APPENDIX TABLES Georgia WT/TPR/S/224 
 Page 89 
 
 
 Table AI.1 
Merchandise exports by product group, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total exports (US$ million) 346.3 465.3 648.8 866.2 991.5 1,232.9 1,497.5 
 (Per cent of total) 
Total primary products 58.5 67.6 60.8 57.3 49.1 49.5 41.5 
   Agriculture 32.0 37.7 33.2 37.0 25.7 26.3 18.3 
      Food 29.7 34.9 31.0 34.9 23.5 24.0 16.5 
         1124 Spirits 1.6 2.8 2.9 3.4 3.0 4.7 3.9 
         1121 Wine of fresh grapes (including fortified wine) 9.6 9.2 7.5 9.4 4.2 2.5 2.7 
         1110 Non-alcoholic beverage, n.e.s. 5.8 6.8 5.1 6.1 4.7 4.4 2.6 
         0577 Edible nuts fresh, dried 2.0 2.7 2.7 8.1 5.7 5.3 2.1 
      Agricultural raw material 2.2 2.8 2.2 2.1 2.1 2.3 1.8 
         2484 Wood of non-coniferous, sawn of a thickness > 6 mm 1.4 1.9 1.4 1.2 1.1 1.2 1.0 
   Mining 26.5 29.9 27.6 20.3 23.4 23.2 23.2 
      Ores and other minerals 19.2 24.4 23.9 17.0 20.2 19.0 20.0 
         2831 Copper ores and concentrates 3.8 5.0 4.9 4.2 8.0 6.4 7.9 
         2823 Other ferrous waste and scrap 8.8 11.0 12.7 8.5 5.5 5.2 6.4 
         2882 Other non-ferrous base metal waste and scrap, n.e.s. 2.9 4.5 2.9 2.7 4.5 4.5 3.1 
         2822 Waste and scrap of alloy steel 1.8 1.9 2.1 1.2 1.8 2.6 2.1 
      Non-ferrous metals 1.9 0.4 0.2 0.1 0.3 0.5 0.2 
      Fuels 5.5 5.0 3.5 3.2 3.0 3.7 3.0 
         3330 Crude oils of petroleum and bituminous minerals 1.9 2.6 1.5 2.7 2.6 2.3 1.6 
         3510 Electric energy 1.9 1.0 0.0 0.4 0.2 1.4 1.1 
Manufactures 33.2 28.0 36.2 38.7 46.0 44.9 51.7 
   Iron and steel 4.9 6.4 7.7 9.8 9.4 13.4 19.5 
         6715 Other ferro-alloys (excl. radio-active ferro-alloys) 3.6 4.1 5.4 7.8 8.5 12.2 15.6 
         6714 Ferro-manganese 0.9 1.5 1.2 1.5 0.5 0.8 2.2 
   Chemicals 7.0 6.2 6.8 6.7 7.9 9.6 10.5 
         5621 Mineral or chemical fertilizers, nitrogenous 3.5 4.0 4.4 4.1 4.7 4.6 7.0 
         5429 Medicaments, n.e.s. 0.8 0.6 0.4 0.4 0.8 1.2 1.3 
   Other semi-manufactures 0.5 0.8 1.8 2.8 4.3 7.2 6.3 
         6612 Portland cement and similar hydraulic cements 0.0 0.0 0.7 2.0 2.9 5.2 5.3 
   Machinery and transport equipment 19.2 13.1 18.7 17.0 20.8 12.4 12.9 
      Power generating machines 0.4 0.6 0.6 0.3 0.8 0.5 0.2 
      Other non-electrical machinery 1.7 1.4 2.1 3.4 5.6 2.2 1.1 
         Agricultural machinery and tractors 0.0 0.1 0.1 0.1 0.2 0.0 0.0 
      Office machines & telecommunication equipment 0.5 0.4 0.2 0.1 0.2 0.3 0.3 
      Other electrical machines 0.3 0.3 0.2 0.2 0.2 0.6 0.4 
      Automotive products 0.5 0.7 1.1 2.8 7.1 6.1 7.9 
         7812 Motor vehicles for the transport of persons, n.e.s. 0.2 0.2 0.6 2.1 5.1 5.7 7.6 
      Other transport equipment 16.0 9.8 14.5 10.3 6.9 2.7 3.0 
         7911 Rail locomotives, external powered 0.4 0.4 0.3 0.1 0.1 0.5 2.1 
   Textiles 0.1 0.1 0.1 0.0 0. 0 0.0 0.1 
   Clothing 0.4 0.7 0.3 1.0 1.2 1.2 1.3 
   Other consumer goods 1.1 0.8 0.9 1.3 2.4 0.9 1.0 
Other 8.3 4.4 2.9 4.0 4.9 5.6 6.9 
         9710 Gold, non-monetary (excl. gold ores and 
 concentrates) 8.3 4.4 2.9 4.0 4.9 5.6 6.7 
Source: UNSD Comtrade database, SITC Rev.3. 
 WT/TPR/S/224 Trade Policy Review 
Page 90 
 
 
 Table AI.2 
Merchandise imports by product group, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total imports (US$ million) 793.3 1,140.9 1,847.0 2,490. 9 3,674.5 5,21 4.1 6,055.7 
 (Per cent of total) 
Total primary products 43.1 37.2 39.3 38.3 37.0 34.9 35.9 
   Agriculture 21.4 18.5 21.4 17.8 16.9 16.3 15.9 
      Food 20.5 18.1 20.9 17.4 16.4 15.7 15.3 
         0412 Other wheat (including spelt) and meslin, unmilled 1.9 1.1 2.9 1.4 2.4 2.5 1.6 
         0461 Flour of wheat or of meslin 1.1 0.9 2.6 1.8 0.8 0.9 1.2 
         1222 Cigarettes containing tobacco 2.4 1.8 1.5 0.6 0.6 0.7 1.0 
         4215 Sunflower seed  or safflower oil, and their fractions 0.4 0.3 0.9 0.9 0.6 0.6 0.8 
         0123 Poultry, meat and offal 1.4 0.9 0.5 0.6 0.6 0.7 0.7 
         0989 Food preparations, n.e.s. 0.6 0.3 0.3 0.4 0.4 0.5 0.7 
      Agricultural raw material 0.9 0.4 0.5 0.4 0.5 0.6 0.5 
   Mining 21.7 18.7 17.9 20.5 20.1 18.7 20.0 
      Ores and other minerals 0.5 0.4 0.4 0.3 0.4 0.7 1.5 
         2877 Manganese ores and concentrates 0.0 0.0 0.1 0.0 0.0 0.4 1.2 
      Non-ferrous metals 0.3 0.2 0.3 0.2 0.3 0.4 0.4 
      Fuels 20.8 18.0 17.3 19.9 19.4 17.6 18.0 
         3432 Natural gas, in the gaseous state 6.1 5.3 4.0 3.5 5.6 5.5 3.3 
Manufactures 56.6 62.4 58.9 60.1 60.9 59.8 63.6 
   Iron and steel 2.6 10.9 6.6 2.5 2.9 4.4 4.8 
   Chemicals 13.4 11.6 9.9 9.6 9.0 8.5 9.1 
         5429 Medicaments, n.e.s. 7.0 5.2 3.9 3.4 2.7 2.4 2.6 
   Other semi-manufactures 7.2 6.9 7.4 8.7 8.6 8.5 9.5 
         6612 Portland cement and similar hydraulic cements 0.1 0.2 0.3 0.5 0.5 0.6 0.9 
         6624 Non-refractory brick, tiles, pipes, etc. 0.4 0.3 0.5 0.5 0.6 0.5 0.7 
   Machinery and transport equipment 25.4 25.6 26.7 29.4 28.9 27.8 29.2 
      Power generating machines 0.6 2.9 2.8 3.0 0.8 0.4 0.4 
      Other non-electrical machinery 7.9 7.3 7.1 5.5 6.3 6.4 6.2 
         Agricultural machinery and tractors 0.4 0.3 0.1 0.2 0.5 0.4 0.2 
      Office machines & telecommunication equipment 5.7 4.2 4.0 4.5 6.3 6.2 6.8 
         7643 Radio or television transmission apparatus 2.1 1.3 0.8 1.0 1.5 1.9 2.3 
         7611 Color television receivers 0.2 0.2 0.5 0.6 0.7 0.7 0.7 
         7641 Electrical apparatus for line telephony/telegraphy 0.6 0.8 0.2 0.2 0.4 0.4 0.6 
      Other electrical machines 2.9 2.8 3.3 3.7 3.6 4.0 4.4 
         7731 Insulated wire, cable etc.; optical fibre cables 0.5 0.6 0.6 0.7 0.8 0.9 0.7 
      Automotive products 4.3 5.8 7.9 9.9 10.6 9.3 10.2 
         7812 Motor vehicles for the transport of persons, n.e.s. 2.8 4.1 6.3 7.2 8.0 7.1 7.7 
         7821 Goods vehicles 0.7 0.7 0.7 0.9 1.1 0.9 1.0 
      Other transport equipment 3.9 2.6 1.6 2.8 1.3 1.4 1.1 
   Textiles 0.9 0.7 0.7 1.2 1. 5 1.4 1.2 
   Clothing 0.4 0.6 1.5 1.4 2.0 1.8 2.3 
         8458 Other garments, not knitted or crocheted 0.0 0.1 0.1 0.1 0.1 0.1 0.7 
   Other consumer goods 6.7 6.1 6.0 7.4 8.0 7.4 7.3 
         8215 Furniture, n.e.s., of wood 0.5 0.4 0.4 0.5 0.7 0.6 0.6 
Other 0.4 0.4 1.7 1.6 2.2 5.2 0.6 
Source: UNSD Comtrade database, SITC Rev.3. Georgia WT/TPR/S/224 
 Page 91 
 
 
 Table AI.3 
Merchandise exports by destination, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total exports (US$ million) 346. 3 465.3 648.8 866.2 991. 5 1,232.9 1,497.5 
 (Per cent of total) 
  America 4.2 4.2 3.9 8.1 12.6 20.1 19.9 
    United States 3.9 3.3 3.3 3.1 5.9 12.1 6.8 
    Other America 0.3 0.9 0.6 5.0 6.6 7.9 13.1 
      Canada 0.0 0.0 0.6 4.1 4.9 5.7 8.8 
      Mexico 0.0 0.0 0.0 0.4 0.5 1.0 3.5 
  Europe 42.3 43.1 41.0 39.6 39.4 36.5 40.0 
    EC(27) 18.4 17.8 19.8 25.0 25.8 21.8 22.3 
      Bulgaria 0.0 0.0 2.4 4.9 6.3 4.8 7.1 
      United Kingdom 9.5 6.0 4.9 3.7 2.5 1.9 2.9 
      France 0.9 1.1 1.5 1.3 3.1 0.9 2.7 
      Germany 1.6 2.1 2.5 3.3 4.6 4.6 2.2 
      Spain 0.2 1.5 1.5 1.6 1.7 1.2 1.3 
      Italy 2.2 1.9 1.8 3.9 2.4 1.4 1.1 
      Romania 0.0 0.2 0.2 1.0 0.6 0.6 0.9 
      Netherlands 1.3 2.1 1.5 1.3 0.7 1.0 0.8 
    EFTA 7.0 7.1 2.8 0.4 0.2 0.1 0.1 
    Other Europe 16.9 18.1 18.4 14.2 13.4 14.6 17.7 
      Turkey 15.5 17.7 18.3 14.1 12.6 13.9 17.6 
  Commonwealth of Independent Statesa (CIS) 48.7 49.1 50.7 47.1 39.8 37.5 36.2 
      Azerbaijan 8.5 3.6 3.9 9.6 9.3 11.1 13.7 
      Ukraine 3.7 6.5 2.4 4.3 5.7 7.6 9.0 
      Armenia 5.8 6.6 8.4 4.6 7.4 9.0 8.3 
      Russian Federation 17.7 18.0 16.1 17.8 7.6 3.7 1.9 
      Kazakhstan 0.9 0.9 1.2 1.1 1.6 2.8 1.5 
      Belarus 0.7 0.4 0.4 0.3 0.3 0.4 0.7 
      Other CIS 11.6 13.1 18.4 9.4 7.8 2.8 1.1 
  Africa 0.8 0.0 0.4 1.6 1.4 0.4 0.1 
  Middle East 2.0 1.2 1.5 1.2 3.5 3.4 1.8 
      United Arab Emirates 0.6 0.2 0.4 0.5 2.3 1.5 0.7 
      Iran Islamic Republic 1.0 0.7 0.7 0.5 0.3 0.5 0.6 
  Asia 1.9 2.4 2.6 2.4 2.6 2.1 1.8 
    China 0.3 0.3 0.5 0.6 1.0 0.7 0.6 
    Japan 0.2 0.0 0.1 0.2 0.1 0.0 0.0 
    Six East Asian Traders 0.5 0.5 0.6 1.1 0.2 0.4 0.5 
    Other Asia 0.8 1.6 1.4 0.5 1.3 1.0 0.7 
      India 0.6 1.4 0.9 0.3 0.9 0.7 0.6 
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
a Commonwealth of Independent States comprises Armenia, Azer baijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
 Russian Federation, Tajikistan, Turk menistan, Ukraine, and Uzbekistan. 
Source: UNSD, Comtrade database.  WT/TPR/S/224 Trade Policy Review 
Page 92 
 
 
 Table AI.4 
Merchandise imports by origin, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total imports (US$ million) 793.3 1, 140.9 1,847.0 2, 490.9 3,674.5 5, 214.1 6,055.7 
 (Per cent of total) 
  America 12.2 9.6 8.2 8.0 5.6 5.9 6.3 
    United States 8.7 8.0 6.0 6.0 3.5 3.9 4.0 
    Other America 3.5 1.6 2.2 2.1 2.0 2.0 2.4 
      Brazil 2.3 1.0 1.3 1.3 1.4 1.6 1.7 
  Europe 45.7 51.8 49.0 43.9 45.8 44.9 43.8 
    EC(27) 31.3 40.3 36.2 31.5 30.0 29.5 27.4 
      Germany 7.3 7.2 8.2 8.3 9.6 7.4 7.1 
      Italy 5.3 3.2 3.3 2.6 2.8 2.8 3.0 
      Netherlands 1.9 2.1 1.9 2.1 2.0 2.0 2.1 
      Bulgaria 1.7 1.7 2.1 2.9 3.1 3.5 2.0 
      France 2.0 4.9 3.4 3.9 1.9 1.9 1.5 
      Romania 0.7 0.9 0.8 1.6 1.1 1.7 1.5 
      United Kingdom 3.4 12.8 9.3 2.8 1.7 1.4 1.4 
      Austria 1.4 1.0 1.2 0.8 0.9 1.0 1.1 
      Czech Republic 0. 7 0.5 0.7 0.8 1.2 1.0 1.0 
      Greece 1.1 0. 8 0.8 0.7 0. 6 1.0 0.9 
    EFTA 2.5 1.5 1.6 0.8 1.0 1.3 1.2 
      Switzerland 2.3 1.3 1.4 0.7 0.9 1.2 1.1 
    Other Europe 11.9 10.0 11.2 11.6 14.8 14.1 15.3 
      Turkey 11.3 9.8 10.9 11.4 14.2 14.0 15.1 
  Commonwealth of Independent Statesa (CIS) 36.9 32.4 35.6 40.1 38.1 35.5 33.0 
      Ukraine 7.4 7.0 7.7 8.8 8.7 11.0 10.8 
      Azerbaijan 10.1 8.2 8.5 9.4 8.7 7.3 10.0 
      Russian Federation 15.4 14.1 14.0 15.4 15.2 11.1 7.0 
      Turkmenistan 1.8 0.9 1.8 3.8 2.8 2.9 2.2 
      Armenia 1.2 1.0 1.4 1.6 1.1 1.1 1.2 
      Kazakhstan 0.7 0.8 1.2 0.5 0.7 1.2 0.9 
  Africa 0.2 0.0 0.5 0.2 0.3 0.6 0.7 
  Middle East 2.1 2.6 3.8 4.5 4.8 5.9 6.2 
      United Arab Emirates 0.8 1.7 2.5 2.9 3.0 4.1 4.5 
  Asia 2.9 3.4 2.9 3.3 5.3 7.0 9.3 
    China 1.1 2.0 1.6 1.9 2.8 4.0 4.9 
    Japan 0.5 0.2 0.3 0.3 1.1 1.1 1.6 
    Six East Asian Traders 0.2 0.3 0.4 0.5 0.7 1.0 1.8 
    Other Asia 1.0 0.9 0.6 0.6 0.7 1.0 1.0 
  Other 0.1 0.1 0.1 0.0 0.0 0.0 0.6 
a Commonwealth of Independent States comprises Armenia, Azer baijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
 Russian Federation, Tajikistan, Turk menistan, Ukraine, and Uzbekistan. 
Source: UNSD, Comtrade database. 
 Georgia WT/TPR/S/224 
 Page 93 
 
 
 Table AI.5 
Trade in services, 2002-08 
(US$ million) 
  2002 2003 2004 2005 2006 2007 2008 
Service balance 44.9 61.2 69.6 83.5 158.0 161.3 22.8 
Exports 408.4 458.0 554.8 715.0 885.0 1,094.1 1,260.4 
Transportation 200.7 213.4 266.0 331.8 410.8 511.4 613.6 
          Passenger 17.7 24.7 32.1 45.5 48.0 56.0 57.9 
          Freight 138.5 139.9 150.0 174.1 227.0 307.5 430.1 
          Other 44.5 48.8 83.9 112.1 135.8 147.9 125.6 
     Sea transport 38.1 41.6 61.3 75.2 94.9 109.7 84.5 
          Passenger 0.6 0.6 0.8 1.3 1.9 1.8 1.1 
          Freight 0.7 1.1 2.1 3.9 5.3 5.5 5.9 
          Other 36.7 39.8 58.4 70.0 87.6 102.4 77.5 
     Air transport 20.2 28.2 51.0 76.6 83.5 83.4 82.9 
          Passenger 14.5 21.6 28.8 40.0 39.6 43.7 43.6 
          Freight 0.0 0.0 0.0 0.6 0.9 1.7 1.4 
          Other 5.8 6.6 22.2 35.9 43.0 38.0 37.9 
     Other transport 142.4 143.6 153.7 180.0 232.5 318.3 446.2 
            Pipeline transport and elect ricity transmission 47.0 47.7 51.0 55.0 90.8 167.0 268.8 
Travel 125.7 147.1 176.6 241.4 312.6 383.7 446.6 
           Business 73.9 87.3 105.4 143.3 167.7 210.2 257.8 
           Personal 51.8 59.8 71.2 98.1 144.9 173.5 188.9 
Communication 17.5 24.2 17.7 19.8 17.5 14.5 23.6 
           Postal and courier services 1.1 1.1 1.3 1.3 1.3 1.4 1.7 
           Telecommunication services 16.4 23.1 16.4 18.5 16.3 13.1 22.0 
Construction 0.0 0.0 0.0 0.0 0.0 2.8 2.2 
Insurance 9.3 9.5 10.0 11.0 13.4 13.0 15.1 
Financial (other than insurance) 8.0 10.3 17.4 20.3 18.9 9.1 9.7 
Computer and information 0.0 0.0 0.0 0.1 0.5 1.9 3.5 
Royalties and license fees 5. 5 6.3 7.7 9.3 12.9 10.6 6.2 
Other business services 3.7 7.4 10.6 10.8 8.8 20.3 27.1 
Personal, cultural and recreational services 0.1 0.2 2.1 3.2 5.5 8.7 9.0 
Government services, n.i.e. 37.9 39.5 46.6 67.4 84.1 118.0 103.8 
Imports -363.4 -396.7 -485.1 -631.5 -727.0 -932.8 -1,237.7 
Transportation debit -109 -137.2 -205.5 -288.0 -387.8 -507.3 -642.0 
          Passenger -40 -40.3 -48.9 -68.5 -90.2 -101.1 -134.3 
          Freight -57 -83.5 -139.7 -192.0 -272.1 -381.3 -480.6 
          Other -11 -13.3 -16.9 -27.6 -25.4 -24.9 -27.1 
     Sea transport -24 -37.4 -65.9 -81.2 -104.7 -146.6 -181.4 
          Passenger -0.8 -0.8 -0.7 -0.8 -0.9 -0.5 -0.7 
          Freight -21.0 -34.2 -62.1 -75.9 -97.6 -140.6 -175.6 
          Other -2.6 -2.5 -3.1 -4.5 -6.2 -5.5 -5.1 
     Air transport -48 -50.4 -64.2 -92.2 -105.0 -131.2 -158.8 
          Passenger -31.8 -31.4 -38.1 -51.5 -60.0 -65.6 -90.1 
          Freight -8.8 -10.2 -15.0 -22.7 -30.1 -52.4 -55.4 
          Other -7.2 -8.9 -11.1 -18.0 -14.9 -13.2 -13.3 
     Other transport -36 -49.3 -75.4 -114.6 -178.1 -229.6 -301.8 
Travel -148.9 -130.2 -147.4 -168.8 -166.6 -175.8 -203.5 
           Business -79.3 -69.7 -101.7 -111.0 -112.6 -115.9 -147.5 
           Personal -69.6 -60.5 -45.6 -57.8 -54.1 -59.9 -55.9 
Communication -10.5 -15.8 -13.3 -17.3 -14.4 -11.4 -13.1 
           Postal and courier services -0.2 -0.3 -0.4 -0.5 -0.4 -0.5 -0.5 
           Telecommunication services -10.3 -15.5 -13.0 -16.9 -14.0 -10.9 -12.6 
Construction -14.5 -14.9 -7.1 -16.0 -4.3 -6.2 -17.8 
Insurance -18.0 -27.9 -42.3 -58.9 -80.4 -110.8 -150.7 
Financial (other than insurance) -2.8 -2.0 -2.6 -2.2 -4.2 -12.1 -16.1 
Computer and information -0.5 -0.7 -0.7 -1.1 -0.8 -2.3 -10.6 
Royalties and license fees -10.7 - 10.6 -5.7 -5.3 -5 .0 -4.9 -8.4 
Other business services -9.0 -15.8 -15.1 -26.1 -23.7 -34.8 -74.2 
Personal, cultural and recreational services 0.0 0.0 0.0 0.0 0.0 -6.7 -17.9 
Government services, n.i.e. -39.9 -41.8 -45.5 -47.6 -39.9 -60.6 -83.4 
Source: National Bank of Georgia online information.  View ed at: http://www.nbg.gov.ge /index.php?m=306&lng=eng# 
 external [8 June 2009]. WT/TPR/S/224 Trade Policy Review 
Page 94 
 
 
 Table AII.1 
Heritage Foundation 2009 Inde x of Economic Freedom 
Georgia's economic freedom score is 69.8, making its economy the 32nd freest (out of 179) in the 2009 Index, shifting 
from 96th place in 2005 and from "mostly unfree" to "mostly free".  Georgia has made great progress in liberating its 
citizens from economic constraint s but is still below world averages in pr operty rights and freedom from corruption.  
Labour Freedom 99.4 :  Highly flexible labour regulations enhance em ployment opportunities and productivity growth.  
Rules on the number of work hours are very flexible.  The non- salary cost of employing a worker can be moderate, and 
dismissing a redundant em ployee is costless. 
Fiscal Freedom 86.8 :  Georgia has a moderate income tax and a low corporate tax.  The top income tax rate is a flat 
25%, and the corporate tax rate is 15%, down from 20% as of January 2008.  Other taxes include a value-added tax 
(VAT), a tax on interest, and a tax on dividends.  In the most  recent year, overall tax reve nue as a percentage of GDP 
was 21.7%. 
Business Freedom 86.6 :  Starting a business takes an average of three days, compared to the world average of 38 days.  
Obtaining a business licence requires less than the world aver age of 18 procedures and 225 days.  Closing a business is 
relatively simple. 
Trade Freedom 80.6 :  Georgia has made significant progress toward  liberalizing its trade regime, but some import 
restrictions, agriculture subsidies, so me import and export licensing, and inadeq uate infrastructure and trade capacity 
still add to the cost of trade.  Some border trade goes unreported.  
Monetary Freedom 70.9 :  Inflation is relatively high, averaging 9.1%  between 2005 and 2007.  Prices are generally set 
in the market, but the Government may im pose controls through state-owned enterpri ses.  It also provides subsidies for 
agricultural products and energy, which distort domestic prices. 
Investment Freedom 70.0 :  Foreign and domestic investments receive e qual treatment.  Exceptions may be made for 
investments in certai n sectors, including marit ime fisheries, air and maritime tran sport, and broadcasting.  The State 
retains a controlling interest in air traffic control, shipping traffic control, railroad contro l systems, defence and weapons 
industries, and nuclear energy.  Foreign firms may participat e freely in privatizations, though transparency has been an 
issue.  Residents and non-resi dents may hold foreign exchange accounts.  Foreign individuals and companies may buy 
non-agricultural land.  Only domestic en tities may buy agricultural land, but ag ricultural land can be purchased by 
forming a Georgian corporation that may be up to 100% foreign-owned. 
Financial Freedom 60.0 :  Georgia's financial sector has undergone subs tantial liberalization.  Beginning in the 1990s, 
the central bank assumed a supervisory role and imposed st ringent reporting and capital re quirements that led to the 
closure or merging of a number of banks.  Loans to the private sector have increased rapidly in recent years.  Foreign 
bank branches and subsidiaries are welcome to operate in Georgia, and there are no formal or effective barriers.  The 
Government does not have a financial stake in any bank alth ough the stock exchange is small and underdeveloped.  In 
March 2008, Parliament approved the Global Competitiveness of the Financial Services Sector Act to enhance the 
sector's efficiency. 
Property Rights 35.0 :  Judicial corruption is still a problem despite substantial improvement in  efficiency and fairness 
in the courts.  Both foreigners and Georgians continue to doubt the judicial system's ability to protect private property 
and contracts.  The enforcement of laws protecting intellectual property rights is weak. 
Freedom From Corruption 34.0 :  Corruption is perceived as significant.  Georgia ranks 79th out of 179 countries in 
Transparency International's Corruption Perceptions Index for 2007.  The Government has improved its performance in 
fighting corruption;  it has fired thousands of civil servan ts and police, and several hi gh-level officials have been 
prosecuted for corruption-related offences. 
Source: Heritage Foundation (2009), The 2009 Index of Economic Freedom.  Viewed at: http://www.heritage.org/ 
index/Country/Georgia. 
 Georgia WT/TPR/S/224 
 Page 95 
 
 
 Table AII.2 
Selected notifications to the WTO, 2002-09  
WTO Agreement Description of 
requirement Periodicity Most recent notification Comment 
Agriculture     
Article 18.2 Export subsidies Annual G/AG/N/GEO/6, 
24 June 2005 No export subsidies for the calendar 
year 2004 
Article 18.2 DS:1 Domestic 
support  G/AG/N/ GEO/7, 
13 July 2007 List of DS measures notifications 
calendar year 2004 
General Agreement on Trade in Services  
Article III:4 or IV:2 Enquiry point Once, then 
changes S/ENQ/78/Rev.9, 
1 December 2006 Division of Multilateral Economic 
Cooperation, at MFA 
GATT Article XXIV:7(a)p 
GATS Article V:7(a) RTA  WT/REG261/N/1, 
24 February 2009 Georgia - Turkey Free Trade 
Agreement 
Agreement on the Implementation of Article VI  
Article 18.5 GATT 1994 
Article VI  Laws and 
regulations Once, then 
changes G/ADP/N/1/GEO/1, 
6 February 2002 No notification of laws/regulations  
Agreement on Implementation of Article VII  
Article 22 Customs 
valuation Once G/VAL/N/1/GEO/1 
22 April 2002 Regulations concerning order of 
determining the customs value of 
goods imported to Georgia 
GATT 1994      
Article XVII:4(a))  State Trading 
Enterprises Annual G/STR/N/7-8/GEO, 
16 September 2002 State trading activities 
Import Licensing     
Article 1.4(a) & 8.2 (b) Import licensing 
laws and 
regulations Once, then 
changes G/LIC/N/1/GEO/1, 
8 April 2002 Notification on import licensing 
procedures 
Article 7.3 Import licensing Once, then 
changes G/LIC/N/3/GEO/3, 
4 September 2006 Response to Questionnaire on Import 
Licensing Procedures (G/LIC/3) 
Preshipment Inspection       
Article 5  Laws and 
regulations Once, then 
changes G/PSI/N/1/Add.10, 
19 July 2004 See Article 176 of Customs Code of 
Georgia - not compulsory 
Market Access  Notification 
procedures 
quantitative 
restrictions Every two 
years from 
31 January 
1996 G/MA/NTM/QR/1/Add.10, 
28 March 2006 Quantitave restrictions (2004) 
Rules of Origin     
Articles 5 & 4    G/RO/N/37, 3 June 2002 Rule s of origin on imported Goods 
Subsidies and Countervailing Measures  
   G/RO/N/38, 7 October 2002 Ru les on determining country of 
origin in FTA between CIS countries 
Article 25 Subsidies Annual G/SCM/N/123/GEO, 
14 June 2005 No specific subsidies granted for the 
calendar year 2004 
Article 25.11 Countervailing 
measures Semi-annual G/SCM/N/138/Add.1/Rev.1, 
18 October 2006 No countervailing ac tion during 1 July 
to 31 December 2005 
Article 32.6   G/SCM/N/1/GEO, 
6 February 2002 No law regulating countervailing 
measures 
Safeguards      
Articles 12.6 Safeguards Once, then 
changes G/SG/N/1/GEO/1, 
7 February 2002  No law regulating safeguard measures  
Table AII.2 (cont'd)  WT/TPR/S/224 Trade Policy Review 
Page 96 
 
 
 WTO Agreement Description of 
requirement Periodicity Most recent notification Comment 
Sanitary and Phytosanitary Measures  
Article 7 Annex B Sanitary and 
phytosanitary 
measures Ad hoc G/SPS/N/GEO/18-22, latest 
notification dated 
13 October 2003 Plant protection and animal health 
measures 
Technical Barriers to Trade  
Annex 3C Code of Good 
Practices  G/TBT/CS/N/153, 
17 December 2003 State Department of Standardization, 
Metrology and Certification  
(GEOSTAND) 
Article 15.2 Implementation & 
administration of the 
Agreement G/TBT/2/Add.81 Law of Georgia on Standardization 
and on Certification of Products and 
Services (GEOSTAND) 
Article 2.9 Notifications  G/TBT/N/GEO/3 – 5, 
19 January 2004 Adoption of international & regional 
standards 
Article 5.6 Notifications  G/TBT/N/GEO/1 – 2, 
5 August 2003 Notification of technical regulations 
Trade-Related Investment Measures  
Article 6.2 Investment  G/TRIMS/N/2/Rev.9/Add.3, 
21 March 2002 Georgia does not maintain any TRIMs 
Trade-Related Aspects of Intellectual Property Rights  
TRIPS Article 63.2 Copyright and 
neighbouring 
rights Once, then 
changes IP/N/1/GEO/1, 
30 August 2002 Main IPR laws:  copyright, 
trade marks, GIs, industrial design, 
patents, layout designs of integrated 
circuits, protection of undisclosed information, and border enforcement 
Article 69 Contact points Once, then 
changes IP/N/3/Rev.6/Add.1, 
24 July 2002 Georgian National Intellectual 
Property Centre:  Sakpatenti 
Government Procurement GPA/68, 14 May 2002 Legislations in the field of 
Government Procurement 
Source: WTO documents. Georgia WT/TPR/S/224 
 Page 97 
 
 
 Table AIII.1 
Key problems and recommendations after three years of licensing reform 
Problems Recommendations Expected impact 
- Silence is consent principle is 
not fully applied in issuance of licences/permits 
- There are contradictory 
clauses in the framework law 
on licenses and permits 
(Article 16 and 32) - The scope of application of silence is consent 
principle to be determined 
- Detailed procedures for silence is consent application 
should be formulated 
- Changes to the law on licenses and permits should be 
passed with the aim to eliminate contradictions between silence is consent principle and specific rules set by Articles 16 and 32 of the framework law in 
favour of silence is consent principle - Full-scale and effective application 
of silence is consent principle by licence/permit seekers 
- Establishment of reciprocal and 
accountable public services in 
administrative bodies that would 
strictly meet deadlines set by the law 
- Although one-stop-shop 
principle is in place, in a 
number of cases applicants still have to collect documents, 
get approvals from various 
administrative bodies, and run from one institution to another 
to obtain seals and signatures - Licensing bodies should implement one-stop-shop 
principle and restructure their corresponding services 
in a way that guarantees stri ct adherence to deadlines 
and frees applicants from the obligation to collect 
documents, seals, and signatures by themselves  
- Amend the framework law in a way that guarantees 
applicants' interaction with only a single agency  
- Clearly fix responsibility of issuing administrative 
body for any and all necessary coordination with other governmental agencies - Applicants will only interact with a 
single administrative body  
- Licensing bodies will provide better 
quality service in less time  
- Licensing process will be less time- 
and cost-demanding for applicants 
- Respective legislation is 
fragmented:  
  Framework law   Governmental resolutions   Ministerial orders  - Respective legislation is 
subject to frequent changes - Sector-by-sector laws should be passed  
- Determine frequency of possible changes to laws/ 
governmental resolutions/minis terial orders per year  
- Changes to legislation should enter into force after 
3-6 months following their promulgation - Sector-by-sector laws will clearly 
define responsibilities and strict timeframes for fulfilling the 
responsibilities of issuing 
administrative agencies  
- Changes will happen  less frequently 
- Public will have enough time raise 
awareness of new laws 
- Some procedural requirements 
of the framework law are not 
met according to schedule: 
 Sector-by-sector laws have not 
been passed  
 The framework law is not safe 
of amending with new 
licences/permits  
 There is no governmental 
body ensuring periodical 
critical review of the list of licences/permits or the list of 
required documentation - Determine central governmental body responsible for 
each component of the framework law 
- Periodically review of the list of licences/permits with 
the aim to further reduce their number where 
appropriate 
- Periodically review the list of required documentation 
and approvals 
- Carry out periodical regulatory impact assessments 
for businesses - Clearly defined state policy 
guaranteeing permanent progress in 
regulation of licence/permit sphere  
- Reduced ability of state agencies to 
circumvent reforms with additional 
licences/permits 
- Law does not specify licence/ 
permit issuing administrative 
bodies - The list of licences/permits in the law should be 
amended with the list of corresponding issuing 
administrative bodies 
- Law should contain detailed description of each 
secondary agency's scope of authority - Direct linkage between framework 
law and implementing secondary 
legislation  
- Simplified application process for 
entrepreneurs 
Source : International Finance Corporation (2008), Georgia:  After Three Years of Li censing Reform – Analytical Note,  
p. 4.  Viewed at:  http://www.ifc.org/ifcext/georgiasme .nsf/AttachmentsByT itle/LicensingPolic yPaperEng/$FILE/ 
LicensingPolicyPaper.pdf. 
__________