Georgia-China free trade deal comes into play from January 2018
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Free Trade Agreement between Georgia and China has come into play on January 1, 2018, making Georgia the first country in the region to have such a deal with China.
Starting from January 1, 2018 Georgian wine, mineral waters, honey, tea, fruit, vegetables and agricultural products will be exported to China and its market of 1.4 billion consumers, with zero tariffs, without additional customs fees and without any transition period.
Georgia and China began discussing the possibility of establishing a free trade regime back in September 2015, however, the Memorandum on finalising a Free Trade Agreement was signed in October 2016 and the agreement was finally signed in May 2017.
In recent years Georgia has forged strong ties with China through bilateral trade and economic cooperation; Georgian wine is one of the most promising exported products to China.
Last year, 7,585,407 bottles of Georgian wine were exported to China, says the Georgian National Wine Agency. This is a 43 percent increase compared to 2016. With these numbers, China takes third place as the largest importer of Georgian wine.
China is one of Georgia’s top trading partners as well. Georgia’s top 10 trade partners in January-November 2017 made for 66.5 percent of the country’s total trade turnover, with Turkey ($1.41 billion), Russia ($1.05 billion) and China ($834.3 million) filling the top three spots.
Following the free trade agreement, Georgia and China had to work on developing innovative zones and joint industrial technologies. For this reason Georgia and China signed a Memorandum of Understanding on developing economic zones and entrepreneurial capacity between the countries within the Tbilisi Silk Road Forum in November 2017.
While mentioning the Silk Road Forum it should be noted that Georgia and China are also strengthening cooperation within the ‘One Belt, One Road’ initiative – a vast development strategy starting in China and spanning across Eurasia which includes reviving the Silk Road route for trade.
Within the ‘One Belt, One Road’ initiative Chinese corporation CEFC China Energy Company Limited purchased 75 percent of Poti Free Industrial Zone shares. Poti Free Industrial Zone is strategically located adjacent to the Black Sea port city of Poti – the largest sea port in Georgia. This brings significant logistics and supply chain advantages to companies looking for a straightforward and tax-friendly business environment.
Meanwhile, another Chinese corporation ZPMC a famous equipment manufacturing company in China signed a deal with the Anaklia Development Consortium – a company which is responsible for building the Anaklia Deep Sea Port - to become its long-term partner.
ZPMC will invest $50 million in construction of Anaklia Deep Sea Port and attract additional investments from Chinese financial institutions.
The Chinese corporation will also supply Anaklia Deep Sea Port with some of its products such as large-scale container machinery and a bulk cargo handling machine.
Chinese corporation ZPMC will be involved in the construction of Georgia’s largest port Anaklia Deep Sea Port, on the shores of the Black Sea city of Anaklia, near Georgia’s breakaway Abkhazia region.
Georgia and China signed a Memorandum of Understanding on developing economic zones and entrepreneurial capacity between the countries.
Georgia’s Minister of Internal Affairs Giorgi Mgebrishvili and Vice Prime Minister and Public Security Minister of China Guo Shengkun has signed an agreement of cooperation between Georgian and Chinese law enforcers against crime.
A joint representation of a state-owned shareholding company Partnership Fund (PF) and a Georgian Chamber of Commerce and Industry (GCCI) has been opened in the Chinese city of Guangzhou.
Georgia is invited as an "important guest” at an upcoming exhibition in Shanghai, China, announced Georgia’s Ministry of Economy Dimitry Kumsishvili today.
Tourism companies registered in Georgia will be able to bring tourists from China to Georgia and other countries easier, announced Georgia’s Economy Minister Dimitry Kumsishvili.
Georgia’s Economy Minister Dimitry Kumsishvili has participated in a joint People's Bank of China - International Monetary Fund high-level conference on the Belt and Road Initiative (BRI).
China will help Georgia develop a Trans-Caspian international transport corridor, the so called ‘middle corridor’ within the "One Belt, One Road” initiative, announces Georgia’s Ministry of Economy.
Georgia and Hong Kong are signing a free trade agreement by the end of this month, Georgian Prime Minister Giorgi Kvirikashvili has announced.
Georgia and China are strengthening ties in the field of cinema industry, signing a memorandum to start joint production and support distribution of Georgian movies in China.
Georgia’s external trade grew by 22.6 per cent in January-August 2018 and reached $8.1 billion, says the National Statistics Office of Georgia (Geostat).
Prime Minister of Georgia Mamuka Bakhtadze has started his visit to China and has held his first meeting with the Chairman of the Board of Directors of the Bank of China, Siqing Chen in Shanghai today.
Prime Minister of Georgia Mamuka Bakhtadze has attended a welcome banquet held by Chinese President Xi Jinping for leaders attending the China International Import Expo (CIIE).
More than 53 Georgian companies are showcased at the China International Import Expo, a large import fair that began in Shanghai today and aims to send the message that China wants to buy more goods from abroad.
Georgia and India are one step closer to launching free trade talks: a joint feasibility study on a free trade agreement has been completed, and confirms that such a deal would have a positive impact on the economic welfare of both countries.
A Georgian chamber of commerce has opened in Guangzhou, China as part of the One Belt, One Road initiative of the Chinese President Xi Jinping aiming to enhance regional connectivity.
State-owned Chinese export and credit insurance company Sinosure is ready to expand its relationship with Georgia and support Chinese investments in Georgia, the company said while meeting with the Georgian Partnership Fund yesterday.
Georgian Agriculture Minister Levan Davitashvili met with Chinese investor, head of the Imported Products Industry Centre of Anhui Province, Yang Si today.
Georgia and China has signed a memorandum which aims popularizing Georgian tobacco and tea, supporting business in Georgia’s black sea region of Adjara.
The implementation of the Free Trade Agreement between Georgia and China over the past five years was discussed on Friday by the Georgian Deputy Economy Minister Genadi Arveladze and Han Yong, the Department Head of WTO Affairs of the Chinese Commerce Ministry, in a joint commission meeting held in the Georgian capital Tbilisi.
Georgian Prime Minister Irakli Garibashvili said in an interview with China Central Televsion the trade turnover between Georgia and China had grown by 400 percent following the signing of the free trade agreement between the two countries in 2018, adding China had “very rapidly” become the third-largest trading partner of Georgia.
Priority areas of economic cooperation were discussed on Monday in a meeting between Georgian Economy Minister Levan Davitashvili and Wang Wentao, the Chinese Minister of Commerce, the Georgian Ministry of Economy said.