The number of trade partners of Georgia has increased during the past decade which mostly was the result of signing an Association Agreement between the EU and Georgia on 27 June 2014. This agreement has entered into force since 1 July 2016 and today the EU is the main trade partner of Georgia.
The agreement introduced a preferential trade regime (Deep and Comprehensive Free Trade Area), which based on having better-matched regulations, increases market access between the EU and Georgia. It’s also noteworthy that Georgia has been a member of the World Trade Organization since 2000.
According to World’s Top Exports, Georgia shipped US$2.3 billion worth of products around the globe in 2017. The exact list showcasing 15 of Georgia’s top trading partner countries that imported the most Georgian shipments by dollar value during 2017 looks like this:
- Russia: US$368.1 million (15.9% of total Georgian exports)
- Turkey: $202.5 million (8.7%)
- China: $191.6 million (8.3%)
- Bulgaria: $173.2 million (7.5%)
- Armenia: $153.5 million (6.6%)
- Azerbaijan: $124.3 million (5.4%)
- United States: $119.6 million (5.2%)
- Ukraine: $90.8 million (3.9%)
- Romania: $88.8 million (3.8%)
- Italy: $65.7 million (2.8%)
- Switzerland: $60.1 million (2.6%)
- Spain: $58.9 million (2.5%)
- Uzbekistan: $58.7 million (2.5%)
- Iran: $58.2 million (2.5%)
- Belarus: $47.4 million (2%)
Around 29% of Georgia’s trade takes place with the EU. As for EU export to Georgia, after the information given by European Commission, it is amounted to €1.96 billion in 2016. The key export products are mineral products, machinery and appliances, chemical products and transport equipment.
Georgia’s main imports are oil, motor cars, pharmaceutical products, wheat and meslin, sugar and electrical equipment. The list of main import partners includes – Russia, Turkey, Ukraine, Azerbaijan, Germany, USA and so.
On January 1, 2008, Georgia signed Free Trade Agreement with China too and became the first country from Caucasus region to have such a deal with it. According to this agreement – honey, wine, tea, mineral water, vegetables and other agricultural products will be exported to China with zero tariffs and without any more custom fees or transition period.
But this is not a first time when two countries forged strong ties. Following the information given by Georgian National Wine Agency, our wine was the most wanted export product lately and around 7,585,407 bottles of Georgian wine were exported to China last year. In general, exactly this country takes third place as the largest importer of Georgian wine.
The DCFTA and Free Trade Agreement with China allows Georgian trade-related laws to generally match internationally legal frameworks. Georgia’s adoption of leading trade countries’ approaches to policy-making will improve governance, strengthen the rule of law and offer more economic opportunities by expanding our marker. That will also attract foreign investments to Georgia.
Author: Tamar Devdariani © BUSINESS GEORGIA