FTA opens up a new era of bilateral trade cooperation
Recently, Zhong Shan, Minister of Commerce of China, and George Gahariya, Minister of Economy and Sustainable Development of Georgia, signed the Free Trade Agreement between the Government of the People's Republic of China and the Government of Georgia on behalf of the two governments. This is the only FTA in the list of effects of the the Belt and Road World Cooperation Summit Forum. On May 14, during the parallel theme meeting of "Promoting Trade Facilitation" of the "the Belt and Road" World Cooperation Summit Forum, George Gaharia, in an interview with reporters, expressed that he was optimistic about the future of China Georgia FTA.
This year marks the 25th anniversary of the establishment of diplomatic relations between Georgia and our country. The FTA just signed by both sides has a significant meaning, which will open up a broad trading prospect for our country and Georgia, and open up a new era of trade cooperation between the two countries, "said George Gakhalia.
Georgia is a major node on the Silk Road Economic Belt and established diplomatic relations with China in 1992. After the establishment of diplomatic relations, the two countries have had close cooperation in trade, and now China is Georgia's fourth largest trading partner, third largest import source country, and second largest wine export market.
Georgia Gaharia said that Georgia is a small country, but its economic policy is very open. Now it has signed FTA with the EU, Türkiye, Russia and other neighboring countries, and this signing of FTA with China has serious implications. Georgia's policy is to create channels for capital transactions between large economies.
In order to achieve this policy, there has been an acceleration in the development of Sino Georgian FTA negotiations: feasibility studies were launched in March 2015, and negotiations were officially launched in December of the same year. In September of the following year, after three rounds of formal negotiations and three informal discussions, the negotiations were substantively completed and the agreement text was officially signed at this forum. The China Georgia FTA is expected to take effect by the end of this year or early 2018.
The signing of the Free Trade Agreement laid the foundation for capital transactions, "George Gaharia stated, stating that Georgia is the world's least taxed single tax country with the best business environment in the world. Moreover, in the first quarter of this year, Georgia's GDP increased by 5% year-on-year, and its foreign trade volume increased by 18% year-on-year. The prospects for economic development are promising, and it is expected that after the establishment of the free trade zone, more Chinese investment will come to Georgia.
It is understood that Chinese enterprises are currently investing and collaborating in various fields in Georgia, such as banks, Free Industrial Park, World Economic Zones, mineral resource development, power, commerce, building materials, etc. They have also undertaken infrastructure construction projects such as highways, railways, and wind power. Collaboration in electric locomotives, port construction, railway transportation, and other areas is also accelerating.
George Gaharia introduced that the key areas of the China Georgia Free Trade Agreement include agriculture, infrastructure, and power, with a scale covering 17 chapters such as goods trading, service trading, intellectual property, and new topics such as e-commerce, competition, and environment. Strengthening cooperation in these areas is conducive to promoting the addition of investment transactions between China and Georgia.
"Georgia is a major country along the" the Belt and Road ", and the cooperation of the China Georgia FTA means not only between the two countries, but also close to the cooperation between China and other countries." George Gaharia said that as the first free trade agreement signed between China and countries in the Eurasian region, Georgia can provide very good services through the China Georgia FTA, and help add transactions and contributions between China and large economies such as the EU and Türkiye.
