He was commenting on a deal signed by officials with their Chinese counterparts a few days earlier, the first Free Trade Agreement (FTA) with China by any former Soviet State.
Both the Georgian and the Chinese parliaments still have to ratify the agreement which is expected to enter into force by the end of the year.
“Georgia is gradually reclaiming its geostrategic function, which the country has enjoyed historically,” Mr Kvirikashvili was quoted as saying.
China has become an increasingly important trading partner for Georgia. According to Geostat, between 2009 and 2016 the value of exports to China tripled.
Nikoloz Khundzakishvili, head of the Georgian branch of the International Chamber of Commerce, told the Bulletin that the free trade deal with China will also be important for the wider region.
“This is a huge market with more than 1b customers. This will be a tremendous opportunity for Georgian products,” he said.
“Georgia will be like a link between China and our neighbourhood.”
Agricultural products, wine and mineral water are the main items exported from Georgia to China. The agreement will scrap custom duties for about 94% of Georgian products exported to China.
And it works both ways. Maya Grigolia, senior researcher, at the ISET Policy Institute in Tbilisi, said Georgia was also hoping for an increase in Chinese investment once the free trade deal comes into law, as China’s companies look to take advantage of Georgia’s liberal trade laws and deals with the European Union.
“Because of its unique geographical location, Georgia has been a hub for transport and international trade since ancient times,” she said.
China has already become a major investor in Georgia’s telecoms, tourism, financial and construction sectors.
ENDS
Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 330, published on May 28 2017)
