WORLD TRADE  
ORGANIZATION  WT/TPR/M/224 
8 February 2010 
 (10-0675) 
Trade Policy Review Body 
8 and 10 December 2009  
 
 
 
TRADE POLICY REVIEW 
 
GEORGIA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF GEORGIA 4 
III. STATEMENT BY THE DISCUSSANT 6 
IV. STATEMENTS BY MEMBERS 10 V. REPLIES BY THE REPRESENTATIVE OF GEORGIA AND ADDITIONAL 
 COMMENTS  21 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 29 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by Georgia are 
reproduced in document WT/TPR/M/224/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/224 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Georgi a was held on 8 and 10 December 2009.  
The Chairperson H.E. Mr. Istvan Major (Hungary) welcomed the delegation of Georgia, headed by 
Ms. Tamar Kovziridze, Adviser to the Prime-Minister, and the discussant, Mr. Krzysztof Januszek (Poland).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Georgia was contained in document WT/TPR/G/224 and that of the WTO Secretariat in WT/TPR/S/224. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to  the delegation of Georgia:  Canada;  Turkey;  the European 
Communities;  the United States;  Chinese Ta ipei;  Mexico;  Korea;  and Japan.   
4. No delegations submitted written questi ons after the two-weeks deadline. 
5. The Chairperson said that he had considered the reports prepared for the review and he noted 
that recent economic and trade performance had been impressive.  Driven by rapidly rising foreign 
direct investment flows, annual economic growth  averaged between 9% and 10% from 2003 to mid-
2008 when the economy was hit by the twin shocks of the armed conflict with the Russian Federation 
and then the global financial crisis. 
6. During the review period, the reports showed  that economic policies had been guided by 
reliance on the private sector for growth in a liber alized trade, investment and business environment 
and these policies had met with considerable su ccess;  indeed, the World Bank had recognized 
Georgia as one of the world's fastest reforming eco nomies.  Both reports made clear that important 
reforms had taken place in the trade area:  in tariff reform, improving Customs, reform of business 
licensing, and the adoption of trade legislation compa tible with international standards in a number of 
areas.  Consequently, Georgia, a WTO Member si nce 2000, had a liberal trade regime, with a low 
average applied MFN tariff of just over 1% and no quantitative restrictions.  But although Georgia 
had implemented far-reaching structural reforms, ai ming at developing a competitive private sector, it 
had only partially succeeded in improving the extern al competitiveness of the private sector.  The 
reports made clear that continuing structural refo rms by making its markets more flexible, would be 
key to strengthening Georgia's resilience to shoc ks, attracting investment into export activities, 
improving productivity, and thus competitiv eness, and thereby sustaining growth. 
 WT/TPR/M/224 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF GEORGIA  
7. Georgia’s trade policy has to be viewed in the context of its economic policies.  Our 
economic policies have been characterised by very active, simultaneous, and consequent efforts to 
reform the economy, create private sector as the driving force of economic growth, liberalise the economic environment, and increase trade and investment. 
8. Trade liberalization has been one of the main priorities of our economic reforms.  We have 
been trying to introduce reforms that were aimed at the creation of Georgia’s trade and transit hub, 
especially against the background that our country is located in the corridor that is the shortest route 
from China to Europe.  Therefore facilitation of tr ade and investment has b een the key objective of 
our reforms.  Apart from that, integration into the wo rld trading system has definitively been a priority 
and for this purpose we have introduced a larg e number of measures aimed at the reduction and 
elimination of tariff barriers to trade as well as non-tariff barriers. 
9. I will briefly outline the reforms that th e Government has initiated and successfully 
implemented in the past couple of years, and then also focus a little bit on th e future plans that we 
have. 
10. As for tariff barriers and a policy with regard to import tariffs in 2006 Georgia decided to 
adopt the policy of so-called autonomous liberalizati on.  We eliminated almost entirely import duties 
on goods and currently, as the Chairman rightly mentioned, our average applied tariff is around 1% which means that on 90% of goods we have no tariff at all, and on the remaining goods, the tariffs are 
very low.  Before 2006 we had 16 different tariff rat es, and currently we have only three:  0, 5 and 
12%.  We have no quantitative restrictions either on exports or imports, no tariff escalation or tariff 
peaks, and we are committed to keep ing import duties as low as we have now. 
11. As for non-tariff barriers, a number of reforms have  been initiated.  First, I have to mention 
the reform of the system of licensing and permits.  In a framework of the overall licensing reform, 85% of licenses have been eliminated.  As far as trade, and specifically export and import is concerned, we eliminated a large number of licenses and permits and as a result of this, time and cost 
of export and import has been reduced substantially.  Customs reform was, and is, a key priority for 
this Government.  We adopted a new Customs C ode in 2007 and the main purpose was to simplify 
customs procedures and bring them in compliance with  international standards.  We have gradually 
improved our customs legislation;  we have dedicated substantial effo rt also to the improvement of 
trade infrastructure which means upgrading of infrast ructure at the customs checkpoint, so almost all 
customs checkpoints have been modernized, rebu ilt and upgraded.  We have introduced risk-based 
customs check system at the borders and this is almo st fully functional at the moment, so a number of 
reforms have been undertaken to improve customs administration, customs legislation and physical 
infrastructure at customs. 
12. In 2005 Georgia introduced reforms in the area of technical regulation and standardization; 
this is key as well because good quality control of goods  is essential to facilitate trade.  We have 
reformed the institutional set-up but also dedi cated substantial efforts to improving quality 
infrastructure in Georgia and also our institutions in  charge of standards and technical regulations are 
trying hard to become members of respective in ternational organizations, among them respective 
European organizations in the area.  We have be en working to streamline our legislation in the 
intellectual property rights as well.  Georgia is dedica ted to improving the situa tion in this regard and 
we are currently working on a number of laws that  will facilitate a better level of protection of 
intellectual property rights.  At the moment we ar e also undertaking an independent assessment of the 
situation with regard to counterfeit and piracy on our market so that we can initiate further reforms to 
further improve the situation in this regard.    WT/TPR/M/224 
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  13. All the reforms undertaken in the trade libera lization area have had a positive impact on 
Georgia’s foreign trade.  Probably the first and most  important achievement is that our trade today is 
very diversified.  We are not dependent on any si ngle export or import market;  our top three trade 
partners are Turkey, Azerbaijan and Ukraine, our biggest regional trade partner is the European Union 
and up to 27% of our trade is currently with the EU .  The openness rate of Georgia’s trade is relatively 
high, it is 60% meaning that the share of trade volume to GDP is 60%, this is the figure from 2008 
and just to give you an idea in 2003 it was only 40%, a nd here I have to mention as well that our GDP 
has been growing very quickly, so starting fro m 2004 until 2007 the annual GDP growth rate was 
about 10%, so trade diversification is key in this area.   As far as future priorities in our trade policy is 
concerned, we are very committed to further liber alising trade, we work very actively with our 
partners to conclude free trade agreements, curre ntly Georgia has FTAs with all CIS countries and 
Turkey.  The FTA with Turkey was concluded in  2007 and became effective in 2008.  We work 
actively with the European Union to conclude the so called Deep and Comprehensive Free Trade 
Agreement and the preparation efforts are ongoing.  We hope to start negotiations next year because 
this agreement concerns many areas, among othe rs, food safety, competition policy, intellectual 
property rights, etc.  A free trade agreement with th e United States is also one of our priorities and the 
strategic charter between Georgia and the U.S. envi sages that the country should explore opportunities 
to conclude a free trade agreement in the future.  So free trade is really our top priority together with 
trade liberalisation on the ground. 
14. To conclude my initial remarks, I should defin itively mention that Georgia is very committed 
to reform.  We have continuous commitment to furt her reform our economy, continue market-oriented 
reforms, and make sure that business operators in Ge orgia are operating in a very open, liberal, and 
competitive environment.  We have on a number of occasions received questions as to what Georgia 
would do in the face of the double shock of 2008 incl uding the global economic crisis, in the wake of 
which many countries reversed reforms into a differe nt direction.  But Georgia has clearly said that 
we are committed to further reform and with this  purpose the Government has come up with a new 
initiative:  the so-called Liberty Act which is a recen t initiative;  it is not yet adopted but it has been 
submitted to the Parliament.  It is a constituti onal law which envisages constitutional changes and the 
introduction of further reforms in economic but also  social areas, and it introduces a ban on further 
increase of taxes other than by referendum.  It introduces prudent policies in macroeconomic management, certain benchmarks on macroec onomic performance as well as the budget and 
introduces a number of other key prin cipals in order to create an environment where social rights are 
protected and equal opportunities are created for all citizens in our society. WT/TPR/M/224 
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  III. STATEMENT BY THE DISCUSSANT (Mr. Krzysztof Januszek (Poland)) 
15. We are reviewing today the economy of a count ry which regained independence in 1991, an 
economy which collapsed under the impact of civil war and the loss of preferential access to Former 
Soviet Union markets. The output fell by 70% and exports by 90%, the worst decline suffered by any 
transition economy with sustained growth only resuming in 2003.  
16. Prior to independence, the Georgian economy had been closely integrated  with that of the 
Soviet Union with trade accounting for an estimated 40% of GDP, and nearly all exports directed to, 
and three quarters of imports coming from, the Soviet republics.  The industrial sector accounted for about one third of the economy although Georgia lacked cheap sources of energy. The competitiveness of Georgia's heavy industry was dependent on the supply of natural gas from 
Turkmenistan at artificially low prices and on inflat ed prices for final products.  The dissolution of the 
FSU had serious effects on the Georgian economy:  th e price of gas and oil rose dramatically in the 
early 1990s, making Georgia's heavy industry un competitive and halting pr oduction in Georgia's 
industrial centers.  
17. Despite the problems, the overriding objective of Georgia's economic policies during the 
1990s was to create and develop a market economy th rough privatization of state-owned commercial 
enterprises, deregulation of prices, and liberalizati on of its trade and investment regimes.  This 
included in particular:  the establishment of a legisl ative basis for economic reform; the creation of an 
independent monetary and credit system; the introd uction of a national currency; and the complete 
liberalization of prices. Additional government resolu tions substantially remove d all energy, transport, 
and other public utility prices from State administrati on, replacing control with tariff regulation either 
by local governments or, in the cases of electricity an d natural gas, by independent departments set up 
for this purpose. The Government also took substa ntial steps towards the transformation of property 
via mass privatization through which State enterp rises began to be transformed into joint stock 
companies.   
18. Much of the transformation to a market econom y had been achieved by the time of Georgia's 
accession to the WTO in June 2000. Trade and trade -related policies pursued during the review period 
have built on those achievements.  Partly with a view to eventual membership of the EU, the 
Government has focused on harmonizing Georgia' s legal system to international norms, by 
introducing or amending legislation in key trade-re lated areas such as customs;  banking and other 
services;  intellectual property;  standardizati on and certification;  government procurement;  
privatization;  competition;  and business legislation.  
19. Following the Rose Revolution in November 2003,  the policy environment was transformed, 
with the new administration demonstrating a strong political will to carry through reforms on several 
fronts:  effective anticorruption measures, strong macroeconomic management, and follow-through on 
structural and selected sector reforms.   
20. In 2008, Georgia reached an estimated per cap ita income of US$2,900, over three times its 
level at the beginning of the review period in 2003.  During most of this period, the economic 
performance was impressive.  Driven by rapidly rising foreign direct investment flows, annual 
economic growth averaged between 9% and 10%  from 2003 to mid-2008.  With the Georgian 
economy on a strong growth track for most of the revi ew period, rising public expenditures, financed 
by a substantial increase in the tax to GDP ratio, we re being directed at improvements in education 
and health services and in targeted social assi stance for the poor as well as infrastructure.  
21. In 2008, the economy was hit by the twin shoc ks of the brief but disastrous armed conflict 
with the Russian Federation in A ugust and the global financial cris is in September, which brought 
about a reduction in FDI and workers' remittanc es, a collapse in export demand, and a sharp  WT/TPR/M/224 
 Page 7 
 
 
  contraction in bank lending.  Damage to infrastruct ure, caused by the conflict, as well as disruption to 
activity in several sectors – including construction, trade, and tourism – dampened growth.  With the 
sudden deceleration in capital inflows and the onset of a credit drought, the economy contracted in the 
second half of the year with GDP growth for the full year of only 2.1%.  
22. Generally speaking - economic policies have been  guided by reliance on the private sector for 
growth in a liberalized trade, investment, and bu siness environment, and these policies have met with 
considerable success;  the World Bank recognized Georgia as one of the world's fastest reforming 
economies.  Georgia has implemented far-reaching structural reforms, aimed at developing a 
competitive private sector as the main engine of growth, but it has only partially succeeded in 
improving the productivity, and thus the extern al competitiveness, of the private sector.   
23. Let me concentrate for a while on regional/bilate ral relations of Georgia which seems to be 
one of a key element of Georgian external trade policy. 
24. Georgia has MFN trading relationships w ith all WTO Members and profits from GSP 
arrangements with Japan, Canada, Norway, the United  States, European Union and Switzerland.  In 
2008, GSP-plus privileges granted by Turkey were  replaced by a Georgia-Turkey FTA, under which 
customs tariffs on industrial products have been fully eliminated, although a number of agricultural 
products are excluded by both parties.  In 2007, Georgia and the United States signed a Trade and 
Investment Framework Agreement, and in January  2009 Georgia signed the Georgia-U.S. Charter on 
Strategic Partnership, which, inter alia  updates the bilateral investme nt treaty, expands Georgian 
access to the GSP, and explores the possi bility of a free-trade agreement.   
25. Georgia has a free-trade regime with the (o ther 11) members of the Commonwealth of 
Independent States, which have traditionally been Ge orgia's largest trade partners, and although their 
share of trade with Georgia has declined, they s till accounted for 36% of exports and 33% of imports 
in 2008.  In August 2009, Georgia terminated its membership of the CIS organization while 
maintaining its right to remain a member the CI S free-trade area arrangements and the bilateral 
agreements with CIS members.  
26. In 2002 the Free Trade Agreement was concl uded within the framework of the GUAM – 
regional organization of four states - Georgia, Uk raine, Azerbaijan and Moldova. This FTA is more 
liberal than CIS Free Trade Agreement and does not envisage any exceptions from a free trade.  
27. Trade relations with the European Union is one of  the priority directions of Georgia in foreign 
trade activities. The basis and legal foundation for EU-Georgia relations is  the Partnership and 
Cooperation Agreement (PCA) It has been conclude d in April 1996 and entered into force in 1999. 
The agreement aims to foster cooperation, not only in  trade issues, but also in political, environmental 
and cultural areas.  
28. The EU-Georgia European Neighbourhood Policy Action Plan, signed in November 2006, 
envisages further enhancement of bilateral tr ade relations as well as progressive regulatory 
approximation of Georgia's legislation and practises to  the most important EC trade-related regulatory 
policy acquis , including also possible establishment of a Free Trade Agreement between the EU and 
Georgia. In this context the European Commi ssion has launched the EU-Georgia FTA Feasibility 
Study, which concluded that having a Deep a nd Comprehensive Free Trade Agreement (DCFTA) 
between the two parties is mutually beneficial. In tensive bilateral consultations with the EU and 
preparatory works for the future DCFTA negotiations have already started.  
29. Georgia also actively participates in a new East ern Partnership initiative of European Union. 
In December 2008 the EC announced plans to enhance its relationship with Georgia (as well as with 
Armenia, Azerbaijan, Moldova, Ukraine) as part of  a new Eastern Partnership Initiative that would WT/TPR/M/224 
Page 8  
 
  involve the gradual integration into the EU ec onomy for Eastern Partnership countries that were 
willing and able to enter into a deeper engagement.   
30. Relations between Georgia and the United Stat es are characterized by Trade and Investment 
Framework Agreement (TIFA). The TIFA sets up a joint U.S.-Georgia Council on Trade and Investment that addresses a wide range of trade and investment issues including trade capacity 
building, intellectual property, labour, and environmen tal issues.  It is also worth to mention that 
according to the US-Georgia Charter of Strategic Partnership signed in Janua ry 2009, Georgia and the 
United States will explore the possibility of a Free Trade Agreement.  
31. Let me also summarize briefly some key facts concerning trade policies and practices. On 
measures affecting imports, Georgia has streamlined and liberalized its tax, customs, and tariff 
regimes. The current average a pplied MFN tariff rate is 1.5%, down from 7.2% in 2005, making it 
one of the lowest worldwide. Nearly 86% of imported goods enter duty-free compared to 26% in 
2005. Georgia has bound all its tariffs.  The aver age bound MFN rate is 7.5%, which affords only 
limited latitude to Georgia to raise its tariffs within  existing bindings. In addition to the customs tariff, 
the Georgian authorities apply VAT of 18% and excise taxes on imported goods;  in principle these 
apply equally to domestically produced and im ported goods.  Higher excise duties on imported 
tobacco are the exception. The contribution of tariffs  to overall tax revenue has decreased, in relative 
terms, in line with the decline in the effec tive import tariff rate, falling from 32% to under 3% 
between 1998 and 2008. Georgia does not apply contingency measures and has not elaborated the relevant legislative basis for such measures.  Geor gia has no quantitative restrictions on trade.  The 
import licensing system was simplified in 2005 when the number of licences required for import and 
export was reduced from 14 main groups to 8, with licensing objectives limited to protecting public 
health, the environment, and national security. Ther e are minimal export restrictions in terms of 
export taxes or licensing, no export subsidies nor an y government financing for exporters other than 
bank loans at market interest rates. The business e nvironment in Georgia has changed substantially in 
recent years.  Regulation of business entry has been  streamlined:  the number of business activities 
subject to licences and permits has been reduced by  84% since 2005;  licensing procedures have been 
simplified;  and the "one-stop shop" appro ach to business regulation has been adopted.  
32. On sectoral policies - Georgia's economy has undergone significant structural change since 
Independence, when shares of agriculture, industry,  and services in GDP were more or less evenly 
split.  The share of agriculture has since declined significantly to an  estimated 10.3% of GDP in 2008 
although the sector remains critical for the economy:  53% of the labour force continues to rely on 
agriculture and the sector accounts for 18% of exports , although Georgia's net trade in agriculture and 
food products remains negative.  
33. Industry, comprising mining, manufacturing, u tilities and construction, contributed 21.7% of 
GDP in 2008 and provided employment to 10.5% of the total employed labour force in 2007, making 
labour productivity more than twice the level in the rest of the economy.  The most significant parts of 
the sector are the agri-processing and energy indust ries.  During most of the review period, the 
performance of manufacturing industry has shown double-digit growth, driven both by external 
demand for certain goods, mainly metals, cement, and fertilizers, and by increased domestic demand 
for processed foods, soft drinks, building materials, and timber.  
34. During the review period, Georgia, a net en ergy and fuel importer, made good progress in 
energy sector reforms to address power shortages and the poor financial state of electricity and gas 
companies.  The electricity and gas markets for in dustrial users were liberalized in 2006 and 2008 
respectively.  The Government has completed th e privatization of assets in power generation and 
distribution. The main objectives of energy policy ar e diversification of supply sources liberalization 
and deregulation of the market to attract compe titive private investment, and the maximization of 
Georgia's benefits as an energy transit corridor.    WT/TPR/M/224 
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  35. Services accounted for approximately 69% of Georgia's current GDP in 2008, up from 56% in 
2002 and 32% in 1998.  Employment in the services se ctor remained constant at about 37% of total 
employment during the period under review, indicating a marked improvement in labour productivity.   
36. All elements mentioned above are clearly i ndicating that Georgia is a fast reforming 
economy, trying to tight-up its relations with major trading partners and str eamlining its regulatory / 
structural  reforms in order to increase and dive rsify exports and to create transparent, predictable 
business conditions for producers, exporters, inv estors, innovative technologies development.  
37. Some problems and challenges are still ahead of Georgia: continuation of structural reforms; 
continuation of privatization pro cess; persuading investors to set-up production facilities in Georgia; 
adjusting SPS legislation in orde r to expand the agri export; increasing competition in services area – 
for instance in telecommunications, financial services ; improving infrastructure in transit - in order to 
take full advantage of Georgia geographical positio n between the South Caucasus, Central Asia and 
Europe.  WT/TPR/M/224 
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  IV. STATEMENTS BY MEMBERS 
CANADA 
38. Though trade relations may be limited betw een Canada and Georgia, there are many 
opportunities for us to strengthen our trade and i nvestment ties, especially in the agriculture, 
agri-business, ITC, mining and energy sectors.  The construction of hydropower plants also presents 
important investment opportunities. 
39. Bilateral trade between Canada and Georgia reached 151.5 million dollars in 2008, a 77 per 
cent increase on 2007.  Exports from Canada to Ge orgia in 2008 were valued at 24.4 million dollars, 
up 60 per cent from 15.3 million dollars in 2007.  Ca nada understands the interest Georgia has in 
diversifying its trading partners.  We are workin g together with the Canadian private sector to 
promote trade and investment in Georgia. 
40. Since becoming a Member of the WTO, Georgia has proven to be an impressive economic 
performer. The country’s trade liberalisation polic ies and acceptance of market economy principles 
have helped create a welcoming business environmen t favourable to foreign investment. Georgia’s 
commitment to privatisation, corruption fighting,  tax and legal reforms, and improvement of the 
financial sector has helped the country become an  attractive market in which to invest and do 
business.  
41. Canada welcomes Georgia’s continuing structural reforms and liberalisation of trade and 
investment regimes. The market and policy reforms of  the past several years have had a positive effect 
on the Georgian economy and should help the country  recover from the effects of both last year’s 
armed conflict and the global financia l crisis.  Canada is encouraged  by the resiliency of Georgia’s 
economy and urges it to build on the numerous and significant economic achievements since the 
beginning of the review period.  
42. We appreciate Georgia’s efforts in reducing government bureaucracy and are encouraged by 
key initiatives which have resulted in the number of business activities subject to licences and permits 
reduced by over 80% since 2005. Canada hopes th at Georgia continues implementing reforms to 
further invigorate th e business environment. 
43. Canada also hopes that the substantial extern al aid pledged to Georgia for reconstruction 
efforts will boost confidence in Georgia's economic system and stimulate growth and investment.  
Canada is proud to have contributed to the interna tional aid fund in support of Georgia’s rebuilding.  
We are hopeful that Georgia will tackle the challe nges ahead and emerge as a stronger partner in the 
world economy. 
44. We have submitted written questions and comme nts relating to Georgia’s ongoing reform 
process, government procurement, food safety, conf ormity assessment and legalization procedures, 
and WTO SPS and TBT transparency obligations. We look forward to receiving your responses.  
45. In closing, Canada strongly encourages Georgia to hold firm to its economic and trade policy 
reforms, which have resulted in a strong economic performance and s hould help the country become a 
significant regional trade corridor.  
TURKEY 
46. According to an Uzbek legend, there are two ma jor ways in the universe: milky way in the 
sky and silk road on earth. From our perspective, Georgia occupies a very central place in silk road 
between west and east, and deserves a much focused a ttention. May be that is why, in a few Turkish  WT/TPR/M/224 
 Page 11 
 
 
  dialects, Georgia means “angel or saint”. This is exactly how the Turkish G overnment approaches its 
bilateral relations with Georgia 
47. Over the last six months, one Presidential, one Prime Ministerial as well as three Ministerial 
visits took place between our countries.  
48. Turkey and Georgia enjoys remarkable bilateral trade and economic relations. 
49. In terms of trade, Turkey is the major trade partner of Georgia. In 2008, about 18 % of 
Georgian exports were shipped to Turkey and about 15 % of their imports were sourced from Turkey.   
50. In addition to steadily growing trade between the two countries, we are also expanding our 
relations in a number of other fields. For instance, we are also second biggest foreign investor, with 
almost 10% share, in Georgia.  Turkey will c ontinue to support Georgian economy and trade. 
Conclusion of the free trade area agreement is  a consequence of this determination.  
51. We also closely cooperate in the field of ener gy. The two countries together contribute to the 
energy security in Europe and the world, by dive rsifying the energy routes in the world as they host 
the oil and natural gas pipelines between  the Caspian Sea to Mediterranean. 
52. We share a similar feature with Geneva. Based on Geneva model, airport in Batumi, Georgian 
now has been serving both Turkish and Georgian pe ople. We are building the railway which will link 
the European railway network to the one in South Caucasus and to the network in Central Asia.   
53. While moving to a market economy, Georgia has heavily relied on the liberal trade and 
business practices to a large extent, and as analyzed extensively at the Secretariat and Government 
reports, it is clear that this appro ach paid very well until August 2008.  
54. Indeed, we are very much encouraged to see that Georgia has consid ered the accession to the 
WTO as part of the process, not an end in itself, an d has even hastened the reform process since then. 
Both reports provide the details of the substan tial change Georgian economy and trade regime has 
undergone in the last several years. It is no surp rise that the World Bank cites Georgia as  one of 
fastest reforming economies. The reform process c overs every aspect of the economic life from trade 
to business permits, SPS measures. Instead of transition,  probably we rather call such efforts more as 
a transformation.  
55. In this context, particularly, it is worth men tioning that Georgia’s success in terms of anti 
corruption efforts, and its remarkable achievement to  establish a viable business environment.  This is 
very well proved by the Heritage Foundation Eco nomic Freedom Index ranks Georgia highly in terms 
of business, trade, and fiscal freedom.  
56. Therefore, an annual growth rate of 10%  until August 2008 is not a coincidence.  
Nevertheless, we also must point out the need fo r further efforts to achieve high and sustainable 
growth rates. In this respect, th ere is a clear need to increase an d diversify the exports, and ensure 
steady flow of foreign investments.   
57. However, Georgian economy is on the right path  and we believe that Georgia will maintain 
this reform momentum, and it will continue to re form its economic and lega l structure and improve 
the implementation of various legislative changes.  
58. From a trade policy perspective, it clearly has a very liberal trade regime, with a simple and 
very low tariff structure by any standard as a result of numerous trade policy reforms. It has one of the 
lowest average MFN rate (1,5%) in the world while almost 85% of imports are duty free. It is even WT/TPR/M/224 
Page 12  
 
  more remarkable that Georgia has not resorted to any restrictive measures even during the armed 
conflict it experienced, and late r during the economic crisis. 
59. While there is room for improvement in certain  areas like SPS or technical regulations, these 
point out a larger problem of capacity building in general. Given the shortcomings of a developing 
economy, it is understandable that this will take some time.  
60. Nevertheless, the consistent e fforts by the Georgian government to implement international 
standards, in various trade-related areas will furt her help improve the trade environment. In this 
respect, it is noteworthy that customs code was also reformed in 2007 with a view to facilitate trade 
and flow of goods.  
61. Before concluding, we appla uded Georgia for its reform process, economic progress achieved 
so far and, very liberal and open trade regime. We certainly hope that  this will continue.  
EUROPEAN UNION 
62. The EU attaches great importance to this first opportunity for a collective review of Georgia's 
trade regime since it joined the WTO nine years ag o. It has been a period of active and wide-ranging 
reforms. In this regard, much has been done for which Georgia can be congratulated. However, some 
areas will require policy change and/or additional im plementation efforts to enable Georgia to fully 
embrace available trade opportunities and strengthen the basis for sustainable economic development. 
63. Before I make our remarks on these points, let me  outline briefly the bilateral trade relations 
between Georgia and the EU. Over the last years, ba sed on rapidly growing bila teral trade, the EU has 
progressively become Georgia’s main trade partner w ith our share approaching a third its total annual 
trade. In 2008 the total turnover was at the level of 2 billion Euros with Georgian exports amounting 
to 736 million EUR. While this figure remains modest  in absolute terms, it represents an increase of 
some 60% over 2007 and exceeds the 2003 le vel by a factor of around 2.8. 
64. Underlying these developments is a continuous ly growing cooperation between Georgia and 
the EU. Since 1999 this has been based on the Pa rtnership and Cooperation Agreement which, among 
other areas, specifically addresses trade and investment. Georgia has benefited from preferential 
access to the EU market under the GSP regime, and since 2005 under the even more generous GSP+ 
regime with duty-free treatment for some 7,200 products.  
65. We are committed to further enhancing and upgr ading our bilateral trade and investment 
relations with Georgia, and in particular to suppor ting Georgia's efforts to increase and diversify its 
exports of good and services into the EU market. I am  pleased to report that negotiations on a bilateral 
agreement on the protection of geographical indi cation of agricultural products and foodstuffs 
launched in 2007 have progressed sm oothly and we are aiming at their conclusion as early as possible 
next year. In October this year the first offici al round of negotiations on a common aviation area 
agreement took place.  
66. I have referred earlier to Georgia's achievemen ts in the last years in terms of reform, 
including in the trade and related areas. Among these we note with appreciation the empowerment of 
the private sector to drive economic growth; the simplification of the business environment; 
development of infrastructure; tax reforms; progress on anti-corruption; opening up for foreign 
investment and the facilitation of trade, not only through tariff cuts but also the streamlining of 
customs procedures and import licenses. These measures have been the driving factors behind the solid economic growth of the last years. Further wo rk is now required to ensu re protection of property 
rights, improvement of tax office standards and co ntinued development of the judicial system to 
ensure its independence.  WT/TPR/M/224 
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  67. Furthermore, there is still scope for Georgia to  enhance its economic performance and make it 
more sustainable by strengthening its export competitiveness. Export-oriented manufacturing has attracted comparatively little domestic or foreign investment. Georgia's exports, including to the EU 
market, remain below their potential and concentrated  in a few low-value added products. In order to 
integrate better into the global trading system and in crease the benefits from this integration, it will be 
crucial that Georgia, alongside continued structur al reforms, redoubles its efforts on trade-related 
regulation. Our assessment of the overall progress achieve d so far in this regard is unfortunately less 
upbeat than the Secretariat's Report. In some areas harmonisation of laws and practices with the international norms may indeed be well advanced. Ho wever, considerable work remains to be done to 
achieve regulatory approximation, in areas such as  standards and technical regulations; SPS regime; 
competition policy; and intellectual property rights enforcement.  
68. For example, in the area of food safety, the in stitutional structures n ecessary to ensure even 
the minimum international standards are currently not in place. This situation is not only disabling 
exports, it is also creating health risks for domestic  consumers. Therefore, Georgia needs to act on a 
most urgent basis. 
69. Let me also highlight the case of competition policy. Georgia still lacks a modern 
comprehensive general competition law regulating a ll forms of anti-competitive behaviour, including 
with regard to monopolies. The competition agency should also be given gr eater independent powers 
to be able to effectiv ely enforce the rules. 
70. The EU believes that aligning to international standards in these and other areas would 
strengthen Georgia's competitive position. We also  regard it as fully consistent with Georgia's 
determination to fight corruption. Furthermore, th e EU is committed to supporting Georgia in this 
process, including through technical advice and administrative capacity building. A number of 
projects are on-going, for example the Georgian-European Policy and Legal Advice Centre, and specific projects to establish a Quality Management  System and to strengthen the capacity of the 
Ministry of Agriculture and the National Service for Food Safety to improve the quality of food 
safety, veterinary and plant protection systems.  
71. Finally, I would like to recall the importance of giving due considera tion to environmental 
and social and labour aspects in the formulation of tr ade policy. We would be interested to hear more 
about Georgia's approach and experi ence in integrating these concerns. 
72. To conclude, the EU is looking forward to furt her deepening of our c ooperation with Georgia 
in bilateral, regional and multilatera l contexts to build a favourable tr ade and investment environment.  
UNITED STATES 
73. This coming June will mark the ten-year annive rsary of Georgia’s proactive entry into the 
international trading system and its accession to the WTO.  This is an accomplishment worth noting.  
Since 2003, Georgia’s leaders have practiced a policy of promoting foreign trade and investment.  In 
this regard, I think the government’s own words ar e especially noteworthy since they highlight the 
value that Georgia places on open economic policies and competition.  Indeed, in the first sentence of 
its report, the government declares that, “Trade lib eralization is one of the key objectives on Georgia’s 
economic policy agenda.”  From that  point forward, the report elaborates on the steps that Georgia has 
taken to implement that policy.  These steps, to say the least, are impressive.  And, according to both 
the government and the Secretariat, these steps have resulted in real economic growth and development, even in the face of global economic di stress.  Again, in the government’s own words, 
following the November 2003 Rose Revolution and be ginning in 2004, “Georgia almost entirely 
eliminated tariff barriers and drastically reduced non-t ariff barriers to trade.  Domestic trade related 
legislation was brought in conformity with WTO st andards. These reforms contributed to the creation WT/TPR/M/224 
Page 14  
 
  of competitive market conditions and business enabli ng environment, diversif ied international trade 
and economic ties and thus genera ted growth and development.”  This affirmation is a welcome 
testimonial to the positive impact of open trade and investment policies.  
74. While authorities may take issue with the speci fics of the economic picture, we must agree 
with Georgia’s overall assessment of its own ec onomic performance since joining the WTO.  GDP 
growth has been strong, particularly in 2003-2007; p ublic debt was reduced by half in this timeframe; 
likewise, FDI as a percentage of GDP doubled; bu dget revenues increased five times, although taxes 
were drastically reduced; and, the share of internatio nal trade in the GDP grew 20 percentage points in 
2008 compared to 2003.  Furthermore, as the government points out, despite the August 2008 war with Russia and the subsequent global financial di stress, “Georgia’s economy remained resilient and 
continued to grow in 2008 although at a lower rate than previously.”  We have to conc ur with Georgia 
when it says that “this is a relatively good result co mpared to other economies of similar size and 
Georgia’s regional peers.”   
75. The United States is pleased that Georgia rates liberal economic policies and market reforms 
of the past 5 years as one of the three main factor s contributing to the remarkable resilience of the 
economy.  The government identifies its resilient and stable banking sector as the second main factor 
and the unprecedented generosity of the global donor community as the third. It comes as no surprise, then, that Georgia rose from 112
th in 2005 to 11th in 2010 in the World Bank’s annual “Ease of Doing 
Business” survey, an impressive accomplishment by an y standard.  Also, the World Bank, in 2009, 
named Georgia the top “Doing Business” reformer in Europe and Central Asia over the preceding five 
years.   
76. The United States and Georgia enjoy a close friendship and partnership across a range of 
issues based on shared values and principles.  My co untry considers Georgia a vital partner, and I am 
pleased to say that the United States has demonstrat ed the strength of its commitment to Georgia in 
concrete terms.  Since the c onflict of August 2008, the United States has provided Georgia with 
$1 billion in assistance, helping Georgia to rebuild an d cope with a wide range of needs.      
77. Our governments regularly consult with each othe r on issues of mutual importance and both 
of us recognize the value of continued cooperation on  such issues, including international trade.  We, 
therefore, appreciate our ongoing cooperation with Georgia in all forums, including in the WTO.   
78. Despite the geographical distance between our tw o countries, I am pleased to say that trade 
between the United States and Georgia has steadily  increased since 2004.  Bilateral trade in goods 
between the U.S. and Georgia rose steadily from just  over $300 million in 2004 to nearly $800 million 
in 2008.  Absent the dual shocks of armed conflic t and financial crisis, I am confident that the 
numbers would be even stronger.  We are commi tted to helping our Geor gian partners recover 
strongly and return to a path of steady and robust growth.   
79. In addition to being an active player here  in Geneva, Georgia has demonstrated its 
commitment to trade liberalization by pursuing trad e agreements of various kinds with a number of 
partners including the United States.  Georgia a nd the United States signed a Trade and Investment 
Framework Agreement in June 2007 to provide a st ructure for our bilateral discussions on trade and 
investment.  This Agreement establis hes a bilateral Council, which last met in Tbilisi just over a year 
ago.  Under the Council’s auspices, the United Stat es and Georgia began discussions in September of 
this year aimed at negotiating a new Bilateral In vestment Treaty, with the goal of strengthening 
investment relations between our countries.  Our governments continue to discuss other means of 
enhancing our trade relations.   
80. Georgia’s entry into the WTO on June 14, 200 0 was indeed a significant step towards the 
nation’s integration into world trad e.  Georgia’s report notes the importance it attaches to the WTO as  WT/TPR/M/224 
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  the primary basis for its trade policy.  The commitment the government shows toward this 
organization is commendable.  In Georgia’s case, the nation is party to all but the Government Procurement Agreement (GPA) and, according to the government’s report, “Georgia is ready to join 
the GPA in the near future.”  We urge Georgia to follow through on this important step.   
81. While Georgia has ably demonstrated its commitm ent to open trade, some issues remain, and 
the written questions that the United States submitted in the context of this TPR convey some of our 
concerns.  We note, for example, that the governme nt’s report asserts that Georgia’s 2006 labor code 
complies with the International Labor Organization’ s core labor standards.  However, the ILO has 
observed as recently as 2008 that Georgia’s labor c ode does not adequately provide for freedom of 
association, including by requiring 100 members to form  a trade union.  We are interested in the steps 
the government is taking to address ILO concerns.   
82. In the area of food safety, the Secretariat’s re port indicates, “all normative acts regarding food 
safety were elaborated on the basis of EU regula tions…”  We note that the SPS Agreement calls on 
WTO Members to base their measures on internationa l standards.  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.  We 
would appreciate a better understanding of why Geor gia’s food safety measures have been based on 
EU regulations instead of Codex, and whether such  safety measures have been subject of a scientific 
risk assessment where Georgia’s regulations are different from those of Codex. 
83. The Secretariat report indicates that in 2008,  amendments dealing with issues such as 
valuation were made to the Customs Code of Ge orgia.  We encourage Georgia to notify this 
amendment to the Committee on Customs Valuation.  Similarly, since Georgia’s last notification to 
the Committee on Import Licensing Procedures was in  2002, we encourage Georgia to notify its Law 
on licenses and permits, issued in June 2005, to the Committee.  The Secretariat’s report notes similar 
delays in notification in the areas of taxation.  Again, we encourage Georgia promptly to notify 
relevant legal and regulatory changes.   
84. In closing, I would like to emphasize that Georgi a is a valued partner of the United States, and 
that our cooperation in this organization is a key element of our partnership.  We look forward to 
working closely with Georgia and our WTO partne rs to strengthen and build on the WTO’s rules-
based and cooperative foundation, and to consider the potential of a balanced and ambitious 
conclusion to the Doha Round.  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
85. Since Georgia acceded to th e WTO in the year 2000, its economic growth has been 
impressive.  In the review period from 2003 to 2008, fo r example, prior to the financial crisis, real 
GDP was increasing by an average of 10% annually.   Georgia was recognized by the World Bank as 
one of the world’s fastest reforming economies, attribut ed mainly to its liberalization policies in trade, 
investment and its domestic business environment.  Exports, however, which account for only about 
20% of Georgia’s total GDP, have not matched th e strong growth rate of  its economy overall.  
Georgia’s main exports have been traditional produ cts, such as base meta ls, prepared foodstuffs, 
mineral and chemical products, machinery and cement,  reflecting room for further diversification.  
86. We welcome Georgia’s efforts in the areas of tariff reform, in combating corruption in 
Customs, reform of the business licensing sector, re gulatory reform of the financial sector, and its 
continued adoption of trade-related legislation comp atible with international standards.  We have 
noted also that its applied MFN tariff rate is 1.5%, making it one of the lowest in the world, and that 
nearly 86% of its imported goods enjoy duty-free treatm ent.  With respect to non-tariff barriers, it has 
no quantitative restrictions on trade, no tariff quotas, minimal export restrictions in terms of taxes or WT/TPR/M/224 
Page 16  
 
  licensing, no export subsidies, nor any government financing of exports. This all serves to 
demonstrate Georgia’s very positive intention of becoming integrated into the multilateral trading 
system.  
87. As far as the DDA is concerned, being, like us, one of the RAMs (Recently Acceded 
Members) group, Georgia has alread y undertaken extensive market acc ess commitments at  the time of 
its accession.  My delegation would therefore encourag e Georgia to participate actively with the other 
RAMs in making their collective influence felt on the negotiations in the final stage.  
88. We were also pleased to see from the reports that  Georgia’s real GDP growth is forecast by 
the IMF to reach 2% by the end of 2010, and acco rding to the “Ease of Do ing Business” survey by 
World Bank and IFC, Georgia is the 11
th most attractive place in the wo rld for doing business, the 2nd 
best in registering property, the 5th in starting a business, the 7th in dealing with construction licenses 
and the 9th in employing workers. 
89. However, with the on-going financial crisis, th e possibility of prolonged regional tension, and 
because of its role as a strategic transit corridor for oil and natural gas, Georgia needs to make further 
improvements in areas such as exports, industrial sectors, transport infrastructure, SPS and Intellectual 
Property, transparency obligations under the WTO and its non-oil transit potential.  
90. The total value of two-way trade between us in 2008 amounted to just US$21.6 million.  
Although this is small at the moment, it highlights for us the large potential for expanding the trade flows between us in the future.  If we can identif y our particular needs and concentrate on specific 
complementary trading sectors, I am sure we ca n turn the trade potential into reality.   
JAPAN 
91. I would like to start my comments with economic policy and environment. According to the 
Secretariat Report, since 2003 Georgia has achiev ed strong economic development with nearly 10% 
per annum GDP growth and a 3 fold growth of GDP per capita. FDI inflows has also increased by 
more than twice its ratio to the GDP during the same period. 
92. These impressive figures are due to the economic liberalization and trade facilitating policies 
enforced by the Georgian government. The Secret ariat Report describes the various reforms which 
have taken place during the review period. These incl ude tariff reform, with an applied MFN tariff 
which is one of the lowest in the world, an intr oduction of a new standards system aligned with the 
international practice and a reform of the business licensing sector etc. We can measure the results of 
these reforms when reading the Word Bank’s Doing Business index , which ranks Georgia as 11
th out 
of 183 economies for 2010.  
93. We also learned that despite the armed conf lict with Russia in 2008, the local representative 
of the International Chamber of Commerce consider s that the business and investment environment in 
Georgia remains positive.  
94. Japan appreciates the economic liberalization, trade facilitation and market opening policies 
actively implemented by the Georgian government. We hope that Georgia will continue to promote 
various reforms in order to facilitate and impr ove its economic development and its investment 
environment and to support its business activities such areas as tax and custom procedures.  
95. We would like to comment on another aspect . That is the Georgian capacity for policy 
implementation. The Secretariat report raises the implementation problems in the area of technical 
standard, SPS and intellectual property rights. To further improve the trade and investment 
environment in Georgia, Japan notes the necessity for an improved capacity building of the related  WT/TPR/M/224 
 Page 17 
 
 
  authorities. Georgia is concerned with these issues  and is an active participant in trade related 
technical assistance activities. Jap an hopes that Georgia will further participate in these technical 
assistance activities to achieve effective implementati on of its trade policies, and that it would further 
facilitate international trade and investment.  
96. In conclusion, Japan would like to reiterate its hope that Georgia will continue its efforts to 
promote and liberalize its economy and trade. Finally , we hope that this fist TPR for Georgia will 
bring fruitful results both for Georgia and other Members.  
CHINA 
97. My delegation congratulates Georgia for having registered impressive economic performance 
for the period under review. From 2003 to 2008, th e economy was growing strongly, with real GDP 
rising by nearly 10% per annum on average. Income  per capita reached US$2,900 in 2008, over three 
times its level in 2003. FDI inflows more than doubled from 8.4% of GDP to 17.2%, underlining the improvement of business environment. Inflation has generally been kept lo w at one digit level. 
However, as the Secretariat Report has noted, the unemployment rate has been rising and poverty remains widespread. It would be interesting to know  how Georgia looks at this and what strategy is 
envisaged to address it. 
98. My delegation has also noted that as a recently  acceded member just like China, Georgia has 
maintained a very low tariff rate as a result of  its WTO accession commitments. The average bound 
MFN rate is 7.5%, while the current average app lied MFN rate is only 1.5%, far lower than the bound 
level, making it one of the lowest worldwide. At  the Seventh Session of the Ministerial Conference 
last week, Ministers have stressed the importance of accessions in broadening and strengthening the 
WTO. In this regard, it is recalled that the Informal Group of Developing Countries in its communication contained in document WT/GC/W/611 has proposed to improve the existing institutional mechanisms with th e objective of providing the opportunity to acceding developing 
countries to make their views on the accession process known to Members. China is of the view that 
Members should refrain from imposing excessive de mands to the acceding developing countries 
which go beyond their level of development or beyond the current WTO rules. 
99. The Chinese Government attaches great impor tance to the economic and trade cooperation 
with Georgia. In recent years, trade relationship is  running rather smoothly. In 2008, bilateral trade 
amounted to US$288 million, growing by nearly 50% over the previous year. The composition of products in bilateral trade is further optimized, with the share of high-tech products going up 
remarkably. Since 2007, Georgia has managed to increase its wine export to China steadily.  
100. Affected by the international financial cris is, trade between China and Georgia suffered a 
substantial decrease in 2009. From January to Oc tober, bilateral trade recorded US$166 million, 
representing a fall of 37.5% year on year. Nevert heless, cooperation is still progressing ahead in 
energy, resource exploitation, wood processing, ag riculture, transportation and telecommunication. 
We believe, with the strong support of both governments and the activ e participation of businesses in 
both countries, the potential of bilateral economic and trade cooperation is going to be further tapped. 
101. This trade policy review is the first one of Ge orgia after its WTO membership. It is taking 
place at an opportune time. The annual WTO TPR mon itoring report has concluded that the worst of 
the deepest crisis since the 1930s is already behind us. Ministers met for the first time in four years 
last week, providing useful guidance as to the way forward of this organization in the coming years. 
Among other things, Ministers reaffirmed the importa nce of trade and the Doha Development Agenda 
to economic recovery and poverty alle viation and reaffirmed the need to conclude the round in 2010. 
China is ready to work wholeheartedly with Ge orgia and other members towards achieving this 
objective. WT/TPR/M/224 
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  NIGERIA 
102. Nigeria is pleased to note that by the time of  its accession to the WTO in 2000, Georgia had 
established the legislative basis for competitive ma rkets by liberalizing its trade and investment 
regimes, freeing prices, rescinding exclusive right s granted to certain economic agents, abolishing 
restrictions on competition, privatising state-owned enterprises, and cutting subsidised credits to state-
owned enterprises. These measures have helped open the economy and create a business environment 
favourable to foreign investments.  
103. As highlighted in the Secretariat report, Georgi a has continued with structural changes since 
independence, in particular, agricultural policies carried  out in recent years that include land reforms, 
privatization of farms and agro-industry, facilitati ng access to finance, attracting investment and use 
of open trade policies. These changes would in help in uplifting the standard of living of the people of 
Georgia. 
104. Nigeria note that Georgia has experienced so me challenges as the share of its exports 
remained moderately low which is about 20%, less th an half of the share of imports, which reached 
49% of GDP in 2008 in part reflecting relatively lim ited investment in export oriented agro-business 
and manufacturing industries. In the half of 2009, Ge orgia’s exports and imports of goods declined by 
35% and 38% respectively compared with the first si x months of 2008. In spite of all these challenges 
the economy performed well. 
105. As indicated in the Secretariat Report, Georgia has benefited from a number of technical 
assistance activities from the WTO and partner institu tions on TRIPS Agreement, in particular on 
TRIPS and Publics Health to make effective use of the mechanism established under the WTO 
Decision on Paragraph 6 of the Doha Ministerial D eclaration on TRIPS and Public Health. It would 
be interesting to know the steps taken by Georgia to  make available medicines to its people especially 
those relating to HIV/AIDS and tuberculoses using the flexibilities contained in the TRIPS 
Agreement. 
106. As indicated in the Government report, my dele gation notes that in spite of its intensive trade 
liberalization effort that includes elimination of tari ff and non-tariff barriers to trade, simplification of 
exports and imports procedures and increase in trade flows and diversification, there remains other 
challenges. We therefore call on WTO Members to  support Georgia so that it can overcome its 
challenges and realise sustainable development. 
107. As an important Member of the WTO, Georgia has played an active role in the Doha 
Development Agenda negotiations. My delegation looks forward to further collaboration with the 
delegation of Georgia in the negotiations. 
BRAZIL 
108. Brazil notes with satisfaction that, since 2004, the Government of Georgia has been 
demonstrating a strong commitment to participating in the multilateral trading system. In this context, 
we welcome the sharp reduction of its tariff and non- tariff barriers to trade, as well as the reform 
initiatives undertaken by Georgia aimed at simplifyi ng its trade regulations and bringing them in 
conformity with WTO standards and practices. 
109. We also praise Georgia’s economic policies aimed at creating an  attractive business 
environment. They have been widely acknowledged by investors, the international community and 
multilateral institutions.  WT/TPR/M/224 
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  110. Brazil particularly appreciates the fact th at trade and economic reforms are being 
accompanied by a comprehensive program of institu tional reforms targeted at consolidating an 
efficient bureaucracy and a democratic and transparent political system. The rule of law, fight against 
corruption and the promotion of human rights and pol itical liberties are also essential values shared by 
the Brazilian people. 
111. Those measures have proved themselves to be extremely successful, providing Georgia with 
steadily increasing amounts of Foreign Direct Invest ment and expansion of trade volume, which led 
the country to impressive and sustained growth rates. Additionally, domestic fiscal improvements 
have made Georgia relatively resilient to the impacts of the economic and financial crisis. This is even 
more impressive taking into account  that Georgia had to cope with the destabilizing impacts of the 
2008 armed conflict.  
112. Brazil thus encourages Georgia to continue on the path initiated in 2004 and sincerely wishes 
that the country may overcome the challenges posed by the crisis a nd resume its trajectory towards 
sustained, just and inclusive development. 
113. We look forward to seeing the positive effect s of the Social Assi stance Package and the 
Economic Stimulus Package adopted by the Governme nt of Georgia as a response to the crisis and 
calls upon Georgia to continue resisting th e temptations of protectionist measures. 
114. Georgia’s commerce with Brazil has increased  steeply in the past six years, from 
US$54.3 million in 2003 to US$150.6 million in 2008 - a 277% growth. As we welcome the performance demonstrated by these figures, Brazil understands there is potential to be further 
explored by our traders so as to intensify our commercial relations. 
115. We hold the view that there is especially still r oom for Georgian exports to Brazil to increase, 
and the Brazilian Government is committed to e xploring possible ways of achieving this goal.  
INDIA 
116. Georgia has recorded impressive economic growth since it joined the WTO in 2000.  The 
economy prior to August 2008 was witnessing a very strong real GDP growth of nearly 10% per 
annum on an average.  The FDI inflows also recorded  high numbers due to construction of oil and gas 
pipelines, infrastructure, constructions, etc.  Howeve r, the Secretariat Report has pointed out that the 
rapid economic growth since 2003 has not been associated with growth of export relative to GDP.  The share of exports remained moderately low at a bout 20% less than share of imports which reached 
49% of the GDP in 2008.  It would be interesti ng to know from Georgia the policies and measures it 
proposes to take to enhance its exports in the coming years. 
117. The other challenges the Georgian economy faces in the coming years are also mentioned in 
the Secretariat Report, namely, impact of ongoi ng global economic crisis, lower commodity prices 
and the significant decline in private capital inflows,  exports and remittances.  It will be useful to 
learn from the Georgian delegation the steps it has taken or proposes to take to address these challenges. 
118. India’s relations with Georgia can be traced back to the 3
rd and the 4th centuries BC on the 
Silk Route.  The Georgian chronicle “Kartlis Ts khovreba” refers to the establishment of relations 
between India and Georgia during the reign of King Vakhtang Gorgasali. 
119. India formally recognised Georgia after its i ndependence in 1991 and est ablished relations in 
September 1992.  An Agreement on trade and econo mic cooperation between India and Georgia was WT/TPR/M/224 
Page 20  
 
  signed in 1995.  A MoU on cooperation between th e Confederation of Indian Industries and the 
Georgian Employers Association was signed in 2004. 
120. India-Georgian trade is around US$40 million w ith Indian exports to Georgia standing at 
US$31 million in 2008.  India’s main exports are meat , pharmaceuticals, sugar, milk, tubes and pipes, 
coffee, textiles and stone.  Indian imports from Geor gia are mainly scrap metals.  India’s investments 
in 2008 in Georgia were US$27 million. 
121. India offers 25 scholarships annually to Geor gia under the Indian Technical and Economic 
Cooperation programme.  There are about 100-150 Indi an students studying medicine and nursing in 
Georgia. 
  WT/TPR/M/224 
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  V. REPLIES BY THE REPRESENTATIVE OF GEORGIA AND ADDITIONAL 
COMMENTS 
122. All the questions and comments have been treat ed with particular attention and given high 
consideration from our side. Answers to the questi ons provided by members prior to the TPR have 
been submitted by Georgia in writing. We remain committed to the principles of transparency and 
stand ready to answer any further questions in a responsible manner. 
123. In the past years Georgia demonstrated strong commitment to the principles of liberal trade 
and we will further advance reforms in order to ach ieve a higher level of integration into the world 
trading system.   
124. A number of issues related to legislative appr oximation have been raised by the European 
Union. In this regard, the Government of Georgia (GoG) realizes that there are still necessary steps to 
be undertaken in order to achieve regulatory appr oximation in areas such as standards and technical 
regulations, SPS, competition policy, and intellectua l property rights enforcement. Currently, the GoG 
is in the process of development of comprehensiv e strategy papers, in cooperation with the EU 
Commission, in the framework of preparatory pr ocess for the future DCFTA. The above areas have 
been identified as key recommendations by the EU  Commission and sufficient progress in these areas 
is required to start negotiations on the DCFTA.  We work closely with EU experts to finalize these 
strategies. Further I would like to go into detail on each mentioned area.   
125. As far as SPS measures  are concerned, the GoG demonstrates a genuine political commitment 
to establish a solid food safety system and  proper implementation of food safety regulations through 
elaborating a Comprehensive Strategy in Food Safe ty in the framework of preparation process for 
future DCFTA with the EU. The main aim of the St rategy is to gradually approximate Georgia’s food 
safety legal framework with that of the EU a nd international standard s, and further develop 
institutional structure for effective implementation of legal framework. The Strategy should guide the 
GoG and the private sector activities in the short an d long term.  The Strategy considers the gradual 
implementation of food safety related legisla tion starting from January 2010, and the necessary 
legislative changes have been already initiated.  
126. Currently, policy definition in the SPS area is th e responsibility of the Cabinet of Ministers, 
and in particular the Ministry of Agriculture. Im plementation of SPS measures is undertaken jointly 
by the latter and the Customs Revenue  Department of the Ministry of Finance. Particular effort is 
dedicated to strengthen coordination between thes e agencies. Whereas polic y in the SPS area is 
defined mainly by the Ministry of Agriculture, the implementation of SPS measures is done jointly. 
The above-mentioned strategy foresees further developm ent of institutional structures in the area of 
food safety to enable access to foreign markets and to protect Georgian consumers. Thus, respective 
institutional structures, including the National Se rvice for Food Safety, Veterinary and Plant 
Protection, are in place. Additional effort will be de dicated to their strengthening and streamlining.   
127. Regarding the measures in the area of competiti on and anti-trust, the GoG intends to promote 
competition and thus strengthen the efficiency of  production and distribution of goods and services 
through the greatest possible transparency and equity  of competitive conditions. The Draft Strategy in 
Competition Policy was elaborated in the framework of preparatory process for DCFTA with the EU.  
128. The Strategy addresses all the issues regarding anti-trust and state aid. The Strategy envisages 
elaboration of the general framework law in comp etition area. The framework law will cover all the 
fundamental principles in the area of competition.  The Strategy also foresees separation of the 
Competition Agency from the Ministry of Ec onomic Development and granting it sufficient 
independence, authority and power to enab le to effectively enforce the rules.  WT/TPR/M/224 
Page 22  
 
  129. As far as TBT measures  are concerned, Georgia has undertaken a number of reforms in the 
area of standards and technical regulation. Upon entering the WTO, Georgia undertook an obligation 
to introduce a voluntary system of standards and to  decrease the list of goods which are subject to 
compulsory certification.  
130. In 2005, the Government of Georgia initiated reform of the standardization, metrology and 
accreditation systems, which was aimed at removal of  technical barriers to international trade and 
ensuring transparency in the field of technical regul ations. As a result, the institutional and structural 
arrangement of standardization and accreditation fi elds was optimized, and a system of accreditation, 
quality control, standardization and technical regul ation was introduced that is compatible with 
international standards. Mandatory standardizati on was replaced by voluntary standards, and the 
regulatory function of the state in standardization field was reduced.  
131. This sphere remains under the special attention of the Government in order to bring it in 
compliance with international standards and thus redu ce technical barriers to trade. For this reason the 
Government recently prepared a Strategy in Standa rdization, Accreditation, Conformity Assessment, 
Technical Regulation and Metrology and a Progr am on Legislative Reform and Adoption of 
Technical Regulations. The strategy envisages gradual introduction of internatio nal and EU standards.  
132. Regarding the measures aimed at higher protecti on of intellectual rights, Georgia undertakes 
active steps in this field as well. Responsibility fo r enforcement of IP rights is shared between 
different authorities: the Intellectual Property Offi ce provides the legal protection of the rights of 
natural persons and legal entities in the area of in tellectual property protection, the Ministry of 
Interior, Financial Police and Customs Department of the Ministry of Finance are also involved in the 
system and provide IPR ex officio  enforcement at the borders. 
133. Georgian legislation offers flexible possibiliti es for IP right holders to enforce intellectual 
property rights. Right holders have the right to sue for infringement of their rights.  
134. For further harmonization of Georgian IPR legi slation with EU standards the Georgian IPR 
Office in cooperation with the office of the Prime Minister is currently working on draft amendments 
to the Patent Law of Georgia. Amendments fore see streamlining the protection of the industrial 
design. Besides, the Government of Georgia is ready to sign the Agreement between the European 
Union and Georgia on Protection of Geographical  Indications of Agricultural Products and 
Foodstuffs. The negotiations on the agreement are almost finalised.    
135. For the purpose of improving the IPR enforcem ent, the Georgian Government asked UNDP 
to carry out an independent assessment of pirate d and counterfeit products on the Georgian market. 
The study will be completed in early 2010 and n ecessary steps will be identified in follow-up of the 
assessment. 
136. Another question raised by the European Un ion is related to Georgia’s approach and 
experience regarding environmental and social and labor aspects in the formulation of trade policy. 
137. It is noteworthy that the Government of Georgia draws particular attention to the 
environmental, social and labor issues. In this regard, reforms are underway. Georgia’s social policy 
is directed towards reduction of poverty and increase of employment. Various state programs in the 
social sector comprise up to one third of Georgia’ s budget. Targeted social assistance and insurance 
schemes are aimed at assisting the most vulnerable parts of our population, in order to guarantee a 
sufficient level of social dignity.  The Government  actively cooperates with the ILO, among others, in 
the framework of the social dialogue between the Government, trade unions and employers. As for the 
environmental aspects, Georgia recognizes the importan ce of this issue and realizes that environment 
protection has to be the key priority for all st ates and a global responsibility. We are ready to  WT/TPR/M/224 
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  cooperate with Member states on all issues conc erning the environmental protection.  Georgia 
attaches particular attention to proper implementati on of ratified international convention in the areas 
of environment, social and labour issues.    
138. I would like to respond to the questions raised by the United States, in particular to those 
related to freedom of association and food safety standards. 
139. As regards freedom to form associations, I would like to emphasise that this right is firmly 
protected in Georgia. The Constitution of Georgia,  the Labour Code, the Civil Code and the Law on 
Trade Unions envisage a freedom of establishment of  association and membership to any association, 
including trade unions. Establishment of civil asso ciation means any type of association including 
trade unions.  Accordingly, legal definition of ci vil associations includes trade unions and all the 
rights of civil associations are fully applicable to the trade unions without any limitation.  Under the 
Georgian legislation, procedures of establishment of an association are relatively simple, even two persons can form an association.  
140. As for the limitation related to the number of  members to form a trade union, it should be 
mentioned that according to Georgia’s labour legisla tion, a requirement of 100 persons to form a trade 
union is related to the confederation of trade uni ons and not to the primary trade unions. This 
argument is supported not only by the legislation itsel f, but more importantly by practice. There are 
numerous primary trade unions in Georgia with memb ership lower than 100.  Georgian legislation 
does not limit activities of associations in any way unless they violate basic rights and freedoms of 
others and/or public order.  
141. Regarding SPS standards, according to the Geor gian Law on Food Safety and Quality, the 
Government of Georgia shall ensure registrati on of international standards according to the Codex 
Alimentarius . From 1992, the Government of Georgia star ted registration of in ternational standards 
according to the Codex Alimentarius.    Accordingly, Georgia’s regulations are not different from the 
latter.  EU regulations on food safet y are relevant in particular in the context of negotiations on the 
DCFTA with the EU.  
142. The Comprehensive Strategy in Food Safety drafted by the GoG in the framework of 
preparation process for future DCFTA with the EU , aims at further development of legal and 
institutional framework in the food safety sector  and implementation of suspended food safety 
legislation in line with both the EU and International standards.  
143. Last but not least, Georgia understands that deliv ery of prompt notifications is important for 
the sake of transparency vis-à-vis  our partners in the multilateral trading system and the WTO 
Members. Therefore, the Government of Georgia will ensure notification of all relevant legislations 
and information to the WTO in 2010. 
144. Let me now move on to the question raised by the representative of China regarding the 
measures implemented by the Government to reduce unemployment and poverty. 
145. One of the main tools to fight against poverty in Georgia is to reduce unemployment, as these 
two problems are closely interlinked, especially in rural areas. The major challenge on the way 
towards employment generation is of structural nature. Namely, a job mismatch and structural 
unemployment caused by structural changes in the economy as a result of transformation from the 
state planned economy to a market oriented one. Swift development of certain sectors creates high demand for highly skilled workers, which cannot alwa ys be adequately met by the existing labour 
force. To address this challenge, the Government  of Georgia is implementing a program called 
“Vocational Education and Training Infrastructure Development for Employment”. The basis of this 
program is creation of modern and demand oriented educational centers, which will decrease disparity WT/TPR/M/224 
Page 24  
 
  of demand and supply and will promote increase of skills of the work force, thus reducing the 
unemployment rate, which consequently will help in fighting the poverty.   
146. Apart from that in 2006 the soviet time labour legislation was replaced by a modern labour 
code, which is in compliance with international conventions and protects rights of employers and 
employees. The new Labour Code was adopted with  the purpose to, among others, simplify hiring 
regulations and thus help genera te employment, as well as to reduce informal employment through 
reducing respective incentives. 
147. Georgia’s regulatory reforms aimed at creation of attractive business climate are targeted at 
private sector development whereby private sector will be the main generator of employment. The 
GoG pays particular attention to the development of local infrastructure in Georgian regions and 
promotes investments made in rural areas, which help to increase employment level in Georgian 
regions. 
148. In order to address the needs of the most vul nerable parts of Georgia’s population, those 
below the poverty line, the Government introduces a system of targeted social assistance starting on 
2006, whereby targeted cash benefits and free of ch arge insurance is provided to the poorest of the 
society. This system is based on a careful assessment of the population and recipients of assistance are 
identified.  Various social programs constitute up to one third of Georgia’s state budget.   
149. Nigeria and India asked what Georgia does for export diversification. A number of initiatives 
have been undertaken and are ongoing in this regard s. Export promotion and diversification is one of 
our priorities.  
150. Georgia has implemented far-reaching structural reforms, aimed at developing a competitive 
private sector as the main engine of growth. As a key to raise productivity and competitiveness, the 
GoG considers continued efforts to improve infrastructure and the business environment. 
151. Georgia works actively to improve the interna tional contractual basis that will facilitate 
export growth. Georgia has free trade agreements wi th all CIS countries. An FTA was concluded with 
Turkey and entered into force in 2008.  Preparator y works for the start of negotiations on the DCFTA 
with the EU are underway, including legislative approximation effort aimed at increasing Georgia’s 
exports to the EU.  
152. Important steps in export support are Bilate ral Treaties on Investment Promotion and 
Protection and Double Taxation Treaties. Currently , Georgia has concluded bilateral treaties on 
investment promotion and protection with 30 c ountries and launched nego tiations to conclude 
bilateral treaties with 24 countries. As for double  taxation treaties, Georgia has concluded double 
taxation treaties with 26 countries a nd launched negotiations to concl ude double taxation treaties with 
9 countries. 
153. Georgian exporters have high level support fro m the Government in terms of promotion. 
Business forums and export promotion events are held in the framework of visits of state delegations 
and intergovernmental economic commissions.  
154. The Ministry of Economic Development of Geor gia (MoED) works closely with the private 
sector. The MoED organizes workshops, where the wo rld market trends are examined, the necessary 
information on preferential trade regimes and their usage is provided, monthly updates information on 
its website on export and foreign trade related sta tistics. The MoED delivers individual consultations 
for the interested entrepreneurs regularly.  Curre ntly, the MoED works on creation of a trade portal 
which will be a useful tool for the local producers to gain access to the outer world and will promote  WT/TPR/M/224 
 Page 25 
 
 
  Georgian export diversification.  As a result of these and other reform in itiatives, Georgia’s exports 
grew substantially in recent years;  in 20 03-08 its average growth rate was up to 30%. 
155. We realize that still a lot needs to be done in order to increase the share of export in the GDP. 
At this place, it has to be mentioned that while the share of export in GDP has been growing, GDP 
was also growing at an annual average rate of 10%.     
156. The representative of Nigeria wa s interested to learn about steps taken by Georgia to make 
available medicines to its people especially related to HIV/AIDS and tuberculosis using the flexibility 
contained in TRIPS Agreement. We will provide de tailed written response to this question. However, 
at this stage, let me mention that medicines relate d to HIV/AIDS and tuberculosis are provided free of 
charge for the population. 
157. India raised a question about the impact of the global financial crisis, lower commodity 
prices, significant decline in private capital inflows,  exports and remittances, and the steps taken by 
the Government of Georgia in this regard. 
158. The Government of Georgia prepared a special Strategy to deal with the global financial 
crisis, which helped Georgia to minimize the negativ e impact of the crisis. The Strategy includes the 
Economic Stimulus Package and th e Social Assist ance Package. 
159. Under the Economic Stimulus Package the Govern ment initiated further tax cuts in order to 
stimulate demand and increase private spending as an additional tool for avoi ding significant decrease 
of economic activity. Income tax was reduced fro m 25% to 20% from January 1, 2009 and it will be 
further decreased to 15% by 2012.  In addition up to US$2 billion is being in vested in infrastructure 
projects in order to help stimulate growth and employment.  
160. The Social Assistance Package envisages increased assistance to the socially needy which 
among others includes rising of pensions, salarie s (in education sector), cash benefits to the 
population living under poverty line and coverage of state insurance programs. 
161. Throughout the global financial crisis, the imp act of which was aggravated by the Russian 
Invasion in August 2008, Georgia’s economy demonstrated a remarkable resilience. This was due to 
the Governments continued effort to reform the economy and thus diversify trade and economic ties, 
as well as the stability of the banking and financia l system. Market oriented and liberal reforms 
formed a solid basis of our economy, and help ed it survive relatively well during the crisis. 
International financial support as well as the Governme nt Stimulus Package played an important role.  
In 2008, Georgia’s GDP growth amounted to 2.1%. Forecasted growth for 2009 is -4%. With this, 
Georgia stands better than its regional peers or countries of similar size.  For 2010 2% economic 
growth is forecasted. Signs of recovery fro m the crisis are clearly evident.    
162. During 2009 Georgia’s export partners as we ll as number of export commodities increased 
compared to 2008.  In the third quarter of 2009 the total volume of exports increased by 42.2% 
compared to the first quarter of the same year . During January-October 2009 trade deficit was almost 
35% less than in the same period of 2008.  Duri ng the same period, Georgia had a positive trade 
balance with 29 countries, instead of 21 countries in the same period of 2008. 
163. Deficit of the current account of the balan ce of payments for the second quarter of 2009 
decreased considerably as compared  to the previous quarter and also the second quarter of 2008 and 
amounted to US$255.8 million, and this reduction comprised 34.7% and 72.8% correspondingly.  
Therefore trade balance improved and its deficit is up to 17% lower compared to the previous quarter 
and 48% less than it was in the second quarter of 2008. WT/TPR/M/224 
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  164. Apart from all the above-mentioned, Georgia is ready to answer all qu estions that Members 
might have. Let me reiterate that we are ready to cooperate with the WTO Secretariat and the Member 
states, and provide all the information in  a transparent and responsible manner. 
DISCUSSANT 
165. A number of issues for discussion were raised by WTO Members States participating in this 
review, which also have been mentioned in my fi rst statement on Tuesday, in particular: need for 
continuation of structural reforms;  compliance of  labour legislation with ILO core standards;  
necessity of continuation of the privatization pr ocess;  expanding productivity and competitiveness of 
agri production and export;  need of increased competition in services area;  and some improvements in competition law and intellectual property legislation enforcement. 
166. But at the same time we have heard from the Georgian delegation a clear declaration that 
trade liberalization is one of the key objectives on Georgia’s economic policy agenda, that Georgia 
undertook a number of reform initiativ es targeted at streamlining, liber alization and simplification of 
trade regulations and their implementation, that Georgia almost entirely eliminated tariff barriers and 
drastically reduced non-tariff barriers to trade. It  was also said and confirmed by many speakers from 
the WTO Members States that domestic trade rela ted legislation was brought  in conformity with 
WTO standards. The WTO Member States acknowle dged that these reforms contributed to the 
creation of competitive market conditions an d business enabling environment, diversified 
international trade and economic ties.  
167. Moreover, many of those countries that spoke on Tuesday have indicated that Georgia has 
been successful in reducing bureau cracy, developing of business environment (it was rightly indicated 
that Georgia is the 11
th most attractive place of doing business), promoting positive intension in 
multilateral system.  
168. Georgia has also provided written replies to a dvance written questions. These replies referred 
to government procurement and proper changes in  legislation, standards and SPS requirements, 
services, labour market reform, bilateral and re gional trade relations of Georgia, tariffs, IPR 
legislation and enforcement, privatization policy a nd its relation to foreign investment, energy sector, 
agriculture and rural development.  
169. I should say these responses were quite comprehe nsive and in-depth elaborated. They have 
shown in my opinion the good will of Georgian author ities to continue the process of reforms, deep 
engagement in multilateral trade system, tension to  expand bilateral, regi onal and multilateral trade 
relations, wish to be fully compliant with WTO requi rements and - what is of utmost importance - to 
stipulate attractive business environment with the aim to enhance foreign investments, stimulate 
business activities in various fields of economy a nd increase the welfare of citizens throughout the 
country.  
170. I believe we are reviewing a successful econom y where authorities are deeply involved in 
overcoming some still existing problems like job cr eation, poverty alleviation, increase of output 
competitiveness, expanding agricultural broad- range production, effectiveness, and export 
possibilities, development of infrastructure in tran sit and energy, increase competition in services.  
171. I would encourage the Georgian government to c ontinue their efforts to create and sustain a 
stable, well developed economy, contributing to the welfare of their citizens. 
172. As we heard just now a broad and comprehensive answer form the Georgian side and also my 
additional remarks, I believe we may count on Memb er States to share their views concerning the 
shape of the Georgian economy.   WT/TPR/M/224 
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  EUROPEAN UNION 
173. I would like to thank Georgia for the replies pr ovided to the advance questions. We find them 
genuinely useful, nevertheless, we would appreciate some further clarity on reforms in the SPS sector, IPR enforcement as well as on import tariffs on spir its and labour legislatio n. We will submit the 
specific questions in writing.  Let me just make a few comments by way of feedback to the written 
replies. 
174. First, we would like to call on Georgia to ensure regular and timely submission of 
notifications as required under the relevant WTO Agre ements. This is a key aspect of fully complying 
with its transparency obligations as a Member of the WTO. 
175. Second, we welcome the announced amendment of  the Georgian Tax Code to eliminate the 
discriminative excise tax on imported tobacco produc ts and thus ensure national treatment. We 
wonder if an English translation of this  amendment could be made available.  
176. At the same time, we still have a concern as re gards import tariffs and excise duties on spirits. 
We would like to encourage Georgia to look into these measures with the view to avoiding any breach 
of WTO rules, including Georgia's individual accession commitments. 
UNITED STATES 
177. We have follow up questions in four areas that  we would like to raise today, and I will be 
happy to submit them in writing as well.   
178. First in response to our questions Georgia indicated that notifications to various committees 
are in preparation and in their statement today also assured Members that notifications would be submitted.  We would just like confirmation that no tifications will be tabled for the following:  the 
amendments to the Customs Code of Georgia deal ing with customs valuation to the Committee on 
Customs Valuation;  the new Law on Licenses and Pe rmits, issued in June 2005, to the Committee on 
Import Licensing Procedures;  and a revised no tification to the Committee on Subsidies and 
Countervailing Measures per Article 25 of the Agreement.  
179. Second we would like clarification of Georgia’s response to our original question concerning 
the use of fixed values in the valuation of automob iles.  We sought an explanation as to why Georgia 
uses fixed values for determining the customs value of cars, instead of taking the invoice price as the price actually paid or payable as required by th e WTO Agreement on Customs Valuation.  Georgia’s 
response was to indicate that its applied tariff rate on passenger automobiles is a specific rate of duty.  
We note, however, that Georgia’s bound tari ff rate in its WTO GATT Schedule on passenger 
automobiles is, in general, 12% ad valorem .  In light of this, we have the following follow-up 
questions:  How does Georgia determine that the spec ific tariff rate applied to imported new and used 
automobiles is within its ad valorem  GATT binding of 12%?  In determining an ad valorem   
equivalent rate to the specific applied tariff rate, does Georgia use WTO-sanctioned methods for 
valuation of these imports, i.e., the price paid or payable, or are fixed or arbitrary values used? 
180. Third area of the follow up questions is that it seems that Georgia did not answer our question 
concerning the provision of advance rulings on the c ountry of origin of a good.  The availability of 
such rulings “upon the request of an exporter, impo rter or any person with a justifiable cause” is 
required by Article 2(h) and Anne x II, Article 3(d) of the WTO Agreement on Rules of Origin.  
Please confirm that Georgia’s customs legislation contains provisions and provides legal citation 
where they can be found. Are these rulings availa ble to the public?  If so, how does the public gain 
access to them?  WT/TPR/M/224 
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  181. And finally our last question: At the time of Georgia’s accession to the WTO in 2000, 
Georgia committed to initiate negotiations fo r accession to the Agreement on Government 
Procurement by tabling an entity list.  We w ould like to know when Georgia will initiate its 
negotiations for accession to the Agreement by s ubmitting its initial offer of coverage to the 
Committee on Government Procurement. 
CHINA 
182. We simply would like to take the floor to thank Madame Tamar Kovziridze for replying to 
our questions, and we would like to congratulate Georgia for having had a successful trade policy 
review. 
GEORGIA 
183. I would like to thank once again the represen tatives of the EU and the US for asking 
additional questions and it was menti oned here that these questions will be submitted in writing, so we 
would very much appreciate to have them in wr itten form and we will pr ovide written answers to 
those questions within the deadlines. 
  WT/TPR/M/224 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
184. This first Trade Policy Review of Georgia h as given us a much clearer understanding of the 
evolution of Georgia's trade policies since its acce ssion to the WTO, together with the challenges it 
faces.  I thank Ms Kovziridze and her delegation a nd I would also like to acknowledge the valuable 
contribution of the discussant, Mr Krzysztof Januszek  of Poland, and of Members for their active and 
insightful participation in this exercise.  The reports  by the Georgian authorities and the Secretariat, as 
well as the detailed responses of the delegation of  Georgia to the many questions posed, have 
contributed to transparency both within Georgia a nd as far as the WTO membership is concerned.   
185. Members commended Georgia's commitment to ope nness in trade and foreign investment as 
well as recent progress in economic liberalization.   Members praised Georgia for its impressive 
economic performance during most of the review period, with an  average annual GDP growth rate of 
9-10%, in considerable part due to reforms, whic h have been widely recognized.  In particular, 
important trade reforms have taken place in the areas of tariffs, improvement of Customs, business licensing and the adoption of trade legislation compa tible with international standards.  Nonetheless, 
Georgia has only partially succeeded in improving the external competitiveness of  the private sector  
and, in this regard, Georgia was encouraged to c ontinue its structural refo rms to make its markets 
more flexible, attract investment into export ac tivities, improve productivity and competitiveness, and 
thereby help sustain growth.   
186. Members congratulated Georgia on its liberal trad e regime with its simp le tariff structure and 
one of the lowest average applied MFN tariff rates in the world whilst almost 85% of imports enter 
Georgia duty-free.  It was also noted that Georgia had not resorted to any restrictive measures since 
the onset of the economic crisis.  Georgia's co mmitment to the WTO system was emphasized and 
Georgia was urged to follow through on its r eadiness to join the Government Procurement 
Agreement.  Georgia was also encouraged to enha nce WTO notifications in a number of areas.  
Regarding alignment with international standards a nd practices, Members noted that there is room for 
improvement in a number of areas such as SPS,  technical regulations, competition policy and 
intellectual property rights enforcement, which poin t to the broader, more long-term problem of 
capacity building in general.    
187. Members noted that exports, which account for about one-fifth of Georgia's GDP, have not 
matched the strong overall economic grow th rate in the review period.  Georgia's main exports remain 
concentrated in a few low-value added products, re flecting limited success in efforts to diversify 
exports.  Members were interested to know from Ge orgia the policies and measures it proposes to take 
to enhance its exports in the coming years.  
188. Members appreciated the replies provided by the delegation of Georgia and looked forward to 
further responses.  In conclusion, the numerous questions and active discussion indicate the importance Members attach to this Review.  I encour age Georgia to take to heart Members' concerns 
and I hope it will continue with its reform process which has resu lted in strong economic performance 
and has helped the country to become a significant re gional trade corridor.  At the same time I invite 
Members to assist Georgia by providing appropriate technical assistance, including trade capacity building, and by further opening their markets to Georgia's exports.   
__________