WT/REG391/1  
18 January 2019  
(19-0129) Page: 1/36 
Committee on Regional Trade Agreements    
 
FACTUAL PRESENTATION  
FREE TRADE  AGREEMENT BETWEEN CHINA  AND GEORGIA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade  Agreement between China  
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 c omments 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 Trad e 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 report may be addressed to Mr. Peter Milthorp  
(tel: +41 22 739 5016 ). Any statistical questions arising from this report may be 
addressed to Mr. Thakur Parajuli (tel: +41 22 739 5473). 
 
 
  WT/REG391/1  
 
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TABLE O F CONTENTS  
 Page 
1   TRADE ENVIRONMEN T ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in services and investment  ................................ ................................ ..................  5 
2   CHARACTERISTIC E LEMENTS OF THE AGREE MENT  ................................ ......................  7 
2.1   Background Information  ................................ ................................ ...............................  7 
3   PROVISIONS ON TR ADE IN GOODS  ................................ ................................ .............  8 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  8 
3.1.1    General provisions  ................................ ................................ ................................ .... 8 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  9 
3.1.3    Liberalization schedule  ................................ ................................ ............................  10 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .... 12 
3.2   Rules of origin  ................................ ................................ ................................ ...........  12 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  13 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ....... 13 
3.4.1    Standards  ................................ ................................ ................................ ..............  13 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ..... 13 
3.4.1.2    Technica l barriers to trade  ................................ ................................ ....................  13 
3.4.2    Safeguard mechanisms  ................................ ................................ ...........................  14 
3.4.2.1    Global safeguards  ................................ ................................ ................................  14 
3.4.2.2    Bilateral safeguards  ................................ ................................ ..............................  14 
3.4.2.3    Special safeguards  ................................ ................................ ...............................  15 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................  15 
3.4.4    Subsidies and State -aid ................................ ................................ ...........................  15 
3.4.5    Customs -related procedures ................................ ................................ .....................  15 
3.4.6    Other regulations  ................................ ................................ ................................ .... 17 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ .. 17 
4   PROVISIONS ON TR ADE IN SERVICES  ................................ ................................ ....... 17 
4.1   Scope and definitions  ................................ ................................ ................................ . 17 
4.2   Denial of benefits  ................................ ................................ ................................ ...... 17 
4.3   General provisions on trade in services  ................................ ................................ ........  17 
4.3.1    Market access  ................................ ................................ ................................ ........  17 
4.3.2    National treatment and MFN  ................................ ................................ .....................  17 
4.3.3    Commercial presence  ................................ ................................ ..............................  18 
4.3.4    Movement of natural persons  ................................ ................................ ...................  18 
4.4   Liberalization commitments  ................................ ................................ ........................  19 
4.4.1    MFN and horizontal commitments  ................................ ................................ .............  19 
4.4.2    Sector Specific Commitments  ................................ ................................ ...................  20 
4.4.2.1    China  ................................ ................................ ................................ .................  20 
4.4.2.2    Georgia  ................................ ................................ ................................ ..............  23 WT/REG391/1  
 
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4.5   Regulatory provisions  ................................ ................................ ................................ . 25 
4.5.1    Domestic regulation  ................................ ................................ ................................  25 
4.5.2    Recognition  ................................ ................................ ................................ ............  25 
4.5.3    Subsidies  ................................ ................................ ................................ ...............  25 
4.5.4    Safeguards  ................................ ................................ ................................ ............  25 
4.5.5    Other  ................................ ................................ ................................ ....................  25 
4.5.5.1    Monopolies and Exclusive Service Supplies  ................................ ..............................  25 
4.5.5.2    Investment  ................................ ................................ ................................ .........  26 
4.6   Sector specific provisions on trade in services  ................................ ...............................  26 
4.6.1    Financial Services  ................................ ................................ ................................ ... 26 
4.6.2    Telecommunication Services  ................................ ................................ ....................  26 
4.6.3    Transport and Related Services  ................................ ................................ ................  26 
5   GENERAL PROVISIO NS OF THE AGREEMENT  ................................ .............................  27 
5.1   Transparency  ................................ ................................ ................................ ............  27 
5.2   Current payments and capital movements  ................................ ................................ .... 27 
5.3   Exceptions  ................................ ................................ ................................ ................  27 
5.4   Accession and Withdrawal ................................ ................................ ...........................  27 
5.5   Institutional framework  ................................ ................................ ..............................  27 
5.6   Dispute settlement  ................................ ................................ ................................ .... 28 
5.7   Relationship with other agreements concluded by the Parties  ................................ ..........  29 
5.8   Government procurement  ................................ ................................ ...........................  30 
5.9   Intellectual property rights  ................................ ................................ .........................  30 
5.10   Other  ................................ ................................ ................................ .....................  30 
5.10.1    Competition  ................................ ................................ ................................ .........  30 
5.10.2    Electronic Commerce  ................................ ................................ .............................  31 
ANNEX 1  ................................ ................................ ................................ ........................  32 
 
  WT/REG391/1  
 
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Key Facts  
 
Parties to the Agreement:  China  and Georgia  
 
Date of Signature:    13 May 2017  
 
Date of Entry into Force:  1 January 2018  
 
Date of Notification:   5 April 2018  
 
Full implementation:   1 January 2023  
 
 
 
1  TRADE ENVIRONMENT  
1.1  Merchandise trade  
1.1.  In 2016 , with a population of 1.4 billion, China's GDP was esti mated at US$11 ,218 trillion. 
China's total merchandise trade in 2016 was US$3.7 trillion (exports of US$2.1 trillion, imports of 
1.6 trillion) . In 2016, Georgia, with a population of 3.91 million, had an estimated GDP of 
US$15.1  billion, and t otal merchandise trade in 2017  of US$ 10.6 billion (exports at US$2.7 billion, 
0.02% of global exports, and imports of US$7.9  billion , 0.04%  of global imports ).  
1.2.  Chart 1.1 summarizes the trends in global and bilateral trade of the Parties. For most of the 
period China experienced trade surpluses with the world, and Georgia experienced large trade 
deficits. Both China and Georgia 's steady growth in imports and expor ts was impacted by the 2008 -
2009 financial crisis. Georgia has run a steady trade deficit with China over the period.  
1.3.  Based on 2017 trade data, China was Georgia's 3rd largest source of imports and 5th largest 
export destination  (9.2% and 7.6% respectively of Georgia's global imports and exports) . Georgia 
was China's 113th ranked source of imports and 90th largest export destination in 2017 (representing 
0.0% and 0.0% of China's global imports and exports).  
Chart 1.1 China-Georgia: Merchandise bilateral trade and with world  
 
Source:  UNSD Comtrade database . 
 
 
1.4.  The commodity structure of trade between China and Georgia, as well as of their global trade 
in the period 2015 -2017 is shown in Chart 1.2. on the basis of the Harmonized System (HS) sections. 
Most of China's imports from Georgia comprised minerals and base metals (59%)  which along with 
0.000.100.200.300.400.500.600.700.800.901.00
012345678910
2001 2003 2005 2007 2009 2011 2013 2015 2017B. Georgia 2001 -2017
(US$ billions)
Imports from China (Right Axis)
Export to China (Right Axis)
Total Imports
Total Exports
0.000.100.200.300.400.500.600.700.800.901.00
02004006008001,0001,2001,4001,6001,8002,0002,2002,4002,600
2001 2003 2005 2007 2009 2011 2013 2015 2017A. China 2001 -2017 
(US$ billions)
Imports from Georgia (Right Axis)
Export to Georgia (Right Axis)
Total Imports
Total ExportsWT/REG391/1  
 
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prepared foods account for the three largest global export categorie s for Georgia (together these 
three categories account for 50% of Georgia's global exports) . China's largest global imports were 
machinery, minerals and chemicals (61%). The commodities most imported by Georgia from China 
were machinery, metals and miscell aneous manufactured articles (54% of imports from China). 
Machinery also accounted for China's top global export  (43%), followed by  textiles ( 12% of China's 
global exports). Georgia's top global imports were minerals, machinery and chemicals (48%). 
Georgia 's top global exports were minerals, foodstuffs and base metals (50%).  
Chart 1.2 China -Georgia:  Product composition of merchandise trade, annual average 
(2015 -2017)  
Source:  UNSD Comtrade database.  
 
 
1.2  Trade in  services and investment  
1.5.  In 20161, China's share of total world commercial services exports and imports w as 4.3% and 
9.6%  respectively , while in 2017 Georgia's sh are of total commercial services exports and imports 
was 0.07% and 0.04% respectively of world  totals.   
                                                
1 Source: WTO Trade Profiles 2017.  
35
242312321China's imports from Georgia (%)
35
19 766555328China's Global Imports (%)
43
1277554432226China's Global Exports (%)
34
12
8886553326Georgia's imports from China (%)
20
17
11
97754433226Georgia's Global Imports (%)
19
17
14 12109433324Georgia's Global Exports (%)Total: US$ 0.05 billion Total: US$ 1,703.76 billion
Total: US$ 7.65 billion Total: US$ 2.35 billionTotal:  US$ 2,211.49 billion
Total: US$ 0.62 billion
WT/REG391/1  
 
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1.6.  With total commercial exports of US$ 207 billion, and imports of US$ 449 billion China was the  
5th largest exporter and 2nd largest importer of services. Georgia was the 87th largest exporter 
(US$ 3.9 billion) and 111th  largest importer (US$ 1.9 billion).   
1.7.  Charts 1.3 and 1.4  below show global trade in commercial services for China and Georgia based 
on the period 2005 -2017. China ran a deficit in trade in services with the world during the period , 
with its largest exports other business services and travel . Georgia enjoyed a surplus in services 
over the period, with travel its largest export sector.  
Chart 1.3 China: Trade in commercial services with world, 2005 -2017  
 
Note:  No imports/exports data re corded for the category "Maintenance and repair services n.i.e." (2005 -
2014) . 
Source:  WTO Statistics database based on BPM6.  
 
Chart 1.4 Georgia: Trade in commercial services with world, 2005 -2017  
 
Source:  WTO Statistics database based on BPM6.  
 
1.8.  Charts 1.5 and 1.6 below depict each Party's foreign direct investment stocks and flows with 
the world during the period 2005 -2017. FDI stocks have grown steadily for both Parties. China has 
mostly been a net recipie nt of FDI stock throughout the period, although outward flows have 
exceed ed inward  flows in recent years . Georgia has seen FDI stock continue to grow, whilst FDI 
flows have varied,  although  inward flows have remained substantially above outflows.  
050100150200250300350400450500
2005 2007 2009 2011 2013 2015 2017A. China imports from world 
2005 -2017
(US$ Billion)
050100150200250
2005 2007 2009 2011 2013 2015 2017B. China exports to world
2005 -2017
(US$ Billion)
0.00.20.40.60.81.01.21.41.61.82.0
2005 2007 2009 2011 2013 2015 2017A. Georgia imports from world 
2005 -2017
(US$ Billion)
0.00.51.01.52.02.53.03.54.04.5
2005 2007 2009 2011 2013 2015 2017B. Georgia exports to world
2005 -2017
(US$ Billion)
WT/REG391/1  
 
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Chart 1.5 China: FDI stock and flow with world, 2005 -2017  
 
Source:  UNCTAD . 
 
Chart 1.6 Georgia: FDI stock and flow with world, 2005 -2017  
 
Source:  UNCTAD . 
 
2  CHARACTERIST IC ELEMENTS OF THE A GREEMENT  
2.1  Background Information  
2.1.  The Free Trade Agreement between the Government of Georgia and the Government of the 
People's Republic of China ("the Agreement") was signed by the Parties on 13 May 2017 and entered 
into force on 1 Janua ry 2018 . The goods and services aspects of the Agreement were notified to the 
WTO by the Parties on 5 April 2018 under Article XXIV(7)(a)  of the GATT  and Article V:7(a) of the 
GATS respectively (document WT/REG391/N/1 and S/C/N/900).   
2.2.  The text of the Agree ment is available, together with its related Annexes, on the following 
official websites:  
China:  http://fta.mofcom.gov.cn/georgia/georgia_special.shtml  
Georgia:   https://matsne.gov.ge/en/document/view/3897182  
2.3.  The Agreement consists of 17 Chapters and 9 Annexes .  
02004006008001,0001,2001,4001,600
2005 2007 2009 2011 2013 2015 2017China FDI stock with world
2005 -2017 (US$ Billion ) 
Inward Outward
050100150200250
2005 2007 2009 2011 2013 2015 2017China FDI flow with world
2005 -2017 (US$ Billion) 
Inward Outward
02468101214161820
2005 2007 2009 2011 2013 2015 2017Georgia FDI stock with world
2005 -2017 (US$ Billion ) 
Inward Outward
-0.50.00.51.01.52.0
2005 2007 2009 2011 2013 2015 2017Georgia FDI flow with world
2005 -2017 (US$ Billion) 
Inward OutwardWT/REG391/1  
 
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Box 2.1 Structure of the Agreement  
Preamble   
Chapter 1  Initial Provisions and Definitions  
Chapter  2 Trade in Goods  
Chapter 3  Rules of Origin  
Chapter 4  Customs Procedures and Trade Facilitation  
Chapter 5  Sanitary and Phytosanitary Measures  
Chapter 6  Technical Barriers to Trade  
Chapter 7  Trade Remedies  
Chapter 8  Trade in Services  
Chapter 9  Environment and Trade  
Chapter 10  Competition  
Chapter 11  Intellectual Property  
Chapter 12  Areas of Cooperation  
Chapter 13  Transparency  
Chapter 14  Institutional Provisions  
Chapter 15  Dispute Settlement  
Chapter 16  General Provisions and Exceptions  
Chapter 17  Final Provisions  
  
Annex I Reduction or Elimination of Customs Duties  
Annex II -A Product Specific Rules of Origin  
Annex II -B Certificate of Origin  
Annex 8 -A Financial Services  
Annex 8 -B Movement of Natural Persons  
Annex 8 -C Transport and Related Services  
Annex 8 -D Traditional Chinese Medicine Cooperation  
Annex 8 -E 
Annex 8 -F Schedules of Specific Commitments on Services - China  
Schedule s of Specific Commitments on Services  - Georgia  
Annex 15-A Rules of Procedure of Arbitral Panels  
Source:  WTO Secretariat based on the Agreement.  
 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  Chapter 2 of the Agreement covers trade in goods. The Partie s agree to afford national 
treatment to the goods of the other Party in accordance with Article III of GATT 1994 and its 
interpretative notes  which are incorporated into the Agreement, mutatis mutandis  (Article 2.3).  
3.2.  The Parties agree that neithe r Party shall adopt or maintain any prohibition or restriction on 
the importation of any good of the other Party except in accordance with GATT Article XI. Article XI 
is incorporated into and made part of the Agreement, mutatis mutandis (Article 2.6).  
3.3.  The Parties shall ensure that import licensing regimes applied to originating goods are 
consistent with the WTO Agreement and the Agreement on Import Licensing Procedures 
(Article  2.7). WT/REG391/1  
 
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3.4.  All fees and charges of whatever character (other than customs duties, cha rges equivalent to 
an internal tax or other internal charges applied c onsistently with Article III:2 of the GATT 1994, 
and antidumping and countervailing duties applied in accordance with Article  VI and XVI of the GATT 
1994, the Agreement on the Implementation of Article VI of the GATT 1994 and the Agreement on 
Subsidies and Countervailing Measures) imposed on or in connection with importation or exportation 
shall be limited to the approximate cos t of the provision of the service rendered and not represent 
indirect protection to domestic production (Article 2.8).  
3.5.  Article 2.9 of the Agreement, concerns adm inistration of trade regulations. Article 2.9.1 
requires that the Parties act in accordance wi th Article X of the GATT 1994. Article 2.9.2 mirrors 
Article VIII.3  of the GATT 1994.   
3.1.2   Liberalization of trade and tariff lines  
3.6.  In 2018, Georgia's applied MFN tariff comprised 10,242 lines. Of these 9777 were ad valorem  
(95.46%) and 465 were non -ad valorem  (4.54%). Of the non -ad valorem  tariff lines, 186 (1.82%) 
were specific duties. In 2018, 8155 lines (79.62%) of Georgia's MFN tariff were duty free.  
3.7.  In Article 2.4.1 of the Agreement, e ach Party agrees to progressively reduce or eliminate 
customs duties o n originating goods of the other Party as from the date of entry into force of the 
Agreement in accordance with its Schedule to Annex I of the Agreement (Schedules in Relation to 
Article 2.4 (Elimination of Customs Duties)). The base rates of customs duty reflect the most -
favoured -nation rate in effect on 1 January 2015 (note 2 to section A of China's Schedule to the 
Agreement, note 2 to section A of Georgia's Schedule to the Agreement).  
3.8.  Note 5 to the Schedules in relation to Article 2.4 (elimination of cu stoms duty) Part 1, provides 
that if, as a result of the elimination or reduction of its customs duty on a particular good on a most -
favoured -nation basis, the most -favoured -nation rate becomes lower than the rate of customs duty 
to be applied in accordanc e with Article 2.4.1 on the originating good which is classified under the 
same tariff line as that particular good, each Party shall apply the lower rate with respect to that 
originating good.  
3.9.  Neither Party shall increase any existing customs duty or int roduce a new customs duty on 
imports of an originating good of the other Party except in accordance with the Agreement  
(Article  2.4.2) .  
3.10.   Under Article 2.5, the classification of goods in trade between the Parties shall be that set out 
in each Party's respe ctive tariff nomenclature pursuant to the 2012 Harmonized System.   
3.11.   Table 3.1 shows tariff and trade liberalization offered by Georgia under the Agreement. In 
2018, 79.6 % of Georgia's tariff lines were duty free on an MFN basis, corresponding to 89.6% of 
Georgia's imports from China during 2015 -2017. Following the Agreement's entry into force, it 
liberalised an additional 1,723 lines representing 16.8% of Georgia's tariff and 9.8% of its imports 
from China between 2015 -2017. After 2018, 364 lines will remain  dutiable, representing 0.6% of 
imports from  China between 2015 -2017.   
Table 3.1 Georgia: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty  
phase -out period  Number 
of lines  % of total lines 
in Georgia's 
tariff schedule  Value of Georgia's 
importsa from China  
(2015 -2017)  
in million US$  % of Georgia's total 
imports from  
China  
(2015 -2017)  
2018 (MFN)  8,155  79.6 557.2  89.6 
2018 1,723  16.8 61.1 9.8 
Remain dutiable  364 3.6 3.8 0.6 
TOTAL  10,242  100.0  622.0  100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Based on HS2012 nomenclature.  
Source:  WTO estimates based on data provided by Georgia and WTO -IDB database.  WT/REG391/1  
 
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3.12.   Table 3.2 shows tariff and trade liberalization offered by China un der the Agreement. In 2018, 
8.4% of China's tariff lines were duty free on an MFN basis, corresponding to 36.2% of China's 
imports from Georgia during 2015 -2017. Following the Agreement's entry into force, it liberalised 
an additional 7,024 lines representing 82.2% of China 's tariff and 35.1% of its imports from Georgia  
between 2015 -2017.  In 2022 a further 263 lines will be liberalised, covering 3.1% of China's tariff 
and representing 24.9% of China's total imports from Georgia during 201 5-2017. After 2022, 540 
lines will  remain dutiable, representing 6.3% of China's tariff and 3.8% of China's imports from 
Georgia between 2015 -2017.  
Table 3.2 China: Tariff elimination commitments under the Ag reement and 
corresponding average trade  
Duty  
phase -out period  Number of 
lines  % of total lines 
in China 's tariff 
schedule  Value of China 's 
importsa from Georgia  
(201 5-2017) 
in million US$  % of China 's total 
imports from  
Georgia  
(2015-2017) 
2018 (MFN)  722 8.4 19.9 36.2 
2018 7,024  82.2 19.3 35.1 
2022 263 3.1 13.7 24.9 
Remain dutiable  540 6.3 2.1 3.8 
TOTAL  8,549  100.0  55.0 100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Based on HS201 7 nomenclature.  
Source:  WTO estimates based on data provided  by China and WTO -IDB database.  
 
3.1.3   Liberalization schedule  
3.13.   Table 3.3 shows  Georgia's tariff liberalization by HS section. Liberalization takes place during 
2018. The 364 products that remain dutiable are mostly agricultural products. Of the Chapters 
remainin g dutiable, the average final tariff rate is 12%.  
Table 3.3 Georgia: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
average %  Total No. 
of lines  Duty -free lines 
under the  
MFN 2018  Number  of duty -free 
lines under the 
Agreement  2018  No. of lines 
remaining 
dutiable  Avg. Final 
Tariff 
(Dutiable)  
I 4.6 740 420 277 43 12.0 
II 5.6 570 306 186 78 12.0 
III 0.1 127 126 1   
IV 8.6 826 173 413 240 12.0 
V 4.1 255 168 86 1 12.0 
VI 0.2 1,237  1,205  32   
VII 2.6 376 227 149   
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 70 1 12.0 
XIV 2.5 63 50 13   
XV 1.3 1,013  906 107   
XVI 0.02 1,639  1,633  5 1 5.0 
XVII 0.0* 580 301 279   
XVIII 0.0 370 370    
XIX 0.0 28 28    
XX 0.0 225 225    
XXI 0.0 7 7    
Total  1.8 10,242  8,155  1,723  364 12.0 
* Dutiable tariff rates are non-ad valorem .  
Note:  Based on HS2012 nomenclature.  
 Specific rates are excluded while calculating the averages.  
Source:  WTO estimates based on data provided by Georgia.  WT/REG391/1  
 
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3.14.   Chart 3.1 below shows that for the Chapters in which duties remain once the Agreement is 
implemented, the average applied MFN and preferential duties are the same, showing no additional 
liberalization for imports from China.  
Chart 3.1 Georgia: Average of dutiable rates, by HS Chapter  
 
Source:  WTO estimates based on data provided by Georgia.  
 
3.15.   Table 3.4 shows  China's tariff liberalization by HS section. Liberalization takes place during 
2018 and 2022 . The 540 products that remain dutiable are mostly agricultural products. Of the 
Chapters remaining dutiable, the average final tariff rate is 1 5.2%.  
Table 3.4 China: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
average 
% Total No. 
of lines  Duty -free 
lines under 
the 
MFN 2018  Number of duty -free lines 
under the Agreement  No. of lines 
remaining 
dutiable  Avg. Final 
Tariff 
(Dutiable)  2018  2022  
I 11.6 529 64 411 51 3 16.3 
II 14.3 512 54 385 12 61 32.8 
III 13.0 56  17  39 12.5 
IV 17.7 311 1 250 32 28 33.3 
V 3.8 201 37 159 5   
VI 6.7 1,354  9 1,310  23 12 16.5 
VII 9.4 279 1 239 10 29 8.9 
VIII 12.3 106  106    
IX 4.0 235 99 26  110 6.4 
X 5.3 161 35   126 6.7 
XI 11.4 1,147   1,084  45 18 28.6 
XII 18.1 73  72 1   
XIII 13.5 204 1 202 1   
XIV 10.5 90 32 57 1   
XV 7.3 770 4 753 13  0.0 
XVI 7.9 1,542  286 1,145  58 53 14.5 
XVII 14.9 427 1 363 6 57 25.0 
XVIII 9.1 335 34 293 4 4 4.9 
XIX 13.0 21  21    
XX 11.6 186 62 124    
XXI 9.8 10 2 7 1   
Total  9.7 8,549  722 7,024  263 540 15.2 
Note:  Based on HS2017 nomenclature.  
 Some products are subject to specific tariff rates (non -ad valorem ) in China's 2017 MFN tariffs notified 
to the IDB. China provided all ad valorem  equivalents (AVEs) while submitting the tariffs for 2018 for 
the factual presentation. However, the actual tariff rates corresponding to the tariff lines which are 
applied in non-ad valorem  terms for the 2018 are yet to be confirmed by China.  
Source:  Data submitted by China.  
02468101214
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07
08
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24
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68
85Average Duty Rate
HS Chapters Preferential MFNWT/REG391/1  
 
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3.16.   Chart 3.2  below shows that for the Chapters in which duties remain once the Agreement is 
implemented, the average applied MFN and preferential duties are the same, showing no additional 
liberalization for imports from  Georgia . 
Chart 3.2: China: Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS2017 nomenclature.  
Source:  WTO estimates based on data  provided by China.  
3.1.4   Tariff rate quotas  
3.17.   The Parties confirm that the Agreement contains no provisio ns on Tariff Rate Quotas (TRQs) .  
3.2  Rules of origin  
3.18.   Chapter 3 of the Agreement contains provisions on rules of origin and origin implementation 
procedures and is supplemented by Annex II -A on product specific rules of origin (PSR) . Except as 
otherwise provided in the Chapter, goods will be considered as ori ginating in a Party if it is:  
• wholly obtained or produced in a Party as defined in Article 3.3;  
• produced exclusively from originating materials; or  
• produced entirely in a Party from non -originating materials and the goods conform to a 
regional value conten t of no less than 40% and the requirements of Annex II -A. 
3.19.   Regional value content is defined in Article 3.4 of the Agreement. Originating materials of a 
Party used in the production of a good in the other Party shall be considered to originate in the latter  
Party (Article 3.5). A good shall not be considered as originating if only minimal operations or 
processes are performed on it. An exhaustive list of minimal operations or processes are set out in 
Article 3.6.1 . Article 3.7 on de minimis  provides that cha nges to a  good that do not constitute a 
change in tariff classification required under Annex II -A will qualify as originating if the value of the 
non-originating materials used in production does not exceed 10% of the ex -works price of the good. 
Article 3 also concerns fungible materials (Article 3.8), neutral elements (Article 3.9), packaging 
(Article 3.10), accessories and spare parts (Article 3.11), sets (Article 3.12) and direct consignment 
(Article 3.13).  
3.20.   Annex II-A on Product Specific Rules ("PSR") of Origin contains product -specific rules of origin 
and the conditions that need to be fulfilled for products to qualify as originating. Section A of the 
headnote to Annex II -A, paragraph 1 , provides that a change in tariff classification (2017 
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49
51
52
56
62
84
85
87
90Average Duty Rate
HS Chapters Preferential MFNWT/REG391/1  
 
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Harmonized S ystem) under the Annex requires that each of the non -originating materials used in 
the production of the good undergoes a change of tariff classification as a result of production in the 
territory of one or both Parties. Paragraph 2 provides that a change in tariff classification (" CC") 
denotes that all non -originating materials used in the production of a good have undergone a change 
in tariff classification at the two digit, i.e. Chapter , level. A change in tariff heading (" CTH") denotes 
that all non -originating materials used in the production of the good have undergone a change in 
tariff classification at the four digit, i.e. heading , level of the Harmonized system (2017).  
3.21.   Most of the PSR in Annex II -A concern a change in classification at the chapter, heading or 
sub-heading level  from any other Chapter  (CC), with 2  lines (17.04 and 18.06) requiring a change 
to the chapter, heading or sub -heading from any other heading  (CTH).  
3.22.   For most agricultural goods the CC change in tariff classification  as a result  of use of 
non-originating materials in production of the goods is the most frequently used product specific 
rule. According to the Parties t he Agreement contains no product specific rules for industrial goods , 
which shall conform to a regional value conte nt of no less than 40%.  
3.23.   Section 2 of Article 3 concerns origin implementation procedures , and compliments the sample 
certificate of origin contained in Annex II -B. Section 2 of Article 3 includes provisions on certificates 
of origin, retention of origin do cuments, obligations regarding importation, refund of import duties 
or deposits, waiver of certificates of origin, verification of origin, denial of preferential tariff 
treatment, electronic origin data exchange system,  and contact points on origin.  
3.3  Export  duties and charges, and quantitative restrictions  
3.24.   According to the Parties, t he Agreement contains no provisions on export duties and charges .  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.25.   Chapter 5 of the Agreement concerns sanitary and phytosanitary measures ("SPS") . The 
objectives of the cha pter are set out in  Article  5.1. The Parties reaffirm their rights and obligations 
under the WTO SPS Agreement. The Parties have agreed provisions on risk assessment (Article 5.5), 
best endeavours on harmonization of SPS measures with international standards (Article 5.6), 
regionalisation per Article 6 of the SPS Agreement (Article 5.7), equivalence (Article 5.8), 
transparency (Article 5.9), technical c ooperation (Article 5.10) and contact points (Article 5.11).2  
3.4.1.2   Technical barriers to trade  
3.26.   Chapter 6 of the Agreement concerns T echnical Barriers to Trade ("TBT") . Chapter 6  applies  
to all technical regulations, standards and conformity assessment procedures of each Party that may 
directly or indirectly affect trade in goods between the Parties – excluded are SPS measures covered 
in Chapter 5 on SPS and purchasing specifications prep ared by governmental authorities for 
production or consumption requirements of governmental bodies as provided for by paragraph 1.4 
of Article 1 of the TBT Agreement (Article 6.2). In Article 6.3 the Parties affirm their rights and 
obligations under the TB T Agreement.  
3.27.   The Agreement establishes disciplines for the use of international standards  (Article 6.5); 
provides that standards issued by the ISO, IEC, ITU, and CAC shall be considered relevant 
international standards  in the sense of Article 2.4 of the T BT Agreement (Article 6.6); mutual 
recognition agreements on conformity assessment procedures, including exchange of information 
and cooperation between the Parties (Article 6.7); creates a mechanism for technical consultations 
                                                
2 China’s contact point is: Mr. Li Jiangtao, Department of WTO Affairs, MOFCOM, P.R.China. Tel/Offfice: 
0086-10-65198975, Email: lijiangtao@mofcom.gov.cn. Address: No. 2, Dong Chang’an Blvd, Beijing, China, 
100731 (due to the reshuffle of the Chinese govern ment, this is only a temporary arrangement)  
 Georgia’s Contact Point: Mr. Zurab Zurashvili – Head of Department for International Relations, LEPL 
National Food Agency, Ministry of Environmental Protection and Agriculture of Georgia, Tel/office: +995 
291916 7; Tel/mob: 577730003 Address: #6 Marshal Gelovani Ave., Tbilisi, Georgia, 0159.  WT/REG391/1  
 
- 14 - 
 
on TBT measures that a Party  considers constitutes and unnecessary obstacle to its exports 
(Article  6.9); requires the Parties to strengthen technical cooperation (Article 6.10) and designates 
contact points on TBT (Article 6.11).3 
3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.28.   Article 7.2 of Chapter 7 of the Agreement (Trade Remedies) provides that each Party retains 
its rights and obligations under Article XIX of GATT 1994 and the WTO Agreement  on Safeguards.  
3.4.2.2   Bilateral safeguards  
3.29.   In Article 7.3 of Chapter 7 of the Agreement the Parties have  agreed that during a transitional 
period a Party may apply a transitional safeguard measure . A transitional safeguard measure may 
only be applied if as a result of the reduction or elimination of a customs duty provided for under 
the Agreement, an origina ting product is being imported into the territory of the other Party in such 
increased quantities, in absolute terms or relative to domestic production and under such conditions 
as to cause or threaten serious injury to domestic industry producing a like o r directly competing 
product (Article 7.3.1). According to the Parties, u nder the Agreement, transitional safeguard 
measures can be initiated within 3 years from the date of entry into force, while the duration of the 
transitional safegu ard measures is not necessarily 3 years . 
3.30.   If the conditions for imposition of the transitional safeguard measure are met, a Party may 
(a) suspend the further reduction of any rate of customs duty on the product provided for under the 
Agreement, (b) increase  the rate of customs duty  on the products to a level not exceeding the lesser 
of (i) the MFN applied rate of duty in effect for the product on the date immediately preceding the 
date of entry into force of the Agreement, or (ii) the MFN applied rate of cus toms duty in effect on 
the product on the date on which the transitional safeguard measure is applied (Article 7.3.2).  
3.31.   Neither Party may apply or maintain a safeguard measure (a) except to the extent and for 
the time necessary to prevent or remedy serious injury and to facilitate adjustment (b) for a period 
exceeding one year, except that the safeguard may be extended by one year if the authorities 
determine that the measure conforms with the procedures set out in Chapter 7 and that the measure 
continues to  be necessary to prevent or remedy serious injury, will facilitate adjustment of the 
industry and that the industry is adjusting, and (c) the measure shall terminate at the end of the 
transitional period  (Article 7.4.2) . The Parties are prohibited from app lying a transitional safeguard 
measure on a product if the same product has been subject to a measure applied under  Article XIX 
of the GATT 1994, nor maintain a transitional safeguard on a product that has become subject to an 
Article XIX safeguard.  
3.32.   Trans itional safeguards procedures shall only be taken on the basis of clear evidence in 
conformity with the W TO Safeguards Agreement  (Article 7.5).  Provisional measures may be taken 
in critical circumstances (Article 7.6.1). A Party shall immediately notify th e other Party upon 
initiating a transitional safeguard investigation, finding injury or threat thereof, deciding to apply or 
extend a safeguard measure or deciding to liberalize a transitional safeguard (Article 7.7.1).  
3.33.   A Party extending a safeguard measu re must provide mutually agreed compensation to the 
other Party (Article 7.4.1). If the amount of compensation cannot be agreed, the exporting Party 
shall be free to suspend the application of substantially equivalent concessions (Article 7.8.2) . 
                                                
3 China ’s contact point  is: Mr. Li Jiangtao, Department of WTO Affairs, MOFCOM, P.R.China. Tel/Offfice: 
0086-10-65198975, Email: lijiangtao@mofcom.gov.cn. Address: No. 2, Dong  Chang ’an Blvd, Beijing, China, 
100731 (due to the reshuffle of the Chinese government, this is only a temporary arrangement)  
 Georgia’s Contact Point: Mr. Zurab Zurashvili – Head of Department for International Relations , LEPL 
National Food Agency , Minist ry of Environmental Protection and Agriculture of Georgia , Tel/office: +995 
2919167; Tel/mob: 577730003 Address: #6 M arshal Gelovani Ave ., Tbilisi, Georgia, 0159 . WT/REG391/1  
 
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3.4.2.3   Special s afeguards  
3.34.   Other than safeguards for balance of payments reasons (see section 5.2  below),  and global 
safeguards and transitional safeguards, there are no other safeguard provisions in the Agreement.   
3.4.3   Anti-dumping and countervailing measures  
3.35.   Chapter 7 concerns trade remedies. Article 7.1  on anti-dumping and countervailing measures  
provides that each Party retains its rights and obligations under the WTO Anti -Dumping and 
Subsidies and Countervailing Measures Agreements (Article 7.1.1 and 7.1.2 respective ly). 
3.36.   Article 7.1.3 provides that neither Party shall use a methodology based on a surrogate value 
of a third country for the purpose of determining normal value when calculating a dumping margin 
in an anti -dumping investigation.   
3.4.4   Subsidies and State -aid 
3.37.   There are no provisions in Chapter 7 of the Agreement on subsidies and S tate aid.  
3.4.5   Customs -related procedures  
3.38.   Chapter 4 co vers Customs Procedures and Trade Facilitation. The objectives of the Chapter 
are (i) to simplify and harmonize customs procedures of the Parties, (ii) to facilitate trade between 
the Parties and (iii) to promote cooperation between customs administrations, within the scope of 
the Chapter (Article 4.2).  
3.39.   The Parties have agreed provisions on facilitation (Article 4.3) . Each Party shall en sure that 
its customs procedures and practices are predictable, consistent and transparent to facilitate trade 
(Article 4.3.1). The Parties agreed to use efficient customs procedures, based as appropriate on 
international standards aiming to reduce costs a nd unnecessary delays in trade between them, in 
particular the recommended practices of the World Customs Organization. And the revised 
International Convention on the Simplification and Harmonization of Customs Procedures  (revised 
Kyoto Convention) (Artic le 4.3.2). Each Party shall limit controls, formalities and the number of 
documents required in the context of trade in goods between the Parties to those necessary and 
appropriate to ensure compliance with legal requirements in order to simplify procedure s to the 
greatest extent possible (Article 4.3.3). Article 4.3.4 provides that the customs administration of 
each Party shall periodically review its customs procedures with a view to exploring options for the 
simplification and enhancement of mutually ben eficial arrangements to facilitate international trade.  
3.40.   On transparency , Article 4.4.1 requires each Party to promptly publish its laws, regulations 
and where applicable administrative rules or procedures of general application relevant to trade in 
goods between the Parties. Each Party shall designate an enquiry point for customs matters (Article 
4.4.2). To the extent possible, consistent with each Party's laws and regulations, each Party shall 
publish, in advance on the internet, draft laws and regulation s of general application relevant to 
trade between the Parties, and provide the public and interested parties with an opportunity to 
provide comment (Article 4.4.3) , a reasonable interval should be provided between publication and 
entry into force (Article  4.4.4). All laws and regulations of general application to trade shall be 
administered in a uniform and reasonable manner (Article 4.4.5).  
3.41.   On customs valuation, Article 4.5  provides that the Parties shall determine the customs value 
of goods traded betwe en them in accordance with the provisions of Article VII of GATT 1994 and the 
WTO Customs Valuation Agreement.  
3.42.   Article 4.6 on tariff classification provides that the Parties shall apply the International 
Convention on the Harmonized Commodity Description and Coding System to goods traded between 
them.  
3.43.   On cooperation , Article 4.7 .1 requires the Parties (to the extent permitted by their laws and 
regulations) to assist each other in relation to (a) the implementation of Chapter 4), (b) the 
application of the  provisions laid down in the Agreement Between the Customs Committee of the WT/REG391/1  
 
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Republic of Georgia and the Customs General Administration of the People's Republic of China on 
Co-operation and Mutual Assistance and (c)  such other issues as the Parties may mutu ally agree.  
3.44.   Article 4.8.1 requires each Party to provide for advance written  rulings in a reasonable, time -
bound manner to applicant on tariff classification of a good. Article 4.8.2 requires each Party to (a) 
provide that an exporter, importer or any oth er person with justifiable cause may apply for an 
advance written ruling before importation of a good, (b) set out a detailed description of the process 
to request a ruling, (c) allow its customs administration to request that the applicant provide further 
information necessary to evaluate the request, (d) ensure that an advance ruling is based upon the 
facts and circumstances presented by the applicant and any other relevant information in the 
possession of the decision maker, and (e) provide that the ruling be issued expeditiously on receipt 
of all necessary information, within 90 days. A Party may modify or revoke an advance ruling where 
(a) there is a change in regulations, (b) incorrect information was provid ed, or relevant information 
was withheld, (c) there was a change in a material fact, or (d) there was a change in the 
circumstances on which the ruling was based (Article 4.8.7).  
3.45.   The Parties shall provide importers, exporters or any other person affected by administrative 
decisions on a customs matter with access to an administrative level review of decisions by its 
customs authorities, and a judicial review of decisions subject to its laws and regulations 
(Article  4.9).  
3.46.   Article 4.10, on application of information technology , provides that each Party shall apply 
information technology to support customs operations, where it is cost -effective and efficient, 
particularly in the paperless trading context, taking into account developments in this area within 
relevant international organizations, including the WTO.  
3.47.   The Parties agreed to adopt and maintain a risk  management system for customs control and 
shall base decisions on which persons, goods or means of transport are to be examined and the 
extent of the e xamination (Article 4.11 .1). Each Party shall work to further enhance the use of risk 
management techniques in the administration of its customs procedures so as to facilitate the 
clearance of low -risk goods (Article 4.11.2). Risk management shall be appli ed in such a manner as 
to not create an arbitrary or unjustifiable discrimination under the same conditions or a disguised 
restriction on international trade (Article 4.11.3).  
3.48.   The Parties agree to facilitate trade by adopting or maintaining simplified cus toms procedures 
for the release of goods (Article 4.12.1). Each Party shall adopt or maintain procedures that (a) 
provide for the release of goods as rapidly as possible after arrival , provided all other regulatory 
requirements are met, (b) provide for adv ance electronic submission and processing of information 
before the physical arrival of goods with a view to expediting the release of goods, and (c) allow 
importers to obtain the release of goods prior to meeting all import requirements of that Party if t he 
importer provides sufficient and effective guarantee and where it is decided that no further 
examination, physical inspection or any other submission is required.  
3.49.    Article 4.13 provides that a Party operating an Authorized Economic Operator System or 
security measures affecting international trade flows shall (a) afford the other Party the possibility 
to negotiate mutual recognition of authorization and security measures for the purpose of facilitating 
international trade while ensuring effective custom s control and (b) draw on relevant international 
standards, in particular the WCO SAFE Framework of Standards to Secure and Facilitate Global 
Trade.  
3.50.   On border agency cooperation , Article 4.14 .1 provides that each Party shall ensure that its 
authorities and  agencies involved in border controls related to import, export or transit of goods 
cooperate and coordinate their procedures in order to facilitate trade. Article 4.14.2 requires that 
each Party endeavour to establish, as far as practicable, an electronic  means for communication of 
relevant information required by its customs administration and other relevant border agencies to 
facilitate the international movement of goods and means of transport.  
3.51.    Article 4.15 establishes a mechanism for consultations be tween the customs administrations 
on any matter arising from the implementation or operation of Chapter  4, in cases when the 
requesting Party provides reasonable grounds to doubt the truth of the information submitted 
(Article 4.15.1) . Such consultations s hall be conducted through the relevant contact points, and take WT/REG391/1  
 
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place within 60 days (Article  4.15.1 ). If the consultations fail to resolve any matter, the requesting 
Party may refer the matter to the FTA Joint Commission for further consideration. Each Pa rty shall 
designate one or more contact points  for the purposes of Chapter 4.  
3.4.6   Other regulations  
3.5  Sector -specific provisions on trade in goods  
3.52.    There are no sector specific provision s on trade in goods in the Agreement.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Chapter 8 contains disciplines on trade in services, Annex 8 -A concerns Financial Services, The 
movement of natural persons is governed by Annex 8 -B. Annex 8 -C covers transport and related 
services.  
4.1  Scope  and definitions  
4.2.  Chapter 8 on Trade in Services covers measure s adopted or maintained by a Party affecting 
trade in services  (Article 8.1.1) . The Chapter does not apply to (a) measures affecting air traffic 
rights, measures affecting services directly related to the exercise of air traffic rights and ai r traffic 
control and air navigation services other than measures including: (i) aircraft repair and maintenance 
services; (ii) the selling and marke ting of air transport services;  and (iii) computer reservation 
("CRS") services. In the Agreement the Parti es note the multilateral negotiations on the Annex on 
Air Transport Services of the GATS, and will conduct a review to discuss appropriate amendments 
to the Chapter in the event of a successful completion of those negotiations  (Article 8.1.2) .  
4.3.  Article 8.2 (u) provides that the Agreement covers supply of a service (i) cross -border, (ii) for 
consumption abroad, (iii) through commercial presence, and (iv)  through the presence of natural 
persons.  
4.2  Denial of benefits  
4.4.  A Party may deny the benefits of Chapter 8 to a service supplier of the other Party if the service 
supplier is a juridical person (a) owned or controlled by persons of a non -Party or of the denying 
Party; and (b) has no substantive business operations in the territory of the other Party 
(Article  8.12).  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.5.  Article 8.5.2 mirrors Article XVI of the GATS and provides that when a Party has entered market 
access commitments on services in its schedule to the Agreement, six kind s of limitation s cannot be 
maintained or adopted by the Parties unless otherwise specified in their Schedules .  
4.6.  Footnote 3 to Article 8 provides that i f a Party undertakes a market access commitment in 
relation to the supply of a service through one of the four mode s of supply, and if the cross -border 
movement of capital is an essential part of the service itself, that Party shall permit such movement 
of capital. If a Party undertakes a market access commitment in relation to the supply of a service 
through commercial  presence , it must allow related transfers of capital into its territory.  
4.3.2   National treatment and MFN  
4.7.  Article 8.6.1 mirrors Article XVII of the GATS and provides that w ithout prejudice to measures 
taken in accordance with Article VII of the GATS, and except  as provided for in a Party's scheduled 
list of MFN  Exemptions , each Party shall accord MFN treatment to services and service suppliers of 
the other Party  treatment it accords to like services and service suppliers of any non -Party.4 
                                                
4 Footnote 5 to Article 8.6.1 provides as follows: "For the purposes of this Article, the ter m "non -party" 
shall not include the following WTO Members within the meaning of the WTO Agreement: (1) Hong Kong, WT/REG391/1  
 
- 18 - 
 
Treatment provided und er other existing or future agreement notified under GATS Article V or V  bis 
is not subject to Article 8.6.1 .  
4.3.3   Commercial presence  
4.8.  Article 8.2 stipulates the definition of commercial presence, while the Agreement contains no 
specific rules on commercial pr esence.  
4.3.4   Movement of natural persons  
4.9.  Annex 8 -B concerns movement of natural persons and applies to measures affecting the 
movement of natural persons of a Party into the territory of the other Party under any of the 
categories referred to in the schedules of commitment on services of the Parties (Article 1.1). It 
does not apply to measures affecting natural persons of a Party seeking access to the employment 
market of the other Party, nor shall it apply to measures regarding citizenship, nationality, reside nce 
or employment (Article 1.2).  
4.10.   Article 4 .1 of Annex 8 -B provides that each Party shall set out its commitments on the 
movement of natural persons in its schedules of commitments on services.  If a commitment on the 
movement of natural persons is undertake n the Party making the commitment shall grant temporary 
entry subject to applicable immigration measures (Article 4.2). A commitment on movement of 
natural persons does not waive or modify any professional qualification or activity requirements 
contained i n the committed sector or mode of supply (Article 4.3).  
4.11.   Each Party commits to ensure that modifications or amendments to immigration measures 
that affect the temporary entry of natural persons shall be promptly published and made available 
in such a manner  as permits natural persons of the other Party to become acquainted with them  
(Article 5).   
4.12.   Tables 4.1 and 4.2  below summarise entry and temporary stay for the categories for which 
the Parties  make commitments under Annex 8 -B.  
Table 4.1 China: Commitments on movement of natural persons  
Category  Sub-categories  Length of stay  
Business Visitors  
 (i) service seller;  
(ii) investor of  Georgia ; - Up to 18 0 days  
Services salespersons  (i) sales not made directly to the 
public and the salesperson is not 
engaged in supplying the service .  
Intra Corporate 
Transferees  (i) Manager,  
(ii) Executive  
(iii) Specialist.  - Initial stay of 3 years , can apply for an 
extension to the entry -exit 
administrative departments of th e 
public security organs if it is need ed  
Contractual Service 
Suppliers  Employee of a service supplier or 
enterprise, no commercial presence in 
China where se rvice is supplied, 
remunerated i n Georgia  - initial stay of 4 months , can apply for 
an extension to the entry -exit 
administrative departments of the 
public security organs if it is need ed  
Source:  WTO Secretariat, based on Annex 8 -E.  
                                                
China; (2) Macao, China; (3) Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese 
Taipei)."  WT/REG391/1  
 
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Table 4.2 Georgia : Commitments on movement of natural persons  
Category  Sub-categories  Length of stay  
Business Visitors  (i) investor of  China, entry to 
establish business ; - One year  
 
Services salespersons  (i) sales not made directly to the 
public and the salesperson is not 
engaged in supplying the service . - 90 day maximum stay, only one 
extension after 2 months from 
expiration of 90 day period  
Intra Corporate 
Transferees  (i) Manager,  
(ii) Executive  
(iii) Specialist.  - 3 years , may be extended by 2 years, 
once only (total 5 years)  
Contractual Service 
Suppliers  Employee of a service supplier or 
enterprise, no commercial presence in 
Georgia where se rvice is supplied . - 4 months , cannot be extended  
Source:  WTO Secretariat, based on Annex 8 -F.  
Table 4.3 China: Lists of Contractual Service Suppliers  
List of Contractual Service Suppliers  
The services provided by CSS are limited to the following specific sectors:  
1) architectural services  
2) engineering services  
3) computer and related services  
4) construction and related engineering services  
5) travel agency and tour operator  
6) hotels  
7) maritime cargo handling  
8) freight transportation by rail and road  
Source:  WTO Secretariat, based on  Annex 8 -E. 
 
4.13.   Georgia has no CSS limitations in its Annex 8 -F Schedule, according to the Parties its CSS 
commitments under the Agreement apply to all services sectors with the exception of CPC 872 .  
4.4  Liberalization commitments  
4.14.    The Parties schedules of commitments on services are set out in Annex 8 -E (China) and 8 -F 
(Georgia). The Annexes follow a positive list approach (like the GATS) where the obligations of 
market access (Article  8.5), national treatment (Article 8.4), and additional commitments 
(Article  8.7) are agreed between the Parties and inscribed in their Schedules (Ar ticle 8.3).  
4.15.   According to the Parties , the schedules of commitments on services i nclude horizontal 
commitments that are further liberalized based o n their GATS Schedules.  Under mode 4, business 
Georgian service sellers may remain in China for 180 days, an improvement on the 90 day limit set 
out in the mode 4 market access column of the horizontal limitations section in China's GATS 
schedule. Georgia also provided an improvement, through the elimination of a mode 3 national 
treatment column  requirement  in its GATS schedule concerning domicile for managers in LLC 
corporations.  
4.16.   Both Parties GATS schedules contained multiple time -bound limitations in various sectors and 
sub-sectors all of which have expired and are not included in the Parties schedules under th e 
Agreement.  
4.4.1   MFN and horizontal commitments  
4.17.   Georgia's MFN exemptions  under the Agreement duplicate its exemptions under the GATS  
and cover some transport services (road transport) , fisheries and  generally require reciprocity. 
Georgia also has an MFN exemption in respect of audio -visual services with respect to 
cinematographic activities,  in favour of France.  
4.18.    Under the GATS, Georgia's horizontal limitations cover mainly market access exemptions in 
relation to privatization, real estate purchase limit ations, and mode 4 related requirements. All its 
horizontal limitations are replicated under the Agreement.  WT/REG391/1  
 
- 20 - 
 
4.19.   China's GATS MFN exemptions cover Maritime Transport, International transport and Freight 
and passengers. Most are of indefinite duration and are s ubject to reciprocity. China also maintains 
an exemption on cargo sharing agreements, in favour of Algeria, Argentina, Bangladesh, Brazil, 
Thailand, United States and Democratic Republic of Congo . 
4.20.   Under the GATS, China's horizontal limitations concern fore ign invested enterprises (minimum 
invested capital of 25%), the establishment of branches, representative offices, land use lease 
limitations ( ownership  by the state) , and mode 4 related requirements. Under the Agreement, China 
made further liberalising co mmitments on CSS horizontal limitations  in mode 4 .  
4.4.2    Sector Specific Commitments  
4.4.2.1   China  
4.21.   China's FTA commitments on services (in positive list format) very closely mirror its GATS 
commitments, minus several original limitations that were time -bound upon accession and have 
expired.  
Table 4.4 China: Sector -specific liberalization under the Agreement, excluding mode 4 
and horizontal limitations  
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA sectoral 
commitments  
compared to 
the GATS  
1. Business services  Partial  Similar  
A. Professional  Services  Partial  Improved  
B. Computer  and Related  Services  Partial  Similar  
C. Research  and Development  Services  -- .. 
D. Real  Estate  Services  Partial  Same  
E. Rental/Leasing  Services  without  Operators  .. .. 
F. Other  Business  Services  Partial  Same  
2. Communication services  Partial  Same  
A. Postal  services  .. .. 
B. Courier  services  Partial Same  
C. Telecommunication  services  Partial  Same  
D. Audiovisual  services  Partial  Same  
E. Other  .. .. 
3. Construction and related engineering services  Partial  Same  
A. General  construction  work for buildings  partial  Same  
B. General  construction  work for civil Engineering  partial  Same  
C. Installation  and assembly  work  partial  Same  
D. Building  completion  and finishing  work  partial  Same  
E. Other  partial  Same  
4. Distribution services  Partial  Same  
A. Commission  agents'  services  partial  Same  
B. Wholesale  trade services  partial  Same  
C. Retailing  services  partial  Same  
D. Franchising  Full Same  
E. Other  partial  Same  
5. Education services  Partial  Same  
A. Primary education services  partial  Same  
B. Secondary education services  partial  Same  
C. Higher education services  partial  Same  
D. Adult education  partial  Same  
E. Other education services  partial  Same  
6. Environmental services  Partial  Same  
A. Sewage services  partial  Same  
B. Refuse disposal services  partial  Same  WT/REG391/1  
 
- 21 - 
 
Sectors (CPC Classification)  GATS  
Sectoral 
Commitments  FTA sectoral 
commitments  
compared to 
the GATS  
C. Sanitation and similar services  partial  Same  
D. Other  partial  Same  
7. Financial services  Partial  Same  
A. All insurance  and insurance -related  services  Partial  Improved  
B. Banking  and other  financial  services  Partial  Improved  
C. Other  .. .. 
8. Health related and social services  .. .. 
A. Hospital services  .. .. 
B. Other Human Health Services  .. .. 
C. Social Services  .. New 
D. Other  .. .. 
9. Tourism and travel related services  Partial  Improved  
A. Hotels  and restaurants (including catering)  partial  Same  
B. Travel  agencies  and tour operators  services  partial  Improved  
C. Tourist  guides  services  .. .. 
D. Other  .. .. 
10. Recreational and cultural and sporting services  .. .. 
A. Entertainment  services  .. .. 
B. News agency services  .. .. 
C. Libraries, archives, museums and other cultural services  .. .. 
D. Sporting and other recreational services  ..  
E. Other  .. .. 
11. Transport services  Partial  Improved  
A. Maritime Transport Services  Partial  Improved  
B. Internal Waterways Transport  Partial  Same  
C. Air  Transport  Services  Partial  Improved  
D. Space  Transport  .. .. 
E. Rail  Transport  Services  Partial  Same  
F. Road  Transport  Services  Partial  Same  
G. Pipeline  Transport  .. .. 
H. Services  auxiliary  to all modes  of transport  Partial  Same  
I. Other  Transport  Services  .. .. 
12. Other services  .. .. 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
the Table.  
Partial:   GATS commitments subject to some limitation(s) under market access or national treatment, 
under any of the thr ee modes.  
Full:  GATS commitments not subject to limitation(s) under market access or national treatment, 
 under any of the three modes.  
..  No commitments under GATS  and the Agreement . 
New:  New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved".  
Improved:  Overall improved commitments made under the Agreement as compared to those under the GATS.  
Same:   Identical commitment as under the GATS.  
Similar:   Similar commitments; though possibly, in individual cases, with limited improvements and/or 
 limited additional reservations.  
Source:  WTO Secretariat, based on China's GATS Schedule (GATS(SC/135) and Annex 8 -E of the Agreement.  
 
4.4.2.1.1   Business Services  
4.22.   Under business services, for professional services, and legal services, China has listed two 
new commitments in the additional commitments column compared to its GATS commitments. The 
new commitments permit Georgian law firms established in the Shanghai Pilot FTZ to (1) enter into 
contracts to supply Georgian lawyers to Chinese law firms to advise on Georgian and international 
law and (2) enter into commercial associations with Chinese law firms in the Shanghai FTZ.   WT/REG391/1  
 
- 22 - 
 
4.4.2.1.2   Computer and related services  
4.23.   For computer and re lated services, China has added a note clarifying the scope of the 
committed subsector, "Computer and related services do not cover the economic activity consisting 
of the provision of content services which require computer and related services as means o f supply". 
According to the Parties, the added note is for the sake of clarification and does not influence China's 
commitment in this regard.  
4.4.2.1.3   Distribution services  
4.24.   In distribution services, for wholesale or retail trade services away from a fi xed locatio n, China 
has deleted a time bound (3 -year post accession ) mode 3 limitation on market access under China's 
GATS Schedule . The mode 3 limitation on market access in China's GATS schedule refer to 
paragraph  309 of the Report of the Working Party on China's a ccession to the WTO .5 Under the 
Agreement the time limitation has expired (3 years post accession) . China's services commitments 
in Annex 8E of Agreement  now establishes "None" in relation to mode 3 in the sector, but includes 
a footnote reference to paragraph  310 in China's Working Party Report .6  
4.4.2.1.4   Financial services  
4.25.   In financial services, in the s ecurities  sub sector  China has introduced a new binding under 
mode 1 permitting Georgian service providers to supply cross border services to Chinese Qualifi ed 
Domestic Institutional Investors (QDII) in trading for account of QDII, securities trading advice, 
portfolio management, custody for overseas assets of QDII.  China has added an improvement in 
comparison to its GATS commitments in the market access colum n in respect of bank ing and other, 
mode 3, licensed  foreign entities engaging in local currency where the GATS three y ear prior business 
requirement, (two years required to be in profit) has been lowered to 1 year  prior business and 
eliminated the profit r equirement.  China has also added an improvement  in respect of its 
commitments on financial securities institutions, where the limit on foreign minority ownership of 
joint ventures has been increased from"1/3"  (in the GATS schedule)  to "49 per cent"  under t he 
Agreement . 
4.4.2.1.5   Health related and social services  
4.26.   China has undertaken commitments on a new sub -sector, in "Health related and social 
services ; sub-sector  B. Social S ervices, services for the aged ". The commitment covers m odes 1 and 
2 on market access ("Unbound "), with mode 3,  permitting Georgian suppliers to establish fully 
foreign -owned profit -making institutions in China. Mode 3 national treatment column is unbound, 
mode 4 is unbound for both market access and national treatment (subject to horizontal 
commitments).  
4.4.2.1.6   Tourism and related services  
4.27.   For tourism and related services, with respect to h otels and restaurants , China has removed 
a qualification to the mode 4 commitment under the GATS , concerning foreign managers, specialists, 
chef and senior executi ves need to have signed a contract with a joint venture hotel and restaurants . 
Now the mode 4 commitment is "Unbound" except as indicated in the horizontal commitments . China 
has also remov ed the time -bound restrictions on mode 3 foreign investment (4 year s post -WTO 
accession) . 
                                                
5 Paragraph 309 of WT/ACC/CHN/4 9 provides:  
"309. Some members of the Working Party also expressed concern about maintaining the 
independence of regulators from those they regulated. The representative of China confirmed that for the 
services included in China's Schedule of Specific Com mitments, relevant regulatory authorities would be 
separate from, and not accountable to, any service suppliers they regulated, except for courier and railway 
transportation services.  For these excepted sectors, China would comply with other relevant prov isions of the 
WTO Agreement and the Draft Protocol. The Working Party took note of these commitments."  
6 Paragraph 310 of WT/ACC/CHN/49 provides:  
"310. The representative of China stated that China would consult with WTO Members and develop 
regulations, co nsistent with China's Schedule of Specific Commitments and its obligations under GATS, on sal es 
away from a fixed location. The Working Party took note of this commitment. " WT/REG391/1  
 
- 23 - 
 
4.28.   For subsector B, Travel Agency and Tour Operator, the time -bound limitation on mode 3 has 
been removed  (6 years post -WTO accession).  
4.29.   China has also added (compared to GATS) in its "Additional Commitments" column 
commitments in relat ion to joint venture travel agencies established in Shanghai Pilot Free Trade 
Zone for Chinese travelling abroad and to Hong Kong, China and Macao, China.  
4.4.2.1.7   Transport services  
4.30.   China has improved its commitments in respect of Maritime Transport. China has ad ded to 
the Additional Commitment column commitments. China permits qualified maritime service suppliers 
of Georgia to establish wholly Georgian -owned ship management enterprises in the China 
(Shanghai) Pilot Free Trade Zone ("Shanghai FTZ"). China has also  committed to permit qualified 
service suppliers from Georgia to establish majority foreign -owned joint venture shipping companies 
in the Shanghai FTZ , the chairman of the board of directors and general manager of which can be 
appointed by the Chinese and Georgian sides through consultation. Ships owned or bare -boat 
chartered by Shanghai FTZ joint venture companies may be registered in accor dance with the 
Shanghai FTZ registration requirements.  
4.31.   In comparison to its GATS commitments, China has added a new subsector under air transport 
services, selling and marketing of air transport services, listing "none" on modes 1 and 2 market 
access and "none" for modes 1, 2 and 3 for national treatment. Mode  3 on market access permits 
foreign enterprises to operate per bilateral air services agreements and establish offices in China.  
4.4.2.2   Georgia  
4.32.   In its GATS schedule, Georgia has made commitments in all services sectors, though leaving 
some subsectors unbound. Tr ansport services are covered to a substantial extent. Under the 
Agreement, specific commitments essentially remain the same, with some improvements made for 
some education , tourism and travel related services, and some transport services ( in particular 
maritime and internal waterways transport).  
4.33.   The following section identifies some of the main differences, by sector, between Georgia's 
GATS schedule and its sector -specific commitments under the Agreement. Georgia's sector -specific 
commitments under the A greement mirror to a very large extent its GATS commitments. Its sectoral 
and sub -sectoral commitments in the Agreement are in large part identical to its GATS commitments . 
Table 4.5 Georgia: comparison betwee n the GATS and Agreement specific commitments 
in trade in services  
Sectors (CPC Classification)  GATS  
Sectoral Commitments  FTA Sectoral 
commitments 
compared to  
the GATS  
1. Business services    
A. Professional  Services  Partial  Same  
B. Computer  and Related  Services  Partial  Same  
C. Research  and Development  Services  Full Same  
D. Real  Estate  Services  Full Same  
E. Rental/Leasing  Services  without  Operators  Partial  Same  
F. Other  Business  Services  Partial  Improved  
2. Communication services    
A. Postal  services  .. .. 
B. Courier  services  Full Same  
C. Telecommunication  services  Full Same  
D. Audiovisual  services  Partial  Same  
E. Other  .. Same  
3. Construction and related engineering services    
A. General  construction  work for buildings  Partial  Same  
B. General  construction  work for civil Engineering  Partial  Same  
C. Installation  and assembly  work  Partial  Same  
D. Building  completion  and finishing  work  Partial  Same  
E. Other  Partial  Same  WT/REG391/1  
 
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Sectors (CPC Classification)  GATS  
Sectoral Commitments  FTA Sectoral 
commitments 
compared to  
the GATS  
4. Distribution services    
A. Commission  agents'  services  Full Same  
B. Wholesale  trade services  Full Same  
C. Retailing  services  Full Same  
D. Franchising  Full Same  
E. Other  .. .. 
5. Education services    
A. Primary education services  Full Same  
B. Secondary education services  Partial  Same  
C. Higher education services  Partial  Same  
D. Adult education  Full Same  
E. Other education services  .. .. 
6. Environmental services    
A. Sewage services  Partial  Same  
B. Refuse disposal services  Partial  Same  
C. Sanitation and similar services  Partial  Same  
D. Other  Partial  Same  
7. Financial services    
A. All insurance  and insurance -related  services  Partial  Same  
B. Banking  and other  financial  services  Full Same  
C. Other  .. .. 
8. Health related and social services    
A. Hospital services  Full Same  
B. Other Human Health Services  Full Same  
C. Social Services  Full Same  
D. Other  .. .. 
9. Tourism and travel related services    
A. Hotels  and restaurants (including catering)  Partial  Same  
B. Travel  agencies  and tour operators  services  Full Same  
C. Tourist  guides  services  Full Same  
D. Other  .. .. 
10. Recreational and cultural and sporting services    
A. Entertainment  services  Full Same  
B. News agency services  Full Same  
C. Libraries, archives, museums and other cultural services  Full Same  
D. Sporting and other recreational services  Full Same  
E. Other  .. .. 
11. Transport services    
A. Maritime Transport Services  Partial  Improved  
B. Internal Waterways Transport  .. New 
C. Air Transport  Services  Partial  Same  
D. Space  Transport  .. .. 
E. Rail  Transport  Services  Partial  Same  
F. Road  Transport  Services  Partial  Improved  
G. Pipeline  Transport  .. Same  
H. Services  auxiliary  to all modes  of transport  Partial  Same  
I. Other  Transport  Services  .. Same  
12. Other services not included elsewhere  .. Same  
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments / limitations not considered in 
the Table.  
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 under GATS  and the Agr eement . 
New:  New commitments made under the Agreement (Full or partial, with or without limitations). "New" 
can, in most cases, be seen as "improved".  
Improved:  Overall improved commitments made under the Agreement as compared to those under the GATS.  
Same:  Identical commitment as under the GATS.  
Source:  Georgia's GATS Schedule of Specific Commitments (GATS/SC/129), dated 20 December 2000, and 
Georgia's Schedule  8-F annexed to the Agreement.  WT/REG391/1  
 
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4.4.2.2.1   Transport services  
4.34.   Georgia has added a new subsector, (a) Passenger transportation (CPC 7211) , with no 
limitations on market access for modes 1, 2 and 3 (mode 4 unbound) .  
4.35.   Georgia has also added subsector " B. Internal Waterways transport " with no limitations on 
market access for modes 1, 2 and 3 (mode 4 unbound).   
4.36.   The joint venture limitations by Georgia in its GATS commitments for mode 3 market access 
in road transport services  are withdrawn under the Agreement and the coverage for supporting 
services for maritime transport has been  expanded.  
4.4.2.2.2   Other services sect ors 
4.37.   For other sectors (construction and related engineering services; distribution services; 
environmental services; financial services; health related and social services; and recreational and 
cultural and sporting services), Georgia replicates its GATS c ommitments.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.38.   Article 8.8 concerns domestic regulation and duplicates A rticle VI.1 -6 of the GATS. 
Article  8.8.7 provides that a Party shall (in accordance with its laws and regulations) permit services 
suppliers of  the other Party to use enterprise names under which they trade in the other Party. 
Article 8.8.8 pr ovides that Georgia permits Chi nese nationals who participate in and pass Georgia's 
qualification examination for auditors to be registered or licensed to p ractice in Georgia on a national 
treatment basis.  
4.39.   Article 4 of Annex 8 -A on financial services concerns domestic regulation. It provides that a 
Party shall not be prevented from maintaining reasonable prudential measures including for the 
protection of in vestors, depositors and others to whom a fiduciary duty is owed or to ensure the 
integrity and stability of that Party's financial system (Article 4.1).  
4.5.2   Recognition  
4.40.   In Article 8.9 the Parties have duplicated Article VII of the GATS. In addition, in Articl e 8.9.2, 
the Parties agree that if a Party recognises, the education, experience, licences or certification 
granted in the territory of a non -Party, nothing in Article 8.6 (MFN) shall be construed to require the 
Party to accord such recognition to the othe r Party.  
4.5.3   Subsidies  
4.41.   Article 8.1 provides that the Chapter  8 shall not apply to "subsidies or grants provided by a 
Party, including government -supported loans, guarantees, and insurance ", and otherwise does not 
contain specifi c provisions on subsidies.  
4.5.4   Safeguards  
4.42.   The Agreement contains no provision on safeguards on trade in services.  
4.5.5   Other  
4.5.5.1   Monopolies and Exclusive Service Supplies  
4.43.   Each Party shall ensure that any monopoly supplier of a service in its territory does not, in 
the supply of the monopoly ser vice, act in a manner inconsistent with that Party's commitments in 
its schedule of concessions and commitments (Article 8.16 .1). If a Party proposes to grant monopoly 
rights in relation to a sector or subsector covered by its commitments under the Agreeme nt, that 
Party shall advise the other Party of the grant of monopoly rights at least 3 months in advance of WT/REG391/1  
 
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the granting of the rights (Article 8.16.4). The obligations also apply to cases of exclusive service 
suppliers where a Party authorises or establis hes a small number of service suppliers and substantial  
reduces competition among those suppliers in its territory (Article 8.16.5) . 
4.5.5.2   Investment  
4.44.   Article 12.1 of Chapter 12 on Areas of Cooperation between the Parties concerns Investment. 
It provides that eac h Party shall, subject to its general policy on foreign investment, promote 
investments of the other Party and shall admit such investment in accordance with its applicable 
laws and regulations and the international commitments entered into between the Par ties. The 
Parties have agreed to further assess and, as necessary, endeavour to conduct negotiations with a 
view to revising the Agreement between the Government of the Republic of Georgia and the 
Government of the People's Republic of China Concerning the  Encouragement and Recipr ocal 
Protection of Investments (Article 12.1.2).  
4.6  Sector specific provisions on trade in services  
4.6.1   Financial Services  
4.45.   Annex 8 -A concerns trade in Financial Services. The Annex applies to measures affecting  
supply of a financial serv ice from the territory of a Party into the territory of the other Party, in the 
territory of a Party to the service consumer of the other Party, by a service supplier of a Party 
through the presence of natural persons of that Party in the territory of the other Party (Article 1).  
4.46.   Domestic regulation in Financial Services is covered by Article 3. Recognition is governed by 
Article 4. On regulatory transparency, the Parties recognise that transparent measures governing 
the activities of financial service sup pliers are important to facilitate access to each others market, 
each Party shall ensure that measures of general application adopted or maintained by a Party are 
promptly published or otherwise generally made available . Article 6 requires that arbitrators  on an 
arbitral tribunal established in accordance with Article 15 (Dispute Settlement) shall have the 
necessary expertise relevant to the specific financial service under dispute.   
4.47.   In Article 7 the Parties agree that they may request consultations with th e other Party 
regarding any matter under the Agreement that affects trade in financial services.  
4.6.2    Telecom munication Service s  
4.48.   China's Schedule of Concessions and Commitments in Services in Annex 8 -E to the Agreement 
attaches the Telecoms Reference paper  as well as Notes for Scheduling Basic Telecommunications 
Commitments (S/GBT/W/2/Rev.1) and the Chairman's Note on Market Access Limitations on 
Spectrum Availability (S/GBT/W/3). Those documents are not attached to Georgia's Schedule of 
Concessions and Com mitment s in Services in Annex 8 -F of the Agreement .  
4.6.3   Transport and Related S ervices  
4.49.   Annex 8 -C concerns transport and related services. Article 1.2 provides that, in accordance 
with national legislation, the Parties shall: advance the establishment of a transportation 
coordination mechanism, increase connectivity of international multi -modal transport, and gradually 
formulate compatible an d standard transport rules, so as to realize international transport 
facilitation; push forward port infrastructure construction, build smooth land -water transportation 
channels and cooperate on port development; and expand and build platforms and mechanis ms for 
comprehensive civil aviation cooperation and speed up the improvement of aviation infrastructure.  
4.50.   Article 2 provides that the Parties will take advantage of Georgia 's unique geographic position 
and promote the development of ports, roads, railways,  logistics and other infrastructure; support 
enterprises of the Parties to carry out international transportation and logistics cooperation; 
strengthen information  sharing; and encourage and take concerted measures to ensure smooth, 
safe and efficient tran sportation. The Parties also agree to strengthen planning of construction on 
airports, air traffic control, and other infrastructure.  WT/REG391/1  
 
- 27 - 
 
4.51.   The Parties have also agreed in Annex 8 -C to grant non -discriminatory treatment to vessels 
flying the flag of the other P arty, as compared to the treatment accorded to its own vessels with 
regard to access to ports, the use of infrastructure and auxiliary maritime services of those ports, 
as well as related fees and charges, customs formalities and assignment of berths and f acilities for 
loading and unloading (Article 3.1). The Parties also agree to fully utilise the Agreement to explore 
new opportunities of interna tional transportation and logis tics cooperation.  
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  Chapter 13 co ncerns transparency. Article 13.1 requires each Party to ensure that laws, 
regulations, procedures and administrative rulings of general application that may affect any matter 
covered by the Agreement are promptly published, including through the internet.  Article X of the 
GATT 1994 and Article III of GATS are incorporated mutatis mutandis  (Article 13.3).  
5.2  Current payments and capital movements  
5.2.  Article 16.6.1 provides that when a Party is in a serious balance of payments and external 
financial difficulties or under threat thereof it may (a) adopt restrictive import measures in the case 
of trade in goods in accordance with GATT 1994 and the Understanding on the Balance of Payments 
Provisions of the GATT 1994 in Annex 1A to the WTO Agreement; (b) for trade in services it may 
adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, 
including on payments or transfers for transactions related to such commitments. Such restrictions 
on trade in services shall be consistent  with the Articles of Agreement of the IMF, avoid unnecessary 
damage to the commercial, economic and financial interests of the other Party, not exceed those 
necessary to deal with the circumstances, be temporary and phased out as circumstances improve, 
be applied on a non -discriminatory basis so a Party is not trea ted less favourably than a non -party. 
5.3  Exceptions  
5.3.  Chapter 16 concerns exceptions.  Article 16.1.1  provides that nothing in the Agreement shall 
require a Party to furnish or allow access to confiden tial information, the disclosure of which would 
impede law enforcement or otherwise be contrary to the public interest or which would prejudice the 
legitimate commercial interests of particular enterprises, public or private. As a general rule, unless 
otherwise provided in the Agreement, where a Party provides written information to the other Party 
in accordance with the Agreement and designates the information confidential, the other Party shall 
maintain the confidentiality of the information (Article 16.2 .2). 
5.4.  The general exceptions of Article XX of the GATT 1994, including its interpretative notes are 
incorporated into and made part of the Agreement for the purposes of Chapter 2 (Trade in Goods), 
Chapter 3 (Rules of Origin and Implementation Procedures), C hapter 4 (Customs Procedures and 
Trade Facilitation), Chapter 5 (SPS), Chapter 6 (TBT), Chapter 7 (Trade Remedies), and the Annexes 
to those Chapters (Article 16.2.1). Article XIV of the GATS, including its footnotes is incorporated 
into the Agreement for the purposes of Chapter 8 (Trade in Services) (Article 16.2.2).  
5.5.  Article 16.3 on Security Exceptions provides that Article XXI of the GATT 1994 and 
Article  XIVbis of GATS are incorporated into and made part of the Agreement, mutatis mutandis.  
5.4  Accession an d Withdrawal  
5.6.  Article 17.4 of the Agreement provides that the Agreement shall remain in force until either 
Party notifies the other Party in writing to terminate the Agreement. Termination will take effect 180 
days following the receipt of the notification.  
5.7.   There are no provisions in the Agreement on accession to the Agreement.  
5.5  Institutional framework  
5.8.  Chapter 14 concerns institutional provisions. An FTA joint commission is established  to consider 
matters relating to the implementation of the Agreement and proposals for further development of WT/REG391/1  
 
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the Parties trade relationship (Article 14.1.2. The Commission may establish additional committees 
or ad hoc working groups as necessary, further the implementation of the Agreement, resolve any 
differences that may ari se regarding the implementation of the Agreement and take such further 
action as the Parties may agree (Article 14.1.3). The Commission's rules of procedure are set out in 
Article 14.2. According to the Parties, the Joint Commission has not yet been conven ed and as a 
result no committees or ad hoc working groups have yet been established.  
5.6  Dispute settlement  
5.9.  Chapter 15 sets out the Agreement's Dispute Settlement procedure.  
5.10.   The scope of application of Chapter 15 is set out in Article 15.2, u nless otherwise provided in 
the Agreement, whenever a Party considers that the other Party has failed to carry out its obligations 
under the Agreement, the dispute settlement  provisions of Chapter 15 apply.  
5.11.   Only Chapter 2 (Article 2.10), is explicitly subject to the dispu te settlement provisions of 
Chapter 15. Chapter 15 is also mentioned in Annex 8 -A, Article 6 (Arbitrators on an arbitral tribunal 
under Chapter 15 shall have the necessary expertise relevant to a financial services dispute). 
Article  10 (Competition) is expressly excluded from Chapter 15's scope. According to the Parties, in 
principle all chapters and annexes are subject to the dispute settlement provisions of Chapter 15, 
except Chapter 10 and any other chapters that may be expressly e xcluded.  
5.12.   A choice of forum is provided for in Article 15.3, and provides that when a dispute regarding 
the same measure arises under the Agreement as well as under other agreements to which the 
Parties are party, the complaining Party may select the forum  in which to settle the dispute. Once 
selected, that forum shall be used to the exclusion of all other fora (Article 15.3).  
5.13.   The dispute settlement process commences with consultations (Article 15.4). If consultations 
fail to resolve the matter within 60 da ys (or 30 days for urgent matters or perishable goods) the 
complaining Party may request the establishment of an arbitral tribunal to examine the matter 
(Article 15.5.1). The composition of an arbitral tribunal is governed by Article 15.6, the Parties each  
select one member of the  tribunal , and designate the Chair of the tribunal by common agreement. 
If any member of the panel has not been designated within 30 days after establishment of the  
tribunal , the Director -General of the WTO shall be authorized to d esignate the member(s) within a 
further 30 days. The required qualifications of the members of the arbitrators are set out in 
Article  15.6.6, and include a requirement that they comply with the code of conduct set out in 
WT/DSB/RC/1.  
5.14.   The functions of the a rbitral tribunal are set out in Article 15.7, to make an objective 
assessment of the matter before it, including an examination of the facts of the case and the 
applicability of and conformity with the Agreement  (Article 15.7.1) . The remedy available to a 
tribunal where it concludes that a measure is inconsistent with the Agreement  is to recommend that 
the Party complained about brings its measure into conformity with the Agreement  (Article 15.7.2) . 
The arbitral tribunal shall consider the Agreement in acco rdance with customary rules of 
interpretation of public international law  (Article 15.7 .3).  
5.15.   Arbitral tribunals' rules of procedure are set out in Annex 15 -A of the Agreement. The report 
of the arbitral tribunal shall be issued to the Parties within 120 da ys of the composition of the tribunal 
(Article 15.10). The Party complained against shall promptly comply with the recommendations and 
rulings of the tribunal, unless it requires a reasonable period of time to do so (Article 15.11).  A 
reasonable period of time is normally not to exceed 15 months (Article 15.12.3). In the event of a 
dispute concerning whether the report and recommendations of the tribunal have been complied 
with, the original tribunal shall rule within 60 days of the matter being referred to  it (Article 15.13.2).  
5.16.   If the arbitral tribunal under Article 15.13 finds that the Party complained against has not 
brought the measure found to be inconsistent with the Agreement into conformity with the 
recommendations and rulings of the tribunal within  a reasonable period of time, the Parties shall 
enter into negotiations with a view to agreeing mutually acceptable compensation (Article 15.14.1). 
If the Parties cannot reach agreement concerning compensation, the complaining Party may request 
the arbitra l tribunal determine whether the compensation is appropriate (Article 15.14.4). the panel 
shall present i ts determination within 60 days (Article 15.14.5).  WT/REG391/1  
 
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5.7  Relationship with other agreements concluded by the Parties  
5.17.   The Agreement is the 18th RTA notified by China, and the 12th by Georgia. The other RTAs to 
which the Parties are party are set out below in Table 5.1. 
Table 5.1 China and Georgia: Participation in other RTAs (notified and non -notified in 
force), as of 26 November  2018  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
CHINA  
Australia - China  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Iceland - China  01-Jul-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Switzerland - China  01-Jul-14 Goods & Services  2014 GATT Art.  XXIV & GATS Art. V  
China - Costa Rica  01-Aug-11 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - China  01-Mar-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
China - Singapore  01-Jan-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
China - New Zealand  01-Oct-08 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Pakistan - China  01-Jul-07 
10-Oct-09 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
Chile - China  01-Oct-06 
01-Aug-10 Goods  
Services  2007 
2010 GATT Art. XXIV  
GATS Art. V  
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
China - Macao, China  17-Oct-03 Goods & Services  2003 GATT Art. XXIV & GATS Art. V  
China - Hong Kong, China  29-Jun-03 Goods & Services  2003 GATT Art. XXIV & GATS Art. V  
Asia Pacific Trade 
Agreement (APTA) - 
Accession of China  01-Jan-02 Goods  2004 Enabling Clause  
Asia Pacific Trade 
Agreement (APTA)  17-Jun-76 Goods  1976 Enabling Clause  
Asia Pacific Trade 
Agreement (APTA) - 
Accession of Mongolia  26-Oct-13a Goods & Services  Not notified  
Asia Pacific Trade 
Agreement (APTA)  13-Sep-13 Services  Not notified  
The Cross -Straits Economic 
Cooperation Framework 
Agreement (ECFA)  12-Sep-10 Goods & Services  Not notified  
GEORGIA  
EFTA – Georgia  01-Sep-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Georgia  01-Sep-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Turkey - Georgia  01-Nov-08 Goods  2009 GATT Art. XXIV  
Georgia, Ukraine, 
Azerbaijan, Moldova 
(GUAM)  10-Dec-03 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
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 - Uzbekistan  15-Oct-10 Goods  Not notified  
Georgia – Republic of 
Moldova  30-Mar-07 Goods  Not notified  
a  The Standing Committee of the APTA reached a consensus officially welcoming Mongolia as the 
7th member of the Agreement. This was done on the occasion of its 42nd session, which was held from 
25 to 26 October 2013.  
Source:  WTO Secretariat. Further information may be found in the WTO Database on RTAs: 
http://rtai s.wto.org .  WT/REG391/1  
 
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5.8  Government procurement  
5.18.   The Agreement contains no provisions on Government Procurement .  
5.9  Intellectual property rights  
5.19.   Chapter 11 of the Agreement concerns Intellectual Property. Article 11.1 provides that the 
purpose of the Chapter is to increas e the benefits from trade and investment through the protection 
and enforcement of intellectual property rights.  
5.20.   In Article 11.3 the Parties agreed that each Party shall, at a minimum provide the protection 
required under the C hapter, although it may provide more extensive protection for the enforcement 
of intellectual property rights. The Parties affirm their commitment to the TRIPS Agreement and 
other international intellectual property agreements to which the Parties are party (Article 11.4). 
The principles established in the Doha Declaration on the TR IPS Agreement are recognised in 
Article  11.5.  
5.21.   Article 11.6 on exhaustion notes that the Parties agree to further discuss relevant issues 
relating to exhaustion of patents.  
5.22.   Article  11.8.1 on patent able subject matter mirrors Article 27 of the TRIPS Agreement. The 
Parties may exclude from patentability the inventions covered in Article 11.8.2. Trademarks are 
covered by Articles 11.11 and 11.12. Geographical indications are governed by Article 11.13. The 
Parties agree to protect plant breeder 's rights in Article 11.14. The Parties are permitted to take 
action to protect genetic resources, traditional knowledge and folklore in Article 11.16.  The Parties 
have agreed to ensure enforcement of intellectual property rights including criminal penalties in 
Article 11.17.  
5.23.   Article 11.18 provides that the Parties shall cooperate on intellectual property policies and 
issues.   
5.24.   Annex 8 -D concerns Traditional Chinese Medicine (TCM). The Parties agree to exchange 
information and discuss policies, regulations and actions related to trade in TCM, and to encourage 
cooperation and collaboration in Georgia's medical system to encourage and support cooperation on 
TCM. 
5.10  Other  
5.10.1   Competition  
5.25.   In Chapter 10 of the Agreement the Parties have agreed disciplines on competition. Anti -
competitive business practices means business activities or transactions that are incompatible with 
the proper functioning of the Agreement insofar as they may affect trade between the Parties 
(Article  10.2.1). Each Party agrees to maintain or adopt competition laws that promote and protect 
the competitive process in its market by proscribing anticompetitive business practices 
(Article  10.3.1). Each Party agrees to be transparent, non -discriminatory and p rocedurally fair in the 
enforcement of competition law (Article 10.4.1) and to ensure that during an investigation to 
determine whether conduct violates its competition law, or before it imposes a sanction or remedy 
against a person a reasonable opportunit y to present opinion or evidence in its defence 
(Article  10.4.3).  
5.26.   The Parties have also agreed to make public their laws, regulations, guidelines on competition 
and any rules issued in relation to the administration of such (Article 10.5.1). Confidential 
information shall be protected (Article 10.7.2). Competition authorities are required to be 
independent (Article 10.9). The Parties agree to address specific matters under the Chapter through 
consultations as required (Article 10.11). Dispute settlement un der the Agreement is not available 
for matters covered by the Chapter (Article 10.10).  WT/REG391/1  
 
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5.10.2   Electronic Commerce  
5.27.   In Chapter 12 (Areas of Cooperation), Article 12.2, the Parties recognize the economic growth 
and opportunity provided by electronic commerce, the im portance of promoting its use and 
development and the applicability of the WTO Agreement to measures affecting electronic comme rce 
(Article 12.2.1) They  agree to share information and experience on issues related to electronic 
commerce, including, inter al ia, laws and regulations, rules and standards and best practices.  
 
  WT/REG391/1  
 
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ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Tables A1.1 and A1. 2 by 
agricultural (WTO definition), non -agricultural and total products. Applied MFN duty rates in 2018 
serve as a comparison.  
2. Georgia's overall average MFN tariff rate in 2018 was 1.8%. The average applied tariff on 
agricultural goods was 6.4%, compared t o an average applied tariff of 0.7% for non -agricultural 
products. Duty -free tariff lines accounted for 79.6% of tariff lines. Upon entry into force of the 
Agreement, the overall applied tariff for imports from China fell to 0.3%, and zero and 1.7% for 
non-agricultural and agricultural products respectively. This gave exporters from China an average 
margin of preference of 83.3% overall and 100% and 73.4% for non -agricultural and agricultural 
products, respectively. T he share of duty free lines overall rose  from 79.6% to 96.4% and  from 
40.2% to 82.6%  for agricultural products , while the share of duty -free lines in non -agricultural 
products rose from 89.6% to almost 100% . Two non-agricultural lines remain dutiable  (HS 
680223 .00.000 and 854430 .90.000) with a d uty rate of 12% and 5% respectively . 
Table A1. 1 Georgia: Indicators of MFN tariff rates and preferential rates for imports from 
China  
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 2018  1.8 11.0 79.6 6.4 11.5 40.2 0.7 10.2 89.6 
China  2018 0.3 12.0 96.4 1.7 12.0 82.6 0.0 9.7 100.0 * 
a WTO Definition.  
* 2 tariff lines 680223 .00.000 and 854430 .90.000 under non -agricultural products are dutiable with 
duty of 12% and 5% respectively.  
Note:  For the calculation of averages; specific rates are excluded . 
 Based on the HS2012  nomenclature.  
Source:  WTO estimates based on data provided by Georgia . 
3. China's overall avera ge MFN tariff rate in 2018 was 9 .7%. The average applied tariff on 
agricultural goods was 15.1%, compared to an average applied tariff of 8.9 % for non -agricultural 
products. Duty -free tariff lines accounted for 8.4 % of tariff lines. Upon entry  into force of the 
Agreement, the overall applied tariff for imports from Georgia fell to 1.2%, 4.0 and 0.7 % for all 
products, non-agricultural and agricultural products respectively. This gave exporters from Georgia 
a relative margin of preference of 89.7% overall and 93.3% and 78.1 % for non -agricultural and 
agricultural products, respectively.  The share of duty  free lines overall rose from 8 .4% to 9 0.6% 
and from 7.8 % to 79.6% for agricultural products, while the share of duty -free lines in 
non-agricultura l products rose from 8. 5% to 94.6. WT/REG391/1  
 
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Table A1. 2 China: Indicators of MFN tariff rates 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 2018  9.7 10.6 8.4 15.1 16.3 7.8 8.9 9.7 8.5 
Georgia  2018 1.2 12.7 90.6 4.0 19.9 79.6 0.7 9.7 92.3 
2019 1.1 12.1 90.6 3.9 18.9 79.6 0.7 9.3 92.3 
2020 1.1 11.5 90.6 3.7 17.9 79.6 0.7 8.8 92.3 
2021 1.0 10.9 90.6 3.5 17.0 79.6 0.6 8.3 92.3 
2022 1.0 15.2 93.7 3.3 26.8 87.9 0.6 11.1 94.6 
a WTO Definition.  
 Based on the HS2017  nomenclature.  
Source:  WTO estimates based on data provided by China .  
4. Table A1. 3 shows the market access opportunities in Georgia for China's top 25 exports, which 
in 2015 -2017 accounted for an average of 29.2% of China's global exports. The table shows in which 
year all HS 8 -digit tariff lines corresponding to the product definition will become duty free under 
the Agreement.  
5. China's top 25 exports cover a total of 140 tariff lines of which 13 6 were already duty free on 
an MFN basis in 2018. Four further lines became duty free upon entry into force of the Agreement.  
Table A1. 3 Georgia: Market access opportunities under the agreement for China's top 25 
exports to the world  
China's top export products in 2015 -17 
Share 
in 
global 
exports 
(%) Access conditions to Georgia's import 
markets  
HS number and descripti on of the product  MFN (2018)  
Duty free 
under the 
agreement 
in 2018  
Remain Dutiable  
Average 
MFN 
applied 
rate No. of 
tariff lines  Duty -free 
Dutiable  
851712  Telephones for cellular networks "mobile 
telephones" or for other wireless 
networks  5.5 0.0 1    
847130  Data-processing machines, automatic, 
portable, weighing <= 10 kg, consisting 
of at least a central processing unit, a 
keyboard and a display  3.9 0.0 1    
851770  Parts of telephone sets, telephones for 
cellular networks or for other wireless 
networks and of other apparatus for the 
transmission or reception of voice, 
images or other data.  2.2 0.0 4    
851762  Machines for the reception, conversion 
and transmission or regeneration of 
voice, images or other data, incl. 
switching and routing apparatus  1.5 0.0 1    
847330  Parts and accessories of automatic data -
processing machines or for other 
machines of heading 8471.  1.3 0.0 2    WT/REG391/1  
 
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China's top export products in 2015 -17 
Share 
in 
global 
exports 
(%) Access conditions to Georgia's import 
markets  
HS number and descripti on of the product  MFN (2018)  
Duty free 
under the 
agreement 
in 2018  
Remain Dutiable  
Average 
MFN 
applied 
rate No. of 
tariff lines  Duty -free 
Dutiable  
854231  Electronic integrated circuits as 
processors and controllers, whether or 
not combined with memories, converters, 
logic circuits, amplifiers, clock and timing 
circuits, or other circuits  1.3 0.0 2    
901380  Liquid crystal devices, and other optical 
appliances and instruments not elsewhere 
specified in chapter 90  1.3 0.0 3    
854232  Electronic integrated circuits as memories  1.1 0.0 13    
950300  Tricycles, scooters, pedal cars and similar 
wheeled toys; dolls' carriages; dolls; 
other toys; reduced -size "scale" 
recreational models, working or not; 
puzzles of all kinds  0.9 0.0 18    
854140  Photosensitive semiconductor devices, 
incl. photovoltaic cells whether or not 
assembled in modules or made up into 
panels; light emitting diodes  0.8 0.0 2    
640299  Footwear with outer soles and uppers of 
rubber or plastics  0.8 0.0 9    
850440  Static converters  0.8 0.0 8    
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel.  0.8 0.0 25    
847170  Storage units for automatic data -
processing machines  0.8 0.0 7    
940540  Electric lamps and lighting fittings.  0.7 0.0 7    
847150  Processing units for automatic data -
processing machines, whether or not 
containing in the same housing one or 
two of the following types of unit: storage 
units, input units, output units  0.7 0.0 2    
853400  Printed circuits  0.6 0.0 3    
711319  Articles of jewellery and parts thereof, of 
precious metal other than silver, whether 
or not plated or clad with precious metal  0.6 12.0  1 1  
890190  Vessels for the transport of goods and 
vessels for the transport of both persons 
and goods  0.6 0.0 3    
852872  Reception apparatus for television, 
colour, whether or not incorporating 
radio-broadcast receivers or sound or 
video recording or reproducing apparatus, 
designed to incorporate a video display or 
screen  0.6 0.0 11    
640419  Footwear with outer soles of rubber or 
plastics and uppers of textile materials  0.5 0.0 2    
852990  Parts suitable for use solely or principally 
with transmission and reception 
apparatus for radio -broadcasting or 
television, television cameras, digital 
cameras, video camera recorders, radar 
apparatus, radio navigational aid 
apparatus or radio remote control 
apparatus, monitors and projectors  0.5 0.0 7    
854239  Electronic integrated circuits  0.5 0.0 2    WT/REG391/1  
 
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China's top export products in 2015 -17 
Share 
in 
global 
exports 
(%) Access conditions to Georgia's import 
markets  
HS number and descripti on of the product  MFN (2018)  
Duty free 
under the 
agreement 
in 2018  
Remain Dutiable  
Average 
MFN 
applied 
rate No. of 
tariff lines  Duty -free 
Dutiable  
392690  Articles of plastics and articles of other 
materials of heading 3901 to 3914  0.5 9.0 1 3 3  
854442  Electric conductors for a voltage <= 
1.000 v, insulated, fitted with connectors  0.5 0.0 2    
TOTAL  29.2 0.8 136 4 4 - 
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the Georgia and UNSD, Comtrade database.  
 
6. Table A1.4  shows the market access opportunities in China for Georgia's top 25 exports, which 
in 2015 -2017 accounted for an average of 70.4% of Georgia's global exports. The table shows in 
which year all HS 8 -digit tariff lines corresponding to the product definition will become duty free 
under the Agreement.  
7. Georgia's t op 25 exports cover a total of 92 tariff lines of which 4  were already duty  free on 
an MFN basis in 2018, 3 5 further lines became duty free upon entry into force of the Agreement , 
and a further 3 lines become duty free in 2022 .  
Table A1. 4 China: Market access opportunities under the agreement for Georgia's top 25 
exports to the worl d 
Georgia's top export products in 2015 -17 
Share 
in 
global 
exports 
(%) Access conditions to China's import markets  
HS number and description of the product  MFN (2018)  
Duty free 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate No. of 
tariff lines  Duty -free 
Dutiable  
2018  2022  
260300  Copper ores and concentrates  14.2 0.0 1     
720230  Ferro-silico-manganese  9.3 2.0  1 1   
080222  Fresh or dried hazelnuts or filberts 
"corylus spp.", shelled  6.0 10.0  1 1   
220421  Wine of fresh grapes  5.2 14.0  1 1   
220110  Mineral waters and aerated waters, not 
containing added sugar, other 
sweetening matter or flavoured  3.6 20.0  2 2   
310230  Ammonium nitrate, whether or not in 
aqueous solution  3.6 4.0  1 1   
220820  Spirits obtained by  distilling grape wine 
or grape marc  3.1 10.0  1 1   
710813  Gold, incl. gold plated with platinum, in 
semi-manufactured forms, for non -
monetary purposes  3.0 0.0 1     
300460  Medicaments containing any of the 
following antimalarial active principles  2.2 4.0  2 2   
300490  Medicaments consisting of mixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in 
measured doses  2.2 3.6  9 9   
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  2.2 0.0 1     WT/REG391/1  
 
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Georgia's top export products in 2015 -17 
Share 
in 
global 
exports 
(%) Access conditions to China's import markets  
HS number and description of the product  MFN (2018)  
Duty free 
under the 
agreement  
Remain Dutiable  
Average 
MFN 
applied 
rate No. of 
tariff lines  Duty -free 
Dutiable  
2018  2022  
870340  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with both spark -ignition 
internal combustion reciprocating piston 
engine and electric motor as motors for 
propulsion  2.2 25.0  29  1 28 
870360  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with both spark -ignition 
internal combustion reciprocating piston 
engine and electric motor as motors for 
propulsion, capable of being charged by 
plugging to external source of electric 
power  2.2 25.0  1   1 
870323  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons, incl. station wagons and 
racing cars, with only spark -ignition 
internal combustion reciprocating piston 
engine of a cylinder capacity > 1.500 
cm³ but <= 3.000 cm³  1.5 25.0  12   12 
610990  T-shirts, singlets and other vests of 
textile materials, knitted or crocheted  1.5 14.0  2 2   
010229  Live cattle  1.3 10.0  1 1   
271600  Electrical energy  0.9 0.0 1     
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel  0.9 6.5  11 10 1  
240220  Cigarettes, containing tobacco  0.8 25.0  1   1 
720711  Semi-finished products of iron or non -
alloy steel containing  0.8 2.0  1 1   
740400  Waste and scrap, of copper  0.8 1.5  1  1  
721420  Bars and rods, of iron or non -alloy 
steel, with indentations, ribs, groves or 
other deformations produced during the 
rolling process  0.8 3.0  1 1   
401110  New pneumatic tyres, of rubber, of a 
kind used for motor cars, incl. station 
wagons and racing cars  0.7 10.0  1 1   
220210  Waters, incl. mineral and aerated, with 
added sugar, sweetener or flavour, for 
direct consumption as a beverage  0.7 20.0  1 1   
870324  Motor cars and other motor vehicles 
principally designed for the transport of 
<10 persons  0.6 25.0  8   8 
Total  70.4 10.4 4 88 35 3 50 
Note:  Based on the HS2017 nomenclature.  
Source:  WTO estimates based on data provided by the China and UNSD, Comtrade database.  
 
__________