RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/224 
3 November 2009  
 
(09-5397) 
Trade Policy Review Body Original:  English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
GEORGIA 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Georgia is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Georgia.Georgia WT/TPR/G/224 
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 CONTENTS 
 
    P a g e  
 1. INTRODUCTION 5 
2. RECENT ECONOMIC DEVELOPMENTS AND REFORMS 5 
 2.1. Macroeconomic Overview 5  2.2. Regulatory Reform and Fight against Corruption 6 
 2.3. Privatization 7 
 2.4. Tax and Customs Reform 7  2.5. Labor Market Reform 8 
 2.6. Technical Regulation System Reform 8 
 2.7. Infrastructure Development 8 3. TRADE POLICY OBJECTIVES AND DEVELOPMENT 9 
 3.1. Facts on Trade 10 
 3.2. Trade Agreements  and Arrangements 10 
 3.3. Investment Policy 13 
4. CONCLUSIONS  13 
 Georgia WT/TPR/G/224 
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 1. INTRODUCTION 
1. Trade liberalization is one of the key objec tives on Georgia’s economic policy agenda. In the 
reporting period Georgia undertook a large number of reform initiatives targeted at streamlining, 
liberalization and simplification of trade regulations  and their implementation. This effort has been 
particularly intensified after the Rose Revolu tion of November 2003. Starting from 2004 Georgia 
almost entirely eliminated tariff barriers and drastica lly reduced non-tariff barriers to trade. Domestic 
trade related legislation was brought in conformity with WTO standards. These reforms contributed to the creation of competitive market conditions and business enabling environment, diversified 
international trade and economic ties and t hus generated growth and development.  
2. Economic and trade reforms were embedded in a coherent and intensive reform program of 
the new Government after the Rose Revolution, wh ereby the following inter-related key priorities 
were identified: 
 - Eradication of corruption and red-tape. 
 - Full introduction of market economy principles.  - Liberal trade reforms and diversifica tion of international economic relations. 
 - Enhancement of transparency  in the policy making process. 
 - Reduction of the size of bureaucracy a nd enhancement of professional qualification 
of civil servants. 
 - The supremacy of the law and equality of all before the law. 
 - Protection of human rights and political liberties. 
2. RECENT ECONOMIC DEVELOPMENTS AND REFORMS 2.1 Macroeconomic Overview 
3. Georgia’s economic performance since joining th e WTO is impressive. GDP growth has been 
particularly strong in 2003-2007, averaging near ly 10% annually. FDI has more than doubled from 
8.3% of GDP in 2003 to 19.3% in 2007. Sectors that attracted highest shares of investment in 2007-2008 were transport and communications, en ergy, services, manufacturing and construction. 
The openness rate i.e. share of foreign trade in the GDP reached 60% in 2008 compared to 40% in 
2003. Public debt has been reduced from 56% of GDP in 2003 to 25.5% in 2007. Budget revenues 
increased five times, although taxes were drastically reduced. 
4. Despite the August 2008 war with Russia and th e following Global Financial Crisis Georgia’s 
economy remained resilient and continued to grow in  2008 although at a lower rate than previously. 
GDP grew at 2.1% in 2008. GDP per capita amount ed to 2,920$ in 2008. Projected economic growth 
for 2009 is -1.5%. This is a relatively good resu lt compared to other economies of similar size and 
Georgia’s regional peers. Three main factors contri buted to such remarkable  resilience of Georgia’s 
economy:   
 - Liberal economic policies and market reform s of the past 5 years created an open and 
diversified economy.  
 - Banking sector proved to be resilient and maintained stability.   - Unprecedented international support of US $4.5 billion pledged at the Brussels Donor 
Conference in October 2008 kept foreign infl ows in Georgia and contributed to the 
stability of the economy. WT/TPR/G/224 Trade Policy Review 
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 5. The Government prepared a special Strategy to  deal with the Global Financial Crisis, which 
helped Georgia to minimize the negative affect of  the crisis. The Strategy includes the Economic 
Stimulus Package ($2.2 bln) and the Social Assistance Package ($1.6 bln). 
6. 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 avoiding 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 $1.95 bln is  being invested in infrastructure projects in 
order to help stimulate growth and employment.  
7. Social Assistance Package envisag es increased assistance to the socially needy which among 
others includes rising of pensions, salaries (in edu cation sector), cash benefits to the population living 
under poverty line and coverage of state insurance programs. 
8. Liberal economic reforms and improved business e nvironment have been well reflected in 
various international ratings. Geor gia’s rating in the Ease of Doing Business 2010 Survey was further 
improved from 15 to 11.  This means that according to the World Bank and IFC, Georgia is eleventh 
the most attractive place to do business worldwide. This is up from 112th in 2005. In addition, the 
World Bank proclaimed Georgia as Europe and Cent ral Asia’s top Doing Business reformer over the 
past five years in the 2009 survey.  
9. In particular, according to the Ease of  Doing Business 2010, Georgia is the 2nd best 
worldwide in registering property, 5th – in starting a business, 7th – in dealing with construction 
licenses and 9th – in employing workers. 
2.2 Regulatory Reform and Fight against Corruption 
10. In order to stimulate private sector development and minimize public sector involvement in 
economic processes, the post-Rose Revolution reform agenda of the Georgian Government has put a 
special emphasis on the improvement of civil sector performance and the fight against corruption. The 
objective of the Government is to establish an effi cient, professional and transparent public sector.  
11. Institutional reforms in the civil sector ha ve included downsizing and optimization of 
government structures. All types of duplication of f unctions have been abolis hed and lean government 
structures have been established.  In order to  reduce corruption and make public sector jobs 
competitive, salaries have been raised substantially. 
12. In 2005, the system of business licensing was modernized and simplified. A lot of 
unnecessary regulations, which were the source of corr uption, were abolished. The number of licenses 
and permits necessary for doing business was reduced by almost 85% and a business licensing "One 
Stop Shop" and "Silence is Consent" principle was introduced. 
13. As a result of changes to the Tax Code and Law on Entrepreneurs in 2005 and 2006, business 
registration became simple, cheap and efficient, ta king only one day for legal entities and individuals 
to register a company. State and tax registration of companies is now carried out by the Revenue 
Service of Georgia under one single procedure. 
14. Due to reforms carried out in recent years corruption was largely eradicated in state 
institutions and civil service. According to the 200 9 Corruption Barometer survey by Transparency 
International – which assesses corruption in the six major institutions in a co untry: political parties, 
parliament, business sector, media, civil service and judiciary – Georgia ranks first in the CIS and 6th Georgia WT/TPR/G/224 
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 in the region (EU, CIS and Western Balkan) on av erage corruption score for all six institutions. 
Notably, it ranks on the same level as Norway.  
15. The Survey assesses positively Georgian Governme nt’s effort to reduce corruption. 57% of 
respondents consider Governme nt’s actions very effectiv e. It reports that in the survey period only 2% 
of Georgians surveyed had to pay a bribe. This put s Georgia on the first place in the CIS and in the 
top five in the region. In a 2009 survey by the Inte rnational Finance Corporation, only 4% of firms in 
Georgia said, they expected to make ‘informal paym ents’ compared to the av erage of 32% in Eastern 
Europe and Central Asia. 
2.3 Privatization 
16. The privatization process was launched in Geor gia in 1993 and involved mostly small and 
medium scale entities (commercial, household servi cing establishments, drug stores and etc). The 
most active phase of the privatization process started in 2004. The government opened all sectors of the Georgian economy for privatization, including energy, transport and communications. Almost all 
major state-run companies have already been priv atized. In an effort to attract more foreign 
investments in the Georgian economy, the Government  plans to continue a transparent yet aggressive 
policy of privatization. 
17. Until 2005, 75% of agricultural land and 2.5 million hectares of forests were under state-
ownership. In 2005, the Law on Privatization of St ate-Owned Agricultural Land was adopted in order 
to promote efficient use of land through private ownership and thus increase efficiency in the 
agricultural sector. Forests and other natural resour ces are being transferred more actively to private 
hands under long-term tradable licenses. 
2.4 Tax and Customs Reform 
18. Since joining the WTO in 2000, Georgia’s tax and customs systems have undergone 
significant reform. The new Tax Code enacted in Ja nuary 2005 lowered tax rates and simplified the 
tax system across-the-board. Flat, simple and easy to  administer tax system was introduced. Currently 
there are only 6 taxes instead of the previous 21, namely: the profit, property, income, VAT, excise, 
and gambling taxes. The income tax is 20% (instead of previous 33%), and will be further reduced to 
15% in the coming years, the VAT – 18% (instead of previous 20%), the profit tax – 15% (instead of previous 20%).  A large number of taxes were abolished altogether.  
19. In parallel with tax reduction, tax administra tion improved significantly. As a result, despite 
drastic tax reductions, tax revenues increased approximately 3 times from 2003 to 2008.  
20. In September 2006 Georgia abo lished import duties on almost 90% of goods (except some 
agricultural products and construction materials) a nd reduced the number of import duties from 16 to 
only 3 – 0%, 5% and 12%. This along with attr active business regulations  and favourable export 
regimes helps Georgia to raise its investment attractiveness. 
21. The new Customs Code, which became effectiv e from January 2007, is an important step 
towards reducing corruption at customs, streamlining customs procedures and bringing them in 
compliance with international standards. Risk Mana gement System was gradually introduced in all 
customs units in 2008. From January 1, 2009 risk management system and risk analysis based customs control via ASYCUDA customs declaration processing IT system covers import, export, customs warehouse and part of re-export. A ll customs check-points were modernized. WT/TPR/G/224 Trade Policy Review 
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 2.5 Labour Market Reform 
22. Among the major problems facing Georgia toda y is unemployment. The Government has 
taken several initiatives to deal with this problem. In order to legalize labour  relations and facilitate 
job creation a new Labour Code was enacted in 2006, which is in co mpliance with ILO core standards 
such as: 
 - Freedom of association and the right to collective bargaining (C87, C98). 
 - The elimination of all forms of forced or compulsory labour (C29, C105).  - The abolition of the most hazardous forms of child labour (C138, C182).  - The elimination of discrimination in respect of employment and occupation (C100, 
C111). 
23. The Labour Code of 2006 replaced the Soviet styl e labour legislation adopted in the seventies. 
Recent labour reforms contributed to the creation of a more flexible and dynamic job market.  
24. Apart from this, the system of vocational trai ning was introduced and streamlined on the basis 
of public private partnership in order to produce a skilled workforce that can be adapted to modern 
requirements of the labour market. 
2.6 Technical Regulation System Reform 
25. Upon entering the WTO, Georgia undertook an obligation to introduce a voluntary system of 
standards and to decrease the list of goods whic h are subject to compulsory certification.  
26. 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 
ensure 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. Also, the system of ma ndatory standardization was replaced by voluntary 
standards, and the regulatory function of the stat e in standardization field was reduced. Bringing 
Georgia’s system of technical regulations in line w ith international standard s has helped to simplify 
import/export procedures.  
27. In 2006, Georgia accepted and officially allowe d the use of technical regulations of over 
30 countries, above all of the members of the EU  and the Organization of  Economic Cooperation and 
Development (OECD).  
28. 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. 
2.7 Infrastructure Development 
29. At the time of joining the WTO, one of the major inhibitors of faster economic growth and 
productivity in Georgia was lack of infrastructur e. This has been well recognized by the new 
Government after the Rose Revolution and several steps have been taken in order to address the Georgia WT/TPR/G/224 
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 problem, including creation of improved transportati on links (roads, railway and port facilities), and 
continued reform to increase efficiency in power and telecommunications.  
30. The reliability of the Georgian energy system has improved substantially in recent years. 
Georgia now enjoys a 24 hour a day electricity supply instead of chronic power shortages typical 
before 2004.  As a result of eradicating corruption in  this field, revenue collection has been increased 
drastically from 20% in 2004 to around 95% by 2008. In the past couple of years Georgia turned from a country with semi-permanent black-outs to a net electricity exporter. Today Georgia exports electricity to all its neighbours: Turkey, Azerbaijan, Armenia and Russia.  
31. The Government focused on investments in  rehabilitating domestic  hydropower plants, 
strengthening major transmission lines, and enha ncing the energy cooperation with neighbouring 
countries. The key objective of Georgia’s policy is  to ensure full security of energy supply and 
demand. As dependence on imports fro m unreliable suppliers presents a serious risk, Georgia is trying 
to avoid this problem through the diversification of  supply. Today Georgia has three suppliers of gas 
from three different sources. Development of energy transportation infrastructure is a priority in this 
regard. Construction of new high voltage transmissi on lines between Georgia and Turkey will start in 
the Fall of 2009.  
32. Moreover, the Government is promoting invest ments in renewable energy, in particular 
construction of medium and small hydro-power pl ants to reduce dependency on natural gas in the 
electricity generation sector. The results were alread y apparent in late 2006. Rehabilitation of existing 
hydro plants allowed the power system of Georgia to export power (even during the winter periods), 
which is unprecedented since the creation of the independent Georgian power system.  
33. With the aim of liberalization of air transport, Georgia pursues ‘open sky’ policy and on the 
basis of bilateral agreements with its major part ners has abolished restrictions on the number of 
passengers, destinations and frequency of flights. In road transport, Georgia has liberalized conditions 
by means of abolishing excessive transit fees, quotas a nd other transit barriers. In maritime transport 
the country is focused on diversifying its connections  to the West via the Bl ack Sea. In the railway 
sector, liberalized tariff policy, improved manage ment, and prospective railway projects better 
connecting Georgia and its regional neighbours, contribute to the increase of country’s attractiveness 
as a transit route from the East to the West. Baku-Tb ilisi-Kars railway project, which is scheduled to 
be completed in 2011, will not only link Georgia, Tu rkey and Azerbaijan, but is supposed to increase 
the transportation capacity in the South Caucasus a nd diversify the nature of the goods that are 
transported through these three countries. 
3. TRADE POLICY OBJECTIVES AND DEVELOPMENT 
34. Georgia remains strongly committed to the WTO as the primary basis for its trade policy. 
Georgia firmly believes that the best way to meet  challenges facing an increasingly globalised world 
economy is trade liberalization. 
35. The basic objectives of the trade policy of Georgia are: 
- Integration into the world economy, whic h implies implementation of obligations 
undertaken by joining WTO and other international agreements. 
- Trade policy liberalization, including simp lification of export and import procedures 
and tariff and non-tariff regulations. WT/TPR/G/224 Trade Policy Review 
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 - Diversification of trade relations by concluding free trade agreements with main 
trading or regional partners. 
- Investment promotion through creati on of business friendly environment. 
36. Georgia has a very liberal trade regime with  simplified trade procedures, no quantitative 
restrictions on export or import and no tariff quot as. Georgia has one of the lowest tariff rates 
worldwide. Its average MFN rate is 1.5%. There is effectively no tariff escalation nor any tariff peaks. 
37. In accordance with the Georgian legislation no tariff duty is applied to export or re-export 
from Georgia. Export is exempted from VAT as well. Georgia does not use minimum export prices and export subsidies. 
38. There are no non-tariff restrictions (prohibitions, licensing) in international trade included in 
the Georgian legislation except those cases where he alth, security, safety and environmental issues are 
concerned. The share of goods subject to non-tariff restrictions constitutes about 1% of the whole 
nomenclature. 
3.1 Facts on Trade  
39. Due to the reforms carried out by the Government of Georgia in 2003-2008 the barriers to 
foreign trade decreased tremendously, resulting in  increased volumes of export and import flows. 
Whereas in 2000-2002 the average annual growth of tr ade turnover was 7.2%, this figure increased 
substantially in 2003-2 008 and constituted 38.8%. 
40. In 2003-2008 import grew at an average rate  of 43% and reached US$6,058.1 mln in 2008. 
Main import products are petroleum oils and gases, mo tor cars, medicines and different machinery. In 
the same period export grew at an average ra te of 28% and reached US$1,497.7 mln in 2008. 
Traditionally main export products of Georgia have been agricultural products (mineral waters, wine, 
nuts, citrus). The structure of Georgia’s export h as changed in recent years and besides agricultural 
products is constituted of ferroalloys , copper ores, fertilizers, gold. 
41. Historically the Russian Federation was Georgia’s number one trade partner, with a share 
averaging 17% of total trade turnover. As a result of the Russian embargo on Georgian exports, which 
started in 2005 and still continues, total trade be tween the two countries decreased substantially. 
Turkey is now Georgia’s top trade partne r, followed by Azerbaijan and Ukraine.  
42. The share of EU countries in Georgia’s total trad e turnover have been increasing year by year 
and amounted to 27% in 2008. Among top ten trade pa rtners there are three EU members: Germany, 
Bulgaria and Italy.  
3.2 Trade Agreements and Arrangements (a) World Trade Organization 
43. The entry of Georgia into the WTO on June  14th, 2000 was a significant step towards 
integration into world trade. Georgia became th e 137th member country. It was the fourth former 
Soviet republic to become a member government of  the WTO (after the Kyrgyz Republic, Latvia and 
Estonia). Upon its entry into the WTO, Georgia was granted the Most Favourable Nation (MFN) 
treatment by all WTO member states and it conferred MFN in return.  Georgia WT/TPR/G/224 
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 44. Georgia is a party to all WTO agreements ex cept the Government Procurement Agreement 
(GPA). Nevertheless, a Law on Government Procurement which is in compliance with the WTO requirements has been in force since 2006. Thus, Georgi a is ready to join the GPA in the near future. 
(b) CIS Free Trade Agreement 
45. Georgia has been a party to the Commonwea lth of Independent States (CIS) multilateral 
agreement on the creation of a free trade zone sin ce April 15th, 1994. The agreement was ratified by 
all CIS member countries except Russia. The agreemen t became the basis for the bilateral Free trade 
Agreements between CIS countries. Georgia has eight  bilateral FTAs with Azerbaijan, Turkmenistan, 
Armenia, Ukraine, Kazakhstan, Moldova, Uzbekistan (not yet ratified) and Russia.  
46. Protocols on exceptions from free trade were c oncluded only with the Russian Federation and 
Kazakhstan. Later in 2004, according to the bilatera l negotiations in the framework of Kazakhstan’s 
accession to the WTO, parties abolished the protocol. 
(c) Free Trade Agreement with Turkey 
47. Turkey has been Georgia’s la rgest trading partner since 2006. Negotiations on concluding a 
free trade agreement started in January 2007 and in November 2007 a free trade agreement between 
Georgia and the Republic of Turkey was signed. It came into force from November 1, 2008. According to this agreement, customs tariffs on industrial products have been fully eliminated. 
Meanwhile, some agricultural products are subject to tariff quotas. 
(d) GUAM Free Trade Agreement 
48. GUAM is a regional organization of four states (Georgia, Ukraine, Azerbaijan and Moldova). 
For a short period of time (1999-2002), the organization was named GUUAM due to the membership of Uzbekistan, which then withdrew from the organization and it was renamed GUAM.  
49. The Free Trade Agreement, which was conclude d in the framework of this organization in 
2002, is more liberal than CIS Free Trade Agre ement and does not envisage any exceptions from a 
free trade. 
(e) European Union 
50. In foreign trade activities of Georgia, one of the priority directions is the trade relations with 
the European Union. The basis and legal foundation for EU-Georgia relations is the Partnership and 
Cooperation Agreement (PCA) which was negotiated while Georgia was going through the process of 
WTO integration and concluded on the 22nd of Ap ril 1996. It entered into force in 1999. The 
agreement aims to foster cooperation, not only in tr ade issues, but also in political, environmental and 
cultural areas. 
51. The EU-Georgia European Neighbourhood Policy Action Plan, signed in November 2006, 
envisages further enhancement of bilateral trade relations including possible establishment of a Free 
Trade Agreement between the EU and Georgia. In this context the EU Co mmission has launched the 
EU-Georgia FTA Feasibility Study, which conclude d that having a Deep and Comprehensive Free 
Trade Agreement (DCFTA) between the two countries is mutually beneficial. Intensive bilateral 
consultations with the EU and preparatory works for the future DCFTA negotiations have already 
started. WT/TPR/G/224 Trade Policy Review 
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 52. The EU-Georgia bilateral negotiations on th e Agreement on Protection of Geographical 
Indications for Agricultural Products and other Foodst uff is almost finalized and is expected to be 
signed in the first half of 2010. 
53. Georgia actively participates in a new Eastern Partnership initiative of European Union. In 
December 2008 the European Commission announced pl ans to enhance its relationship with Georgia 
(as well as Armenia, Azerbaijan, Moldova, Ukraine)  as part of a new Eastern Partnership Initiative 
that would involve the gradual integration into the EU economy for Eastern Partnership countries that 
were willing and able to enter into a deeper engagement.  The initiative envisages signing of 
Association Agreements with partner countries.  
54. For Georgia, like other countries with a transition economy, the opportunity to use the 
Generalized System of Preference (GSP), has b een of crucial importance. It has provided a 
preferential tariff mode for production imported fr om Georgia. Since 1995 Georgia has benefited 
from the scheme of GSP granted by the EU. In 2005, the EU provided Georgia with an expanded 
opportunity to make use of tariff privileges (GSP+) th at consists of granting a trade regime without 
duties on the import of approximately 7,200 products.  
(f) United States 
55. In June 2007, Georgia and the United States signed a 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 is sues including trade capacity building, intellectual 
property, labour, and envi ronmental issues.  The Council will al so help to increase commercial and 
investment opportunities by identifying and working to  remove impediments to trade and investment 
flows between the United States and Georgia.  
56. It is noteworthy to mention that according to th e US-Georgia Charter of Strategic Partnership 
signed on 9 January 2009, Georgia and the United States will explore the possibility of a Free Trade 
Agreement. 
(g) Black Sea Economic Cooperation (BSEC) Organization 
57. In accordance with the founding document, 12 member countries of the Organization of 
Black Sea Economic Cooperation (BSEC) collaborate in the various spheres such as trade and 
economic cooperation, banking, agriculture, h ealthcare and pharmaceuticals, environmental 
protection, tourism, science and technology,  information exchange in various sectors. 
58. The share of Georgia’s trade volume with  BSEC countries constitutes around 53%. 
(h) Other Agreements and Arrangements 
59. Georgia has established a legal framework fo r cooperation with many countries. It has 
developed and signed bilateral ag reements on trade and economic cooperation with 46 countries. 
60. Georgia has joined many multilateral trading agreements and international conventions. 
Among them the following basic importa nt documents should be mentioned: 
 - The Paris Convention on Protection of the Industrial Property Georgia WT/TPR/G/224 
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 - The Madrid Agreement on Registration of Trading Trade-Marks 
- The Agreement on Protection of Patents - The Viennese Convention on Contract s of Sale and Purchase of Goods. 
61. Under the Generalized System of Preferences Georgia receives preferential access to the 
markets of the EU (GSP+), the United States, Canada, Japan, Switzerland and Norway.   
3.3 Investment Policy 
62. There has been a broad consensus in Georgia re garding its integration into the international 
economy through opening up of the Georgian economy for business activities and creation of a 
favourable investment environment. Georgia star ted market oriented reforms in 1995. National 
treatment is applied to all investors and there is no specific regulation that foresees discrimination. All 
sectors of the Georgian economy are open for investments. 
63. The Law of Georgia on the Investment Activity Promotion and Guarantees, which has been in 
place since 1996, defines the legal basis for realiz ing both foreign and local investments and their 
protection guarantees on the territory of Georgia. The purpose of the Law is to establish investment 
enabling environment. It secures equal treatment and rights to Georgian and foreign investors. 
64. The Law on State Support for Investments was adopted in 2006, with the aim to further 
optimize procedures necessary for investing and entrepreneurial activities. 
65. Georgia has signed bilateral investment pr omotion and protection agreements with 
30 countries and agreements on avoidan ce of double taxation with 26 countries. 
66. The foreign direct investment (FDI) promotion is the responsibility of the Georgian National 
Investment Agency (GNIA) under the Ministry of  Economic Development. GNIA acts as a ‘one-stop 
shop’ agency for investors, assisting them in setti ng up their businesses in Georgia, helping in project 
implementation, performing a liaison role with the Government, providing information on investment 
opportunities in the country, as well as inv estment related regulations and laws. 
67. In its export promotion activities, GNIA helps to  find markets for products, undertakes market 
studies and seeks out partners for joint ventures aimed at increasing the volume of exports and 
development of Georgian enterprises. GNIA orga nizes international conferences, business-forums, 
trade fairs and exhibitions.  
4. CONCLUSIONS 
68. To summarize, in the reporting period Georgi a undertook intensive trade liberalization effort. 
As a result of consequent and cohe rent reform measures, tariff and non-tariff barriers to trade were 
largely eliminated, export and import procedures were  simplified and trade flows were increased and 
diversified.  
69. Trade related reforms are part of the overall economic reform agenda vigorously pursued by 
the Government since the Rose Revolution. 
70. Streamlined business and trade regulations cont ributed to substantial diversification to 
Georgia’s international economic relations, including trade and investment, which in turn made 
Georgia’s economy extremely resilient to internal and external shocks. 
__________