Georgia: Georgia signs free trade agreement with China

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Georgia: Georgia signs free trade agreement with China

intl-updates

By way of further developing the country's economy, facilitating trade and liberalising its tax regime, Georgia has signed an agreement with China on the creation of free trade zones in Georgia.

The China-Georgia Free Trade Agreement (FTA) was ratified in May 2017 and the memorandum of understanding was signed by the Chinese Vice Minister of Commerce and Georgia's First Vice Prime Minister and Minister of Economy and Sustainable Development, at the Tbilisi Belt and Road Forum on November 28 2017. The FTA came into effect as of January 1 2018.

This FTA will create more scope for trade, services and investment activities within the Eurasian area covering 17 components, including trade in goods, services and intellectual property rights. It also encompasses new topics such as e-commerce, market competition and the environment.

Georgian exports to China include copper ore, iron ore, nuts, wine, spirits, gold and semi-finished products. China exports construction machinery, manufacturing equipment, steel, electronics, textiles, garments and household appliances to Georgia.

With the agreement entering into force Georgia has eliminated tariffs on 96.5% of Chinese exports, while almost 91% of China's imports from Georgia have become tariff-free immediately. A further 3% will be exempted from tariffs within five years.

As stated by Giorgi Kvirikashvili, Georgia's prime minister, "Georgia is the only country in the region which has free trade agreements with both the EU and China".

At this moment, Georgia has FTAs signed with four European countries – Iceland, Liechtenstein, Norway and Switzerland. The EU and China are among Georgia's largest trading partners. Georgia is the 11th country to have concluded an FTA with China and is the only country in the region with such an agreement with China. Other countries which have free trade agreements with China are mostly located in Western Europe or in the East Asia.

Years ago, caravans loaded with silk and spices from China travelled all the way to Europe and the British Isles. The new 'Silk Road' – by means of highways, railways and air – will carry the modern-day equivalent of silk and spices – energy, natural resources, and manufactured goods – via Georgia, thus restoring its strategic importance as a transportation-infrastructure hub in the region and a transit corridor between Europe and Asia.

lopatina.jpg

Irina Lopatina

Irina Lopatina (irina.lopatina@eurofast.eu)

Eurofast Global, Tbilisi

Tel: +995 322180310

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

Luxembourg saw the highest increase in tax-to-GDP ratio out of OECD countries in 2023, according to the organisation’s new Revenue Statistics report
Ryan’s VAT practice leader for Europe tells ITR about promoting kindness, playing the violincello and why tax being boring is a ‘ridiculous’ idea
Technology is on the way to relieve tax advisers tired by onerous pillar two preparations, says Russell Gammon of Tax Systems
A high number of granted APAs demonstrates the Italian tax authorities' commitment to resolving TP issues proactively, experts say
Malta risks ceding tax revenues to jurisdictions that adopt the global minimum tax sooner, the IMF said
The UK and what has been dubbed its ‘second empire’ have been found to be responsible for 26% of all countries’ tax losses by the Tax Justice Network
Ireland offers more than just its competitive corporate tax environment but a reduction in the US rate under a Trump administration could affect the country, experts tell ITR
The ‘big four’ firm was originally prohibited from tendering for government work until December 1 due to its tax leaks scandal, but ongoing investigations into the matter have seen the date extended
Approximately 74% of MAP cases in 2023 reached a full resolution, but new transfer pricing MAP cases fell by 16%
Brazil is looking to impose the OECD’s 15% global minimum tax on multinationals; in other news, PwC is set to pull out of Fiji
Gift this article