Georgia, India to Launch Free Trade Talks

Georgia and India are to launch free trade negotiations. Georgia’s Ministry of Economics reports that a joint research group, studying a free trade agreement (FTA) economic expediency between the two countries, held a meeting on the issue.

The meeting was attended by the Deputy Minister of Economy and Sustainable Development of Georgia, Genadi Arveladze, and the Additional Secretary of the Ministry of Commerce and Industry of India, Bidyut Behari Swain.

Within the framework of the meeting, a document was signed on completion of the research. The study conducted by the joint group showed that an FTA between India and Georgia will have a positive effect on the economic prosperity and bilateral trade between the sides, and on cooperation in the field of investments and services. The future deal will also create new opportunities for business.

Arveladze said the FTA will be mutually beneficial and noted that the conclusion of the joint group recommends the parties start negotiations by establishing a special Committee for this purpose.

“We will summarize the results of the research after the governments of India and Georgia make the relevant decisions. I am sure that we will soon start working on a free trade agreement,” Swain stated.

The study reads that in case of a free trade deal, export from Georgia to India will increase in the fields of metallurgical and medical products, wine and other alcoholic and non-alcoholic beverages, processed agricultural products, etc.

Import from India is predicted to increase in the field of cement, ores, mineral fuels, plastics, electrical equipment and other products.

In the field of services, the study revealed that mutual beneficial trading potential exists in business and professional services, telecommunication, computer, tourism, audio-visual and other sectors.

Georgia has free trade deals with Turkey, the European Union (EU), the European Free Trade Association (EFTA) countries and with the Commonwealth of Independent States (CIS) countries - Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Tajikistan and Uzbekistan.

Georgia is the first country in the region to have a free trade agreement with China. In June 2018, Georgia and Hong Kong signed a free trade agreement which will boost market access and investment flow between the two countries.

By Thea Morrison

Image source: Ministry of Economy