JOINT STAFF WORKING DOCUMENT The EU Special Incentive Arrangement for Sustainable Development and Good Governance ('GSP+') assessment of Georgia covering the period 2016 - 2017 Accompanying the document Report from the Commission to the European Parliament and the Council Report on the Generalised Scheme of Preferences during the period 2016 - 2017
Date: 2018-01-19
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU market, Georgia, common commercial policy, environmental protection, generalised preferences, governance, human rights, international convention, sustainable development, tariff preference

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 19.1.2018  SWD(2018) 26 final  JOINT STAFF WORKING DOCUMENT  The EU Special Incentive Arrangement for Sustainable Development and Good Governance ('GSP+') assessment of Georgia covering the period 2016 - 2017 Accompanying the document Report from the Commission to the European Parliament and the Council Report on the Generalised Scheme of Preferences during the period 2016 - 2017 {COM(2018) 36 final} - {SWD(2018) 23 final} - {SWD(2018) 24 final} - {SWD(2018) 25 final} - {SWD(2018) 27 final} - {SWD(2018) 28 final} - {SWD(2018) 29 final} - {SWD(2018) 30 final} - {SWD(2018) 31 final} - {SWD(2018) 32 final}  
 
 
Georgia GSP+ Assessment  

1. Country Overview 

During  the  reporting  period  2016-2017,  Georgia's  aspiration  of  political  association  and 
economic  integration  with  the  EU,  embodied  by  the  EU-Georgia  Association  Agreement, 
continued to attract broad support from across the Georgian society. The legislative elections 
of  October  2016  confirmed  the  country's  orientation  towards  political  association  and 
economic integration with the EU.  

Chapter  13  of  the  Association  Agreement  stipulates  an  overarching  objective  of  developing 
trade  by  taking  into  consideration  the  economic,  social  and  environmental  dimensions  of 
sustainable  development.  In  this  framework,  parties  hold  an  intense  dialogue  aimed,  inter 
alia, at monitoring compliance with core international standards in the areas of human rights, 
labour rights, environmental protection and good governance. 

Overall,  the  implementation  of  commitments  stemming  from  the  Association  Agreement, 
including  its  Deep  and  Comprehensive  Free  Trade  Area  (DCFTA),  have  continued  within 
agreed timelines.  

With extensive support from the EU, Georgia has implemented during the reporting period a 
number  of  reforms  strengthening  democracy  and  the  rule  of  law.  Georgia's  democratic 
institutions  have  been  consolidated,  and  a  comprehensive  legislative  framework  for  human 
rights and anti-discrimination has been adopted. Implementation and consolidation of existing 
legislation remains fundamental in order to strengthen the independence of the judiciary and 
ensure  the  effective  rights  of  minorities  and  vulnerable  groups,  in  line  with  Georgia's 
Association Agenda commitments.  

Since  1  July  2016,  the  main  political  forum  for  trade-related  issues  is  the  EU-Georgia 
Association Committee in the Trade Configuration. The parties also meet in the format of the 
EU-Georgia  Sub-Committee  on  Trade  and  Sustainable  Development  (TSD)  and  update  the 
Joint Civil Society Dialogue Forum on their activities.  

Due to the preferential market access obtained under the DCFTA with the EU, Georgia ceased 
to benefit from GSP+ on 1 January 2017. Until 31 December 2016, Georgia benefited from a 
period  of  transition  under  GSP+,  allowing  businesses  to  adjust  to  the  DCFTA.  The  present 
assessment  of  Georgia  under  GSP+  therefore  considers  relevant  developments  up  until 
January 2017. 

During  its  time  as  GSP+  beneficiary,  Georgia  maintained  ratification  of  all  GSP+  relevant 
conventions and continued implementing the relevant legal framework. During 2016-2017, an 
impressive  set  of  legislation  has  been  passed  and  starts  to  be  implemented.  Concerns 
expressed in this document have to be mainly considered in this perspective: as elements still 
to be achieved in order to meet best EU standards. 

The EU will continue supporting Georgia's sustainable development in the framework of the 
TSD  Chapter  of  the  DCFTA  and  through  the  Single  Support  Framework  for  2017-2020, 
focusing on smart, sustainable and inclusive economic growth.  

1 

 
 
 
 
 
2. Compliance with GSP+ Obligations 

2.1.  UN Human Rights Conventions (Conventions 1-7) 

Status of ratification and reporting 

Over  the  reporting  period  2016-2017,  Georgia  maintained  ratification  of  all  GSP+  relevant 
UN human rights conventions.  

In 2016, Georgia made an effort to catch up with its reporting obligations to the monitoring 
bodies of these conventions. Two reports remained overdue: a report under the International 
Covenant  on  Economic,  Social  and  Cultural  Rights  due  since  2007  and  a  report  under  the 
Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment 
due since 2011. At the time of writing, according to the Georgian Government, these reports 
should be submitted before the end of 2017. 

Status of implementation of the conventions 

The second Human Rights Action Plan (AP) for 2016-2017 was adopted in June 2016.  This 
new  Action  Plan  offers  improved  indicators  and  activities.  Some  issues,  such  as  lack  of 
specific budgets assigned to the actions or missing monitoring and evaluation guidelines, still 
need to be addressed in future APs. The Parliamentary Committee on Human Rights and Civil 
Integration strengthened its oversight role on the implementation of the human rights policies. 
It conducts committee hearings on annual reports submitted by the Public Defender’s Office 
(PDO) and prepares recommendations for adoption by Parliament.  

The 2016 parliamentary elections were efficiently administered and took place in an overall 
peaceful and competitive environment whereby fundamental freedoms were respected. A new 
make-up  of  majoritarian  districts  improved  the  equality  of  suffrage.  Some  incidents  of 
violence, however, were reported and require proper investigation.  

The implementation of the new juvenile justice code and further improvements to the prison 
health system testify to progress in juvenile justice. 

Salient  shortcomings  still  need  to  be  tackled  in  several  areas  covered by  the  GSP+  relevant 
international human rights conventions. Particular attention should be paid to media freedom 
and pluralism and the implementation of anti-discrimination legislation. In order to strengthen 
the  anti-discrimination  mechanism  embedded  in  the  PDO,  legislative  amendments  were 
initiated addressing the enforcement of collaboration of the private sector and the extension of 
restrictive time limits for filing cases. However, they have not yet been adopted. 

International  Convention  on  the  Elimination  of  All  Forms  of  Racial 
Discrimination (CERD) 

Integration  of  minorities,  including  ethnic  minorities,  is  part  of  the  2016-2017  National 
Human Rights Action Plan. Moreover, at the time of writing, the authorities were working on 
the implementation of the National Concept for Tolerance and the Civic Integration Strategy 
for  2015-2020  and  budgeted  annual  action  plans  on  which  the  State  Inter-Agency 
Commission  under  the  office  of  the  State  Minister  of  Georgia  for  Reconciliation  and  Civic 
Equality reports.  

Several Government programs have been implemented targeting, inter alia, education, access 
to State language courses, use of minority languages, identification of small ethnic minorities 
and their protection. However, national minorities are underrepresented not only at the central 

2 

 
Government  level,  Parliament  and  State  agencies,  but  even  in  the  local  councils  of 
municipalities where ethnic minorities constitute a clear majority. 

Georgian authorities and the PDO undertook a series of events to raise awareness about anti-
discrimination:  in  particular,  trainings  for  police  officers  and  prosecutors  as  well  as  for 
journalists  and  school  students  took  place.  Though  there  is  room  to  further  improve  the 
integration of ethnic minorities, a lot has been done already to facilitate their full participation 
in all spheres of public life. 

International Covenant on Civil and Political Rights (CCPR) 

Georgia, since the early years of independence, is confronted with large numbers of internally 
displaced  persons  (IDPs),  as  well  as  several  armed  conflicts  on  its  territory.  Despite  the 
authorities'  efforts  in  2016,  provision  of  adequate  housing,  closing  of  collective  centres  and 
facilitation  of  their  social  and  economic  integration  remain  incomplete.  Furthermore, 
legislation still needs to ensure the inclusion of all groups of IDPs, including groups such as 
eco-migrants.  

Poverty  remains  a  problem.  In  addition,  an  overall  unsatisfactory  situation  of  persons  with 
mental illnesses continues to be reported. Furthermore, the Georgian authorities were asked to 
step  up  their  efforts  to  effectively  address  discrimination  against  women  and  the  high 
prevalence  of  domestic  violence  (see  also  on  CEDAW).  Discrimination  and  social  stigma, 
hate speech and violence against lesbian, gay, bisexual, transgender and intersexual (LGBTI) 
persons  and  violation  of  their  rights  to  freedom  of  expression  and  assembly  continue  to  be 
regularly reported. 

There remain concerns about cases of religious intolerance, including harassment and verbal 
and physical assault against persons belonging to religious minorities, in particular Muslims 
and  Jehovah's  Witnesses.  The  State  Agency  on  Religious  Affairs  has  withdrawn  a  draft 
strategy on religious policy and would still have to define its priorities to play a positive role 
in combatting discrimination on religious grounds. Furthermore, very little progress was made 
with  regard  to  the  return  of  Meskhetians  deported  by  the  Soviet  regime  to  Central  Asia  in 
1944. 

With  regards  to  the judiciary,  a  package  of  legislative  amendments  (third  wave  of  judiciary 
reforms) tackling the protracted lack of transparency in the judicial management (in particular 
in  the  High  Council  of  Justice)  was  adopted  in  December  2016.  The  package  includes 
measures  to  increase  transparency  in  the  assignment  of  cases  and  judges,  the  selection  of 
judicial  candidates  and  disciplinary  procedures.  However,  in  2017,  the  High  Council  of 
Justice continues to be criticized for mishandling its functions and consequently keeping a lot 
of pressure on individual judges. A reform of the prosecution entered into force in September 
2015  and  included  a  number  of  changes:  it  established  the  Prosecutorial  Council,  the 
Conference  of  Prosecutors  and  the  Special  Prosecutor.  It  also  introduced  new  rules  for  the 
appointment and dismissal of the Chief Prosecutor with a broader participation of prosecutors 
and Parliament. The reform is positive, but still insufficient in scope. The performance of the 
courts  improved  with  regard  to  a  more  critical  assessment  of  motions  presented  by  the 
prosecution.  The  establishment  of  an  independent  investigative  body  to  deal  with  alleged 
misconduct of prosecution and law enforcement officials failed to materialise.  

3 

 
 
International Covenant on Economic, Social and Cultural Rights (CESCR) 

In spite of the success of recent reforms, an increased effort is needed to ensure provision of 
adequate  social  protection  and  healthcare  in  Georgia.  Deficiencies  remain  concerning  the 
right to adequate housing. The registration of individuals without shelter continued to lack a 
consistent methodology. The establishment of a labour inspection mechanism with a mandate 
to  check  working  and  employment  conditions  was  initiated  with  the  creation  of  the  Labour 
Inspectorate Department within the Ministry of Health, Labour and Social Affairs. However, 
this unit does not yet constitute a fully-fledged labour inspectorate.  

Since Georgia ratified the UN Convention on the Rights of Persons with Disabilities in 2014, 
a  chapter  on  equal  opportunities  of  persons  with  disabilities  has  been  integrated  in  the 
National Human Rights Action Plan 2016-2017. Georgians are becoming increasingly aware 
of the rights of disabled people and the National Council on Disabilities is active. To ensure 
proper  integration,  it  is  recommendable  that  a  more  concrete  Action  Plan  on  Business  and 
Human Rights will be adopted as part of the national Human Rights Action Plan 2017-2020. 

Convention  on  the  Elimination  of  All  Forms  of  Discrimination  Against 
Women (CEDAW) 

Overall, the Government as well as civil society demonstrate a strong commitment to tackle 
the  problems  pertaining  to  the  implementation  of  the  Convention.  Awareness  among 
Government officials as well as among the general public of domestic violence and trafficking 
of  human  beings  increased  significantly  in  the  reporting  period.  The  2017-2020  Single 
Support Framework dedicates a strong focus to gender, and will support the Government in 
addressing the issue. 

The  2016-2017  National  Action  Plan  (NAP)  for  Combating  Violence  against  Women  and 
Domestic Violence and Protection of Victims/Survivors covers domestic and sexual violence 
against  women  more  broadly  than  previous  action  plans.  In  2016,  Georgia  prepared  the 
ratification of the Istanbul Convention (ratified in May 2017) through a package of legislative 
amendments. The Civil Code was amended and the provision allowing marriage with parental 
consent for children at the age of 16 was abolished. A temporary provision allowing marriage 
at the age of 17 with the consent of a court was valid until 1 January 2017. Since then, the 
legal age for marriage is set at the age of 18. Efforts to enforce this legal provision have to be 
stepped up, particularly in rural areas. 

Poverty, violence and prevailing stereotypical attitudes regarding the roles and responsibilities 
of women and men in the society remain the main challenges to the effective implementation 
of CEDAW. In particular, the growing number of murders of women by their husbands and 
partners  and  other  forms  of  domestic  violence  constitute  a  worrying  trend.  Following 
awareness campaigns and a significant shift in public attitudes, the number of reported cases 
of  domestic  violence  and  restraining  orders  increased  significantly  in  2015  and  slightly  in 
2016, and so did the number of victims/survivors of domestic violence using shelters. There 
are four shelters throughout the country fully funded by the State budget and a State run crisis 
centre  opened  in  September  2016.  However,  attitudes  of  law  enforcement  bodies  need  to 
change and the follow-up of domestic violence cases needs to improve.   

Gender  inequality  in  Georgia  remains  a  barrier  to  sustainable  and  inclusive  development, 
despite visible progress made in recent years in some areas. Women are underrepresented in 
politics  (15%  in  Parliament  and  11.6%  in  local  governments).  The  implementation  of 
legislation  on  the  elimination  of  all  forms  of  discrimination  against  women  continues  to 

4 

 
improve  but  needs  to  become  more  effective.  More  needs  to  be  done  to  effectively  protect 
lesbian, bisexual and transsexual women against violence and harassment, as well as to ensure 
equal  pay  for  work  of  equal  value,  to  facilitate  access  to  family  planning  services  and 
affordable contraceptive methods.  

A  national  unit  under  the  Prime  Minister's  Office  to  coordinate,  implement  and  monitor 
gender equality policies was established in June 2017. 

Convention  against  Torture  and  Other  Cruel,  Inhuman  or  Degrading 
Treatment or Punishment (CAT) 

Over the reporting period, no signs of systemic ill-treatment were recorded. However, a fully 
independent mechanism for investigating allegations of torture remains to be created. A unit 
with  this  mission  was  set  up  within  the  Prosecutor's  office,  but  it  is  generally  considered 
unable  to  fully  perform  the  roles  which  such  a  mechanism  should  have.  The  National 
Preventive Mechanism (NPM) under the PDO is fully operational with access to all prisons 
and detention centres and with a new mandate to photograph possible evidence of torture as of 
September  2016.  However,  the  administration's  right  to  observe  (not  listen  to)  meetings 
between the NPM and the prisoners should be revoked. Also, the use of the Istanbul Protocol 
on  the  effective  investigation  and  documentation  of  torture  and  other  cruel,  inhuman  or 
degrading  treatment  has  been  introduced  in  2016  and  medical  staff  is  being  trained  on  its 
accurate  implementation.  The  maximum  sentence  for  administrative  detention  remains  15 
days  but  the  concept  should  still  be  fully  reviewed.  The  policy  shift  from  punishment  to 
rehabilitation  of  offenders,  especially  in  prisons,  continues.  There  was  also  a  significant 
decrease  in  the  use  of  pre-trial  detention.  Police  stations  are  gradually  being  equipped  with 
CCTV  equipment  for  in-  and  outside  perimeters  to  reduce  the  risk  of  ill-treatment.  Other 
positive developments were the entry into force of the juvenile justice code and the adoption 
of a new drug policy reducing the relatively harsh penalties for drug use. 

The Parliament introduced a set of amendments to  the Criminal Code in 2016 repealing the 
statute of limitation for torture-related crimes as well as to define heavier penalties for violent 
acts. However, certain recommendations by the UN Special Rapporteur on Torture still need 
to be addressed.   

Convention on the Rights of the Child (CRC) 

In September 2016, Georgia ratified the 3rd Optional Protocol to the CRC which sets out an 
international  complaints  procedure  for  child  rights  violations.  Despite  some  remarkable 
efforts  to  strengthen  children's  rights,  the  overall  legal  framework  for  children's  rights,  in 
particular the administrative and civil codes, require further refinement – also with regard to 
anti-discrimination of children with disabilities.  

The  multi-disciplinary  referral  mechanism  for  protection  of  children  from  all  forms  of 
violence has been  revised and piloted in  Adjara. The entry into  force of the juvenile justice 
code is a major achievement and novelty in the Georgian legal system. Similarly, in August 
2016,  a  legal  package  was  adopted  to  provide  street-children  with  registration  and  ID 
documents, the issuance of which has started. 

The implementation of the Law on Early and Preschool Education, adopted in June 2016 by 
the  Parliament,  is  postponed.  Although public  expenditure  in  2016  has  slightly increased  in 
the education sector, insufficient infrastructure in schools and kindergartens results in limited 

5 

 
access  to  early  childhood  education services.  Nearly  half  of  the  children  are  not  enrolled  in 
any pre-school education. 

The Law on Adoption and Foster Care was adopted in 2016. It prohibits direct adoption and 
requires  mandatory  preparation  training  for  adoptive  and  foster  parents  as  well  as  inter-
country adoption procedures in line with the Hague Convention on Inter-Country Adoption. 
However,  deinstitutionalisation  of  child-care  has  not  been  completed  and  a  number  of 
unregulated  institutions  financed  and  run  by  local  municipalities,  the  Georgian  Christian 
Orthodox Church or Muslim communities, operate without proper monitoring. 

Overall  infant  and  maternal  mortality  rates  remained  high,  as  well  as  the  level  of  child 
poverty.  The  Targeted  Social  Assistance  System  has  resulted  in  a  reduction  in  poverty  but 
many households remain vulnerable.  

Future actions and priorities 

Georgia's future priorities and objectives regarding human rights protection relate to a number 
of policy areas. The implementation of judicial reform will be a priority. Authorities will also 
continue  their  efforts  to  fight  the  prevailing  high  level  of  violence  against  women,  notably 
through  ratifying  and  implementing  the  Istanbul  Convention,  establishing  police  units  on 
gender-based violence with adequate capacity and through adopting legislation on protection 
and  assistance  to  victims  of  sexual  violence.  Georgia  plans  to  further  improve  the  Labour 
Code's provisions relating to non-discrimination, including equal pay and sexual harassment. 
Efforts will also continue to reduce infant and maternal mortality, notably by improving the 
quality  of  health  services  during  pregnancy,  delivery  and  post-delivery.  To  improve  the 
efficiency  and  equality  of  education  from  early  years,  Georgia  intends  to  increase  public 
expenditure  in  the  education  sector  and  invest  in  good  quality  early  childhood  education 
services, also for marginalised groups.  

Conclusions 

Despite progress in  many areas, challenges remain to  be tackled post GSP+. In  particular, 

the lack of accountability for violations by law enforcement authorities remains a significant 

problem.  

The  enhanced  role  of  the  PDO,  and  specifically  its  Equality  and  the  National  Preventive 

Mechanisms,  represent  a  real  progress  regarding  Georgia's  human  rights  situation.  Still, 

respect  for  the  rights  of  persons  belonging  to  various  minorities  and  their  integration  in 

society  still  require  attention  in  the  future.  Discrimination  and  violence  against  women, 

notably domestic violence, is of particular concern. While efforts to better protect children's 

right  are  notable,  the  persisting  high  level  of  poverty  among  children  as  well  as  of  infant 

mortality and the low level of education need to be addressed. The focus on improving social 

protection and healthcare for children as well as of the education system is important. 

The  EU-Georgia  Association  Agreement  significantly  deepens  EU-Georgia  bilateral 

relations,  while  also  putting  Georgia  under  increased  scrutiny,  particularly  regarding  the 

6 

 
need  to  strengthen  capacities  as  well  as  independence  and  effectiveness  of  institutions 

guaranteeing democracy, rule of law and respect for human rights.   

2.2.  ILO Labour Rights Conventions (Conventions 8-15) 

Status of ratification and reporting 

Over the reporting period, Georgia has  maintained ratification of all  eight  ILO fundamental 
conventions relevant for GSP+ and has complied with all its reporting obligations. 

Status of implementation of the conventions 

Enforcement  remains  inadequate.  In  January  2016,  the  Department  for  Monitoring  Labour 
Conditions at the Ministry of Labour, Health and Social Affairs (MoLHSA) was changed into 
a  Labour  Conditions  Inspection  Department.  In  March  2016,  its  mandate  was  expanded  to 
supervise trafficking in human beings and forced labour with somewhat enhanced powers for 
inspections,  for  example  the  possibility  of  inspections  on  notified  cases.  Nevertheless,  the 
basic  features  remained  unchanged.  The  Department  is  still  primarily  focused  on  the 
preparation of legislation and has an advisory role. The State Labour Inspection programme 
remains limited to occupational safety and health (OSH) and the participation of companies is 
voluntary.  Furthermore,  inspectors'  visits  are  subject  to  prior  notice;  they  can  only  issue 
recommendations and there are no sanctions in case of violations. There is still no supervision 
and law enforcement system in place for other core labour standards and working conditions. 
The  current  Labour  Code  does  not  contain  provisions  related  to  the  violation  of  labour 
legislation and does not regulate labour inspection. 

The  much  awaited  completion  of  a  draft  framework  law  on  OSH  and  its  submission  to  the 
Parliament  on  31  May  2017  are  significant  steps  towards  a  more  effective  supervision  and 
enforcement system. The draft law incorporates some of the ILO recommendations and would 
confer  greater  supervision  and  inspection  powers  to  the  Labour  Inspection  Department  on 
OSH issues, however limited to 'particularly hazardous' and 'high risk' enterprises and sectors 
which are not further defined. 

The  absence  of  effective  supervision  and  enforcement  of  labour  standards  and  rights  is  a 
mounting  concern,  especially  in  the  light  of  a  series  of  severe  accidents  at  work  in  the  last 
years.  The  Ombudsman  made  a  public  statement,  calling  for  properly  implemented  safety 
regulations,  after  the  latest  fatal  accident  in  a  mine  in  May  2017,  and  an  unprecedented 
statement  was  issued  by  the  Ambassadorial  Working  Group.  Recently,  poor  working 
conditions  triggered  industrial  unrest  in  major  economic  sectors  (for  example  the  chemical 
industry).  

The  Georgian  labour  market  continues  to  be  characterised  by  high  unemployment  (11.8% 
overall and 21%  in  urban areas in  2016),  informality (around two-thirds of the labour  force 
work is in the informal economy) and subdued formal employment creation. There is broad 
consensus  on  the  part  of  social  partners  and  the  Government  that  preserving  jobs  is  the 
priority  rather  than  improving  job  quality.  This  affects  negatively  the  implementation  of 
labour standards and rights as any action is perceived as increasing the burden on businesses. 

Freedom of Association and Collective Bargaining (Conventions 87 and 98) 

The  legal  framework  provides  for  the  right  of  most  workers  to  form  and  join  independent 
unions  and  to  strike  and  bargain  collectively.  However,  several  shortcomings  pointed  to  by 

7 

 
the  ILO  Committee  of  Experts  on  the  Application  of  Conventions  and  Recommendations 
(CEACR)  still  need  to  be  addressed:  fixing  the  minimum  membership  requirement  for 
establishing  a  trade  union  (set  at  50  persons)  in  a  way  to  enable  the  establishment  of 
organisations  in  small  and  medium-sized  enterprises,  trade-unions'  allegations  that  the 
absence  of  a  legal  provision  obliging  the  employer  to  justify  the  non-renewal  of  short-term 
contracts  leads  to  anti-union  discrimination  (in  both  the  public  and  private  sectors),    a 
restrictive definition of grounds for strike, prohibition of the right to strike in services other 
than essential ones and the possibility to postpone or suspend strike action.   

The severe restrictions under the previous Labour Code considerably weakened trade unions 
and left them with limited capacity to protect workers' rights. Employers' interference in the 
functioning  of  trade  unions  and  members'  harassment  are  reported,  also  in  state-owned 
enterprises,  as  well  as  attempts  to  replace independent  unions  with  unions  supported  by  the 
Government or employers. There have been allegations that the trade unions in the garment 
sector  are  stopped  from  entering  companies  to  monitor  the  enforcement  of  labour  laws  and 
workplace  safety  in  breach  of  the  Law  on  Trade  Unions.  Collective  bargaining  is  generally 
carried  out  at  the  enterprise  level  and  collective  agreements  are  of  poorer  quality,  lacking 
essential  elements  such  as  enforcement  clauses  and  appropriate  dispute  resolution 
mechanisms.  Several  examples  of  employers  refusing  to  bargain  in  good  faith  are  reported, 
including  in  the  metallurgy  sector  and  big  international  companies.  Nevertheless,  the 
agreement signed in March 2017 between the Teachers' Union (ESFTUG) and the Ministry of 
Education is a significant step after ten years of bitter dispute. 

There is still no inspection body tasked with monitoring and enforcing the application of laws 
relating  to  collective  bargaining  and  freedom  of  association.  Stakeholders  report  that  the 
Government does not effectively enforce laws relating to freedom of association and is unable 
to  enforce  collective  bargaining  agreements.  In  addition,  stakeholders  report  that  the 
Government  does  not  actively  promote  freedom  of  association  or  collective  bargaining, 
including in State-Owned Enterprises. 

After  a  two-year  standstill,  the  Tripartite  Social  Partnership  Commission  (TSPC)  resumed 
activities,  however,  not  on  a  regular  basis.  There  are  concerns  that  important  policies  are 
rushed through without adequate tripartite consultation. With ILO guidance, TSPC adopted its 
first  Strategic  Plan  for  2016-2017.  Its  activity  is  now  supported  by  a  secretariat  at  the 
Department of Labour and Employment of the Ministry of Labour, Health and Social Affairs 
that meets more frequently (roughly four times per year) to prepare the discussions at TSPC 
meetings as do TSPC working groups. This has improved the work of the TSPC. However, 
involved  stakeholders  acknowledge  the  need  for  more  intensive  cooperation  and  regional 
structures.  At  the  moment,  the  idea  of  establishing  a  regional  structure  in  Adjara  is  being 
discussed. 

Tripartite  social  dialogue  remains  fragile,  for  example,  trade  unions  recently  left  the  TSPC. 
The  intended  ratification  of  the  ILO  Convention  144  on  Tripartite  Consultation  would 
contribute to establishing social dialogue on firmer grounds. 

Abolition of Forced Labour (Conventions 29 and 105) 

There are no specific concerns about the scope of the legislation, which continues to prohibit 
all forms of forced or compulsory labour. In its 2013 report, the CEACR acknowledged that 
the Criminal Code provisions for sanctions, including correctional work as punishment for the 
violation of strike procedures, constitute a legal gap but are not enforced in practice.  

8 

 
Although  cases  of  forced  labour  involving  foreign  workers  in  agriculture,  construction  and 
domestic  service  have  been  identified  in  recent  years,  Georgia  is  more  a  source  than  a 
destination  country  for  trafficking  and  forced  labour.  Georgia  does  not  feature  on  the  US 
Department of Labour's List of Goods Produced by Child or Forced Labour and fully meets 
the minimum standards for the elimination of trafficking according to both the 2016 and 2017 
US State Department's Trafficking in Persons Reports. 

Georgia  continued  to  take  steps  to  prevent  and  address  the  issues.  New  amendments  to  the 
2006  Law  on  Combating  Human  Trafficking  entered  into  force  on  1  January  2016.  They 
notably  expand  the  mandate  of  the  Department  for  the  Inspection  of  Labour  Conditions  for 
the  detection  and  enforcement  of  preventative  measures  on  forced  labour  and  labour 
trafficking. All inspectors were trained for case identification. Yet, inspectors do not have the 
power to sanction and can only investigate notified cases. In 2016, 99 companies have been 
inspected and only one case was referred to the Ministry of Interior for further investigation.   

There remain concerns that more should be done to identify potential forced labour victims, 
particularly  foreign  workers  in  vulnerable  sectors,  and  that  actions  to  enforce  trafficking 
legislation  have  focused  almost  exclusively  on  sexual  exploitation.  The  number  of 
investigations  is  increasing  (16  in  2016  versus  10  in  2015).  The  low  number  of  identified 
victims  of  forced  labour  (9  adult  victims  in  2015,  none  in  2016)  could  suggest  that  legal 
provisions  are  not  utilised  in  practice.  Investigation,  prosecution  and  conviction  need  to  be 
strengthened. 

Minimum Age for Work and Worst Forms of Child Labour (Conventions 138 
and 182) 

The second National Child Labour Survey (NCLS) conducted in 2015 with ILO support was 
released in autumn 2016. It revealed that 4.2% of 5-17 year-old children are involved in child 
labour, the vast majority of them (63.9%) in hazardous work. Nearly 52% are 5-13 years old, 
which  is  below  the  minimum  age  permissible  for  light  work.  The  vast  majority  of  children 
(84%) engaged in child labour live in rural areas.  

The legal framework is largely in place regarding the minimum age for work, prohibition of 
child  trafficking  and  sexual  and  commercial  exploitation.  Steps  were  taken  to  address  the 
outstanding  issue  of  a  list  of  light/hazardous  work  for  children.  In  October  2016,  the 
Government  requested  ILO's  assistance  in  developing  such  a  list.  On  the  legislative  front, 
remaining issues are to extend the protection of the Labour Code to children working in the 
informal economy and to those performing unpaid work or working on their own account, and 
to lay down appropriate provisions on light work allowed for 14-16 year-old children.  

Numerous  concerns  remain  on  the  inadequate  enforcement  of  child  labour  legislation.  The 
current labour inspection still has no supervision and inspection power for child labour, and 
there is no agency responsible for monitoring workplace violations of child labour legislation. 
As a result there are very few prosecutions. 

Children living and working on the street are a specific concern; their number and situations 
need  to  be  better  known  and  addressed  through  integrated  strategies  reducing  their 
vulnerability and eliminating forced begging.  

9 

 
Elimination of Discrimination (Conventions 100 and 111) 

The  legislation  (Labour  Code,  Law  on  Gender  Equality)  is  broadly  in  line  with  the 
conventions, but needs to be improved to capture the key concept of 'equal pay for work of 
equal  value'  and  to  include  a  specific  definition  and  prohibition  of  direct  and  indirect 
discrimination at all stages of employment and occupation. Sexual harassment also needs to 
be defined.  

Progress is needed in  developing  and implementing gender-neutral  job evaluation and  more 
generally  in  ensuring  that  provisions  for  equal  pay  and  prohibition  of  discrimination  are 
effectively applied in practice.  

Georgia's ranking in the Global Gender Gap index is sliding (90 in 2016 against 82 in 2015 
and 54 in 2006) due to a widening economic participation and opportunity gender gap in the 
labour market. Women's labour market participation remains below 60% and the gender gap 
doubled since 2011. Women's average monthly wages are now 38% lower than that of men.  

The 2017-2020 Single Support Framework integrates a clear focus on gender to allow the EU 
to support actively governmental actions addressing the issue, and provides many indicators 
to monitor expected concrete results in this respect. 

Whilst  work  to  strengthen  coordination,  implementation  and  monitoring  of  gender  equality 
policies  continues,  the  underlying  causes  of  the  gender  pay  and  economic  gaps  need  to  be 
addressed  more  decisively.  Higher  attention  has  to  be  given  to  promoting  women's  labour 
market participation and access to a wider range of employment opportunities in terms of both 
sectors and occupations. 

Discrimination  in  employment  on  the  grounds  of  age,  ethnicity  and  sexual  orientation 
continues to occur in practice. 

Future actions and priorities 

Apart  from  the  adoption  of  the  draft  occupational  safety  and  health  law,  which  contains 
relevant provisions relating to the re-introduction of the labour inspectorate, there is no major 
legal  initiative  announced  by  the  Government.  The  Government  will  have  to  confirm  its 
intentions to further progress towards an effective labour inspection system.  

Conclusions 

The legislative framework of Georgia remains broadly compatible with the ILO fundamental 

conventions.  Nevertheless,  some  of  the  remaining  gaps  are  not  being  addressed.  The  most 

important  ones  relate  to  freedom  of  association  and  collective  bargaining,  equal  pay  and 

protection against discrimination. There are no indications that these issues are considered in 

the  amendments  to  the  Labour  Code  currently  under  discussion.  The  absence  of  effective 

supervision and enforcement of labour standards and rights should be addressed. 

The only significant legal reform during the reporting period related to the finalisation of the 

draft occupational safety and health law. Its adoption would be a significant step towards an 

effective  labour  inspection  as  the  absence  of  a  fully-fledged  labour  inspection  system 

10 

 
continues  to  be  a  major  challenge  for  the  realisation  of  core  labour  standards  in  Georgia. 

Capacity  enhancement  of  relevant  agencies,  in  particular,  the  existing  labour  inspectorate 

(through  training  of  staff,  notably  inspectors,  and  if  possible,  through  increased  human 

resources) needs to continue and the understanding that this will not deter investment and job 

creation should grow. The ratification of ILO Convention 144 would be a welcome signal of 

all three sides' commitment to improving tripartite social dialogue. 

The  Council  of  Europe's  Group  of  Experts  on  Action  against  Trafficking  in  Human  Beings 

(GRETA)  in  its  report  of  March  2016  confirms  that  despite  progress  made  the  Georgian 

authorities  need  to  undertake  actions  in  the  areas  of,  inter  alia,  timely  identification  of 

victims,  assistance  and  compensation  for  victims,  proactive  investigation  and  awareness-

raising. 

2.3.  UN Conventions on Environmental Protection and Climate 

Change (Conventions 16-23) 

Status of ratification and reporting 

Over the reporting period, Georgia maintained ratification of all GSP+ relevant conventions 
on  environmental  protection  and  climate  change,  without  reservations  but  did  not  fully 
comply  with  its  reporting  obligations  under  CITES,  the  Basel  Convention,  the  Stockholm 
Convention  and  the  Cartagena  Protocol.  Georgia  made  a  permissible  declaration  to  the 
Convention on Biodiversity.  

Status of implementation of the conventions 

Convention on International Trade in Endangered Species of Wild Flora and 
Fauna (CITES) 

Georgia has submitted the 2013-2014 report and is working towards CITES 'category 1' status 
whereby  its national legislation would finally ensure that trade in  protected species  is legal, 
sustainable and traceable. At the time of writing, the annual report for 2016 was foreseen to 
be submitted by the deadline of 31 October 2017. The biennial report for 2015-2016 is due. 

The  Secretariat  of  the  Convention  has  for  more  than  two  years  conducted  a  preliminary 
analysis  of  the  draft  legislation,  namely  the  draft  Law  on  Biodiversity  and  draft  sub-laws 
elaborated by the Ministry of Environment and Natural Resources Protection of Georgia. This 
draft law includes a chapter on international trade. It is assumed that the law will fill the gaps 
in the legislation necessary to move to category 1 once it is adopted. To finalise the CITES 
chapter  of  this  draft  law,  the  Biodiversity  Division  of  the  Department,  which  is  the  CITES 
Management  Authority  in  Georgia,  has  sent  it  to  the  CITES  secretariat  and  received 
comments to ensure full compliance. At the same time, in July 2017, an informal meeting was 
held  with  the  legal  officer  of  the  Secretariat  to  discuss  outstanding  issues.  Currently,  the 
CITES Management Authority is revising the draft Law on Biodiversity as suggested by the 
Secretariat. It is supposed that the draft law will be submitted for adoption early 2018.   

11 

 
Training  for  enforcement  officers  was  conducted  in  March  2017.  Around  120  officers  from 
the  Customs  service,  as  well  as  Environmental  Inspection  were  trained  by  the  national  and 
international experts. 

A joint EU-Georgia proposal to include Caucasian Tur (Capra Caucasica) in Appendix II of 
the  Convention  (which  includes  species  "not  necessarily  threatened  with  extinction,  but  in 
which trade must be controlled in order to avoid utilization incompatible with their survival") 
was  submitted  for  CITES  COP17  (24  September  to  5  October  2016).  As  a  result  of  further 
negotiations, the proposal was accepted by consensus.  

Currently, the Ministry of Environment is seeking funding for a project to reassess the wild 
stock of snowdrops (Galanthus woronowii), which is an intensively traded plant species. The 
project  should  also  involve  monitoring  of  target  populations,  assess  the  socio-economic 
impact of trade and explore how the benefits of local communities can be increased.  

Basel Convention 

The draft law on import, export and transit of waste (to be submitted to the Parliament by the 
end 2017) is developed to meet the requirements of the Basel Convention. This law, prepared 
with EU technical expertise, aims at establishing terms, procedures and control mechanisms 
for import of waste into, export from and transit through Georgia in accordance with the Basel 
Convention. This would be commendable as the present legislation in place does not include 
any transit options.  

Convention on Biological Diversity (CBD) 

The 5th national report was submitted in 2015. Georgia has to submit the 6th national report by 
December 2018.  

Important steps were taken in order to achieve Aichi target 11 on the protected areas network. 
Aichi  biodiversity  targets  are  targets  adopted  by  the  CBD  at  COP10  in  2010  under  the 
strategic plan for biodiversity 2011-2020. The aim of the Aichi target 11 is the expansion of 
the protected areas network and its management effectiveness. Currently, the protected areas 
network,  corresponding  to  the  International  Union  for  the  Conservation  of  Nature  (IUCN) 
categories,  covers  8.6%  of  the  country's  terrestrial  area.  Moreover,  the  establishment  of 
several  new  protected  areas  is  planned.  Besides  expansion  of  the  existing  network,  work  is 
being undertaken  for the establishment of the Emerald Network under the Bern Convention 
and EU-Georgia Association Agreement, which goes far beyond existing protected areas and 
contributes to achieving Aichi target 11.  

Considering  the  challenge  related  to  the  lack  of  financial  resources  in  the  process  of 
implementing  the  National  Biodiversity  Strategy  and  Action  Plan  (NBSAP),  Georgia 
expressed its interest in participating in the UNDP initiative BIOFIN. The project started in 
2016.  The  inception  report  and  institutional  and  policy  review  report  have  been  prepared. 
Expenditures  on  NBSAP  activities  and  funding  needs  were  assessed.  It  is  expected  that  a 
sustainable financial mechanism for resource-mobilisation will be delivered by the end of the 
project in 2018.  

The draft law on biological diversity is almost finalised and planned to be adopted in 2018. 
After  the  Regulatory  Impact  Assessment  (RIA),  the  draft  law  will  be  open  for  discussions. 
More  effective  mechanisms  for  species  and  habitats  will  be  adopted  with  this  draft  law 
regarding plant, animal and habitat which will be harmonised with EU legislation. The draft 

12 

 
law also covers new issues such as access to genetic resources and benefit sharing (ABS). It is 
supposed that Georgia will start the ratification process for the Nagoya Protocol in parallel to 
the adoption of the draft law. 

The Integrated Biodiversity Management in South Caucasus (IBIS), funded by GIZ, supports 
activities  to  ensure  mainstreaming  biodiversity  into  different  sectors.  The  UNDP  project 
'Enhancing Environmental Monitoring and Reporting in Georgia' aims to support the country 
in  establishing  a  national  system  for  better  management  of  environmental  information  and 
monitoring. 

Stockholm Convention on Persistent Organic Pollutants 

Georgia submitted the required National Implementation Plan (NIP) but did not submit any of 
the  required  updates  needed  to  address  developments  under  the  Convention.  Georgia 
submitted the 2nd and 3rd national reports on implementation.  

Georgian  authorities  reported  progress  in  fulfilling  the  2011-2015  Persistent  Organic 
Pollutants (POP) National Implementation Plan aiming to develop efficient strategies of POP 
management  in  the  country  as  well  as  ensuring  protection  of  human  health  and  the 
environment through implementing sustainable policies.  

Within  the  scope  of  the  Global  Environmental  Facility  (GEF)  funded  project  'Review  and 
Update  of  the  National  Implementation  Plan  for  the  Stockholm  Convention  on  Persistent 
Organic Pollutants (POPs) in Georgia 2015-2017', implemented by UNEP in cooperation with 
the Georgian Ministry of Environment and Natural Resources Protection (MENRP), the new 
POPs  inventory  and  an  assessment  of  the  existing  plan  as  well  as  public  awareness  raising 
regarding POPs have been carried out. Moreover, the second NIP was drafted and now needs 
to be submitted to the Government for approval. 

On  2-16  April  2017,  an  additional  208  tons  of  POPs  pesticides  were  collected,  packed  and 
sent to France for disposal in the context of the Food and Agriculture Organisation of the UN 
(FAO)  and  EU  project  'Improving  Capacities  to  Eliminate  and  Prevent  Recurrence  of 
Obsolete Pesticides as Model for Tackling Unused Hazardous Chemicals in the Former Soviet 
Union'. Also, awareness raising activities have been carried out. 

To meet the requirements of the Rotterdam and Stockholm Conventions and to implement the 
Regulation (EC) No 689/2008 of the European Parliament and of the Council of 17 June 2008 
concerning the export and import of dangerous chemicals, the Governmental Decree N263 On 
Rule  of  Import  and  Export  of  Certain  Hazardous  Chemicals  and  Pesticides  and 
Implementation of Prior Informed Consent Procedure has been adopted by the Government in 
2016. 

Cartagena Protocol on Biosafety 

The 3rd national report was sent to the CBD Secretariat in 2015. However, the first national 
report has not been submitted to date. 

In 2015, the Law on Living Genetically Modified Organisms was amended and Georgia was 
announced as a zone free from living modified organisms (LMOs), which means that imports 
of LMOs are prohibited. The law allows only transit of LMOs and their use in closed systems 
(for example laboratories). 

13 

 
Conventions on Climate Change 

Georgia  maintains  exceptionally  low  greenhouse  gas  (GHG)  emissions  per  capita  due  to  its 
hydro-based electricity generation (even if only 14% of the hydro potential is used, providing 
80%  of  total  electricity  generation  in  2011).  Moreover,  according  to  the  3rd  National 
Communication  to  the  United  Nations  Framework  Convention  on  Climate  Change 
(UNFCCC),  GHG  emissions  from  Georgia  in  2011  already  constituted  only  34%  of  1990 
emissions  level.  National  GHG  emissions  of  Georgia  represent  approximately  0.03%  of 
global emissions. 

In  recent  years,  hydrochlorofluorocarbons  (HCFC)  import  quotas  in  line  with  Montreal 
Protocol requirements and optimisation of the regulatory issues around import/export permits 
were  introduced.  In  particular,  a  technicians'  certification  system  and  controls  of  the 
application of better servicing methods were implemented. 

Georgia  still  needs  to  ratify  the  Kigali  amendment  to  the  Montreal  Protocol  on 
hydroflourocarbons (HFCs) for which relevant intergovernmental procedures need to start in 
the near future. 

Concerning  the  implementation  of  the  UNFCCC,  Georgia  submitted  to  the  UNFCCC 
Secretariat its 3rd National Communication on 24 February 2016 and its 1st Biennial Update 
Report  on  18  July  2016.  In  2017,  the  project  for  the  preparation  of  the  4th  National 
Communication  and  2nd  Biennial  Update  Report  was  approved  by  the  Government  in 
accordance with decree N 951 of 18 May. 

On  21  February  2017,  the  Government  approved  the  Paris  Agreement,  which  entered  into 
force  on  7  June  2017.  Furthermore,  the  preparation  of  the  Low  Emission  Development 
Strategy was extended until 2017.  

By the end of 2015, Georgia completed the preparation phase of its two nationally appropriate 
mitigation actions and submitted proposals to the Nationally Appropriate Mitigation Actions 
(NAMA) registry web portal. 

Conclusions 

Georgia is committed to implement the obligations under the international conventions and to 

improve the compliance of national legislation with their requirements. 

In  order  to  implement  the  requirements  of  CBD,  Georgia  plans  to  submit  the  6th  national 

report by December 2018 at the time of writing. Financial assistance for the elaboration of 

the  report  is  requested  from  GEF.  Furthermore,  Georgia  is  eager  to  reflect  the  CITES 

requirements as well as the COP decisions and recommendations in the national legislation, 

particularly  in  the  upcoming  new  Law  on  Biodiversity.  Moreover,  the  MENRP  is  currently 

working on the establishment of a unified system of biodiversity monitoring and is planning to 

start the ratification process for the Nagoya Protocol. 

14 

 
With regards to the Stockholm Convention, the MENRP plans to submit the second NIP to the 

Government  for  approval  by  the  end  of  2017.  The  Law  on  Import,  Export  and  Transit  of 

Waste is also planned to be submitted to the Parliament by the end of 2017. It will contribute 

to the implementation of the requirements of the Basel Convention. 

In  order  to  support  global  efforts  towards  GHG  reduction  by  2020,  Georgia  started  the 

process of ratification of the Doha amendment. To comply with the requirements of the Paris 

Agreement  and  to  raise  the  level  of  ambition,  Georgia  aims  to  submit  a  revised  Nationally 

Determined  Contribution  (NDC)  to  the  UNFCCC  Secretariat  by  2019.  It  is  envisaged  to 

develop a National Adaptation Plan.  

Finally, the implementation of the HCFC Phase out Management Plan (HPMP) is among the 

priority issues for the Ministry to ensure the achievement of the Montreal Protocol target on 

reduction  of  HCFC  consumption  by  35%  in  2020.  Georgia  has  started  the  relevant 

procedures  and  intends  to  ratify  the  Kigali  amendment  to  the  Montreal  Protocol  on 

hydrofluorocarbons (HFCs). 

2.4.  UN Conventions on Good Governance (Conventions 24-27) 

Status of ratification and reporting 

During  the  reporting  period,  Georgia  maintained  ratification  of  the  GSP+  relevant 
conventions on drugs and corruption and remained up to date with its reporting requirements. 

Georgia  is  a  priority  country  for  the  South  Caucasus  sub-region  on  the  basis  of  good 
cooperation  during  the  previous  phase  of  the  Heroin  Route  Programme  and  the  expressed 
commitment of the authorities to  cooperation. In January 2017, the EU included Georgia in 
the  Project  'EU-ACT:  EU  Action  against  Drugs  and  Organised  Crime'.  EU-ACT  succeeds 
EU's  Heroin  Route  Programme,  financed  by  the  long-term  component  of  the  Instrument 
Contributing  to  Stability  and  Peace  during  2017-2020.  Through  EU-ACT,  Georgia  may  be 
assisted  in  three  ways:  1)  National  Policy  and  Operational  Responses  for  five  priority 
countries  identified  from  each  sub-region,  2)  a  Technical  Assistance  Facility  for  short-term 
technical advice to non-priority countries across the whole geographical scope of the variant 
'Heroin  Route'  trajectories,  3)  Cooperation  Initiatives  for  trans-regional,  international 
cooperation and operational activities across borders. 

Status of implementation of the conventions 

UN Conventions Fighting Illegal Drugs 

The main issues regarding Georgia's implementation of these conventions in 2015-2016 were 
the adoption and implementation of a National Anti-Drug Strategy, the regular assessment of 
the extent of drug use, incidence and prevalence, and the invoking of the country's rights to 
require pre-export notification for all substances included in Tables I and II of the Convention 
against Illicit Traffic in Narcotic Drugs and Psychotropic Substances. 

15 

 
In  November  2015,  a  memorandum  of  understanding  was  signed  between  Georgia  and  the 
European  Monitoring  Centre  for  Drugs  and  Drug  Addiction  (EMCDDA).  The  agreement 
between EMCDDA and the Ministry of Justice provides for exchange of technical expertise 
and knowledge between the two institutions, co-sponsoring of technical meetings and pooling 
of human and financial resources to launch joint programmes. This will help Georgia put in 
place a strategic approach to drug prevention and rehabilitation. 

The Inter-Agency Coordinating Council for Combating Drug Abuse adopted the new National 
Anti-Drug Action Plan for 2016-2018 at the Council meeting held on 20 December 2016. 

As  for  precursors,  the  Decree  on  the  Approval  of  the  Rules  of  Import/Export  of  Precursors 
was approved by the Government on 1 July 2016. 

UN Convention against Corruption (UNCAC) 

Transparency International's 2016 Corruption Perception Index ranked Georgia number 44 out 
of  176  countries,  with  a  perceived  level  of  public  sector  corruption  score  of  57  out  of  100 
(whereby  zero  means  'highly  corrupt').  This  marks  an  improvement  compared  to  previous 
years when Georgia scored 52. 

A  2012  assessment  of  Georgia's  compliance  with  UNCAC's  requirements,  focusing  on 
criminalisation  and  international  cooperation,  was  largely  positive.  No  assessment  has  been 
conducted since then. The next assessment is expected to take place in 2018 or 2019, with a 
focus on prevention and assets recovery.  

On 28 October 2015, the Georgian Government adopted a new Law on Civil Service which 
aims among other things at the depoliticisation of the civil service  – a benchmark under the 
Visa Liberalisation Action Plan (VLAP) requirements on anti-corruption. A specialised anti-
corruption unit within the office of the Chief Prosecutor was set up in January 2015. Georgia 
has established a regular updating and monitoring of the national anti-corruption strategy and 
action  plan.  In  April  2017,  Georgia's  Anti-Corruption  Council  adopted  the  revised  national 
Anti-Corruption  Strategy  and  the  new  Action  Plan  for  2017-2018.  Both  remain  to  be 
approved by the Government. The strategy has been broadened to include new areas, such as 
corruption  at  local  level.  Further  amendments  to  the  Law  on  Conflict  of  Interest  and 
Corruption in Public Service were made in 2015 as part of the VLAP requirements, focusing 
on  whistleblowing  and  effective  monitoring  of  assets  declarations  by  public  officials.  The 
provisions related to the monitoring of asset declarations came into force in January 2017. 

There  were  also  progress  assessments  of  the  country  as  part  of  the  OECD  Anti-Corruption 
Network Monitoring Rounds. The 4th monitoring round was carried out in 2016. It reassessed 
13 out of the 15 previous recommendations (from the 3rd round), and concluded with full or 
partial compliance for 12 out of 13 recommendations (identical to the previous assessment). 
In addition, the assessment included an in-depth study of public procurement in infrastructure 
projects.  The  4th  monitoring round  report  now includes  22  recommendations:  19  new  and  3 
previous that remain valid.  

In  2016,  the  4th  Evaluation  Round  of  the  Council  of  Europe's  Group  of  States  against 
Corruption  (GRECO),  covering  prevention  of  corruption  with  respect  to  members  of 
Parliament,  judges  and  prosecutors,  concluded  with  16  recommendations.  One  important 
aspect  highlighted  in  the  4th  Evaluation  Round  is  the  effective  verification  of  asset 
declarations,  for  which  the  necessary  legal  provisions  came  into  force  on  1  January  2017. 

16 

 
However,  they  need  more  strict  enforcement.  Both  international  assessments  command 
Georgia's efforts and successes in significantly reducing petty corruption.  

Conclusions 

Georgia  proved  its  commitment  to  effective  implementation  of  the  UN  conventions  fighting 

illegal drugs. Still, the National Drugs Monitoring Centre remains to be established. 

Georgia demonstrated continued anti-corruption efforts and is encouraged to fully implement 

the  GRECO  and  OECD-Anti-Corruption  Network  recommendations.  They  have  called  for 

addressing  high-level  and  more  complex  types  of  corruption.  At  the  same  time,  Georgia's 

achievements  in  that  area,  when  compared  to  those  of  its  neighbours,  are  exceptional  and 

reflected in international rankings.  

17 

 
 
 
3. Trade and Economy 

3.1.  Trade Picture 

In 2016, Georgia's GDP grew by 2.7%, following a growth rate of 2.9% in 2015. According 
to the IMF, in 2017, Georgia's GDP is projected to grow by more than 4%, on the back of a 
faster  than  expected  recovery  in  both  external  and  domestic  demands  as  well  as  increased 
investment. An agreement with the IMF in April 2017 on a three-year programme worth $285 
million to underpin economic reforms and encourage investors also restored confidence. 

The largest share in the sectoral structure of GDP is held by industry (17%) and trade services 
(16%),  followed  by  transport  and  communication  services  (10%),  agriculture,  forestry  and 
fishing (9%), public administration (9%), construction (8%), real estate, renting and business 
activities (7%), and health and social work (6%). 

An improved business environment, sustained growth rates, and relatively moderate inflation 
were the results of the first generation of reforms that started a decade ago. Recent challenges 
for  Georgia's  economy  include  socioeconomic  vulnerabilities  such  as  the  ongoing  fiscal 
consolidation  which  could  weaken  domestic  demand,  as  well  as  persistently  high 
unemployment  due  to  the  mismatch  in  skills  and  large  regional  disparities.  Georgia  also 
remains  vulnerable  to  external  shocks  due  to  external  imbalances  (notably,  a  large  current 
account deficit and significant external debt) and the decreasing but still high dollarization of 
the financial sector.  

In 2016, total bilateral EU-Georgia trade decreased by 2.3% year-on-year and reached EUR 
2.5  billion.  EU  imports  from  Georgia  amounted  to  around  EUR  513  million.  This  marks  a 
decrease of 25% compared to 2015 when EU imports from Georgia totalled around EUR 736 
million. The decrease in EU imports from Georgia is nominal, driven by changes in the prices 
of  Georgia's  exports  of  mineral  fuels  (-81%),  nuts  (-8%),  fertilizers  (-60%),  and  mining 
products (-4%). Those four products account for almost 60 % of total Georgian exports to the 
EU.  

The value of EU exports to Georgia slightly increased by 6.7% to EUR 2 billion. EU exports 
to Georgia are concentrated on machinery appliances and mineral products . 

According to  Eurostat data, in  2016, the EU was Georgia's key trading partner, with a  30% 
share in its total trade (27% before the entry into force of the DCFTA), followed by Canada 
(15%),  Turkey  (around  13%),  Russia  (about  7%),  China  (6%)  and  Azerbaijan  (over  5%). 
Trade with Georgia accounts for 0.1% of EU's total trade. Main EU importers from Georgia 
are Bulgaria, Italy and Germany. 

3.2.  GSP+ Statistics 

Figures  1-3 below  describe  Georgia's  utilisation of  GSP+  in  the  context  of  the  EU's  overall 
imports from Georgia. 

In  2016,  out  of  total  EU  imports  from  Georgia,  48%  (EUR  244  million)  qualified  for  trade 
preferences  under  GSP+.  Out  of  this  figure,  1%  (EUR  6.6  mio)  entered  the  EU  effectively 
using  GSP+.  In  2014,  16%  (EUR  100  million)  of  total  EU  imports  from  Georgia  had  used 
GSP+.  Since  the  provisional  application  of  the  EU-Georgia  DCFTA  in  2014,  EU  imports 
from  Georgia  under  GSP+  have  decreased  by  93%.  Georgia's  utilisation  rate  of  GSP+  has 
been constantly declining. This reflects the transition from GSP+ to trade under the DCFTA. 

18 

 
Source for all statistics: Eurostat data as of September 2017.  

Figure 1 

Georgia  - Imports to the EU, 2014-2017 

Figures in thousand EUR 

2014 

2015 

2016 

2017 (Q1-2) 

Total imports to EU 
GSP+ eligible imports 
GSP+ preferential imports 
GSP+ utilisation rate 

621,360 
213,860 
100,401 
46.9% 

688,607 
312,638 
31,302 
10.0% 

513,241 
244,174 
6,562 
2.7% 

334,060 
0 
0 
N/A 

Trend 2014-
2016 

-17.4% 
14.2% 
-93.5% 
-94.3% 

Figure 2 

Georgia - Imports to the EU, 2014-2016 

688.607 
4.55% 

40.86% 

621.360 

16.16% 

18.26% 

800.000

700.000

600.000

500.000

400.000

300.000

200.000

65.58% 

54.60% 

100.000

0

)
R
U
E
d
n
a
s
u
o
h
t
(

U
E
e
h
t
o
t

s
t
r
o
p
m

I

513.241 
1.28% 

46.30% 

52.42% 

2014

2015

2016

GSP+ preferential imports

GSP+ eligible imports
which do not use GSP+
preferences

Other preferential and
non-preferential imports

19 

 
  
  
  
 
 
 
 
 
 
 
 
 
Figure 3 

Georgia -  
Product Diversification of GSP+ Preferential Imports, 2016 

5% 

3% 

15% 

17% 

Glass and glassware

Iron and steel

60% 

Edible fruit and nuts; peel of citrus
fruits or melons

Preparations of vegetables, fruit,
nuts or other parts of plants

All other chapters

20 

 
 
 
 
 
ANNEX 

Georgia – Treaty Ratification and Reporting  

Convention 

Status of ratification / 
reservations1 

Compliance with reporting obligations to 
monitoring bodies 

Accession: 11.10.1993 

No reporting obligations 

No reservations 

Accession: 02.07.1999 

Compliant with reporting obligations 

No reservations 

Latest report submitted on 03.07.2014. 

Next report due on 02.07.2020. 

Accession: 25.01.1994 

Compliant with reporting obligations 

No reservations 

Latest report submitted on 25.06.2012. 

Next report due by 31.07.2019. 

Accession: 25.01.1994 

Lack of compliance with reporting obligations 

No reservations 

Last report was due on 30.06.2007. 

Latest national report submitted on 19.06.2001. 

Accession: 22.09.1994 

Compliant with reporting obligations 

No reservations 

Latest report submitted on 27.06.2012.  

Next national report due on 01.07.2018. 

Accession: 22.09.1994 

Lack of compliance with reporting obligations 

No reservations 

Last report was due in 2011. 

Latest national report submitted on 24.11.2003. 

Accession: 21.04.1994 

Compliant with reporting obligations 

No reservations 

Latest national report published on 27.06.2016. 

Ratification: 1993 

Compliant with reporting obligations 

Latest CEARC comments: Direct Request 2016. 

Ratification: 1999 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2014, 
Observation 2014. 

Ratification: 1993 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2014, 
Observation 2014. 

Ratification: 1993 

Compliant with reporting obligations 

1. Convention on the 
Prevention and Punishment 
of the Crime of Genocide 

2. International Convention 
on the Elimination of All 
Forms of Racial 
Discrimination 

3. International Covenant on 
Civil and Political Rights 

4. International Covenant on 
Economic, Social and 
Cultural Rights 

5. Convention on the 
Elimination of All Forms of 
Discrimination against 
Women 

6. Convention against 
Torture and Other Cruel, 
Inhuman or Degrading 
Treatment or Punishment 

7. Convention on the Rights 
of the Child 

8. Convention concerning 
Forced or Compulsory 
Labour, No. 29 

9. Convention concerning 
Freedom of Association and 
Protection of the Right to 
Organise, No. 87 

10. Convention concerning 
the Application of the 
Principles of the Right to 
Organise and to Bargain 
Collectively, No. 98 

11. Convention concerning 
Equal Remuneration of Men 
and Women Workers for 
Work of Equal Value, No. 
100 

1 Reservations do not apply in the ILO system, so there is no relevance to providing information on reservations  
   under each of these conventions. 

21 

 
 
 
 
 
 
                                                 
12. Convention concerning 
the Abolition of Forced 
Labour, No. 105 

13. Convention concerning 
Discrimination in Respect of 
Employment and 
Occupation, No. 111 

14. Convention concerning 
Minimum Age for 
Admission to Employment, 
No. 138 

15. Convention concerning 
Minimum Age for 
Admission to Employment, 
No. 182 

Ratification: 1996 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2016 

Ratification: 1993 

Compliant with reporting obligations 

Ratification: 1996 

Compliant with reporting obligations 

Latest CEACR comments: Direct Request 2015 

Ratification: 2002 

Compliant with reporting obligations 

16. CITES 

Accession: 13.09.1996 

Lack of compliance with reporting obligations 

No reservations 

Biennial Reports for 2015-2016 due. 

Annual Report for 2016 due. 

Latest Annual Report submitted on 09.08.2016. 

17. Montreal Protocol 

Accession: 21.03.1996 

Compliant with reporting obligations 

No reservations 

Most recent annual data for 2016 was submitted. 

18. Basel Convention 

Accession: 20.05.1999 

Lack of compliance with reporting obligations 

19. Convention on 
Biological Diversity 

20. UN Framework 
Convention on Climate 
Change 

No reservations 

Latest (2013 annual) report submitted 22.01.2015. 

National report for 2005 still due. 

Accession: 02.06.1994 

Compliant with reporting obligations 

No reservations 

Georgia made a declaration 
to the CBD at accession.2  

Revised National Biodiversity and Action Plan 
submitted on 26.09.2014. 

Latest (Fifth National) Report submitted on 
10.06.2015.  

Accession: 29.07.1994 

Compliant with reporting obligations 

No reservations 

First National Communication submitted on 
10.08.1999. 

Second National Communication submitted on 
02.10.2009. 

Third National Communication submitted on 
24.02.2016. 

First Biennial Update report submitted on 18.07.2016. 

21. Cartagena Protocol on 
Biosafety 

Accession: 04.11.2008 

Lack of compliance with reporting obligations 

No reservations 

First National report not submitted. 

Second National report submitted on 22.11.2013. 

Third National report submitted on 05.11.2015. 

2 Under the GSP Regulation this declaration is permissible, as it is not prohibited by the Convention and for GSP+ purposes 
is not considered to be incompatible with the object and purpose of the Convention as it does not meet criteria of point (c) of 
Article 9(1). 

22 

 
 
 
 
 
 
 
                                                 
22. Stockholm Convention 

Ratification: 04.10.2006 

Lack of compliance with reporting obligations 

No reservations 

First National Report not submitted. 

Second National Report submitted on 03.11.2011. 

Third National Report submitted on 03.09.2014. 

23. Kyoto Protocol 

Accession: 16.06.1999 

No reporting obligations 

24. UN Single Convention 
on Narcotic Drugs 

25. UN Convention on 
Psychotropic Substances 

26. UN Convention against 
Illicit Traffic in Narcotic 
Drugs and Psychotropic 
Substances 

27. UN Convention against 
Corruption 

Reviewing is fulfilled by the International Narcotics 
Control Board (INCB). 

No reservations 

Accession: 27.03.2000 

No reservations 

Accession: 08.01.1998 

No reservations 

Accession: 08.01.1998 

No reservations 

Accession: 04.11.2008 

Georgia made a reservation 
to this Convention.3  

Reviewing is fulfilled by the UN Office on Drugs 
and Crime (UNODC). Latest UNODC review 
executive summary and UNODC country review 
published on 30.05.2012.  

3 Under the GSP Regulation this reservation is permissible, as it:  
(a) is not prohibited by the Convention; 
(b) for GSP+ purposes is not considered to be incompatible with the object and purpose of the Convention as it does not meet 
criteria of point (c) of Article 9(1). The Convention does not set out a process for determination of the incompatibility with 
the object and purpose of the Convention. Therefore provisions of Article 9(1)(c)(ii) are applied to determine whether the 
reservation is incompatible with the object and purpose of the Convention. No EU Member State objected to the reservation 
opposing the entry into force of the Convention between them and Georgia. 

23