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What is the future of Georgian-US trade relations? Featured

What is the future of Georgian-US trade relations?

On October 25 in "Courtyard Meriote" was held a meeting of the American-Georgian Business Council. The parties have issued a memorandum under which issued the certificates of conformity in Georgia can be acknowledged on the U.S. market. How assure the representatives of the Georgian authorities and the business community, this fact will help to design a free trade agreement. 

Although independent experts doubt that in the near future Georgian products will be attractive to the American market. Economists estimate that Georgia does not have sufficient production and moreover, does not meet the standards of the U.S. market.

Georgian Prime Minister Nika Gilauri in an interview with the media said that at such meetings as the American-Georgian Business Council, from year to year, growths the number of American companies who are interested in the Georgian business community:

"These are companies that already have invested or plan to do so in the future. Today, when the world economy is in a rather critical situation, Georgia remains very serious micro parameters, continues economic growth and thus becomes more attractive to international investors."

On October 25, in live of the Free Radio, the Advisor to the Prime Minister for Economic Affairs Vakhtang Lezhava with the same fervor spoke about the two memoranda, which were drawn on the American-Georgian Business Council:

"American investment fund that invests outside the U.S., gave credit to the Georgian company "Teliani Valley ", and for us it is important to develop the wine sector and agriculture as a whole. The second - an agreement between the American National Standards Institute and the Center for Accreditation of Georgia, under which a certificate of compliance will be recognized in the U.S. market, which itself will contribute to the development of free trade. "

About U.S. support said the U.S. Ambassador to Georgia John Bass: "We are witnesses to the fact that at this conference, there are more American business companies who are interested in investment relations with Georgia in the future. I think this is evidence of progress in this area of Georgia and the deepening economic and trade relations between America and Georgia. We will continue to assist Georgia in economic development, job creation and income growth of Georgian citizens. "

What a real chance have Georgian products to enter the American market and what path it should take for this? What areas of Georgia's economic are interests to American business? Experts in economics argue that today Georgia is really not having too much, but by itself, opening up markets means the growth of investors' interest.

According to Nodar Khaduri "we should not have the illusion that even if we start up the American market, Americans are put off everything and will only buy Georgian wine or other products. We have serious costs in order to take our place in the international market. It should be noted, however, that Georgia has a very small market; no one will come here for investing for the domestic market. This is not an incentive for serious investors. "

Structure of Foreign Trade of Georgia proves that at this stage, the trade relations with America are not critical for the country, and even if it was so, it would be not so easy to get there, says Khaduri:

"Our exports are, in fact, lames, especially the export of our products in America. There are several reasons: firstly, the distance of the market, besides this, Americans have laid down certain barriers, meaning non-tariff barriers and more concerned with product quality, which we can't meet, based on our standards. "

Describing the investment map of Georgia, Gia Khukhashvili says that today there is no major American business in Georgia, and those companies that represent them, have left the country:

"One was the" Metromedia ", the second -" AC "- both left Georgia for different reasons. With regard to export of Georgian products to the United States, we unfortunately have no exports, and if we have anything, then this is the production, which is oriented to the market of post-Soviet countries and conforms to their standards.

According to Khukhashvili, if we consider at what stage is the economic development of Georgia, the design of a free trade agreement will not bring anything to the country:

"What will we bring to the U.S. market, if it appears to us? We do not have the products that can be sold in the U.S. market, even if we have a zero mode at all ..."

Last modified onSaturday, 03 December 2011 12:39
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