WT/TPR/M/328  
7 March 2016  
(16-1292)  Page: 1/39  
Trade Policy Review Body 
19 and 21 January 2016  
 
  TRADE POLICY REVIEW 
GEORGIA  
MINUTES OF THE MEETING 
Chairperson: H.E. Mr. Atanas Atanassov Paparizov (Bulgaria) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE RE PRESENTATIVE OF GEORGIA .................................... 4  
3  STATEMENTS BY MEMBERS ........................................................................................ 11  
4  REPLIES BY THE REPRESENTATIVE OF GEORGIA AND ADDITIONAL 
COMMENTS ..................................................................................................................... 24  
5  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 38  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Georgia are reproduced in document WT/TPR/M/328/Add.1 and will be available online 
at http://www.wto.org/english/ tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/328 • Georgia 
 
- 2 - 
 
  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The second Trade Policy Review of Georgi a was held on 19 and 21 January 2016. The 
Chairperson H.E. Mr. Atanas Atanassov Paparizov (Bulgaria) welcomed the delegation of Georgia headed by Mr. Genadi Arveladze, Deputy Mini ster of Economy and Sustainable Development; 
H.E. Ambassador Shalva Tsiskarashvili, Permanent Re presentative of Georgia to the WTO; the rest 
of the delegation from Tbilisi; the rest of the colleagues from the Mission in Geneva; and the discussant, Mr. Micha ł Chyczewski (Poland). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Georgia was contained in document WT/TPR/G/328 and that of the WTO Secretariat in WT/TPR/S/328. 
1.3.  Questions by the following delegations had been  submitted in writing before the deadline of 
5.30 p.m. of 5 January 2016 and had been transmitte d to the delegation of Georgia: the United 
States, the EU, Chinese Taipei, the Russian Federa tion, Turkey, China, and Brazil. The following 
delegations submitted written questions after the deadline: Thailand and Ecuador. These questions 
had also been transmitted to the delegation of Georgia. 
1.4.  Georgia's economy was hit in 2015 by a combination of external shocks including regional 
challenges. Real GDP growth was expected to be around 2% in 2015, down from an annual 
average of 5.8% in the period 2010-13. Georgia’s ex ports were 25% lower in the first half of 2015 
than in the same period of 2014, and remittances from Georgian workers abroad were down 23.3%. Exports of goods and services remained under the equivalent of 40% of GDP for most of the review period. Imports had been growing robu stly, and the merchandise trade deficit averaged 
23% of GDP for the review period. The export prof ile had not changed much from the last review, 
and exports remained concentrated on resource-bas ed products such as agriculture, ferro-alloys, 
copper ores and concentrates, and other minerals. Instability in the region and the currency 
devaluation of its main trading partners all adve rsely affected the trade performance of Georgia. 
1.5.  Despite this, Georgia's trade policy had remained open. The simple average applied tariff 
remained low at 2% since 2010, one of the lowest average applied MFN tariff rates in the world. 
On investment, national treatment was applied to all investors, and virtually all sectors of the 
economy were open to foreign investment.  
1.6.  The Chairperson was pleased to note that the Government and the Secretariat reports both 
underlined that Georgia attached great importance to the multilateral trading system. In 
particular, Georgia had now ratified the Trade Facilitation Agreement: the WTO Secretariat 
received Georgia's instrument of acceptance on 4 January 2016. 
1.7.  During the period under review, Georgia had strengthened its bilateral and regional ties. 
Georgia signed an Association Agreement with the EU, including a Deep and Comprehensive Free 
Trade Area (DCFTA). 
1.8.  Georgia also had bilateral FTAs with eight CIS (Commonwealth of Independent States) 
countries, and with Turkey. It had a Trade and Investment Framework Agreement with the United 
States. Georgia commenced FTA negotiations with the EFTA states, and had signed a memorandum of understanding with China on strengthening cooperation for the Silk Road Economic Belt Initiative.  
1.9.  At the last TPR of Georgia in 2009, Members had raised questions on many issues, some of 
which came up again this time. These included: SPS, technical regulations, competition policy, and intellectual property rights enforcement. For this review, Members were also interested in 
Georgia's current efforts to accede to the GPA. Members wished to know the details of the plan to 
create conditions for efficient private investment in hydropower and renewable energy sectors, as 
well as plans to further develop its various services sectors, notably tourism.  
1.10.  In the context of this TPR, the Chairperson noted that the Government had taken initiatives 
in many areas, notably: WT/TPR/M/328 • Georgia 
 
- 3 - 
 
   Customs procedures: Georgia had brought its border policies, including its customs and 
trade facilitation regulations, in line with international and WTO practices. It had implemented a number of reforms to facilitate trade, in particular the opening of customs 
clearance zones.  
 Government procurement: new legislation had entered into force in 2010 when 
e-procurement was introduced. Research by the European Bank for Reconstruction and Development (EBRD) found that Georgia's public procurement regime achieved the best 
ranking in the region, indicating high compliance with international standards. The 
Government was now assessing the prospects for joining the GPA.  
 Competition policy: new amendments to the Law on Competition had been adopted in 2014 
to meet international standards. The Competition Agency had been active in dealing with 
anti-competitive cases and merger applications.  
 IPRs: a number of IPR-related legislation had been amended during the review period, in 
accordance with regional and international requirements. The national IP centre – 
Sakpatenti – was making efforts to raise pu blic awareness of IP rights and improve 
enforcement.  
1.11.  At the same time, through their written questi ons for this meeting, Members suggested that 
some areas needed further attention, particularly in the area of SPS. The Government was aware 
that in order to increase the export potential of the agriculture sector, SPS systems needed to be further developed in accordance with internationa l and/or European norms. Insufficient effective 
SPS regulations, particularly for food safety, continued to hamper Georgian exports of its 
agricultural products. 
1.12.  For these and other issues, the Chairperson looked forward to hearing the comments and 
replies from Georgia during the review meeting. 
1.13.  He closed his introductory remarks by wishing Georgia a very successful second Trade Policy 
Review. He looked forward to the active engage ment in this TPR of Georgia and of all other 
Members present. 
1.14.  He informed Members that the podcast of the meeting could be accessed on the Members' 
website after the first day of the meeting. WT/TPR/M/328 • Georgia 
 
- 4 - 
 
  2  OPENING STATEMENT BY THE REPRESENTATIVE OF GEORGIA (MR. GENADI 
ARVELADZE) 
2.1.  Good morning. On behalf of the Government of Georgia, it is my great pleasure to participate 
in the second Trade Policy Review of Georgia. First of all, I would like to convey my appreciation to 
the WTO Secretariat for its tremendous efforts during the preparation of the report and to the 
Chair of the Trade Policy Review Body of the WTO for convening this meeting.  
2.2.  On behalf of the Government of Georgia, I would like to congratulate the two LDCs, Liberia 
and Afghanistan, as well as Yemen, Seychelles,  and Kazakhstan on their joining to the WTO. 
2.3.  It is my pleasure and privilege to address you all today and share the reforms implemented 
by the Government of Georgia in the trade related spheres during 2009-2015. 
INTRODUCTION 
2.4.  Georgia is a responsible Member of the WTO committed to its values and principles. We are 
targeted at achieving maximum openness, transpar ency, regional and global integration of our 
economy. We strongly believe that private sector is a driving force for sustainable and 
broad-based growth. 
2.5.  Trade liberalization continues to be one of the key objectives on Georgia’s economic policy 
agenda. In the reporting period, Georgia undertook a number of reform initiatives targeted at 
streamlining, liberalization and simplification of trade regulations and their implementation.  
2.6.  As a result of reforms carried out by the Government of Georgia (GoG), today Georgia 
pursues one of the most liberal foreign trade policies in the world that implies facilitated foreign trade regime and customs procedures, low import tariffs and minimal non-tariff regulations.  
2.7.  We strongly believe that minimizing trade barrier s is an effective and efficient way for future 
development. In this regard, one of the outcomes of the Bali ministerial was the adoption of the Trade Facilitation Agreement (TFA), which was the first Agreement that we all have managed to 
conclude collectively as WTO Members. Therefore, let me inform you that in November 2015 the 
Parliament of Georgia has ratified the Trade Facilitation Agreement, which already came into force in November 2015. Following that we have notified to the WTO Category A, B and C commitments. 
We are proud to note that Georgia was the first Member notifying B and C commitments. The 
Government of Georgia fully supports the general principles of the TFA setting out measures for the movement, release, and clearance of goods. Altogether, we believe that this Agreement will help improve transparency, increase possibilities to participate in global value chains, and increase 
trade. 
2.8.  Let me point out the importance of the expa nding the Information Technology Agreement 
(ITA), which already unites 54 WTO Members representing major exporters of information 
technology (IT) products. For the purpose of developing the IT sector, Georgia considers joining 
expanded ITA is a major step forward for attracti ng further investment and moving up the value 
added ladder in IT industry. Therefore, current ly, the Government of Georgia is undergoing 
procedures for joining the ITA expansion. 
2.9.  The reforms implemented during the last ye ars have contributed to the creation of 
competitive market conditions and a business en abling environment. Additionally, these reforms 
have diversified international trade and Georgia’ s economic ties, thus generating growth and 
development. 
2.10.  By undertaking numerous economic reform initiatives and ensuring a strong legal system to 
protect investor rights, Georgia has positioned itself as an attractive destination for foreign direct 
investment. The government’s priorities are now focused on further improving investment climate 
and strengthening investor confidence to attract more foreign investment and boost economic growth.  
2.11.  The objectives of trade and investment policie s are well reflected in the socio-economic 
development strategy "Georgia 2020", which ou tlines the social and economic development WT/TPR/M/328 • Georgia 
 
- 5 - 
 
  priorities and targets over the period 2014-2020. The main goal is to create foundations for 
long-term inclusive economic growth and improve the welfare of the population. 
MACROECONOMIC OVERVIEW 2.12.  Georgia’s economic performance for the period  2009-2014 has a positive trend for growth, 
averaging nearly 4% annually. Despite overall non favourable economic situation in the region and 
in Georgia’s main trade partner countries, Georgia’s economy is characterized by growing tendency. In 2014, our economy grew by 4.6%. Th e largest sectors by share of GDP were trade 
(17.4%), industry (17.1%), transport and communication (10.5%), public administration (9.9%), 
agriculture (9.2%), construction (7.3%), and real estate (6%).  
2.13.  Due to recent economic developments, 5% projection of GDP growth for 2015 was 
decreased to 2%, but considering the positive development of economy during current year, we 
expect at least 3% of GDP growth. In the 11 month of 2015, real GDP growth reached 3%. 
According to the IMF projection for 2017, Ge orgia will have economic growth of 5%. 
2.14.  Our investment prospects are also good. Georgia’s business-friendly policies, strong regional 
and oversea trade relations, strategic location at  the crossroads between Europe and Asia have 
transformed Georgia into the new regional frontier for investment opportunities.  
2.15.  We are currently experiencing unprecedented gr owth of Foreign Direct Investment inflow 
into Georgia. According to data for 2014, total FD I reached US$1.75 billion. This is not only a 87% 
increase compared to 2013, but also the highest yearly indicator in the last 7 years. 
2.16.  Due to the reforms carried out by the Government of Georgia in 2009-2014, the barriers to 
foreign trade decreased resulting in increased volumes of export and import flows. The average 
annual growth of trade turnover in 2009-2014 constituted 9%. 
2.17.  While WTO provides opportunities for global integration, Georgia continues its integration 
with the regional markets. We already enjoy free trade with the markets of more than 800 million 
populations, including the EU, CIS countries and Turkey.  
2.18.  Our biggest achievement with that regard is the Deep and Comprehensive Free Trade Area 
(DCFTA) Agreement with the EU that entered into force on 1 September 2014. One of our major 
priorities is to make the best use of opportuniti es opened by the DCFTA and bring the anticipated 
benefits to Georgian citizens. Effective implem entation of the DCFTA will boost our economy, 
increase Georgia’s attractiveness as a viable inve stment destination, create better environment for 
local as well as international businesses and facilitate economic modernization of Georgia. We 
expect that these new realities will be duly se ized by the Georgian and international business 
communities. 
2.19.  We have already started free trade negotiations with the European Free Trade Association 
(Switzerland, Norway, Island, and Lichtenstein) which is expected to be concluded in the first half 
of 2016 and will soon start also negotiations with  China. We are seeking to facilitate free trade 
with the rest of our major trading partners. 
2.20.  These new agreements together with the already existing free trade regimes with all the 
neighbours and other regional countries will enable goods produced in Georgia to have liberal access to the markets with approximately 2 billion consumers. Georgia being a party to several free trade agreements strongly believes in the ro le of the WTO ensuring transparency of RTAs. 
Transport 
2.21.  Due to its geopolitical location, transport is one of the major pillars of economic 
development and prosperity of the country. Georgi a has a growing role as a regional hub for doing 
business. Our aim is to take advantage of our strategic positioning between Europe and Asia and 
revitalize our role in trade and exchange  between across the Eurasian continent. WT/TPR/M/328 • Georgia 
 
- 6 - 
 
  2.22.  Therefore, one of the top priori ties for the Government of Georgia is coordinated functioning 
of transport fields, modernization-construction of transport infrastructure in accordance with international standards and approximation of country’s legislation with international law. 
2.23.  We are investing in new railway infrastructure in order to better facilitate regional trade and 
trade from Asia to Europe. The new Baku-Tbilisi-Kars railroad will connect Azerbaijan, Georgia and 
Turkey, allowing 45% faster delivery of containers, freight and passenger traffic from Asia to Europe.  
2.24.  Georgia is also expanding its internal railway capacity. Two large tunnels are being 
constructed to connect Georgia’s east and west; these will increase rail speed by 50% and triple its capacity.  
2.25.  Coupled with the rehabilitation and construction of major highways, these initiatives 
complement other projects to connect East Asia, Central Asia and the Caucasus. We are working to 
harmonize tariffs and customs procedures to increase efficiency and make the most of this potential. Already today, goods can transit through Georgia from Asia to Europe and back again 
with surprising ease and low cost.  
2.26.  Unsurprisingly therefore, demand at Georgia’s ports has increased significantly – reflecting 
an upwards economic trend. Because of the increa se in demand, the Government is pursuing the 
development of a new deep-sea port in Anaklia on the Black Sea coast, which will be constructed 
in 7 phases and be able to handle 100 million tonnes of cargo per year. 
2.27.  During the last years, Georgia has gone throug h a comprehensive review of the air transport 
sector, including a reorganization of the institutional framework that derived in the separation of 
the functions of policy making, technical regulation, and operation of infrastructure. Along with the 
reform, the country has been experiencing an increase in demand for aviation services, which generated an increase of interest from foreign carriers to access the Georgian international 
market.  
Energy 2.28.  Energy sector remains one of the leading sector s in the economy of Georgia. Affordable and 
reliable energy supply stays as a key goal of the country. Reforms carried out in the sector were 
directed towards the main goals: increasing efficiency of the existing and development of new capacities, diversification of export and import sources. For this purposes, significant changes were made in the legal basis during the last years. The new Energy Policy of Georgia, which defines the 
main strategic directions of development of the energy sector of the country, was approved in 
June 2015.  
2.29.  The process of privatization and deregulation  of hydropower plants, as well as policy 
directed towards development of the domestic re newable energy sources and suitable legal basis 
resulted in investors’ high interest and growing sh are of the energy sector in the Country's Foreign 
Direct Investments. Because of the rehabilitation of the existing and construction of the new power 
plants, the annual hydro generation increased by 12% for the period 2009-2014. Significant 
improvements were achieved in transmission and dist ribution systems. As a result of rehabilitation 
of the transmission network, improvement of me tering and billing systems, the overall system 
losses for the period 2009-2014 has decreased by 32%.  
2.30.  Along with the rehabilitation of the existed transmission infrastructure, constructions of the 
new facilities were started. The most important project of the last few years was the Black Sea Transmission Line connecting Georgian and Turkish electric systems, which was put into operation 
in 2014. Besides, construction of the new 500kV transmission line connecting Georgia and 
Azerbaijan was completed in 2012. For further deve lopment of the Georgian electricity system, the 
Ten Year Network Development Plan of Georgi a 2015-2025 was elaborated and approved by the 
Government of Georgia in 2015.  
2.31.  For the period 2009-2015, the gas consumption increased almost by 100%. In this case, the 
country's imports dependent and steps toward diversification of the suppliers were made to ensure security and reliability. Development of the projec t for the underground gas storage was started in WT/TPR/M/328 • Georgia 
 
- 7 - 
 
  early 2015. After completion, the storage facility will give possibility to accumulate the gas in 
amount of 10-15% of the country’s annual consumption. 
Tourism 2.32.  Tourism is one of the fastest developing sectors of the Georgian economy and has a high 
potential for further advancement. Between 2009 and 2013, Georgia achieved tremendous results 
in tourism growth, with total arrivals increasing by more than 300%, from 1.5 million to exceeding the 5 million. This trend also continued in 2014 an d about 5.5 million visitors travelled to the 
country, it is more than Georgia's population.  
2.33.  The increase of travellers was mainly determined by entrance of new airlines, introduction of 
direct flights to new destinations, and marketin g and promotional campaigns implemented by the 
Georgian National Tourism Administration (GNTA). 
2.34.  Herewith, the liberal visa regime has had a considerable effect on increasing both the 
number and the diversity of visitors travelling to Georgia. Currently, the country upholds a visa-free regime with 94 countries and Resident Permit Holders of 50 States.  
2.35.  Considering the importance of the tourism sect or for Georgia, in 2014, the country started 
the preparation of the new Tourism Development Strategy, which outlines the vision of the tourism industry until 2025; the document was finalized in 2015.  
Agriculture 
2.36.  Agricultural sector constituted 9.2% of the to tal GDP of Georgia with 42.6% of the entire 
population residing in rural areas (as of 2014). The Government fully acknowledging the central importance of this vital part of the economy has diverted substantial sums to the sector. By 
percentage, the budget allocations to agriculture have increased three-fold since 2011 (from 0.8% 
to 3.1% of the total allocations in 2014). The enticements have also resulted in the increase of agricultural exports by 6.7% in 2014 compared to previous year.  
2.37.  The Government of Georgia has launched various programmes aimed at further improving 
the economic condition of rural areas and its work ers. These included Preferential Agro Credit, 
Co-Financing of Agro-Processing Enterprise s and Agro Insurance projects. Significant 
improvements were noted in ensuring epizootic and phytosanitary reliability, food safety and 
enhanced irrigation and drainage systems. Vigorous international promotion projects for Georgian agricultural products especially that of wine, has been launched as well. 
2.38.  Pursuant to DCFTA Georgia has enacted, with the intent of approximation with EU 
legislation, numerous legislative amendments in the Food/Feed Safety, Veterinary and Plant 
Protection Code of Georgia as well as enacted cruc ial new legislature in order to improve food/feed 
safety and consumer protection, including mandatory labelling of genetically modified products 
(GMO), identification and registration systems for cattle, ovine and caprine animals as well as their 
habitats, new rules regarding the official control over the production/processing of products of animal origin, etc. 
2.39.  The overall strategic goals of Georgian agriculture for next five years, according to the 
“Strategy for Agricultural Development in Georgia 2015-2020” is to increase the competitiveness of rural workers, improvement of amelioration , irrigation and drainage systems, food and 
veterinary safety as well institutional,  regional and sectoral development.  
Telecommunications, innovation s and technology development 
2.40.  Based on the reforms carried out in recent years, the field of ICT is de-monopolized and 
liberalized, the new legislative environment simplified procedures for start-up activities. Licensing 
is required only for activities using the radio frequency spectrum, in all other cases new player on 
the market only has to take the authorization.  
2.41.  Understanding the importance of innovation and technology development and its role in GDP 
to support innovation and technological advanc ement, the Government of Georgia established WT/TPR/M/328 • Georgia 
 
- 8 - 
 
  Georgia’s Innovation and Technology Agency (GITA) - under the Ministry of Economy and 
Sustainable Development in 2014 - as a main coordinator and mediator in the process of building innovation ecosystem in the country. The Agency aims to promote entrepreneurship by improving 
access to finance, entrepreneurial learning, consultancy services and export promotion and 
innovation by supporting adaptation to DCFTA requirements.  
2.42.  Georgia is developing innovation infrastructure, in which Technology Park is the main 
component with its business incubators, accelerators and the Innovative and Fabrication 
laboratories. Two FabLabs and 3 iLabs were created on the basis of universities with the directions 
of Programing for the mobile application; Comp uter games development and Computer graphics 
visual effect. Two FabLabs with the direction of en gineering and creativity were created by public, 
private and academia dialogue.  
Technical barriers to trade 
2.43.  Georgia continues to further develop national quality infrastructure according to the 
international and the EU best practices. The process was accelerated from 2009 when Georgia 
started preparations for DCFTA negotiations with  the EU. In 2010, the Government of Georgia has 
adopted the Strategy in Standardization, Accr editation, Conformity Assessment, Technical 
Regulation and Metrology and a Program on Le gislative Reform and Adoption of Technical 
Regulations.  
2.44.  According to the principles laid down in the Government of Georgia Strategy and Program, 
in May 2012 Georgia adopted the new law “Code of Product Safety and Free Movement of Goods“ which is the main document in the TBT area. The Code incorporates two horizontal European 
directives (General Product Safety Directive and Liability for Defective Products directive). New 
code combined in itself following laws: the law on Standardization, the Law on Conformity Assessment, the Law on Ensuring Uniformity of Measurements, the law on Accreditation and the 
Law on Control of Technical Hazard. 
2.45.  Georgia acknowledges the standards and technica l regulations of the EU and OECD countries 
and of those countries with whom Georgia have bilateral or multilateral trade agreements, whose 
products may enter the Georgian market without any additional conformity assessment procedure.  
2.46.  In February 2014, implementation of Quality Management System in three laboratories of 
Metrology Institute (Electrical, Mass and Temperature Measurements Labs) was recognized by the COOMET Quality Forum Technical Committee. Georgia is the first country in the region to achieve 
international recognition in metrology field. 
Public procurement 2.47.  Since 2009, Georgian public procurement system has undergone major positive legislative 
and institutional changes. Significant amendments were made to the Georgian law on State 
Procurement which came into force in December 2010. According to the amendments so called “paper based tenders” were fully replaced by th e electronic procurement system. Since then, all 
tendering procedures (from tender announcement to conclusion of contract) have been exclusively 
executed by eProcurement system and potential bidde rs have the possibility to receive all relevant 
information regarding each stage of the tender process. The new eProcurement system, which is broadly consistent with best international practices, increased competition among suppliers and 
ensured greater transparency and simplicity of th e procurement process. The rapid and impartial 
Dispute Resolution Board (DRB) was also established in December 2010.  
2.48.  The remarkable achievements in public procur ement have been explicitly acknowledged by 
different international organizations including the United Nations, which awarded the Georgian 
eProcurement system the second place among 471 candidates from 71 countries in the United Nations’ Public Service Award, Category: Prev enting and Combating Corruption in the Public 
Service and recognized Georgian eProcurement  system as one of the best worldwide. WT/TPR/M/328 • Georgia 
 
- 9 - 
 
  Tax and customs  
2.49.  Since the last Trade Policy Review of 2009, there were a number of fundamental changes in 
the regulatory framework governing customs and taxes. In 2011, a new Tax Code entered into 
force, unifying for the first time both the Tax and the Customs legislation into one single legal act. 
This new legislation was envisioned with a strong emphasis on transparency, coherence, trade 
facilitation and ease of understanding. 
2.50.  In the years following the review, Georgia’s Tax and Customs Administration has employed 
a service oriented policy, pushing for increase in voluntary compliance over the cumbersome 
control based system. Institutional reforms saw further streamlining of customs procedures with decrease in the number of government agencies dire ctly responsible for the control of goods at the 
border from 8 to 2. While the number of mandatory documents required at the border decreased 
from 4 to 2 (not including license and/or permits required for certain types of goods). 
2.51.  The period saw the introduction of Customs Clearance Zones (CCZ) – centers for customs 
clearance of goods. CCZ procedures cover the whole chain of customs clearance. Services are 
available for 24 hours a day, 7 days a week. Clearance procedure covers all the goods transported 
by sea way, railway, air way or road way means of transport.  
Competition 
2.52.  Based on EU recommendations in the framework of preparations for the DCFTA 
negotiations, the Comprehensive Strategy of Comp etition Policy was adopted by the Government 
of Georgia in December 2010. In May 2012, the Georgian Law on Free Trade and Competition has 
been adopted which was further amended in 2014. 
2.53.  In order to promote free trade and competition, in April 2014, the Competition Agency was 
established which is an independent body. The Georgian Competition Agency is a member of International Competition Network (ICN) since October 2014. Also, the Agency became a member 
of Sofia Competition Forum (SCF).  
Intellectual property rights 2.54.  Georgia has made number of amendments to its IP legislation during the review period in 
order to harmonize Georgian legislation in intellec tual property field with the EU standards. In 
2010, fundamental amendments were introduced to  the Patent Law, Trade mark law and to the 
Law on Copyrights and Neighbouring Rights. Also, in 2010, the Parliament passed the new Design Law.  
2.55.  In 2015, the National Intellectual Property Center - Sakpatenti, in cooperation with relevant 
governmental bodies, has created an IPR enforcement interagency coordination body, which will deal with IPR enforcement issues, including implementation of border measures. Sakpatenti also 
established IP training center in order to raise knowledge of IP protection. 
CONCLUSIONS 2.56.  To summarize, during the reporting period, Georgia continued the trend of trade 
liberalization activities. As a result of the subsequent and coherent reform measures, tariff and 
non-tariff barriers to trade are largely eliminated, and export and import procedures are simplified. 
2.57.  Georgia has developed an integrated network of international trade agreements, in which 
bilateral, regional and multilateral trade agreements work in harmony and in a joint effort to 
promote trade and facilitate market access in Geor gia's export markets, as well as to increase 
competition and efficiency in the allocation of resources in the Georgian economy. Liberal trade policies, preferential trade regimes, and access to th e EU market in the long run will create a solid 
foundation for strengthening and developing local industry, facilitate exports and foreign direct 
investment. WT/TPR/M/328 • Georgia 
 
- 10 - 
 
  CHAIRPERSON 
2.58.  I would like to inform you that I have just been advised by the Secretariat that an 
unexpected development prevents the Perman ent Representative of Poland, Mr. Micha ł 
Chyczewski, to join us. I would propose that we move with the statements of the delegations. We 
will be informed if the situation changes further on in the meeting.  WT/TPR/M/328 • Georgia 
 
- 11 - 
 
  3  STATEMENTS BY MEMBERS 
UNITED  STATES 
3.1.  Each of the reports has helped to inform our consideration of Georgia's trade and investment 
policies today and to establish a solid foundation upon which to build our TPR discussions 
regarding Georgia. 
3.2.  Georgia's economy faces many external and internal challenges including geopolitical 
pressures in its region. The United States is prou d to support Georgia's efforts to overcome such 
challenges. The United States and Georgia enjoy a close friendship and partnership across a range 
of issues based on shared values and principles. 
3.3.  Despite the geographical distance between our two countries, I am pleased to say that trade 
between the United States and Georgia has steadily increased since 2004. Bilateral two-way goods 
trade between the U.S. and Georgia rose steadily from just over US$300 million in 2004 to 
US$1.0 billion in 2014, covering products such as vehicles, machinery, inorganic chemicals, mineral fuel oil, iron and steel, fertilizers, poultry and beverages. 
3.4.  The United States continues to support Georgia's economic revitalization, and our 
Governments continue to explore various means of further enhancing our trade relations. Our Governments also regularly consult with each other on issues of mutual importance and recognize 
the value of continued cooperation on a range of  issues. We, therefore, appreciate our ongoing 
cooperation with Georgia in all fora, including in the WTO. 
3.5.  Changes to Georgia's trade and investment regime have also been driven by its desire to join 
the European Union. The United States supports Georgia's pro-EU integration agenda. We believe 
that the implementation of the commitments in th e EU Association Agreement, including provisions 
of the Deep and Comprehensive Free Trade Agreement applied consistently with WTO rules, will improve Georgia's overall trade and investment environment. We support Georgia's efforts to 
negotiate agreements with a range of trading partners that fulfil our WTO obligations. 
3.6.  We were quite pleased to welcome Georgia's submission of its letter of acceptance of the 
WTO Trade Facilitation Agreement earlier this month. We commend Georgia for undertaking the 
steps necessary to ratify this important agreement. 
3.7.  Many of the questions we pose today reflect our desire to encourage Georgia to move 
forward expeditiously on important WTO initiatives and commitments, including continuing its accession to the WTO Agreement on Government Procurement. 
3.8.  While Georgia has ably demonstrated its commitment to open trade, some concerns remain, 
and the written questions that the United States submitted in the context of this TPR address some of those concerns. We note, for example, that in the area of food safety, the Secretariat's report 
states "the authorities stated that Georgia has gradually developed its national regulatory system 
in line with the EU and international standards" . The United States is concerned that Georgia's 
adoption of EU standards and practices may not be  science-based and could disrupt trade in U.S. 
products such as poultry, pork, and beef, as well as in the products of agricultural biotechnology. 
3.9.  We are interested in further discussion on how Ge orgia will ensure that its regulatory system 
is science-based and is implemented according to its WTO obligations under the SPS Agreement. We note that the SPS Agreement calls on WTO Members to base their measures on international 
standards and science. In the case of food safety, the Agreement cites those international 
standards contained in the Codex Alimentarius or, if  a Member elects a higher level of protection, 
that the Member base the measures on a risk assessment. 
3.10.  We would also be interested in further discussion on the status of the various SPS 
regulations in food safety, and veterinary and pl ant protection that were to be implemented in 
2015, including whether these regulations have been notified to the WTO. 
3.11.  The United States has always advocated for strong intellectual property protection as critical 
to creating a business-friendly economy. Georgia has made several efforts to improve IPR through WT/TPR/M/328 • Georgia 
 
- 12 - 
 
  new legislation, public education, and enforcement. Anticipated additional efforts, including 
implementation of the terms of the Deep and Co mprehensive Free Trade Area (DCFTA) with the 
EU, will strengthen its regime for protecting an d enforcing IPR. We submitted detailed written 
questions regarding IPR protection and look forw ard to further discussion of the issues raised, 
including the status of the Law on Copyrights and Neighbouring Rights, the system for voluntary 
depositions for protected subject matters of copyright, the data protection period in Georgia, Georgia's plans to amend IPR laws to align with provisions of the DCFTA, and the status of ex 
officio powers. 
3.12.  In closing, I would like to emphasize that Georgia is a valued partner of the United States, 
and we congratulate Georgia for its commitment to pursuing an open trade and investment regime. We believe that its continued move toward integration with the EU, and continued 
adherence to the rules and principles of the WTO, will bring Georgia a brighter future. We hope 
that this discussion today will encourage Georgi a's continuation of those policies and we look 
forward to continuing our work with Georgia to achieve those goals. 
EUROPEAN
 UNION 
3.13.  Georgia has performed rather well economically in the recent years as demonstrated, first of 
all, by a real GDP growth rate averaging 5.6% du ring 2010-14, one of the strongest in the region 
and, secondly, by its good ranking (15th) in the last World Bank’s annual "Ease of Doing Business" 
survey. Even though Georgia has been hit by a la rge external shock since the second half of 2014, 
its macroeconomic policies remained prudent and growth, although slowing down, is expected to 
reach 2.8% this year. The financial system, despite a large lari depreciation and high dollarization 
of the banking system, remains sound and well capitalized.  
3.14.  However, it cannot be neglected that reduced exports and remittances have led to growing 
external vulnerability. Therefore, while the EU  acknowledges Georgia's efforts in implementing 
far-reaching structural reforms, inter alia the ones carried out under the 'Georgia 2020 Act', the EU 
believes that more can be done to strengthen Georgia's resilience to shocks, attracting additional investments and improving productivity , and thereby sustaining growth.  
3.15.  The EU notes Georgia's good progress as regards competition policy and in particular state 
aid/subsidy policy and commends the implementation of a state of the art notification system to follow up all state aid given in the country. Competition rules are being enforced which is 
encouraging. The EU is confident that further achiev ements will be obtained in this regard and is 
confident that Georgia will continue to invest in this area as needed. 
3.16.  The EU would like to commend Georgia's efforts to integrate into the world economy as 
reflected in the progressive liberalisation of its trade regime and its participation in, or adherence 
to various multilateral, regional, and bilateral trade initiatives. In particular, the EU congratulates 
Georgia for recently depositing the instrument of acceptance of the Trade Facilitation Agreement. 
Moreover, the EU welcomes Georgia's progress toward becoming full member of 
PanEuroMediterranean Convention on rules of orig in and hopes that Georgia will soon become a 
Member of the Agreement on Government Procurement. The EU would also welcome Georgia joining the Information Technology Agreement. In the EU's view, these achievements would 
strengthen further the economic reform path and Georgia's integration in the international 
economy. 
3.17.  Bilaterally, Georgia is an important economic market for many European countries and 
companies. The EU is the first trading partner of Georgia and bilateral trade has continued to grow 
in the past years.  
3.18.  The EU welcomes the strengthening of EU-Georgia bilateral trade relations under the 
Association Agreement, including the DCFTA, and acknowledges that the reform process in trade 
areas is progressing reasonably well. Furthermore, the EU is committed to supporting Georgia’s 
reform agenda through financial and technical cooperation. In this respect, the EU envisages an indicative financial allocation in the range of €335–410 million for the period 2014-2017 that will focus mainly on reforming the public administration and justice sectors, as well as on agriculture 
and rural development. The European Commission, jointly with the European Investment Bank and 
the European Bank for Reconstruction and Development has also recently put in place the DCFTA WT/TPR/M/328 • Georgia 
 
- 13 - 
 
  Facility for small and medium-sized enterprises aiming at helping them in seizing new trade 
opportunities with the EU as well as improve their access to finance. 
3.19.  The EU also acknowledges Georgia's position as a regional trade corridor and is committed 
to deepening and strengthening our relations wi th Georgia in the framework of the Eastern 
Partnership, set up in 2009 to accelerate political association and further economic integration 
between the EU and the interested Eastern Partner countries. The active Georgian contribution to the Eastern Partnership should be commended.  
3.20.  The EU would like now to raise a couple of concerns.   
3.21.  First of all, Georgia should further invest in the SPS area; in this respect, the EU would like 
to ask Georgia what plans it has in order to advance the regulatory framework and infra-structure for animal health control. 
3.22.  Secondly, although the regulatory framework for the telecommunications sector is relatively 
well developed, the European companies have experienced some difficulties regarding auctions for the allocation of spectrum. The EU would ther efore encourage Georgia to adopt the necessary 
reforms in order to guarantee more transparency of the related procedures, in line with its 
commitments undertaken in the Telecoms Reference Paper. 
3.23.  Finally, the European industry is concerned by  the lack of transparency regarding the new 
Postal Act and its possible implications for foreign postal services providers. The EU calls upon 
Georgia to ensure that any reforms in the sector will not lead to a deterioration of the competitive environment.   
3.24.  The EU is confident that Georgia will take Members' concerns duly into account. On behalf of 
the EU, I wish the Georgian delegation the utmost success during its Trade Policy Review.   
SEPARATE
 CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
3.25.  The Secretariat report recognizes that Georgia has a very liberal trade regime, with a simple 
and very low tariff structure as a result of seve ral trade policy reforms after its accession to the 
WTO. It has one of the lowest average applied M FN rate in the world which is at 2.0% despite 
being increased slightly from 1.6% from 2009. Since last trade policy review, Georgia’s global 
competitiveness ranking improved from 90th place in 2009 to 69th in 2015, which is very 
impressive.  
3.26.  As highlighted in the Secretariat’s and Government report, Georgia has continued with 
structural changes since last review. The broad objectives of Georgia’s trade policy remain focus 
on integration into the world economy, continued trade policy liberalization, facilitation of customs 
procedures and diversification of trade relation s by establishing preferential regimes with 
important trading partners. We welcome Georgia’s continuing structural reforms and liberalization 
of trade and investment regimes, as well as the farm land reformation and SPS regulation 
soundness.  
3.27.  We take note that Georgia has launched the socio-economic development strategy "Georgia 
2020" in June 2014. This plan aims at creating foundations for long-term inclusive economic 
growth and improving the welfare of the populati on. We recognize that through this strategy, 
Georgia plans to improve private sector’s compet itiveness by enhancing the investment climate, 
especially for small and medium-sized enterprises (SMEs).  
3.28.  In terms of investment, we applaud Georgia’s initiative, as indicated in the Government 
report, Georgia has positioned itself as an attractive destination for foreign direct investment. We are pleased to see from the "Doing Business" surv ey reported by the World Bank, Georgia ranked 
24th in the world for the ease of doing business la st year and that was the best in the region. 
However, the other World Bank survey indicates that investment in Georgia has largely been 
concentrated in non-tradable sectors and tourism which are highly associated with import. Thus, 
we encourage Georgia to draw diversified investment to improve private sector’s ability in 
technological sophistication and innovation. This could resolve its problems of low export diversification and limited access to new markets. WT/TPR/M/328 • Georgia 
 
- 14 - 
 
  3.29.  We note that Georgia is an observer to Go vernment Procurement Agreement (GPA) and is 
currently assessing the prospects for joining the Agreement. We welcome Georgia to follow through on this important step. Meanwhile, we are pleased to see that Georgia ratified the WTO Trade Facilitation Agreement in the beginning of th is year, which will definitely benefit Georgia’s 
role as a trade transit corridor in the region. 
3.30.  Regarding tourism sector, we also note that Georgia has launched an e-visa portal which 
facilitates foreign tourists to apply visa online. We believe this online visa-granting system will 
benefit Georgia’s tourism industry. However, due to technical problems, our people are not able to 
apply visa application through that system. We look forward to cooperating with Georgia to resolve this technical issue in order to foster our people visiting Georgia as well as to promote bilateral investment and business opportunities. 
3.31.  The total value of two-way trade between Geor gia and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu in 2013 amounted to US$23.2 million. The trade relations between us may still look limited so far. However, there are many opportunities and potentials to 
further strengthen our trade and investment ties, if we can identify the greater complementarity of 
our trading sectors. 
3.32.  In closing, we strongly encourage Georgia to hold firm to its economic and trade policy 
reforms. On behalf of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu, I 
wish Georgia a successful review. 
RUSSIAN
 FEDERATION 
3.33.  The Russian delegation welcomes the second Tr ade Policy Review of Georgia. We strongly 
support the TPR process and the contribution it makes to enhancing transparency and building 
confidence in the multilateral trading system. Th e Trade Policy Review of Georgia provides an 
opportunity for discussing certain systemic matters of major importance to all Members' policy 
makers. 
3.34.  The amount of our bilateral merchandise trade has increased almost five- fold over the past 
five years reaching US$800 million in 2014. As for trade in services, the turnover grew at the rate 
of 4%, from US$407.7% million in 2013 to US$423.7 million in 2014. It is noteworthy that the FDI 
flows from the Russian Federation to Georgia increased considerably totalling US$92.9 million in 2014. 
3.35.  Russia is among the top three destinations for Georgian exports and also among the top five 
sources of Georgian imports. Today, according to the Secretariat report, almost 10% of all 
Georgian exports go to the Russian Federation. 
3.36.  We note the continuous growth of the Georgia's economy with an average annual rate of 
5.8% during 2010-2013, due to both the ec onomic policy and the market factors.  
3.37.  Prior to this TPR, Russia has submitted a number of questions to Georgia regarding 
competition policy, regional trade agreements and certain SPS measures. 
3.38.  To conclude, we would like to thank you, Mr. Chairman, the delegation of Georgia, the 
Secretariat and the Discussant, for the work done so far and wish Georgia a successful Trade Policy Review. 
TURKEY 
3.39.  After acceding to the WTO, Georgia has proven an impressive economic performance. The 
country's trade liberalization policies, continuing structural reforms and acceptance of market economy principles have helped create a viable business environment for foreign investment. 
Turkey is pleased to observe that Georgia remains committed to the main objectives resulting 
from WTO Membership as well as from ot her agreements since the previous review. 
3.40.  As indicated in the Secretariat report, in the review period (2009 to 2015) Georgia's average 
annual real GDP growth rebounded from -3.7% in 2009 (due to the global financial crisis) to an WT/TPR/M/328 • Georgia 
 
- 15 - 
 
  average of 5.6% in 2010-2014 period, GDP per capita increased by over half and reached 
US$3,680 in 2014. However, Georgia's robust growth performance was accompanied by high unemployment. Despite growth in GDP, unemploym ent and poverty rates have been high during 
the period under review and it remains perhaps the most significant economic challenge for 
Georgia. 
3.41.  In this respect, there is a clear need to cr eate additional business opportunities to bring 
about overall net job creation. Bearing in mind that the tourism sector is one of the fastest 
growing sectors and (according to the World Bank ) accounting for 14.2% of total employment in 
2013 in Georgia, a national tourism development strategy will help determine how to improve the sector's performance and facilitate job growth. 
3.42.  In this respect, there is a clear need to cr eate additional business opportunities to bring 
about overall net job creation. Bearing in mind that the tourism sector is one of the fastest 
growing sectors and (according to the World Bank ) accounting for 14.2% of total employment in 
2013 in Georgia, a national tourism development strategy will help determine how to improve the 
sector's performance and facilitate job growth. 
3.43.  From a trade policy perspective, Turkey welcomes Georgia's continuing economic reforms 
during the last ten years. As referred to in the Secretariat report, since the previous review in 
2009, Georgia's customs procedures have been furt her simplified, with the number of documents 
required to import/export reduced, the time shortened, and the cost lowered. It is also worth mentioning that Georgia's applied MFN tariff rate is 2%, which is one of the lowest in the world while almost 80% of its imports are duty free. With respect to contingency measures, Georgia has 
no legislation regarding anti-dumping, countervailing or safeguard measures. All these express 
Georgia's intention of becoming more integrated into the multilateral trading system. 
3.44.  We observe that Georgia has significantly improved the legal, regulatory and institutional 
framework for doing business in recent years. According to the World Bank's Ease of Doing 
Business Report in 2015, Georgia has the highest ranking in Eastern Europe and Central Asia with a rank of 15
th among 189 economies. The average cost (US$1,355) and required time (9 days) to 
export a container seems much lower than the average for the economies of Europe and Central 
Asia (US$2,154 and 23.6 days) and compares favourably with OECD countries (US$1,080 and 10.5 days). I believe that these developments will be further encouraging for Georgia's economy especially in terms of foreign investments. 
3.45.  Due to its fertile soil and proper climate conditions a wide variety of agricultural products 
can be grown in Georgia. Besides, the agricultur al sector employs about half of the country's 
labour force. Despite this, the share of agricult ure in GDP has been declining compared to the 
1990s. This case evidently demonstrates the low labour productivity of the sector and the 
subsistence nature of Georgian farming. On the other hand, the share of agriculture in GDP began 
to rise in 2013, reflecting the Government's renewed interest in and increased support provided to 
the agricultural sector. However, I believe that developing a comprehensive strategy to achieve a 
sustainable agricultural production and building an agricultural infrastructure will improve Georgia's agricultural sector significantly. At this stage, improving ef ficiency and upgrading 
hygiene and quality standards would help make the Georgian agriculture internationally more 
competitive. 
3.46.  On the bilateral front, I would like to underline that Georgia and Turkey enjoy a relatively 
high volume of bilateral trade and economic relations since the Free Trade Agreement between 
Turkey and Georgian became effective in 2008. As also mentioned in the Government report, 
Turkey is a major trade partner of Georgia. In 2014, 20% of Georgian imports were sourced from 
Turkey. Bilateral trade volume between Turkey an d Georgia exceeded US$1.6 billion in 2014, by 
16% increase compared to the year before. Furthermore, Georgia is a crucial gateway for Turkish 
exporters and currently the frequency of our transportation through Georgia to Azerbaijan and Central Asia has exceptionally increased. However, I believe that there is still a great potential to be explored in the fields of bilateral trade and investments to enhance economic dimension of our 
relations. 
3.47.  On the other hand, despite the above-mentioned positive and promising figures, due to 
regional economic challenges affecting our countries, both our exports to and import from Georgia WT/TPR/M/328 • Georgia 
 
- 16 - 
 
  have considerably dropped in 2015 (exports by 22. 5%, imports by 3%). We need to redress these 
loses as soon as possible and get back to a growth track again. In this respect, I believe that facilitating the cross-border transit arrangements by harmonizing our customs procedures and reducing the cost of transit passage will be useful to increase bilateral trade. 
3.48.  Likewise, Turkey and Georgia closely cooperat e in the field of energy. The two countries 
contribute to the energy security in Europe and th e world, by diversifying the energy routes in the 
world as they host the oil and natural gas pipelines between the Caspian Sea to the 
Mediterranean. 
3.49.  Before concluding, I wish every success to Georgia in achieving Georgia's Social Economic 
Development Strategy – Georgia 2020 that aims maintaining macroeconomic stability, strengthening competitiveness of the private sector, developing human capital and enhancing 
access to finance. I believe that the "Georgia 2020" development plan will be a roadmap for 
making Georgia a sustainable and competitive economy. 
CHINA 
3.50.  We are pleased to see that during the review period, the annual real GDP growth of Georgia 
rebounded from -3.7% in 2009 to an average of  5.8% between 2010 and 2013, with the GDP per 
capita increasing by over half, and foreign direct investment contributing to 10.6% of GDP as an 
important source of funds in 2014. 
3.51.  In this regard, we appreciate the efforts of Georgia to facilitate trade and investment by 
bringing its border policies including the customs regulations and trade facilitation measures in line with international and WTO practices, and by lowering the simple average MFN tariff for 
agricultural products from 7.2% in 2009 to 6.7% in 2015. China has noted with pleasure that 
Georgia's public procurement regime ranked the best in the region according to the European Bank for Reconstruction and Development (EBRD), and efforts have been made by Sakpatenti, the 
national intellectual property center to raise pub lic awareness of IPR and improve enforcement. We 
believe those measures will contribute further to Georgia's integration into the global trading system. 
3.52.  Since the last review, economic cooperation between Georgia and China has maintained a 
strong momentum in general. Today, China is the third trading partner and second source of import of Georgia. From 2009 to 2014, total bilateral trade volume rose from US$201 million to US$960 million. Just last month, Georgia and China signed an MOU on initiating the negotiation of 
China-Georgia Free Trade Agreement, apart from the MOU on strengthening cooperation for the 
Belt and Road Initiative inked earlier. Despite a moderate decline of bilateral trade in 2015, China 
firmly believes that the foundation for our ec onomic cooperation remains sound and our trade 
relations will scale up to a new level in the near future. 
3.53.  While our economic cooperation with Georgia enjoys generally sound development, it is true 
that there are few concerns from our business communities which have been included in our 
written questions. For example, the average app lied MFN and bound tariff rates of Georgia grew 
from 1.6% in 2009 to 2.0% in 2015, and, in particular, its tariff rates for Section 7 (rubber, plastic products), Section 15 (basic metals and related products) and Section 17 (transportation equipment) in the HS commodity groups rose from 0% to 1%-2.5% from 2009 to 2015. We are 
expecting explanations from Georgia for such adjustment, and its clarification on the relationship 
between these changes with trade liberalization, th e objective of Georgia's trade policy outlined in 
its Policy Statement. And we hope that Georgia notify the WTO of its adherence to the Trade 
Facilitation Agreement as soon as possible. 
3.54.  Both China and Georgia have long been strong supporters of the multilateral trading system 
and active participants in the Doha Development Agenda negotiations. At MC10 last month, 
Members' concerted efforts led to successful outcomes on several negotiation topics, but the task 
of finding solutions to the remaining issues under the Doha mandate is more arduous for us all. We should work in solidarity to prove to the whole world that WTO does deliver and remains a 
functional platform for the formulation of international trade rules. As a developing Member, China 
looks forward to joining hands with Georgia and other WTO Members for a meaningful, balanced 
and development-oriented conclusion of the DDA talks at an earlier date. WT/TPR/M/328 • Georgia 
 
- 17 - 
 
  BRAZIL 
3.55.  It is a matter of satisfaction for Brazil to participate in this TPR. Diplomatic relations 
between our Governments were established in 1993 and, notwithstanding the distance that 
separate us, there is room to expand the scope of our bilateral relationship. 
3.56.  Georgia has shown its commitment to further integrate into global and regional trade during 
the last few years, by undertaking a number of re forms targeted at liberalizing trade, improving 
infrastructure and upgrading business environment. Brazil commends the Georgian Government 
for creating foundations for long term economic growth with a view to improving the welfare of its 
population. 
3.57.  Such effort has already produced positive outcomes: GDP per capita grew fourfold between 
2003 and 2014 and the country has performed impre ssively in various ratings of international 
agencies, including the World Bank and the International Finance Corporation. Nevertheless, in 
spite of the progress made, Georgia is still faced with the challenge of income distribution, unemployment and poverty. We encourage the Georgi an Government to keep pursuing the path of 
sustainable and socially inclusive reform. 
3.58.  The Secretariat report points out that the key event of the review period occurred in June 
2014, when Georgia signed the Association Agreem ent with the European Union. The Agreement 
includes a Deep and Comprehensive Free Trade Area aimed at enhancing Georgia's trade 
prospects and economic growth. Brazil hopes that such process contributes to Georgian development, without creating trade barriers or tr ade diversion to other Members, especially with 
respect to agricultural products. 
3.59.  Since 2010, our bilateral relations have politically intensified with the opening of embassies 
and an intense agenda of visits of senior officials. However, much remains to be done, since there are a number of untapped potentialities for cooperation, particularly in areas such as energy, 
logistics and agriculture. 
3.60.  Two-way trade suffered a decline as a result of the global crisis in 2008, but has gradually 
recovered as of lately. The basket of Brazilian exports is by far dominated by sugar, beef and 
soybean meal, while our imports are basically made up of iron and steel products. There is 
potential for cooperation to increase and diversify trade flows, not only in goods but also in services and investments. 
3.61.  We are grateful for the replies provided to our questions on SPS measures, subsidies and 
services. They provided a better insight into the Georgian trade policies and practices and will be 
forwarded to our capital for further examination. 
3.62.  In closing, Brazil stands ready to improve cooperation and trade links with Georgia and 
wishes it a very successful Trade Policy Review. 
THAILAND 3.63.  In 2014, the trade value between Thailand and Georgia was US$37.86 million. With exports 
and imports valued at US$35.28 million and US$2.59 million, respectively. 
3.64.  The number indicates that Thailand and Georgia have a healthy trade relation and that trade 
potential can still be explored especially with regard to Thailand's imports from Georgia. 
3.65.  Thailand would like to congratulate Georgia on its impressive average economic growth of 
over 5% during the review period, although we note the expected decline in 2015. We would also 
like to highlight the exceptional development and performance of the tourism sector, contributing US$1.8 billion in income in 2014 and expecting further growth with the projected number of 
international arrivals of 5.8 million in 2015. 
3.66.  We commend Georgia for its ratification of th e Trade Facilitation Agreement earlier this 
month and commend Georgia's efforts to implement reforms to facilitate trade, including the 
opening of customs clearance zones. WT/TPR/M/328 • Georgia 
 
- 18 - 
 
  3.67.  Thailand also appreciates Georgia's amendment of its laws both on Competition and 
Intellectual Property with a view to aligning them with regional and international requirements. 
3.68.  In this review, Thailand submitted several qu estions to Georgia, covering, among others, 
competition policy, IPR, and policies and investment incentives in the Services sector. 
3.69.  We look forward to Georgia's responses to our questions, and will study them in detail with 
great interest. 
3.70.  In conclusion, Thailand would like to express our appreciation to the delegation of Georgia 
for today's presentation. We are thankful for the cooperation with Georgia in both Geneva-based 
and Capital-based levels. We wish Georgia every success in this Trade Policy Review. 
ECUADOR 3.71.  Ecuador is taking part in this trade policy review with considerable interest. According to the 
Secretariat report, exports of goods and services remained under 40% of GDP for most of the 
review period, underlining the challenge for the country's authorities as they sought to reduce the trade imbalance. 
3.72.  In this regard, we note in the Secretariat repo rt that the merchandise trade deficit has been 
conditioned by robust import growth due to gr owing domestic demand, FDI- and tourism-related 
imports and high energy and commodity prices. 
3.73.  We also note the various problems that have affected the Georgian economy, such as the 
Russia-Ukraine crisis, the deepening recession in the Russian Federation, and currency devaluations in some of Georgia's trading partner countries. 
3.74.  In addition, the problems relating to technological sophistication and innovation are the 
main reason for low export diversification and limited access to new markets. 
3.75.  Despite these difficulties, Georgia has managed to maintain the structure of its exports, 
which are still dominated by resource-based products such as agriculture, copper ores and other 
minerals, accounting overall for more than 40% of exports. 
3.76.  It is important to emphasize Georgia's achievem ents during the period under review, one of 
which concerns services exports, which rose from 12% of GDP in 2009 to over 18% of GDP 
in 2014, growing at a faster rate than merchandise exports. 
3.77.  Ecuador recognizes that FDI is a critical element for the Georgian economy and an 
important source of financing, which reached 10.6% of GDP in 2014. 
3.78.  Ecuador notes that one of the broad objectives of Georgia's trade policy has been 
integration into the world economy, including implementation of WTO membership obligations and 
obligations under trade agreements, such as the A ssociation Agreement with the EU; facilitation of 
export and import procedures; and streamlining of NTB regulations. 
3.79.  On this last point, the relevant part of section 3.3.1 of the Secretariat report, relating to 
export procedures and requirements, states that "a pplications for permits and certificates required 
for exportation may be lodged electronically through the Revenue Service webpage based on a 
single window principle". It would be useful to know what is the standard electronic document 
used to issue such permits and certificates and wh at specific certificates are issued through this 
tool, with a view to preparing future exchange s of information and promoting the exchange of 
e-documents to facilitate trade between the two countries, since Ecuador's single window has now 
been fully implemented. 
3.80.  To conclude, we thank the delegation of Georgia in advance for its replies to the questions 
we have raised on some specific aspects of the country's trade policy; they will provide important 
information to strengthen bilateral relations in the area of external trade. WT/TPR/M/328 • Georgia 
 
- 19 - 
 
  CANADA 
3.81.  The Secretariat and Government reports provide a comprehensive overview of Georgia's 
economy, underline the successes of the transforma tive work undertaken by the Government of 
Georgia and suggest areas of focus that will allow Georgia to expand its efforts to liberalize trade, 
improve the business environment and continue to attract high-quality foreign investment. 
3.82.  As Georgia continues to weather the challenges posed by the slowing economies of its main 
trading partners and the depreciation of their curre ncies, it will be aided by the market and policy 
reforms it has made in the past several years. The commitment of the Georgian Government to 
leveraging the opportunities afforded by its Association Agreement within the EU, and the 
continued alignment of its legislative and regulato ry framework to that of the EU, will encourage 
the development and diversification of its industries, increase exports and improve its already 
attractive investment environment. 
3.83.  Canada applauds the strong growth in Georgi a's services exports. Both the Government's 
and the Secretariat's reports note the exceptional performance of the tourism sector, and while 
this sector may account for an unbalanced share of Georgia's services exports, it is nevertheless 
clear that there remains considerable growth potential. As Georgia leverages improvements in the service offerings in this sector and as the Government finalizes and implements its Tourism 
Strategy, Georgia is well placed to attract tourists beyond those coming from neighbouring 
countries and encourage an important source of employment. 
3.84.  We would also like to congratulate the Government of Georgia on its efforts to increase 
agricultural exports and to improve the economic situation of workers in the agricultural sector. 
The Government's significant investments in credit and insurance programmes combined with 
improvements in phytosanitary and food safety pr ogrammes have bolstered the recent recovery of 
this sector. However, as noted in the Secretariat report, there is still work to be done to improve 
efficiency and hygiene and quality standards, pa rticularly in agro-processing. Continued supports 
aimed at improving productivity and promoting the export of Georgian agricultural products will 
yield commensurate gains in economic opportunities in Georgia's rural areas, where agriculture 
remains fundamentally important but where employment is not yet sufficiently remunerative. 
3.85.  Both the Secretariat's and Georgia's reports note that Georgia has taken measures to 
improve the financial and tax system. We understand that foreign companies currently present in Georgia have expressed concerns about what they consider to be lengthy and arbitrary tax audits, 
and which appears to be one of the major challenges faced by investors in Georgia. Canada is, 
therefore, hopeful that Georgia's shift to a more  service-oriented administration of the new Tax 
Code will allay those concerns. We also look forward to outcomes of the Government's ongoing 
capital market reforms to further develop its secu rities market and closer align Georgia's markets 
with international best practices. 
3.86.  I would like to note that although Georgia and Canada's bilateral trade flows are modest, we 
enjoy a warm relationship. We are encouraged by the continued efforts of Georgia to transform its 
economy and see value in increased cooperation between our countries. And we encourage Georgia to consider joining the GPA and acceding to the ITA expansion. 
3.87.  Let me express the hope that Georgia continues to reap the benefit of the foundation it is 
building through its efforts, and that it would find  the collegial support and feedback of fellow WTO 
Members to be constructive in its second Trade Policy Review. 
MONTENEGRO 
3.88.  Montenegro aligns itself with the statement ma de earlier on behalf of the EU delegation. 
3.89.  Reports submitted by the Government of Georgia and the World Trade Organization 
Secretariat in advance of this meeting have clearly showed that Georgia's economy has undergone 
significant structural changes since its independence and has continued to develop its national 
quality infrastructure in accordance with international and EU practices. We share the Secretariat’s assessment that the key event of this review period for Georgia occurred in June 2014, when 
Georgia signed the Association Agreement (AA) with the European Union.  WT/TPR/M/328 • Georgia 
 
- 20 - 
 
  3.90.  Montenegro shares Georgia’s commitment to trade liberalization and the multilateral trading 
system and stands ready to continue working closely with Georgians policy makers towards our common objective – full membership to the European Union. To this end, Montenegro fully supports Georgia’s commitment to ensuring long-term inclusive economic growth that improves 
the welfare of the population.  
3.91.  Montenegro notes with particular appreciation the extend of the changes Georgia made in 
regulating the foreign trade – including the revision of the Tax Code, customs regimes and 
procedures in the trade-related areas, bringing them in line with international and WTO practice. 
This commitment includes the latest important decision of Georgia on ratification of the Protocol to the Trade Facilitation Agreement.  
3.92.  On reviewing macroeconomic trends, we would like to commend Georgia on ensuring that 
average annual real GDP growth has rebounded fr om -3.7% in 2009 to an average of 5.8% in 
2010–2013. Although the Secretariat expects that Georgia is to suffer from depressed economies 
of its major trading partners, Montenegro still notes that Georgian growth is likely to have been 
around 2% in 2015.  
3.93.  Of particular interest to Montenegro is the important role tourism plays in the Georgian 
economy. In this regard, Montenegro notes the Government of Georgia’s statement that tourism is 
one of the fastest developing sectors of the Geor gian economy. Having achieved more than 300% 
growth in total arrivals between the years 2009–2013 is an impressive achievement. It is also to 
Georgia’s credit that it has secured increases in tourism receipts from US$954 million in 2011 to US$1.8 billion in 2014.  
3.94.  Montenegro is looking forward to intensify our bilateral cooperation in tourism and related 
business opportunities based on the Agreement be tween the two Governments that was put into 
effect at the end of 2014. In addition, Montenegro stands ready to finalizing other relevant 
bilateral economic agreements that are currently under review in Tbilisi.    
3.95.  My delegation is looking forward to continuing a constructive engagement with the 
delegation of Georgia in Geneva. We wish Georgia every success in its second Trade Policy Review.  
REPUBLIC
 OF MOLDOVA 
3.96.  I would like to commend Georgia and the Secretariat for their precious work in compiling 
the useful reports on trade policy practices in Georgia since it became the 137th WTO Member in 2000, in less than four years after applying for its membership. 
3.97.  Since its independence in 1991, Georgia has been on a path of trade and economic 
liberalization, moving from a centrally-planned economy toward a market-driven economy. Georgia’s economy faces many external and internal challenges, similar to the economy of the 
Republic of Moldova, including regional instability due to the currency devaluations in trading 
partner countries and certain geopolitical challenges. 
3.98.  After the real GDP growth slowed significantly to 3.3% in 2013 from 6.4% in 2012, 
Georgia’s economy recovered in 2014 to 4.8% (just below the Government's 5% target) and it 
was expected to halve to around 2% in 2015 due to the depressed economies of Georgia's major trading partners.  
3.99.  Despite growth, unemployment has been high and it remains perhaps the most significant 
public policy challenge, which is also true in the case of the Republic of Moldova. We would like to 
emphasize the need to improve the conditions of activity of the small- and medium- enterprises 
which make up over 90% of active businesses in Georgia and 43% of employment. As the report 
of the Secretariat notes, countries with a large informal economy show a scarcity of small and 
inefficient or inactive firms, which would otherwise have disappeared, this is the main reason why we would like to consolidate the cooperation between state institutions responsible for promoting 
policies on supporting small and medium enterp rises and to develop the business contacts 
between SMEs of both countries. We note positively  the reforms in the fiscal field, especially the 
attractive tax and customs regime. WT/TPR/M/328 • Georgia 
 
- 21 - 
 
  3.100.  The total volume of trade between the Repu blic of Moldova and Georgia, in 2014, has 
amounted US$26.7 million, decreasing with 17.8% against the similar period of the previous year (US$32.5 million). The Republic of  Moldova is working to consolidate the revitalization of the 
economical bilateral relations and to achieve significant results in order to develop the economy 
and to modernize the country. In this regard, we  attach great value to the bilateral Agreements 
signed between Georgia and the Republic of Mold ova in the field of the mutual promotion and 
protection of investments and on free trade, which entered in force in 2007.  
3.101.  We also believe that the implementation by Georgia of the commitments in the EU 
Association Agreement, including provisions of the Deep and Comprehensive Free Trade Agreement, which is being applied consistently in accordance with the WTO rules, will help the national institutions to reduce the corruption, to improve the rule of law, to increase the 
transparency and to modernize the country through the development of the trade and investment 
environment.   
3.102.  The Republic of Moldova is confident that the se cond exercise of the trade policy review will 
help Georgia to attain its economic objectives and fully honour its international commitments.  
3.103.  We look forward to continuing strengthening our bilateral relations with Georgia and on 
behalf of the delegation of the Republic of Mo ldova I wish the Georgian delegation the utmost 
success during the second Trade Policy Review. 
JAPAN 3.104.  We all know that Japan and Georgia are located far apart from each other. The economic 
relationship between us has not been active, as well. However, Japan has had some sorts of 
"connection" with feelings of closeness toward Georgia through many Georgian people who are 
successful in Japanese society. Among others, several professional sumo wrestlers, namely Gagamaru and Tochinoshin, are incredibly famous and popular in Japan. 
3.105.  Japan believes that, based on feelings of affinity, we can lead to the next steps, including 
economic and trade relationships, Japan is now paying close attention to Georgia's huge economic potential as one of the most attractive investee countries in this region. 
3.106.  Needless to say, Georgia's location in the geopolitically important corridor surrounded by 
Europe, Asia, Russia and Middle East has the potential to make Georgia a transit hub in this region. In addition to its location, Japan positively evaluates Georgia's business environment. The latest "Doing Business" report by the World Bank  notes that the business environment in Georgia 
ranks 24
th out of 189 countries worldwide. 
3.107.  Overall, Japan expects our economic and trade ties to go from strength to strength. 
Structural reform 
3.108.  This is primarily the result of Georgia's continuous efforts toward structural reform, 
including trade liberalization, infrastructure improvement and privatization, as well as anti-corruption policies. Japan commends Georgia's efforts in this regard. 
3.109.  In terms of structural reform, Georgia formulated the new mid-term strategy, namely 
"Georgia 2020", in 2014. In this strategy, the Government of Georgia frankly admitted a number of problems in its legal and regulatory framework for doing business, and established the future direction of its policies, including strengthening competitiveness of the private sector, protection of 
IPR, improving the tax system and so forth. Japan hopes that the Government of Georgia will 
successfully implement the strategy. 
Diversification  
3.110.  Despite its structural reform, Georgia experienced some economic slowdowns in the past. 
One took place due to the "twin shocks" in 2008 and the other is now occurring due to the depressed economies of Georgia's major trading partners. These facts clearly illustrate Georgian 
vulnerability to exogenous factors. WT/TPR/M/328 • Georgia 
 
- 22 - 
 
  3.111.  We recognize the fact that Georgia has been making efforts to diversify its trade and 
economy. However, Georgia has not yet been comple tely successful in this objective. According to 
the Secretariat report, product composition and direction of trade has been unchanged for years. 
3.112.  Let me make some comments on trade policy. Needless to say, the most important trade 
policy that Georgia has made recently is the Association Agreement with the EU including the Deep 
Comprehensive Free Trade Area (DCFTA). Japan recognizes that the DCFTA covers various policy areas and enables Georgia's legislation to more closely resemble that of the EU acquis. Japan 
hopes that the DCFTA will contribute to a more stable and predictable regulatory framework, 
resulting in an even more attractive business environment. 
3.113.  Other than the DCFTA with the EU, Georgia has vigorously been participating in 
negotiations about RTAs. Georgia has RTAs with  the CIS countries and Turkey. Moreover, the 
Secretariat's report notes that Georgia started a joint feasibility study with China on a possible 
Free Trade Agreement. 
3.114.  Japan commends these efforts for further trade liberalization and hopes that Georgia's 
RTAs will complement and contribute to strengthening the multilateral trading system. 
ALBANIA 3.115.  Albania aligns itself with the statement of the European delegation.  
3.116.  Albania welcomes Georgia’s economic performance for the period 2009-2014 which has 
been a positive trend for growth, averaging nearly 4% annually.  
3.117.  We welcome the progress, since the first Georgia's TPR, in its economic policies. As a result 
of the subsequent and coherent reform measures, tariff and non-tariff barriers to trade are largely 
eliminated, and export and import procedures are simplified.  
3.118.  The improvement of the business climate in the country by the approval of the Regulatory 
Framework Reform Strategy for Entrepreneurial Activity and the Innovation Strategy for 
2013-2020 enhances the country’s competitiveness and improve the institutional framework for 
research, development and innovation and the allocation and management of financial resources to this effect.  
3.119.  Albania commends the business climate in Georgia in particular by adapting and 
developing a quality infrastructure as well as the adoption of the National Action Plan for improving the business environment and the private investment regime.  
3.120.  Georgia has developed an integrated network of international trade agreements, in which 
bilateral, regional and multilateral trade agreements work in harmony and facilitate market access 
in Georgia's export markets, as well as increase competition and efficiency in the allocation of resources in the Georgian economy. In this frame, Georgia has successfully concluded the 
Association Agreement with EU and has made initial steps with EFTA.  
3.121.  Georgia is a small country and a country with a transition economy. As such, Georgia 
economy in a way or another is affected by the global financial and economic crisis. Therefore, by 
this review, we expect to look with high interest the Georgian Government economic and trade 
policies as well as relevant mechanisms undertaken in the area of trade and development. 
3.122.  Taking into account the national potential for exportation, Albania encourages the Georgian 
Government for promoting of exports and the deve lopment of sectors with potential comparative 
and competitive advantages. Liberal trade policies, preferential trade regimes, and access to the 
EU market in the long run will create a solid foundation for economic development.  
ARGENTINA 
3.123.  Argentina is most interested to note Georgia's economic and trade development. 
Considering the major economic and social challenges facing the country, special mention should be made of Georgia's ongoing efforts and achievements in terms of trade liberalization, improved WT/TPR/M/328 • Georgia 
 
- 23 - 
 
  infrastructure relating to the import/export of energy, tourism and transport, and the country's 
capacity to attract foreign investment. 
3.124.  In particular, it is important to underscore  the recovery of GDP (despite the recent 
slowdown), with growth averaging nearly 4% a nnually over the review period (2009-2015), the 
positive services balance, the stability of the financial sector and Georgia's position among the top 
ranking countries on the ease of doing business in dex. Such performance was achieved despite the 
decline in exports, the merchandise trade deficit, and the crisis affecting the country's main 
trading partners. 
3.125.  The establishment of economic partnership and investment agreements with a number of 
countries bears witness to Georgia's intention to diversify and intensify its foreign trade relations, 
within the framework of a comprehensive socio-economic development strategy known as 
"Georgia 2020", which creates the foundations for long-term inclusive economic growth. 
3.126.  Argentina highlights Georgia's efforts to develop its agricultural sector. Within the context 
of the Memorandum of Understanding on Technica l Cooperation in the Sphere of Development of 
Agriculture, Animal Husbandry, Fishing, Agro-ind ustry and Agricultural Regions signed between the 
two countries in 2013, Argentina would be interested in stepping up cooperation in areas such as cattle farming, winemaking, agriculture, grain production technology, post-harvest storage and 
technology, marine fisheries and aquaculture. Argentina could also provide technical assistance in 
implementing Georgia's Agriculture Development Strategy 2015-2020. 
3.127.  Likewise, the signing by both countries in 2015 of the Memorandum of Understanding on 
Economic and Trade Cooperation and the Agreemen t on Cooperation and Mutual Assistance in 
Customs Matters has provided appropriate instruments to continue promoting stronger trade links with Georgia. 
3.128.  As part of its objectives to streamline and update its trade regulations, Georgia has 
adopted important measures, such as those aimed at reducing technical barriers to trade, the Strategy in Standardization, Accreditation, Co nformity Assessment, Technical Regulation and 
Metrology, the Programme on Legislative Reform  and Adoption of Technical Regulations, the 
changes made to the government procurement system and the amendments to the Law on 
Competition. 
3.129.  Argentina wishes to continue working together with Georgia to deepen bilateral ties, so as 
to accompany the country along the path to provide better living conditions for its people. It is 
willing to make every effort to expand relations between the two countries, especially in the areas 
of livestock and crop farming, fisheries and technology. 
3.130.  To conclude, while reiterating our appreciation of this renewed opportunity to exchange 
points of view and comments on the trade policies an d practices of Georgia, we would like to draw 
attention once again to the importance of this ex ercise in transparency from every point of view, 
and to wish the Georgian authorities a successful conclusion to this review. 
SINGAPORE 
3.131.  Singapore enjoys friendly relations with Georgia. While the amount of bilateral trade and 
investment is currently modest, we hope that the bilateral economic relations will strengthen as 
Georgia becomes more integrated into the global trading system in the future.  
3.132.  We are encouraged by the reforms that Georgia has implemented in the past years and we 
have confidence that Georgia will progress further to fulfil its objectives of integration into the 
world economy, trade policy liberalization, diversification of trade relations, and enhancement of 
transparency in the policy-making process. 
3.133.  We would like to commend Georgia on its recent ratification of the WTO Trade Facilitation 
Agreement on 4 January 2016. We would also strongly encourage Georgia to accept the Protocol 
amending the TRIPS Agreement. We note that Georgia is currently assessing the prospects for joining the WTO Government Procurement Agreement and we look forward to them joining the GPA. We also look forward to them joining the ITA expansion agreement. 
3.134.  Finally, we would like to wish Georgia every success in their second Trade Policy Review. WT/TPR/M/328 • Georgia 
 
- 24 - 
 
  4  REPLIES BY THE REPRESENTATIVE OF  GEORGIA AND ADDITIONAL COMMENTS 
CHAIRPERSON 
4.1.  I would like to thank all of you for your participation in this second Trade Policy Review of 
Georgia. This is the first Trade Policy Review for the New Year. In fact, it is the first important 
meeting for the New Year in the WTO. So I would like to thank you very much for your 
participation and, once again, assure you that th e activities of our Trade Policy Review Body will 
be, as always, a signal of our respect for the traditional functions of the institutions in bringing 
together countries and helping promote their trade policies and trade relations. 
4.2.  Before giving the floor to the leader of the Georgian delegation to answer the questions that 
were raised on the first day of the meeting,  I have been requested by the discussant, the 
Permanent Representative of Poland, Mr Michal Chyczewski, who is unable for personal reasons to 
attend this meeting, to give the floor to his colleague, Ms Katarzyna Stecz, to say a few words on 
his behalf.  
MS. KATARYNA  STECZ  ON BEHALF  OF THE DISCUSSANT,  MR. MICHAL  CHYCZEWSKI 
4.3.  Thank you for giving me the floor. I would like to welcome my colleagues and I would like to 
present the statement on behalf of my Perm anent Representative, Mr. Michal Chyczewski. 
4.4.  Let me present compliments to Georgia and ex press respect to the Georgian delegation. 
Please also accept apologize for my absence. Objective reasons disabled my presence in Geneva 
during these days and contributing to the meeting in a role of a discussant. I would like to thank the Secretariat for the excellent work performed over  the trade policy review and to all delegations 
that presented written contributions during the proc ess. I find both Georgia’s and the Secretariat’s 
reports insightful and very credible in terms of their substance. Having no opportunity to get 
involved in the discussion personally let me share some general comments that you may wish to find inspiring.  
4.5.  Georgia experienced impressive economic growth over the recent years reflected in 
improvement of all macroeconomic indicators. Georgia’s economy is open and already well integrated into the global trade. Significant dynamics of trade not only in goods but also in 
services is something to be recognized as Geor gia’s contribution to the global development. 
Attractiveness of the Georgian economy is appreciated by foreign investors reflected in significant dynamics of FDIs. Completion of the DCFTA with the EU in 2014 was an important step towards advancing harmonization and integration, particularly with the EU economy and involved 
significant reforms. Therefore, all regulatory and economic efforts taken by Georgia since the 
accession to the WTO in 2000 should be recognized not only by the trade and investment partners, but also by the whole international community. The WTO Membership should appreciate Georgia’s 
active engagement and openness reflected, inter alia , in being an observer to the GPA. According 
to independent and reliable opinions well expressed by EBRD, the current procurement legislation creates a very good standard and serves as a benchmark example of a successful reform in this 
field. In the area of agriculture, the Georgi an Government has been advancing in terms of 
adjustments to the EU framework including the SPS regime. I would like to stress also the importance of some other reforms that are indirectly related to the trade but that are of great economic and structural importance, for instance the adoption of the new Transmission Grid Code 
that is aligned with the significant EU directives addressing challenges of the current energy 
production and distribution.  
4.6.  The success of the Georgian economy and the underlying reforms are well reflected in the 
falling current account deficit driven by high dyna mics of exports. Regarding imports, it should be 
recognized that average applied tariffs are in all categories well below the relevant bound levels. Here, I would like to point also a well-diversified composition of the Georgian foreign trade with 
the share of the EU not exceeding 30% and the shar e of the second largest trade partner, namely 
Turkey, in the range of 15%-20%. In my opin ion, Georgia follows a sustainable pattern of 
economic development becoming a more and more significant trade and investment partner. Let me point our attention also to the fact that “G eorgia 2020” strategy emphasizes the role of the 
private sector in the trade expansion and general economic development. As a former deputy 
State Treasury Minister of the Republic of Poland  responsible for supervision over state controlled WT/TPR/M/328 • Georgia 
 
- 25 - 
 
  enterprises and privatization, I have been following developments in Georgia regarding state 
ownership with particular interest. Establishment of the Partnership Fund in 2012 is an innovative solution that I am convinced will bring significant advantages to the Georgian economy.  
4.7.  Closing this short statement. I would like to congratulate Georgia on its economic success. I 
am convinced that Georgia has already benefited a lot from the Membership in the WTO and 
contributed a lot.  
4.8.  Once more, let me apologize for my absence and wish all of you an efficient discussion during 
the meeting today.  
MR.
 GENADI  ARVELADZE,  HEAD  OF THE DELEGATION 
4.9.  On behalf of the Government of Georgia, I would like to express our gratitude to those 
Members who provided questions on the TPR report and to those who made valuable interventions 
during the first session of Georgia’s second TP R review. At the same time, let me thank the 
Members who took participation in the meeting. 
4.10.  Let me take this opportunity to briefly provide replies to the questions raised by the 
Members. 
ECONOMIC ENVIRONMENT 4.11.  I would like to start with providing some additional details on macroeconomic figures, 
responding to the comments made by some Members.  
4.12.  During 2009-2014, unemployment rate decreased significantly from 16.9% to 12.4%. At the 
same time, number of hired population increased by 16.2% and economic activity rate by 2.9 
percentage point, from 63.6% up to 66.5%. During the same period, average monthly 
remuneration has increased by 47% (from GEL 556.8 up to GEL 818). 
4.13.  Transparent and fair administration plays an important role for the economic development 
of the country. In this regard, while supporting anti-corruption reforms and fighting against 
corruption, Georgia has been a participating country in the Open Government Partnership (OGP) 
since 2011. In recognition of its democratic refo rms, their transparency and good governance, 
Georgia was elected as a member of the OGP Steering Committee in August 2014. Besides, 
according to the Corruption Perception Index (2014) by Transparency International, while 
measuring the perceived levels of public sector co rruption worldwide, Georgia is on the first place 
in Eastern Europe and Central Asia region in fighting against corruption and eliminating corruption.  
TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
Question on protection of national exporters (Thailand) 
4.14.  Government support for national exporters is clearly stated in the Social Economic 
Development Strategy of Georgia 2020 providing that  expansion and diversification is totally up to 
the private sector. However, the Government can be an effective partner for business seeking to 
identify export markets and for evaluating existi ng requirements. The Government can deepen and 
develop international trade relations with existing export trade partners, protect the interest of 
international exporters in international markets, develop national quality for infrastructure in 
accordance with the international requirements and seek to reduce technical barriers to international trade.  
4.15.  The Government can also provide exporters with  information on export markets and support 
the development of transport and logistical infrastructure.  
Questions on GPA, ITA and DCFTA services liberalization 4.16.  It has to be emphasized that Georgia’s PP system is mostly in line with GPA requirements 
and there are ongoing discussions regarding joining the GPA within the Government.  WT/TPR/M/328 • Georgia 
 
- 26 - 
 
  4.17.  Also, I would like to point out the importance of expending ITA. The Government is currently 
undergoing procedures for joining the ITA expansion. 
4.18.  Under DCFTA regarding the establishment, compared with its WTO commitments, Georgia 
additionally committed in several subsectors under Business Services, Communication Services, 
and Environmental Services and under Transport Services. 
Questions on trade arrangements (China, the Russian Federation, Turkey) 4.19.  As it has been mentioned, Georgia already enjoys free trade with the markets of more than 
800 million populations, including the EU, CIS countries and Turkey. Georgia continues its 
integration with regional markets. With that regard, one of the priorities is expanding and 
strengthening trade dialogue with the United Stat es within the scope of U.S.-Georgia Strategic 
P a r t n e r s h i p .  I n  t h i s  r e g a r d ,  w e  a c t i v e l y  c o o p e r a t e  i n  t h e  f r a m e w o r k  o f  H i g h  L e v e l  D i a l o g u e  o n  
Trade and Investment including the possibility of starting FTA negotiations.  
4.20.  It should be noted that the biggest achievemen t with regard of trade liberalization is the 
Deep and Comprehensive Free Trade Area (DCFTA) with the EU that entered into force on 
1 September 2014. According to the DCFTA, the EU eliminated tariffs for all products except garlic, 
for which a duty-free tariff-rate quota is established. Also, several products are subject to Entry price (28 categories of products; 0.3% of to tal products) and anti-circumvention mechanism 
(277 categories of products; 3% of total products). Georgia has fully liberalized import tariffs since 
the entry into force of the agreement. 
4.21.  DCFTA envisages gradual legal approximation with relevant EU legislation. Legal 
approximation implies that new requirements in approximated national laws will apply to the 
products produced for domestic consumption as well as to the products for export. 
4.22.  All FTAs with CIS countries are functioning and implemented in accordance with the legal 
bases. Along with other trade partners, CIS countries have a significant share in Georgia’s trade 
turnover which in 2014 amounted to 31% of total tr ade turnover. At this stage, the coverage of 
services or investment in these FTAs is not under consideration.  
4.23.  In September–December 2015, two rounds of negotiations on free trade agreement with 
EFTA were concluded. The whole process of negotiatio ns is planned to be concluded in the first half 
of 2016. Free trade agreement will cover the following areas: trade in goods and services, investment and establishment, trade remedies, competition, trade and sustainable development, government procurement, rules of origin, trade facilitation, intellectual property rights, SPS, TBT 
and dispute settlement.  
4.24.  The Joint Feasibility Study on Georgia–China Free Trade Agreement was concluded in 
September 2015. In December 2015, the Memorand um of Understanding between the Ministry of 
Commerce of the People’s Republic of China and the Ministry of Economy and Sustainable 
Development of Georgia on Launching the Negotiations for a China-Georgia Free Trade Agreement was signed. FTA will definitely cover trade in good s and services, other areas of coverage will be 
defined during negotiations.  
4.25.  Also, it should be noted that on 13 October 20 15, the Secretariat General of the Council of 
the European Union received a request from Geor gia to accede to the Regional Convention of 
Pan-European-Mediterranean Preferential Rules of Origin. Currently, Georgia is waiting for the 
invitation by the Joint Committee of the Convention  (which will be held in May 2016) to become 
the depository country. This will allow Georgia to have a diagonal accumulation with those members with whom Georgia enjoys FTAs. 
Question on Silk-road economic belt (the Russian Federation) 
4.26.  Georgia has a growing role as a regional hub for regional trade. The Georgian Government’s 
aim is to take advantage of strategic positioning between Europe and Asia and revitalize the role in 
trade and exchange between across the Eurasian co ntinent. The New Silk Road project aims to 
rebuild this bridge between West and East, and Georgia is committed to the success of this vision. WT/TPR/M/328 • Georgia 
 
- 27 - 
 
  4.27.  MoU with China signed in the framework of Silk-road economic belt initiative envisages 
cooperation in the fields of infrastructure development, investment promotion and optimization of trade structure. In this regard, Georgia implements different infrastructural projects. 
Questions on foreign investment regulation (China) 
4.28.  The main contents on attracting foreign investment based on "Georgia 2020 Strategy” is the 
following: 
 The Government of Georgia will ensure the transparency of public administration and 
guarantee equal opportunities in terms of starting and doing business for all; it is the main 
guarantor of property rights. 
 The Government of Georgia will also ensure th e effective implementation of reforms through 
the formulation and adoption of relevant legislative initiatives and administrative 
improvements which, in its turn, will support efforts to increase private sector’s 
competitiveness and support inclusive economic growth. 
 The Government’s tax policy will further ensure the creation of an attractive and stable tax 
environment for the private sector and foreign investments as well as for launching and 
developing businesses. 
4.29.  As it is introduced in the Strategy 2020, the Government of Georgia will work in the 
following key directions: 
 Strengthening the protection of property rights; 
 Government support for the development of entrepreneurship; 
 Strengthening mechanisms for the efficient resolution of commercial disputes; 
 Improving investment legislation; 
 Improving legislative and institutional mechanisms for free market competition; 
 Improving mechanisms for the regulation of bankruptcy and the closing of businesses; 
 Improving public services and enhancing the transparency of public administration; and 
 Ensuring flexible regulations. 
TRADE POLICIES AND PRACTICES BY MEASURES  
Measures directly affecting imports 
Questions on custom procedures (United St ates, the Russian Federation, Turkey, China, 
Thailand, Ecuador) 
4.30.  It should be noted that in the past institutional arrangement related to customs procedures 
used to be distributed and very often overlapped among the 8 state institutions.  
4.31.  Currently, the border crossing related control is under the supervision of Georgia Revenue 
Service of the Ministry of Finance of Georgia and th e Patrol Police of the Ministry of Internal Affairs 
of Georgia while Georgia Revenue Service conducts the whole customs procedures including 
sanitary and phyto-sanitary control on the border. There are two main mandatory documents required at the border which are the following: transport document and a commercial invoice. This 
is a decrease from 54 documents in 2005 and 4 documents in 2009. Depending on the type of 
goods, and when such circumstances arise, cust oms are authorized to request presentation of 
other documents including license and permits, SPS and veterinary certificates.  WT/TPR/M/328 • Georgia 
 
- 28 - 
 
  Question with respect to Custom s Clearance Zones (CCZ) (China) 
4.32.  CCZs are structural units of the Georgia Revenue Service – Legal Entity of Public Law under 
the Ministry of Finance of Georgia. CCZs are ow ned and operated by the State and represent the 
default “normal” procedure of customs clearance of goods. It is possible to declare the goods 
without the presentation of goods in the CCZs. Customs declaration may be filled out using the 
ASYCUDA or/and ORACLE software, customs cleara nce procedures are carried out at the border 
and the goods are released for circulation. Customs clearance can also be carried out at a 
pre-agreed location – goods are transported to a pre-agreed (between Customs and the importer) 
location while the declaration is carried out in the CCZ or through electronic means. In case when goods are placed in the “red channel”, customs ex amination will be carried out at the pre-agreed 
location. 
Question on Golden List (Turkey) 
4.33.  Customs Risk Division of the Customs Departme nt of Revenue Service (RS) is responsible 
for evaluation of potential “Golden List” candidates. Any trader applying to become a “Golden List” 
member should be in good standing with the Revenue Service and have history of compliance. The 
Risk Division Unit evaluates candidate’s activities for the previous calendar year prior to membership application, taking into account Customs violations (specifically customs violations 
under Article 289 of the Tax Code of Georgia) an d financial solvency (including the absence of 
ongoing tax arrears). Specifically, “Golden List” candidate should comply with the following criteria: 
a. Previous continuous 12 months period from the first date of the month when the 
membership application is made: 
 Customs value of goods declared in import and/or export not less than 5 million GEL. 
 Amount of customs duties not less than 900 000 GEL, or high number of customs 
declarations for import and/or export customs procedures not less than 100. 
b. As of the first date of a month from when the application to the Revenue Service is made by 
a candidate: 
 For the provisions set by 4, 5, 10, 11, 19-21  paragraphs of the Article 289 of the Tax 
code of Georgia. 
 Absence of enforced court decision on imposing of liability or 12 months period has 
lapsed after the detection of the offence. 
 Registration as a VAT payer. 
 Absence of tax debt. 
4.34.  “Golden List” members benefit from an option to have goods cleared directly at the Customs 
Crossing Point or have them transported to a warehouse (belonging or leased out exclusively to 
the “Golden List” members). 
4.35.  Payment of customs duty, VAT and excise may be deferred for up to 30 days, and the 
supporting documents to the declaration can be presented in electronic version when all the paper 
documents kept at the declarer's premises. 
4.36.  Customs legislation of Georgia currently does not provide for additional simplifications in 
control procedures towards “Golden List” members, although as of 1 September 2014, Georgia's 
revenue service is actively engaged in the implementation of Authorized Economic Operator 
institution as foreseen under the Annex XIII of  the Association Agreement between the EU and 
Georgia. Implementation of the Authorized Economic  Operator is intended to enter into force by 
the end of 2018 bringing with itself all relevant simplifications applicable to the status. WT/TPR/M/328 • Georgia 
 
- 29 - 
 
  Question on products exempt from customs duties according to the Law of Georgia on 
Oil and Gas (Turkey) 
4.37.  Georgian legislation does not provide the list  of specific products exempt from customs 
duties for the purposes of Article 13(5)(g)(f) of th e Law of Georgia on Oil and Gas. Any goods that 
are required for the implementation of activates foreseen in the aforementioned Law are exempt 
from duties. 
Question on raising customs duties (China) 
4.38.  It has to be emphasised that despite the fact  of raising average applied MFN from 1.6% to 
2%, Georgia still has one of the most liberal trade regime in the world. 
TBT and SPS Measures Question on Georgian regulation for used cars (Thailand) 
4.39.  Customs clearance of motor vehicles is carried out by the Service Agency of the Ministry of 
Internal Affairs of Georgia using a one stop shop principle. Customs duty rates for passenger vehicle referred to in the commodity Code 870 3 of the Foreign Economic Activity National 
Commodity Nomenclature is 0.05 GEL for each cubic centimetre of the volume of the vehicles 
engine, plus 5% for each year since the production  of the said vehicle. Furthermore, additional 
excise tax on passenger vehicle is also calculated according to the table provided in the written 
replies, factoring in the age (time from the production) of the vehicle as well as engine 
displacement of the vehicle.  
Questions on SPS (Russian Federation and the United States) 4.40.  According to the DCFTA, the main commitment of Georgia is to approximate its legislation to 
the EU legislation on Sanitary and phytosanitary fiel ds. In this regard, the first step was to submit 
approximation list to the EU by late February of 2015, which has been fully complied. The approximation list is already agreed with the European Commission and after the ratification by 
the Parliament of Georgia the approximation list will become a part of the DCFTA Agreement. Legal 
approximation list and the draft legislations are avai lable on the official website of the Ministry of 
Agriculture.  
4.41.  Georgian legislation will be approximated to the EU legislation on a gradual basis, which is 
due to be done from 2015 till 2027. Georgia will approximate its legislation to 272 EU Legal Acts, which will be implemented according to the WT O obligations under the SPS agreement. During 
that process we will also take into consideration the science based recommendations of FAO and 
OIE. 
4.42.  In line with the regulatory approximation, Georgia started to invest in relevant infrastructure 
development, including slaughterhouses and anim al identification and registration systems, 
laboratory network, further development of strong  private veterinary sector, SPS infrastructure 
provision at Border Inspection Posts (BIPs) and etc. 
Question on living modified organisms and genetically modified organisms  
4.43.  According to the Georgian legislation, the term  “Living Modified Organism” is an organism 
capable of replication, as term “Genetically Modi fied Organism” is related to processed organism 
which do not have capacity of replication. According to the Law of Georgia on Labelling of Live GMO, labelling threshold for food and feed with adventitious presence of GM material in 
percentage is equal to 0.9%. 
4.44.  According to the Law of Georgia on Living Mo dified Organisms, registration of Living 
Modified Organisms for placing on the market is done via two regimes: the national regime and 
the recognition regime. WT/TPR/M/328 • Georgia 
 
- 30 - 
 
   The recognition regime is used for the Living Modified Organisms which are approved in the 
European Union, the list of these LMOs is approved by the Minist er of Environment and 
Natural Resources Protection of Georgia.  
 The national regime is used for LMOs which do not belong to the type of LMOs approved on 
the territory of Georgia.  
4.45.  According to the Law of Georgia on Living Modified Organisms, the importer of LMOs who 
intends the placing on the market of the LMOs that  do not belong to the type of living modified 
organisms allowable on the territory of Georgia, shal l, prior to initial entry of each such organism, 
apply to the Ministry of Environment and Natural Resources Protection of Georgia in writing for their registration.  
Question on SPS border inspection 
4.46.  According to the primary legislation of Georgia (The Georgian Code on Food and Feed 
Safety, Veterinary and Plant Protection; Tax Code – Sanitary Border Quarantine control), the LEPL Revenue Service of the Ministry of Finance (RS) implements state phytosanitary and veterinary 
border-quarantine controls based on rules defined by the Ministry of Agriculture and the Georgian 
Government. This decision was part of the border  control related reform, aimed, among others, at 
introduction of streamlined procedures at the border crossing related area and eradication of 
corrupt practices, significantly undermining trad e relations and country’s economic development. 
4.47.  The sphere of competence of the RS is defined as the operational authority, and that of the 
Ministry of Agriculture as the policy decision-mak ing authority, according to the Resolution No. 429 
of the Government of Georgia on Approval of th e Rule of Carrying out the Phytosanitary Border 
Quarantine and Veterinary Border-Quarantine Control of 31 December 2010. 
4.48.  The spheres of competence, the division of power and cooperation practices between the 
National Food Agency (NFA) and the RS are defi ned by the Government Resolution No. 429. From 
1 July 2009, the RS started to undertake full documentary, identity check and physical check of 
imported food products with or without laboratory sampling. 
Question on pest free zones 
4.49.  In 2014-2015, Georgia identified pest free zones for production of Citruses, Fruit and herbs 
in different regions of Georgia. 
Question on traceability of agricultural products 4.50.  Traceability for agricultural products is provid ed in Georgia by the following regulations:  
 Resolution of the Government of Georgia, 10 November 2015, No. 577 on the traceability 
requirement which is based on the Commission Implementing Regulation (EU) No. 931/2011 
of 19 September 2011 on the traceability requirements.  
 Governmental Resolution No. 441 on Additional Requirements for Food Labelling. 
4.51.  SPS border control includes electronic common entry veterinary and/or phytosanitary 
document. 
Public procurement 
Question on the White List in  public procurement (Turkey) 
4.52.  Whitelisted registered supplier:  
a. is exempted from the obligation of submitting qualification data certifying documentation in 
simplified electronic tender, electronic tender and design contest, in spite whether WT/TPR/M/328 • Georgia 
 
- 31 - 
 
  tender/design contest documentation foresees submission of qualification certifying 
documentation or not. 
b. In case of advance payment, it will submit to the procuring entity the guarantee for the half 
of the amount of advance payment amount, pursuant to the contract terms. 
c. In case of demand of contract performance guar antee, it will submit to the procuring entity 
the half amount of contract guarantee. 
4.53.  White List registered supplier may be fully exempted from the obligation to submit contract 
performance guarantee.  
Measures affecting production and trade Questions on the Research and Innovation Council (Turkey) 
4.54.  The Research and Innovation Council was created in February 2015 as a part of the 
Government vision to create knowledge-based economy. The Council is the main coordinating and 
strategic developing body of the Government Scie nce and Innovation Policy. The Council is chaired 
by the Prime Minister and consists of all economic block Ministers, Scientists and Private Sector 
Representatives. Georgia’s Innovation and Technology Agency represents the secretary of the 
Council. The Council is defining the Government policy towards innovation, start-up and creative economy development, as well as creating supportive tools for innovative SMEs. The Council is 
now preparing a National Innovation Strategy and Regulatory Framework Package for Innovation 
which will be submitted to the Parliament by the end of February 2016 for further adoption and 
implementation.  
Question on non-tax incentives in free industrial zones (Brazil) 
4.55.  The Georgian legislation on free industrial zone stipulates the simplified approach of the 
License/Permit State Regulation: 
 According to the resolution of the Government  of Georgia, the obligation of licensing and 
permission on specific activities conducted in FIZ can be abolished. 
 Simplified procedure for obtaining licenses/permits in the FIZ can be established according 
to the Georgian Law on Licenses and Permits. 
 According to the Government’s relevant regulations, simplified rules are applied for the 
issuance of a construction permit. 
Competition policy and price controls (Unite d States, the Russian Federation, China, 
Thailand) 
4.56.  The Competition Agency is a newly formed Body. The number of the total staff consists of 
39 employees. The Competition Agency doesn’t have any superior body and is accountable only to the Prime Minister of Georgia. The Agency prepar es the Annual Report for the Prime Minister once 
per year. The Principles of the Agency’s activities are as follows: independence, 
non-discrimination, unbiasedness, transparency and accountability. To ensure transparency of the Agency’s activities, its decisions shall be public. 
4.57.  In accordance with the Article 18 of the Georgian Law on Competition, in case of 
competition restriction by the State Government, the government of the autonomous republic or local self-government authorities, the Competition Agency is entitled to submit the justified written conclusion to the relevant authority and the recommendations on decisions undertaken by the 
mentioned authority which is in breach of the law. The authority in question can revoke the 
unlawful decision and in case of non-fulfilment of such demand, submit the issue to the relevant superior authority or the officials. The Competition Agency is entitled to submit to any State and/or 
local authorities the obligatory proposals and/or recommendations for consideration to improve 
competitive environment of commodity and service markets of Georgia.  WT/TPR/M/328 • Georgia 
 
- 32 - 
 
  4.58.  The Competition Agency cannot make a decision on alleged restriction of competition in the 
regulated sphere of the economy. The energy  and telecoms sectors are two independently 
regulated fields of economy. In the energy sector , the responsible Body is the Georgian National 
Energy and Water Supply Regulatory Commission and in telecoms it is the Georgian National 
Communication Commission. 
4.59.  Provisions on Competition restrictive agreements of minor importance (Article 8 of the 
Georgian Law on Competition) are formulated in accordance with the relevant EU legislation and 
judicial practice. In particular, it is based on 2014 communication of the European Commission on 
competition restrictive agreements of minor importance, notice on agreements of minor 
importance which do not appreciably restrict competition under Article 101(1) of the Treaty on the Functioning of the European Union (De Minimis No tice) and on European Court of Justice judgment 
on Expedia case (C-226/11 – Expedia). 
Questions on IPR (United States and Thailand) 4.60.  Based on the Association Agreement with European Union and in the scope of the 
approximation to the corresponding EU regulation s in the field of border enforcement of IPR, 
Georgia Revenue Service elaborated an approxim ation plan in three stages based on which 
Georgian Law “On Border Measures Related to Intellectual Property Rights” has to be amended in 
3 years period (deadline is year 2017). According to the plan, ex-officio power should be granted 
to customs authority on the last stage of amendmen ts in order to secure effective execution of the 
right. Under the obligations taken by Georgia in  the framework of DCFTA, the granting of the 
ex-officio powers to agencies will be provided no later than 2018.  
4.61.  In 2014, the following new amendments were drafted in accordance with the DCFTA:  
 Patent Law; 
 Trademark Law; 
 Law on Copyright and Neighbouring Rights; 
 Law on Design; 
 Law on Drugs and Pharmaceutical Activity; and 
 Law on Pesticides and Agrochemicals. 
4.62.  New amendments intend to further approximate Georgian legislation with that of the EU.  
Copyright and Neighbouring Rights  4.63.  The Law on Copyrights and Neighbouring Rights most recently was amended in 2015. 
Future amendments are planned in the framework of the DCFTA. The new version of the law was 
provided to the Secretariat as an additional document.  
Patents 
4.64.  Current version of the Law on Drugs and Pharmaceutical Activities doesn’t provide any 
specific period regarding the protection of the information on pharmaceutical products. However, new draft amendments prepared by Sakpatenti, in accordance with the DCFTA, provides for a 
period of six years from the date of the first auth orization in the market of one of the EU countries 
or in Georgia during which other applicants are not permitted to market the same or a similar product on the basis of the marketing authorization granted to the applicant which has provided the test data or studies, unless the applicant which has provided the test data or studies has given 
his consent. The six year period shall be extended to a maximum of seven years if, during the first 
six years after obtaining the initial authorization, the holder obtains an authorization for one or more new therapeutic indications which are considered of significant clinical benefit in comparison 
with the existing therapies. WT/TPR/M/328 • Georgia 
 
- 33 - 
 
  4.65.  In 2015, Sakpatenti, in cooperation with relevant governmental bodies, has created an IPR 
enforcement interagency coordination body, which w ill deal with IPR enforcement issues, including 
the implementation of border measures. The memb ers of the interagency coordination body are 
representatives from all governmental agencies which deal with protection and enforcement of IPR 
in Georgia (Prosecutor’s Office of Georgia, Minist ry of Internal Affairs of Georgia, Investigation 
Service of Georgia’s Ministry of Finance, LEPL  Revenue Service and LEPL National Intellectual 
Property Center of Georgia–Sakpatenti). The repr esentatives from the United States Embassy and 
the European Union as observers also particip ate in the work of the coordination body. 
4.66.  Sakpatenti also established IP training Centre in order to raise knowledge of IP protection. 
Questions on energy (United States) 4.67.  Over the past several years, the Georgian Government has undertaken an ambitious 
programme to modernize and liberalize its economy. Institutional reforms have included 
privatizing large state-owned entities, reducing the number of taxes and tax rates, improving tax and fiscal administration, restructuring license requirements, simplifying customs and border 
formalities, and generally, underta king efforts to make it easier  to do business in Georgia.  
4.68.  The Government's effort to attract foreign direct investments resulted in creating an 
investor-friendly environment by offering green-f ield projects based on the Build-Own-Operate 
(BOO) principal, attractive export markets, free third party access to the grid and efficient legal 
and regulatory framework. The Government of Georgia provides Guaranteed Power Purchase 
Agreements to the investors during eight months annually for the first 15 years of the operation to promote investment projects in the energy field of Georgia. 
4.69.  Liberal tax legislation, Double Taxation Avoidance Treaties with OECD member countries, 
rapidly expandable export market, simplified procedures, and strong support and commitment 
aiming at developing of renewable energy so urces from the Government of Georgia create 
favourable business climate for the potential investors.  
4.70.  The main directions of the State Policy in energy sector of Georgia indicates that Georgia is 
remarkably rich in hydropower resources and has potential of wind, solar, biomass and geothermal 
resources, intends to use these sources for creation  of additional capacity by means of domestic 
and foreign investments. To achieve this goal, it is vital to improve investment climate through creation of stable, transparent and non-discriminatory legal basis; through deepening strong and stable trading relations with neighbouring countries’ energy markets; through development of 
corresponding domestic and cross-border infrastr ucture; also, through support of scientific and 
research (R&D)activities. 
Trade in services (United States , European Union, China, Brazil) 
Question on financial services 
4.71.  As of 31 December 2014, the share of non-resident beneficiaries in banks’ assets, according 
to final ownership, stood at 87%, while in equity capital it stood at 84%.  
4.72.  Two largest banks are traded on the London Stock Exchange. 
Question on allocation of scarce re sources like spectrum (European Union) 
4.73.  The Ministry of Economy and Sustainable Develo pment works actively to develop ICT field, 
to create relevant action plans, programmes, strategies, etc. 
4.74.  The Georgian National Communications Commission (GNCC) commenced working on 
Spectrum Re-farming issues in 2011. The first consultation document, that was part of EBRD funded project, was published in October 2012 outlining GNCC strategy on spectrum management, 
analysing future competitiveness of mobile market and defining potential actions to be taken in 
order to: free up 800MHz and 2.6 GHz bands; liberalize 900/1800/2100 MHz bands; and cope with spectrum imbalances (uneven distribution of spectrum among mobile operators) and duopoly on 
mobile broadband market. WT/TPR/M/328 • Georgia 
 
- 34 - 
 
  4.75.  Based on the results of public consultations that took approximately 2 years, in July 2014, 
the Government of Georgia together with the GNCC, the EBRD and the World Bank experts and 
with the involvement of market players (including mobile operators active in Georgia) prepared draft amendments to the law of Georgia on electronic communications defining the procedures for 
spectrum harmonization, liberalization, reallocation and compensatory measures related to the 
migration costs and reallocation of spectrum usage. 
4.76.  GNCC, based on the consultations with market players and taking into consideration the 
need to stimulate competition on mobile broadband market, has defined phased approach as a 
preferred strategy option for liberalization of GSM/UMTS licenses and auctioning of spectrum available in harmonized 800/900/1800/paired 2100 MHz bands. A key issue in this respect was that liberalization of GSM/UMTS licenses without release of additional spectrum for mobile 
broadband would cause further distortion of competition on Georgian mobile market by placing two 
incumbent operators (Magticom and Geocell) even in a more competitive advantage and 
strengthening the duopoly on Mobile broadband market. 
Question on investment in private roads (Ecuador) 
4.77.  Nowadays, international and secondary roads are not operated or financed by the private 
sector. However, the issue related to the private sector to invest and to operate the specific road 
network is regulated by the Law of Georgia on the Roads, Article 14, which states the following: 
i. Private roads are allowed. 
ii. It is allowed to charge fees for public roads or road sections in case parallel free road exists 
between the populated areas. 
iii. The road fees are defined based on the Georgian Legislation and are used for the 
maintenance and development of the mentioned roads or the road sections. 
Tourism (European Union, Thailand, Brazil) 
4.78.  Georgia is a four-season destination offering numerous opportunities for travels, the main 
tourism products remain to be: nature and adventure, cultural heritage, wine and cuisine, leisure, health and wellness, mice and gambling.  
4.79.  According to the national tourism development strategy by 2025, Georgia will be well known 
as a premier, year-round, high quality tourism destination, centered on its unique cultural and natural heritage, world-class customer service, and timeless tradition of hospitality.  
4.80.  Georgia will be at the forefront of tourism competitiveness, through strategic investments in 
infrastructure, education, marketing, and the de velopment of unique Georgian visitor experiences 
that appeal to high-value markets around the globe.  
4.81.  Tourism will significantly increase its contribution to Georgian economic growth and 
development, through increases in visitor spending. The focus will be on the quality and diversity 
of visitor arrivals, not total number of visitors.  
4.82.  Free Tourism Zones are special zones located on the sea side resorts of Kobuleti and 
Anaklya. These zones attract investors by offering several incentives, including: free hotel master 
plan, land for a nominal price (1 GEL) and free casino license for hotel capacity over 80 rooms. Herewith, the Government of Georgia will provide engineering and infrastructural networks to the 
territories and exempt investor from profit and property taxes for 15 years.  
4.83.  We strongly believe that visa facilitation is one of the key contributors in developing the 
tourism sector and people-to-people relations. Today, Georgia maintains one of the most liberal visa regimes and we are always looking for various ways to further facilitate travel to the country. 
The Government upholds a favourable visa regime, maintaining a visa-free policy with 94 nations 
and with resident permit holders of 50 States. An electronic visa portal was launched in February 2015.  WT/TPR/M/328 • Georgia 
 
- 35 - 
 
  Question on construction services (Thailand) 
4.84.  The general policy in the construction field is liberalized since 2004 and the entire legislation 
is prepared in such a way that it supports the investors. Foreign companies are very much welcome to do their business in this field. To run the construction business in Georgia, foreign 
company needs to establish a local branch and register the firm at public registry agency (which is 
a one day procedure, no certificates and/or licenses are required). The Georgian legislation recognizes technical regulations and standards acting in OECD member States. 
Question on the new Postal Law (European Union) 
4.85.  The draft Postal Law which was elaborated by  the Ministry of Economy and Sustainable 
Development of Georgia, has been discussed several times with the stakeholders like: Governmental entities, postal operators, Business Ombudsman, NGOs, the Parliament Sectorial 
Committee, and the GNCC (Georgian Na tional Communications Commission). 
4.86.  The above mentioned draft law was also discussed with the European Commission and was 
updated considering the EU comments. On 26 Se ptember 2015, the Ministry of Economy and 
Sustainable Development of Georgia held the video conference with European Commission 
representatives and the agreement was made regarding reserved services, which was the main obstacle of law adoption for the last year.  
4.87.  At the same time, in the current year, in tight cooperation with Universal Postal Union were 
elaborated Integrated Postal Reform and Development Plan for Georgia (2015-2017).  
4.88.  Currently, the draft Postal Law is in process to find out most suitable alternative scenarios of 
reserved services for considering in the law.  
4.89.  Finally, once again, I would like to thank all delegations for their participation and valuable 
interventions. I would like to highlight that so me remaining questions will be answered in due 
course by Georgia which means in the four-week period.  
CHAIRPERSON 
4.90.  I thank Deputy Minister Arveladze for his very detailed statement. It reminds me of the very 
detailed statement delivered by Australia during its Trade Policy Review we have had last year. I 
think this is to be encouraged in the future be cause, of course, the written questions and answers 
will come to the countries but with such a detailed statement we all learn very interesting details of the trade policy regime and this is useful both for the country under review and for the Members.  
EUROPEAN
 UNION 
4.91.  The EU would like to thank Georgia for the replies provided to the EU's questions as well as 
for the comprehensive statement delivered on Tuesday and especially today.  
4.92.  First of all, the EU welcomes the fact that the Government of Georgia is undergoing the 
procedures for joining the ITA expansion. 
4.93.  Secondly, the EU welcomes Members' acknowledgement that the DCFTA with the EU has 
contributed to Georgia's growth prospects, improving its market access and encouraging FDIs. In 
particular, the EU welcomes the unprecedented growth of Foreign Direct Investment currently experienced by Georgia.  
4.94.  The EU is committed to work closely with Georgia for the implementation of the DCFTA and 
will support Georgia to make the best use of opportunities opened by the agreement. 
4.95.  In particular, the EU would like to stress that the harmonisation process of the SPS 
regulations with EU regulatory rules will not only allow Georgia to increase its exports to its main 
export markets, but also enhance the health and customer protection of agricultural products. WT/TPR/M/328 • Georgia 
 
- 36 - 
 
  4.96.  The EU would also like to ensure Members that the DCFTA sets up a free-trade area 
between the EU and Georgia, in line  with the principles of the WTO. It is intended to provide for 
substantial liberalization of trade and investment conditions and is leading to further improvement of trade conditions and investment climate through greater convergence with EU trade-related 
laws and practice. This agreement was discussed at the CRTA held on 22 June 2015. 
4.97.  The EU has no follow-up questions to pose to  Georgia and we would like to thank Georgia 
for a very constructive participation in this exercise. 
SEPARATE
 CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.98.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu very much 
appreciates the opportunity to participate in this  meeting and in the discussions on Georgia’s trade 
and investment policies.  
4.99.  We believe this review will benefit Georgia, particularly in its current efforts to reform its 
trade regimes. It should also help Georgia to further fulfil its WTO commitments in the future. We would like to reiterate here our willingness to cooperate with Georgia with a view to strengthening 
and deepening our bilateral trading relationship. 
4.100.  In addition, I wish to raise a procedural issue regarding this review. According to 
paragraph 20 of the "Rules of Procedure for Meet ings of the Trade Policy Review Body" (Document 
WT/TPR/6/Rev.3), circulated on 31 January, 2012 "advance questions submitted by the two-week 
deadline before the Trade Policy Review Body m eeting should be answered in writing by the 
Member under review by the start of the meeting in accordance with the current timelines".  
4.101.  While we definitely submitted to the WTO Secretariat our advance questions to Georgia 
before the two-week deadline on 24 of December 2015, we notice that Georgia failed to reply to 
them in its "Replies to Advance Written Questions" (Document RD/TPR/551) circulated on 18 January 2016 and neither in its revised document circulated on 20 January 2016.  
4.102.  This may, of course, have been an oversight, either on the part of the Secretariat or of 
Georgia, but in the interests of safeguarding the integrity of the TPR mechanism, we would urge Georgia to kindly comply with the WTO practices and procedures by providing their responses to 
our questions as soon as possible.  
4.103.  We mentioned in our written questions that Georgia launched an e-visa portal which grants 
citizens of foreign countries the ability to apply for a Georgian visa online. However, technical problems caused inconvenience to our people as they are not able to apply visa application 
through the online system. This has already affected our major investment and tourism plans to 
Georgia. Therefore, as a WTO Member, we believe that if we can solve these technical problems this will tremendously promote bilateral investment and business opportunities between us. 
4.104.  We look forward to the responses and to bein g able to review them in the usual way. 
CHAIRPERSON 4.105.  I would like to observe that, following the two-day debate, the very detailed statement of 
the Georgian delegation, indeed, did not cover all the questions of all the countries. I believe that 
Georgia will answer all the questions by all the Me mbers in the four-week period. I personally have 
not observed any specific attitude to any specific  country but rather a grouping of questions which 
were brought to our attention. 
UNITED
 STATES 
4.106.  I would like to start by thanking the Deputy Minister, Mr. Arveladze, the Georgian 
delegation and all of the officials in capital who worked on providing information to make this 
transparency procedure a successful one. 
4.107.  In particular, we thank Georgia for answering our advance written questions in such a 
manner that we, in fact, have no follow-up question s this time. I would like to note, however, that WT/TPR/M/328 • Georgia 
 
- 37 - 
 
  we received just this morning an attachment referenced in the responses to the Law on Copyright 
and Neighbouring Rights which will be examined and we may have some follow-up questions upon 
that. We would hope to receive answers to any such questions that we would bring forward. 
MR. GENADI  ARVELADZE   
4.108.  Let me briefly touch to the question and to some remarks raised by Chinese Taipei. As it 
was mentioned by the Chair, I tried to answer some questions during today's session. Also, some written replies have been provided on the wri tten questions submitted by Member countries. We 
are working on the remaining questions that we re submitted by other Members and the answers 
will be provided in due course. As I said, there are some remaining questions, not only from Chinese Taipei, but also from other countries and we will answer them in due course. WT/TPR/M/328 • Georgia 
 
- 38 - 
 
  5  CONCLUDING REMARKS BY THE CHAIRPERSON 
5.1.  The second Trade Policy Review of Georgia has allowed us to have a better understanding of 
Georgia's trade and investment policies since the previous review in 2009, as well as the challenges that it faces. Our discussion was greatly facilitated by the constructive participation of 
the Georgian delegation, headed by Mr. Genadi  Arveladze, Deputy Minister of Economy and 
Sustainable Development, by the valuable comments made on behalf of the discussant, the Permanent Representative of Poland to the WTO, Mr. Michal Chyczewski and from the 
interventions by Members. Georgia's timely response to written questions was greatly appreciated 
by Members and we look forward to answers to  any outstanding questions no later than one 
month after this meeting.  
5.2.  As in the previous Trade Policy Review of Georgia, in this review Members commended 
Georgia for its broadly open, transparent and predictable trade and investment regimes. Members 
highlighted that Georgia's customs procedures had been further simplified and that the MFN tariff 
rate of 2% was one of the lowest in the world, while almost 80% of Georgia's imports were duty 
free.  
5.3.  During the review period, Members noted that  Georgia had undertaken an impressive range 
of reform initiatives aimed at streamlining, liberalizing and simplifying trade regulations and their 
implementation. Members also noted that Georgia's economy had performed well in recent years, 
as it continued to meet the challenges posed by the slowing economies of its main trading partners and the depreciation of their currencies. Georgia's resilience in this regard was demonstrated by a 
relatively healthy GDP growth rate, a good and improving international ranking in terms of ease of 
doing business, and prudent macroeconomic policies.  
5.4.  Some Members, however, recognized that re duced exports and remittances have led to 
increasing external vulnerability during the review  period, and that further structural reforms are 
required in order to: strengthen Georgia's resilience to shocks, attract additional foreign direct 
investment, diversify its industrial production, im prove productivity, increase exports and thereby 
sustain growth. In this regard, Members noted the exceptional performance of the tourism sector 
for which there remained considerable growth potential for attracting tourists beyond those coming 
from neighbouring countries.  
5.5.  Georgia's trade openness and its commitment to the multilateral system through its 
responsible contribution to the work of the WT O were highlighted during the review. Members 
commended Georgia for the ratification of the Trade Facilitation Agreement, which would benefit 
Georgia's role as a trade transit corridor in the region, and the related notification to the WTO of Category A, B and C commitments. Members also noted that Georgia was an observer to the 
Government Procurement Agreement and was currently assessing the prospects for joining the 
Agreement. Members welcomed the announcement that Georgia was considering joining the expanded Information Technology Agreement, which would constitute a significant step forward for 
attracting further investment.  
5.6.  Members commended Georgia's efforts to integrate into the world economy as evidenced by 
the progressive liberalization of its trade regime and its active participation in numerous multilateral, regional and bilateral trade agreements. It was noted in this regard that reforms to 
Georgia's trade and investment regime have been largely driven by the commitment of the 
Georgian government to align its legislative and regulatory framework to that of the European Union. Some Members expressed the view th at WTO-consistent implementation of the 
commitments in the Association Agreement with the EU, including provisions of the Deep and 
Comprehensive Free Trade Agreement would improve Georgia's trade and investment environment.  
5.7.  While there were many positive trade and econ omic developments during the review period, 
it was important to note a number of areas where Members, in their statements and written questions, had concerns and thought improvement was possible. Notably, in the area of food 
safety, Members were interested in further discussing how Georgia would ensure that its 
regulatory system would be implemented according to WTO obligations in the SPS Agreement, 
which calls on WTO Members to base their regulations on international standards and science. Also in the SPS area, Georgia was encouraged to further advance the regulatory framework and WT/TPR/M/328 • Georgia 
 
- 39 - 
 
  infrastructure for animal health control as well as to improve efficiency and hygiene and quality 
standards in agro-processing. Other areas where Members required further information and discussion included the issue of auctions for spectrum allocation in telecommunications, aspects of the new Tax Code affecting investors in Georgia, and technical issues regarding the launch of an e-
visa portal for tourists wishing to visit Georgia.  
5.8.  Finally, this second Trade Policy review of Georgia was successfully concluded to the benefit 
of all Members. I am confident that Georgia will find useful the extensive discussion we have had 
as well as the insights provided by Members and will take them into account to further develop its 
trade and trade-related policies. In closing, I would like to thank Deputy Minister Mr. Genadi Arveladze and the rest of the Georgian delegation, the Members and the Secretariat for their valuable contributions to this review.  
__________