Figure 2.2 Georgia: Imports by Country Groups
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Report No. 27264-GE No. Report Georgia An Integrated Trade Development Strategy Development Trade Integrated An Georgia Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank World Document of the Asia Region Europe and Central Reduction and Economic Management Unit Poverty 5, 2003 November Strategy Development Trade An Integrated Georgia Report No. 27264-GE CURRENCY AND EQUIVALENT UNITS (Exchange Rate Effective as of November 5,2003) Currency Unit = Lari US$1 .OO = GEL 2.10690000 WEIGHTS AND MEASURES Metric System FISCAL YEAR January 1 to December 3 1 ACRONYMS AND ABBREVIATIONS ADR Accord Dangereux Routiers ADP Agricultural Development Project AES The AES Corporation AJC Apple Juice Concentrate ASYCUDA Automated System for Customs Data BEEPS Business Environment and Enterprise Performance Survey BTC Baku-Tbilisi-Ceyhan CCOF California Certified Organic Farmers CDB Cost of Doing Business CEE Central and Eastern Europe CERMA Center for Enterprise Restructuring and Management CIF Cost, Insurance and Freight COMTRADE United Nations Commodity Trade System CIS Commonwealth of Independent States CNC Computer Numerically Controlled CMR Cargo Manifest Report CMT Cut-Make-and-Trim CODEX Codex Alimentarious Commission COMECON Council for Mutual Economic Cooperation CPI Consumer Price Index DSA Debt Sustainability Analysis EBRD European Bank for Reconstruction and Development ECA Europe and Central Asia ECAs Export Credit Agencies ECMT European Conference of Ministers of Transport EDPFU' Economic Development and Poverty Reduction Program EGA Export Guarantee Agency EU European Union EUR Euro FA0 Food and Agriculture Organization FDA Food and Drug Administration FDI Foreign Direct Investment FSC Forestry Stewardship Council FIAS Foreign Investment Advisory Service FOB Free on Board FSU Former Soviet Union .. 11 FTA Free Trade Agreement GATT General Agreement of Tariffs and Trade GBC Georgian Business Confederation GDP Gross Domestic Product GEL Georgian Lari GEOPRO Georgian Pro-Committee for Trade and Transport Facilitation GEPA Georgian Export Promotion Agency GEPLAC Georgian-European Policy and Legal Advice Center GIC Georgian Investment Council GHA Georgia Hardwoods Association GMP Good ManufacturingPractice GNFS Goods and Non-Factor Services GOG Government of Georgia GOST Gosudarstrennyi Standarty-ex-Soviet System of Standards GSP Generalized System of Preferences HACCP Hazard Analysis of Critical Control Points IDA InternationalDevelopment Association IFC InternationalFinance Corporation IF1 InternationalFinancial Institution IMF InternationalMonetary Fund IS0 International Standard Organization IT Information Technology ITB Internationale Tourismus - Borse L/C Letter of Credit LDCs Less Developed Countries LIBOR London Inter Bank Offering Rate LPG Liquefied Petroleum Gas MDF Medium Density Fiberboard MEITT Ministry ofEconomy, Industry, Trade and Tourism MFN Most-FavoredNation MIGA Multilateral Investment Guarantee Agency MoF Ministry ofFinance MOT Ministry ofTransport NBG National Bank of Georgia NTA National Tourism Authority OECD Organization for Economic Cooperation and Development OPIC Overseas Private Investment Corporation PCA Partnership and Cooperation Agreement PER Public Expenditure Review REER Real Effective Exchange Rate SAMTREST State Industry Corporation for Viticulture and Winemaking SCD State Customs Department SDTR State Department for Tourism and Resorts SDS State Department of Statistics SGHH Survey of Georgian Household SGMS Agreement on International Railway Freight Communications SMEs Small and Medium Enterprises TACIS Technical Assistance to the Commonwealth of Independent States TBT Technical Barriers to Trade TEU Twenty-foot Equivalent Unit TIR Transport International Routier ... 111 TLE Task Level Efficiency TRACECA Transport Corridor Europe, Caucasus, Central Asia TRIPS Trade-Related Intellectual Property Rights TS Transit Service TTF Trade and Transport Facilitation UAE United Arab Emirates UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Program USAID United States Agency for International Development VAT Value Added Tax voc Vehicle Operating Cost WTM World Travel Market WTO World Trade Organization Country Director: Donna Dowsett-Coirolo Sector Director: Cheryl W. Gray Sector Manager: Samuel Otoo iv CONTENTS .. EXECUTIVE SUMMARY .............................................................................................................. vi1 CHAPTER 1. Macroeconomic Setting .............................................................................................. 1 Recent Economic Developments ........................................................................... 1 Stabilization and Structural Reforms .............................................................. 1 The Economy ................................................................................................... 3 Poverty............................................................................................................. 5 InternationalPrice Competitiveness ...................................................................... 6 The Business Climate ............................................................................................ 8 CHAPTER 2 . Trade and Investment Performance....................................................................... 11 External Trade ..................................................................................................... 11 Merchandise Trade........................................................................................ 11 Trade in Services .................................................................................. Foreign Direct Investment (FDI) Flows ............................... Private Income and Transfers ....................................................................... 16 CHAPTER 3. Trade Policy and Market Access ............................................................................ -18 The Trade Regime................................................................................................ 18 Import Regime ................................ ......................................................... 18 Export Regime ................................................... The Investment Regime ................ Terms of Market Access .................................... Free Trade Agreements with CIS Countries.............................. Market Access to Non-CIS Countries................ .................... 23 Relations with the WTO .................................... Georgia’s Accession to the WTO ................................................ Post-Accession Issues ........................................................... Trade and Investment Related Institutions........................................................... 26 Conclusion ........................................................................................................... 28 CHAPTER 4 . Transport and Trade Facilitation in Georgia ........................................................ 29 International Transport Analysis .......................................................................... 29 Transport Sector ......... ............................................................................. 29 Transport Costs for Tr and Transit through Georgia.......... Explanatory Factorsfor Excess Transport Costs ...................... Current and Potential Transit ............................................................................... 35 Current Transit ... .................................................................. The Future of Transit......................................... .............. West-East Transit ............................... ................................... 36 East- West Transit .................................................................. ........37 Potential Impact of Conflict Resolutions in the Region ........................... 37 Proposed Strategy and Recommendations ........................... ........................... 38 Institutional Development ofBorder Agencies .................................................... 38 Implementation of Customs Reform ............. ........ ........... 38 Upgrading Transport Infrastructure..................................................................... 41 V CHAPTER 5. Finance Support Services......................................................................................... 42 The Financial System ........................................................................................... 42 The Banking Sector ........................................................................................ 43 Export Finance ..................................................................................................... 47 Government’s Initiatives to Increase Access to Finance ............................... 48 Conclusion ........................................................................................................... 50 CHAPTER 6 . Agro-Food Exports................................................................................................... 51 Introduction.......................................................................................................... 51 Wine Industry....................................................................................................... 52 Grape Supply .....................................