The Free Trade Agreement between the Government of Georgia and the Government of the People’s Republic of China came into force and is implemented on January 1, 2018. Georgia-China FTA is the first FTA China has signed with Eurasian countries as well as the first Free Trade Agreement China has initiated and achieved since the Belt and Road Initiative was put forward.
In terms of the trade in goods, Georgia will impose zero tariffs on 96.5% of China’s products immediately, covering 99.6% of the total imports from China; China will impose zero tariff on 93.9% of Georgia’s products, covering 93.8% of China’s total imports from Georgia, of which 90.9% (taking up 42.7% of imports) will have zero tariffs immediately and the remaining 3% (taking up 51.1% of imports) will gradually have zero tariff within 5 years.
Georgian wine, mineral waters, honey, tea, fruit, vegetables and agricultural products will be exported to Chinese market of 1.4 billion consumers, with zero tariffs, without extra customs fees and without any transition period. In terms of trade in services, both sides will further open their markets to each other on the basis of their WTO commitments.
In addition Based on the FTA Agreement, tariffs on Georgian sparkling wine and still wine (less than 21 containers) will drop from the current 14% to zero, starting from the first day of next year. For still wine (over 21 containers), tariff will be cut from 20% to zero as well.
The reduction will surely boost Georgia’s wine exports to China, which has already become its third most important wine export market after Russia and Ukraine. For the 2017 year, China imported about 7,585,407 bottles of wine.
Georgia-China FTA will further improve the liberalization and facilitation of bilateral trade, and will build a more open, transparent and stable trading environment for enterprises, providing more quality and cheap products and services for people from both countries. By taking the opportunity of the effect taking of the agreement, China and Georgia will comprehensively improve both sides’ practical cooperation level, thus firmly promoting the Belt and Road construction and meet common prosperity.