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Imports and Exports in Georgia
Updated on Thursday 12th March 2020 Rate this article
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Georgia is a country that, because of its geographical position, has always engaged in important import and export activities. Located at the crossroads of Western Asia and Eastern Europe, the country has access to important terrestrial and maritime transport routes. The country’s investor friendly policies encourage many foreign investors to seek business opportunities in Georgia. Its stable economic development, liberal and free market are also important factors that encourage import and export activities.
Our company formation agents in Georgia can give you complete information about the special approvals, permits and licenses that you will need in order to engage in trade activities in Georgia.
Exports from Georgia
Georgia is a country that bases a large portion of its internal production on the cultivation of agricultural products like various fruits (grapes, citrus fruits, hazelnuts), the production of alcoholic and non-alcoholic beverages and in mining activities. Nuts are one of the main products exported by Georgia, alongside scrap metal, copper ore, vehicles, fruits and wine.
Georgia is an important and successful exporter. The range of products includes mainly agricultural produce or foodstuffs but other items like vehicles or metals are also distributed to other countries. The National Statistics Office of Georgia recently published the data available for the last five years of trade. As the numbers indicate, the total trade value increased year on year. In 2011 the export index was 2.186 billion US dollars and in 2014 is reached 2.860 billion US dollars. The value of Georgian exports for the first half of 2015 (January-July) was 1.268 billion $.
Georgia’s most important trade partners in 2015 and in the last five years are Azerbaijan, Armenia, Turkey, Russia and Ukraine. One type of product that has seen a significant increase in demand, also in countries like the United States, is ferroalloy.
Opportunities for development
Wine, hazelnuts, mineral water and, more recently, honey are types of exported products for which Georgia has a small export share but which have a very high demand on the foreign market. Investments in agriculture for these products and many others are a good option for foreign investments in the country.
The demand for these foodstuffs is high because neighboring countries have a deficit. Mineral water is a very good example: production for mineral water could be increased with investments in key areas in the industry, especially in the technology used for manufacturing this product.
The top 8 products exported by Georgia are: ores and copper concentrate, ferroalloy, cars, pharmaceuticals, hazelnuts and other nuts, mineral fertilizer, mineral water and wine.
Imports to Georgia
Georgia imports almost all of its supplies of natural gas and oil products. Grains, pharmaceuticals, machinery and parts, metal construction materials, mobile and wireless devices, cigarettes and computers are also among the products imported by Georgia. The country mainly imports from countries like Turkey, Azerbaijan, China, Ukraine or Germany.
In 2014, Georgia’s foreign trade increased by 5% compared to the previous year and the country and the trade volume with the European Union increased by 2% compared to 2013.
If you want to invest in the trade sector in Georgia, our Georgian company formation agents can help you open a company and obtain all the necessary business permits and licenses for engaging in import and export activities. The liberal foreign trade policy in the country allows investors to enjoy facilitated trade regimes and customs procedures, low import tariffs and minimal non-tariff regulations.
China – Georgia trading relationships
Chinese investors who want to establish a company in Georgia are welcomed on this market, as the relations between the two states are becoming more and more important. Chinese businessmen are interested in investing on the Georgian market, which has improved its investment incentives.
Because the trading level between the two states is gradually increasing, the Chinese and Georgian representatives met in China to establish the Trading and Investment Council.
The meeting between the representatives of the states started at the China - Georgian Investment Forum, where the Georgian Minister of Economy provided a $7 billion investment portfolio containing various investment projects, available for Chinese investors.
It is important to know that, according to the data provided by the Minister of Economy, Chinese companies have already invested in Georgia in sectors such as:
• construction;
• roads;
• infrastructure;
• energy sector;
• banking sector.
For Georgia, China represents the fourth largest trade partner. At the same time, China is the second largest partner when referring to exports, as the Chinese market purchases 9% of the Georgian exports; our team of Georgian company formation agents can offer more details on the trading activities available here.
Investment projects between China and Georgia
One of the most important projects between the two states, Free Trade, began in 2015. The Trading and Investment Council will aim at exchanging information on the Chinese and Georgian investors and businesses. Another important project for the two states is the “One Belt, One Road”, which refers at the development project that will rebuilt the historic Silk Road.
Meet us in Tbilisi
Call us now at +995 595 11 88 22 to set up an appointment with Valeri Bendianishvili, one of our specialists in company formation in Tbilisi, Georgia. Alternatively you can incorporate your company without traveling to Georgia.
As a Business Setup Georgia LLC client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Georgia.
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