trade and 
trade-related matters, some of the topics mentione d are connected with broad or more sectoral 
areas which are disciplined under Title IV, either in relation to trade in goods and/or in relation to 
trade in services. As an illustration, fields of economic and other sectoral cooperation, covered 
under Title IV are: transport; energy cooperation; environment; climate action; industrial and enterprise policy and mining; financial services; company law; accounting and corporate governance; cooperation in the field of information society; tourism; agriculture and rural 
development; fisheries and maritime governance; cooperation in research, technological 
development and demonstration; consumer policy; employment, social policy and equal opportunities; public health; education, training and youth; cooperation in the technical field; 
cooperation in the audio-visual and media fields; cooperation in the field of sport and physical 
activity; civil society cooperation; regional development; cross border and regional level cooperation; civil protection and participation in EU agencies and programmes. 
5.10  Institutional framework of the Agreement 
5.45.  The Association Agreement establishes an Association Council to supervise and monitor the 
application and implementation of the Agreement (Article 404). For the purpose of attaining the 
objectives of the Association Agreement, the Asso ciation Council has the power to take decisions, 
including updating or amending the texts, within the scope of the Agreement (Article 406). 
5.46.  The Association Agreement also establishes an Association Committee which in its Trade 
configuration monitors the implementation of the Agreement to assist the Association Council 
(Articles 407, 408). The Association Committee in Trade configuration is assisted by 
sub-committees established under the Agreement (SPS Sub-Committee, Customs Sub-Committee, GI Sub-Committee and Trade and Sustainable Development Sub-Committee. 
5.47.  A Parliamentary Association Committee is established under Article 410 to serve as a forum 
for members of the Parties' parliament to meet and exchange views. The Parliamentary Association may create Parliamentary Association sub-committees. The Parties shall also promote regular meetings of representatives of their civil societies. In that context, a Civil Society Platform 
is established by Article 412. WT/REG354/1 
 
- 43 - 
 
  5.48.  The institutional framework established by the Agreement is summarized by Chart 5.2 
below.  
Chart 5.2 Institutional Framework of th e DCFTA established by the Agreement 
  
 
  
 
   
 
  
 
  
 
   
Source: WTO Secretariat based on the Agreement. 
 Association Council (Art. 404-406) 
Sanitary and Phytosanitary Sub-Committee (Art. 65) 
Customs Sub-Committee (Art. 74) 
Geographical Indications Sub-Committee (Art. 179) 
 
Trade and Sustainable Development Sub-Committee 
(Art. 240) Arbitration Panel(s) 
(Art. 249) Association Committee (in Trade configuration) 
(Art. 407-408) 
 WT/REG354/1 
 
- 44 - 
 
  ANNEX 1 
1. Table A1.1 below shows tariff liberalization by the EU by total, agricultural and 
non-agricultural products. In 2014, the EU's applied MFN tariff rate was 5.1% overall, (4.3 for non-agricultural products, 9.1% for agricultural products). 25.1% of the tariff was duty free on an 
MFN basis; 26.8% of non-agricultural products, and 19.2% of agricultural products were duty free 
on an MFN basis. As a result of the Agreement en tering into force, Georgian exporters enjoyed an 
absolute preference of 5.1% vis-à-vis  the prevailing MFN tariff. 99.7% of goods imported from 
Georgia will enter the EU duty free, 100% for non- agricultural products and 98.6% for agricultural 
products.  
Table A1.1 EU: Indicators of MFN tariff rate s and preferential rates for imports from 
Georgia 
Origin of 
goods Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2014 5.1  7.0 25.1  9.1 12.7 19.2 4.3 5.9 26.8  
Georgia 2014 0.0 9.6 99.7 0.0 9.6 98.6 0.0 0.0 100.0  
a WTO Definition. 
Note: Tariff lines subject to in-quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded and the ad valorem  parts of alternate rates are included.  
Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on data submission from the EU authorities. 
2. Table A1.2 below gives an indication of addition al market access in the EU for Georgia's top 
25 exports. In 2014 Georgia's top 25 exports to the EU were covered by 125 tariff lines at the eight digit level and accounting for 76.3% of Geor gia's global exports during 2011-2013. Of these 
125, 33 lines were duty free on an MFN basis. As a result of the Agreement entering into force , 
the remaining 92 lines became duty free for imports from the EU.  
Table A1.2 EU: Market access opportuniti es under the Agreement for Georgia's top 
25 exports to the world 
Georgia's top export products in 2011-2013 Access conditions to EU's 
import markets HS number and description of the product 
Share in 
global exports 
(%) MFN 2014 
Duty-free 
in 2014 Average 
MFN 
applied 
rate (%) 
Duty 
Free 
Dutiable 
Lines 
870323 -- of a cylinder capacity exceeding 1,500 cc but not 
exceeding 3,000 cc 12.1 10.0  3 3 
720230 - ferro-silico-manganese 9.9 3.7  1 1 
310230 - ammonium nitrate, whether or not in aqueous 
solution 5.5 6.5  2 2 
870324 -- of a cylinder capacity exceeding 3,000 cc 5.5 10.0  2 2 
080222 -- shelled 4.8 3.2  1 1 
260300 Copper ores and concentrates. 4.0 0.0 1   
870333 -- of a cylinder capacity exceeding 2,500 cc 4.0 10.0  3 3 
710813 -- other semi-manufactured forms 3.6 0.0 2   
220421 -- in containers holding 2 l or less 3.0 -  57 57 
220110 - mineral waters and aerated waters 2.9 0.0 3   
220820 - spirits obtained by distilling grape wine or grape 
marc 2.3 0.0 11   
721420 - containing indentations, ribs, grooves or other 
deformations produced during the rolling process or 
twisted after rolling 2.3 0.0 1   WT/REG354/1 
 
- 45 - 
 
  Georgia's top export products in 2011-2013 Access conditions to EU's 
import markets HS number and description of the product 
Share in 
global exports 
(%) MFN 2014 
Duty-free 
in 2014 Average 
MFN 
applied 
rate (%) 
Duty 
Free 
Dutiable 
Lines 
720449 Ferrous waste and scrap (excluding of 7204.10-
7204.41) 2.0 0.0 3   
300490 Medicaments (excluding of 30.02, 30.05 and 30.06) 
consisting of mixed or unmixed products 1.7 0.0 1   
740400 Copper waste and scrap. 1.6 0.0 3   
870332 -- of a cylinder capacity exceeding 1,500 cc but not 
exceeding 2,500 cc 1.5 10.0  3 3 
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude. 1.4 0.0 2   
870421 -- g.v.w. not exceeding 5 tonnes 1.3 13.5  5 5 
010229 -- other 1.2 9.4 1 11 11 
252329 Portland cement (excluding white cement, whether or 
not artificially coloured) 1.1 1.7  1 1 
100199 -- other 1.1 -  1 1 
720711 -- of rectangular (including square) cross-section, the 
width measuring less than twice the thickness 1.0 0.0 4   
271600 Electrical energy. (optional heading) 0.8 0.0 1   
283711 -- of sodium 0.8 5.5  1 1 
220210 - waters, including minera l waters and aerated waters, 
containing added sugar or other sweetening matter or flavoured 0.7 9.6  1 1 
Total of above 76.3  33 92 92 
- contains specific duties only. 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on da ta submission from the EU authorities and UNSD, Comtrade database. 
3. Table A1.3 below shows tariff liberalization by Georgia by total, agricultural and 
non-agricultural products. In 2014 Georgia's overall applied MFN tariff was 1.8%, with 6.4% for 
agricultural products and 0.7% for non-agricultural products. As a result of the entry into force of the Agreement, the EU's exporters enjoyed an abso lute margin of preference of 1.8%, 6.4% for 
agricultural products and 0.7% for non-agricultural products. 100% of the tariff is liberalized on all 
products. 
Table A1.3 Georgia: Indicators of MFN tariff rates and preferential rates for imports from 
EU 
Origin of 
goods Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff Share of 
duty-free 
tariff 
lines (%)  Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2014 1.8 11.0 79.6 6.4 11.5 40.4 0.7 10.2 89.6 
EU 2014 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a WTO Definition. 
Note: Tariff line coverage is from HS chapters 1-97 only.  
Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data su bmission from the Georgian authorities. WT/REG354/1 
 
- 46 - 
 
  4. Table A1.4 below gives an indication of additional market access in Georgia for the EU's top 
25 exports. In 2014 the EU's top 25 exports to Georgia were covered by 384 tariff lines at the eight digit level and accounting for 27.6% of the EU's global exports during 2011-2013. Of these 
384, 112 lines were duty free on an MFN basis. As a result of the Agreement entering into force , 
the remaining 272 lines became duty free for imports from the EU. 
Table A1.4 Georgia: Market access opport unities under the Agreement for EU's top 
25 exports to the world 
EU's top export products  in 2011-2013  Access conditions to Georgia's 
import markets HS number and description of the product  
Share in 
global exports 
(%) MFN 2014 
Duty-free 
in 2014 Average 
MFN 
applied 
rate 
(%) 
Duty 
Free 
Dutiable 
Lines 
300490 Medicaments (excluding of 30.02, 30.05 and 30.06) consisting 
of mixed or unmixed products 3.4 0.0 4   
870323 -- of a cylinder capacity exceeding 1,500 cc but not exceeding 
3,000 cc 3.0 -  103 103 
271020 - petroleum oils and oils obtained from bituminous minerals 
(other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils 
or of oils obtained from bituminous minerals, these oils being 
the basic constituents of the preparations, containing biodiesel, other than waste oils 2.9
 0.0 6   
880240 - aeroplanes and other aircraft, of an unladen weight exceeding 
15,000 kg 2.0 0.0 2   
710813 -- other semi-manufactured forms  1.9 0.0 2   
870324 -- of a cylinder capacity exceeding 3,000 cc  1.6 -  52 52 
271019 Petroleum oils and oils obtained  from bituminous minerals (other 
than crude) and preparations not elsewhere specified or 
included, containing by weight 70 % or more of petroleum oils 
or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than waste oils and light oils and preparations 1.6
 0.0 25   
271012 -- light oils and preparations 1.3 0.0 12   
870332 -- of a cylinder capacity exceeding 1,500 cc but not exceeding 
2,500 cc 0.9 -  53  53 
710231 -- unworked or simply sawn, cleaved or bruted  0.8 0.0 1   
300210 - antisera, other blood fractions and immunological products, 
whether or not modified or obtained by means of biotechnological processes 0.7
 0.0 4   
841191 -- of turbo-jets or turbo-propellers  0.7 0.0 2   
870899 Other parts and accessories for the motor vehicles of 87.01-
87.05, excluding 8708.91 to 8708.95. 0.7 0.0 3   
880330 - other parts of aeroplanes or helicopters  0.7 0.0 2   
841112 -- of a thrust exceeding 25 kn 0.6  0.0 4   
710812 -- other unwrought forms 0.6 0.0 1   
851712 -- telephones for cellular networks or for other wireless networks  0.6 0.0 1   
848180 - other appliances 0.6 0.0 24   
711319 -- of other precious metal, whether or not plated or clad with 
precious metal 0.5 12.0  1  1 
870840 - gear boxes and parts thereof 0.5 0.0 4   
901890 - other instruments and appliances  0.4 0.0 10   
851762 -- machines for the reception, conversion and transmission or 
regeneration of voice, images or other data, including switching 
and routing apparatus 0.4 0.0 1   
870322 -- of a cylinder capacity exceeding 1,000 cc but not exceeding 
1,500 cc 0.4 -  4  4 
220421 -- in containers holding 2 l or less  0.4 -  59 59 
300290 Human blood; animal blood prepared for therapeutic or 
prophylactic or diagnostic uses; toxins, cultures of micro-organisms (excluding yeasts) and similar products 0.4
 0.0 4   
Total of above 27.6  112 272 272 
- contains non- ad valorem  duties only. 
Note: Tariff line coverage is from HS chapters 1-97 only. Based on the HS 2012 nomenclature.  Source:  WTO estimates based on  data submission from the Geor gian authorities and Eurostat. WT/REG354/1 
 
- 47 - 
 
  ANNEX 2 
1. Table A2.1 below indicates the tariff lines covered by the EU's tariff quotas applied to 
Georgian imports.  
Table A2.1 Tariff rate quotas applied by the European Union to Georgia's imports  
Tariff line Description MFN (as of 1st January 
2014) Volume 
(tonnes) Rate of 
duty 
07032000 Garlic, fresh or chilled 9.6 % + 120 EUR/100 kg 220 Free 
Source: Annex II-A of the Agreement. 
__________