The British Ambassador to Georgia on British-Georgian Business Relations

Britain and Georgia reestablished diplomatic relations in 1992, after a 71-year hiatus. They first exchanged ambassadors in 1995, and Ambassador Justin McKenzie Smith is the eighth to have held the honorable post of British Ambassador, among the responsibilities of which is to promote business links between Britain and Georgia.

Speaking briefly on the security of investment in Georgia, the British Ambassador began by highlighting the fact that two Georgian banks and three other Georgian companies are listed on the London Stock Exchange (LSE).

“The levels of regulation and compliance that the banks and companies have had to fulfil to be listed on the LSE sends a strong message about the security of investment in this country,” he said, going on to note the three categories relating to the security of investment in Georgia.

Stability

“Stability refers to the strategic partnership between the two governments, about the British government’s rock-solid support for Georgia and its development, the EU choices, the people of Georgia who have chosen consistently to have the closest possible relationship with wider Europe. It talks about our rock-solid support for Georgia’s sovereignty and territorial integrity, and it talks about the Wardrop Strategic Dialogue, named after the first British Commissioner to Georgia here in 1919 and during Georgia’s First Democratic Republic. There is much the British Government is doing on the fundamentals of stability and support for Georgia’s development.”

Resilience

“This is about the institutions in Georgia, about putting in place the infrastructure which helps the Georgian state to withstand the inevitable natural and manmade shocks and crises, which occur in Georgia just as much as they do elsewhere in the world. There is a very strong relationship between the British and Georgian Armed Forces: they train together and serve together. We’re enormously appreciative of the contribution Georgia makes to international security in Afghanistan, Africa and other parts of the world. It’s a growing and intensely close relationship which can also be seen in our support for the establishment of a core, dedicated national security body at the heart of the government which is able to react when confronted by said shocks and crises.”

Reform

“The transformation that has taken place in Georgia over the last 15-20 years is really extraordinary. We must never lose sight of that transformation. Under that reform pillar, Britain is doing what it can to support the continuation of that transformation through people-to-people links: the Bristol-Tbilisi friendship is one of the best examples of that and it has been very exciting to be part of conversations with Mayor Rees (Bristol) and Mayor Kaladze (Tbilisi) about the possibilities of cooperation on inclusive economic growth, infrastructure, air quality and other issues that both cities experience,” the Ambassador stated.

“We are also pleased to support initiatives that aim to generate strong and sustainable economic growth. This includes our backing for the Investors’ Council, a unique body which brings the Prime Minister and his senior Ministerial team directly together with business representatives to identify opportunities and obstacles to investment, and our support for the establishment of Commercial and Tax Chambers, which are vital to giving Georgian and international investors the reassurance they need.

“Education reform is also crucial to Georgia’s young people and to ensuring the country’s long-term success. We are partnering with the Georgian Government and others on a number of initiatives, including on professional and technical education.

“The British Government’s support for Georgia is mirrored by the support provided by Georgia’s other partners, including from the EU and its Member States, the US, Switzerland, Japan and others. Taken together, this represents a major investment in Georgia and a demonstration of confidence in its future.

“As we look ahead, and as the UK leaves the EU, both governments want to put in place the framework that will support the continued growth of our relationship, including our business links. There is strong political will on both sides to ensure that the EU arrangements which today provide the framework for our relations, including the Deep and Comprehensive Free Trade Agreement, are transitioned into a bilateral agreement between the UK and Georgia.

“More immediately, we are taking a number of steps to support our shared ambition to expand economic links and to respond to growing interest from businesses in both countries. In 2017, Prime Minister Theresa May appointed her personal Trade and Investment Envoy for Georgia, Mark Pritchard MP, who, in June 2018, led the first full UK trade mission to Georgia for many years. Last month, we were pleased to host a visit to Georgia by UK Export Finance, the UK’s export credit guarantee agency, who are offering very positive terms to British companies interested in doing business in Georgia.

“There are a range of opportunities in Georgia which fit well with UK expertise and strengths, including in professional and legal services and infrastructure.

“Bristol and the South-West of England have real depth of knowledge to share on creative industries, energy efficiency and green technology. British brands are doing well in Georgia and there is room for more, both large and small. I am delighted that the boutique bakery Lily Vanilli recently opened its first branch outside of London in Tbilisi. And lastly, there is a real opportunity to match the UK’s unparalleled expertise in education at all levels with Georgia’s ambitious education reform plans.

“I realize that the financial case has to make sense: business is all about the bottom line. I am confident these are opportunities that British businesses should look at very carefully. And when you add in the connections and friendships that have developed over the last 30 years between Bristol and Tbilisi, that can make a crucial difference.”

By Katie Ruth Davies