The Minister of Economic Development of Georgia and the State Minister of Turkey signed the Free Trade Agreement at the Georgia-Turkey business forum held on November 21 in Tbilisi. The agreement is to facilitate the development of trade-economic cooperation between the two countries, encourage entrepreneurs to gain access to markets and support the implementation of investment projects. One of the aims of the agreement is to facilitate the growth of Georgian export to Turkey particularly in the field of agriculture.
The agreement envisages entire liberalization of trade of industrial goods as well as serous privileges in the field of agriculture, including the following:
- 0% rate instead of 70% on import of 1,250,000 bottles of Georgian wine to Turkey.
- 0% rate instead of 54% on import of 4,000 tons of oranges and tangerines to Turkey.
- 0% rate instead of 60% on import of 2,000 tons of apples.
- 20.5% rate instead of 58.5 % on import of 4,000 tons of fruit juices.
Exception is made only for a certain limited quantity of agricultural products. From Georgia the list includes the following products: milk and cream, tomatoes, citrus, natural honey, walnuts, grapes, apples, tea, canned fruits and walnuts, canned vegetables, tobacco raw stuff, cigarettes and other tobacco goods. Accordingly, preferences under the agreement on free trade cooperation do not spread on import of aforementioned goods from Turkey to Georgia.
“In the nearest future trade turnover between Georgia and Turkey will exceed 1 billion USD,” George Arveladze, Minister of Economic Development, said at the business forum. According to him, as of today, trade turnover between the two countries has reached 800 million USD. “Within the last four years we have cooperated in almost all fields and have made significant steps forward. The largest projects have been implemented, including the oil pipeline and the airports. The Batumi airport is a unique airport offering double service between Georgia and Turkey. We have done everything for business development,” Arveladze said.
The other accord signed at the business forum was the Agreement on Avoidance of Double Taxation and the Prevention of Fiscal Evasion between Turkey and Georgia.
Turkey is the largest trade partner of Georgia according to the data of January-October 2007. In that period the export of Georgia to Turkey almost doubled and reached 147,300,000$. The signed agreements are thought to further increase trade turnover between the two countries.
