4. Competitive Trade Regimes
Georgia’s foreign trade has been growing rapidly since 2003 as a result of aggressive policy reforms to make it easier and less expensive to trade across borders.
Among the key features of Georgia’s progressive trade policy are the following:
- Low Import Tariffs: Import tariffs have been abolished on almost 90% of goods, and only three low rates remain (0%, 5% and 12%) instead of the previous 16. Georgia levies no import tariffs on machinery and equipment. The 12% and 5% import tariff rates are levied on certain types of agricultural products and construction materials. Tariffs are also applied to imports of alcoholic beverages and passenger vehicles.
- No quantitative restrictions (quotas) on imports or exports
- Equal VAT on imported and local goods
- Equal excise tax on most imported and local goods
- Very limited number of export/import licenses and permits required: As of 2006, the number of permits for import and export was reduced from 14 to 8.
Georgia offers a number of favorable trade regimes that make it an attractive production platform form to serve other markets.
- Most Favored Nation Regime (MFN) with WTO Members provides lower tariffs for WTO members.
- Generalized System of Preferences (GSP) with the USA, Canada, Switzerland and Japan provideslower tariffs on goods exported from Georgia to above mentioned countries.
- Generalized System of Preferences Plus (GSP+) with the EU allows Georgia to export 7200 products to the EU market duty free.
- Free Trade Regime with CIS Countries (except Russian Federation) allows duty free trade of goods and services.
- Free Trade with Turkey envisages entire liberalization of trade on industrial goods as well as essential preferences in the field of agriculture.
- The special Fact Finding Mission on trade issues from the European Commission visited Georgia on October 13-15, 2008. This visit could be considered as an important and concrete step on the way towards establishing FTA between EU and Georgia
|
|
